EDWIN G. TORRES, Magistrate Judge.
This matter is before the Court on Narcisa Perez Chavez ("Plaintiff") Daubert motion against Bernarda M. Arancedo's ("Defendant") expert witness, Thania Vernon ("Ms. Vernon"). [D.E. 65]. Defendant responded to Plaintiff's motion on July 16, 2018 [D.E. 74] to which Plaintiff replied on July 19, 2018. [D.E. 75]. Therefore, Plaintiff's motion is now ripe for disposition. After careful consideration of the motion, response, reply, relevant authority, and for the reasons discussed below, Plaintiff's motion is
Plaintiff filed this action on January 2, 2017 and alleges that Defendant violated the Fair Labor Standards Act ("FLSA") and the Florida Minimum Wage Act ("FMWA"). Plaintiff claims that she had an employee relationship with Defendant from January 23, 2012 through December 30, 2016. Plaintiff's earnings purportedly fell below the Federal and Florida minimum wage for the services she performed as a maid at Defendant's personal residence. Defendant denies all of Plaintiff's allegations and the matter is currently set for trial on October 9, ` with a discovery deadline of June 28, `. [D.E. 32].
The decision to admit or exclude expert testimony is within the trial court's discretion and the court enjoys "considerable leeway" when determining the admissibility of this testimony. See Cook v. Sheriff of Monroe County, Fla., 402 F.3d 1092, 1103 (11th Cir. 2005). As explained in Daubert v. Merrell Dow Pharm., Inc., 509 U.S. 579 (1993), the admissibility of expert testimony is governed by Fed. R. Evid. 702.
"Under Rule 702 and Daubert, district courts must act as `gate keepers' which admit expert testimony only if it is both reliable and relevant." Rink v. Cheminova, Inc., 400 F.3d 1286, 1291 (11th Cir. 2005) (citing Daubert, 509 U.S. at 589). The purpose of this role is "to ensure that speculative, unreliable expert testimony does not reach the jury." McCorvey v. Baxter Healthcare Corp., 298 F.3d 1253, 1256 (11th Cir. 2002). Also, in its role as "gatekeeper," its duty is not "to make ultimate conclusions as to the persuasiveness of the proffered evidence." Quiet Tech. DC-8, Inc. v. Hurel-Dubois UK Ltd., 326 F.3d 1333, 1341 (11th Cir. 2003)
To facilitate this process, district courts engage in a three part inquiry to determine the admissibility of expert testimony:
City of Tuscaloosa, 158 F.3d 548, 562 (11th Cir. 1998) (citations omitted). The Eleventh Circuit refers to the aforementioned requirements as the "qualification," "reliability," and "helpfulness" prongs and while they "remain distinct concepts"; "the courts must take care not to conflate them." Frazier, 387 F.3d at 1260 (citing Quiet Tech, 326 F.3d at 1341).
Furthermore, in determining the reliability of a scientific expert opinion, the Eleventh Circuit considers the following factors to the extent possible:
Quiet Tech, 326 F.3d at 1341 (citations omitted). The aforementioned factors are not "a definitive checklist or test," Daubert, 509 U.S. at 593, but are "applied in case-specific evidentiary circumstances," United States v. Brown, 415 F.3d 1257, 1266 (11th Cir. 2005). While this inquiry is flexible, the Court must focus "solely on principles and methodology, not on conclusions that they generate." Daubert, 509 U.S. at 594-95. It is also important to note that a "district court's gatekeeper role under Daubert `is not intended to supplant the adversary system or the role of the jury.'" Quiet Tech, 326 F.3d at 1341 (quoting Maiz v. Virani, 253 F.3d 641, 666 (11th Cir. 2001)). Rather, "[v]igorous cross-examination, presentation of contrary evidence, and careful instruction on the burden of proof are the traditional and appropriate means of attacking but admissible evidence." Daubert, 509 U.S. at 580; see also Chapman v. Procter & Gamble Distrib., LLC, 766 F.3d 1296, 1306 (11th Cir. 2014) ("As gatekeeper for the expert evidence presented to the jury, the judge `must do a preliminary assessment of whether the reasoning or methodology underlying the testimony is scientifically valid and of whether that reasoning or methodology properly can be applied to the facts in issue.'") (quoting Kilpatrick v. Breg, Inc., 613 F.3d 1329, 1335 (11th Cir. 2010)).
