Roberto Saavedra Orozco v. SBX Logistics, LLC, and Armando Santiago, Jr.

Summary

The court adjudicates a renewed motion for default judgment in an action alleging Fair Labor Standards Act violations and breach of contract. It denies the motion without prejudice as to Armando Santiago, Jr., because the plaintiff did not provide the required Servicemembers Civil Relief Act affidavit, but grants default judgment against SBX Logistics, LLC. The court awards unpaid wages, liquidated damages, costs, attorney’s fees, and post-judgment interest, while dismissing the overlapping breach-of-contract claim.

Holdings

1. A plaintiff seeking default judgment against a nonappearing individual defendant must file an affidavit stating whether the defendant is in military service or, if the plaintiff cannot determine that status, stating that inability. Because Orozco filed neither affidavit, default judgment against Santiago was procedurally inappropriate.
2. Default judgment against SBX Logistics was procedurally appropriate where the defendant had been properly served, failed to appear or respond, caused prejudice by halting the adversarial process, and offered no evidence of good-faith mistake, excusable neglect, or cause to set aside the default.
3. Orozco's well-pleaded allegations stated a colorable FLSA claim because they alleged an employer-employee relationship, FLSA-covered work, violations of minimum-wage and overtime requirements, and the amount of compensation due.
4. The allegations that SBX Logistics severely underpaid Orozco, paid him in cash, and failed to maintain adequate payment records established a willful FLSA violation and entitled Orozco to recover wages for three years preceding suit.
5. Orozco was entitled to $83,282.75 in unpaid minimum and overtime wages, an equal amount in liquidated damages, $870.20 in costs, $11,120 in attorney's fees, and post-judgment interest.
6. The breach-of-contract claim was dismissed because Orozco represented that he would voluntarily dismiss it if default judgment was entered on the FLSA claim and the damages overlapped.

Questions Presented

1. Whether default judgment against Santiago was procedurally appropriate when Orozco failed to file an affidavit concerning Santiago's military status under the Servicemembers Civil Relief Act.
2. Whether default judgment against SBX Logistics was procedurally appropriate under Federal Rule of Civil Procedure 55 and the applicable Fifth Circuit factors.
3. Whether Orozco's well-pleaded allegations stated a colorable FLSA claim for unpaid minimum and overtime wages.
4. Whether the alleged underpayment and failure to maintain adequate payment records established a willful FLSA violation permitting the three-year limitations period.
5. Whether Orozco was entitled to unpaid wages, liquidated damages, attorney's fees, costs, and post-judgment interest.
6. Whether Orozco's overlapping breach-of-contract claim should be dismissed after entry of default judgment on the FLSA claim.

Disposition

other