Plaintiff's Daubert motion is aimed at Defendant's expert, Ms. Vernon
Plaintiff argues that Ms. Vernon cannot be used as an expert for several important reasons. First, Plaintiff contends that Ms. Vernon used the wrong standard in a FLSA case. Ms. Vernon purportedly used a "reasonable monthly value" standard in her expert report when the standard that should have applied was a "reasonable cost" to the employer. Second, Plaintiff claims that Ms. Vernon must be excluded because she did not (1) inspect the premises before issuing her opinion, (2) review a single electric/water/cable bill, or (3) review the public records as to whether there was a mortgage on the property. Third, Plaintiff suggests that Ms. Vernon's analysis was not based on any reliable principles or methods nor did the expert opinion cover the relevant time period. Plaintiff concludes that Ms. Vernon's opinions are inadmissible because (1) they will not assist the trier of fact, (2) they are unreliable and unsupported by any methodology, and (3) Ms. Vernon is unqualified. Accordingly, Plaintiff seeks to strike Ms. Vernon as an expert witness because she fails to satisfy any of the requirements under Fed. R. Evid. 702, 703, or Daubert.
Plaintiff does not dispute that Ms. Vernon has nearly three decades of experience as a broker specializing in real estate. But, Plaintiff claims that Ms. Vernon is unqualified to be an expert in this case because she has never (1) testified as an expert, (2) taught any classes in real estate, or (3) published anything related to the FLSA. Defendant's response is that experts may be qualified in various ways. While scientific training or education provides the most common ways of establishing that an expert is qualified, Defendant argues that experience in a particular field may offer another path to expert status. Defendant also suggests that the qualification standard is not stringent and that any objections to the level of Ms. Vernon's expertise should go to her credibility and weight, not admissibility." Vision I Homeowners Ass'n, Inc. v. Aspen Specialty Ins. Co., 674 F.Supp.2d 1321 (S.D. Fla. 2009) (citation omitted).
An expert may be qualified to testify in multiple ways: "`by knowledge, skill, experience, training, or education'" and "not necessarily unqualified simply because her experience does not precisely match the matter at hand." Furmanite Am., Inc., 506 F. Supp. 2d at 1129 (citing Maiz, 253 F.3d at 665, 669). "Determining whether a witness is qualified to testify as an expert `requires the trial court to examine the credentials of the proposed expert in light of the subject matter of the proposed testimony.'" Clena Investments, Inc. v. XL Specialty Ins. Co., 280 F.R.D. 653, 661 (S.D. Fla. 2012) (quoting Jack v. Glaxo Wellcome, Inc., 239 F.Supp.2d 1308, 1314-16 (N.D. Ga. 2002)). "In other words, a district court must consider whether an expert is qualified to testify competently regarding the matters he intends to address." Clena Investments, Inc., 280 F.R.D. at 661 (citing City of Tuscaloosa, 158 F.3d at 562-63).
Determining an expert's qualifications is not a stringent inquiry "and so long as the expert is minimally qualified, objections to the level of the expert's expertise [go] to credibility and weight, not admissibility." Vision I Homeowners Ass'n, Inc. v. Aspen Specialty Ins. Co., 674 F.Supp.2d 1321, 1325 (S.D. Fla. 2009) (citations omitted); see also Johnson v. Big Lots Stores, Inc., 2008 WL 1930681, *14 (E.D .La. Apr. 29, 2008) (summarizing Rushing v. Kansas City S. Ry. Co., 185 F.3d 496, 507 n. 10 (5th Cir. 1999), as "explaining that after an individual satisfies the relatively low threshold for qualification, the depth of one's qualification may be the subject of vigorous cross-examination"); see also Martinez v. Altec Indus., Inc., 2005 WL 1862677, *3 (M.D. Fla. Aug. 3, 2005) (quoting Rushing, 185 F.3d at 507 ("As long as some reasonable indication of qualifications is adduced . . . qualifications become an issue for the trier of fact rather than for the court in its gate-keeping capacity")). After a review of the relevant issues and an expert's qualifications, "the determination regarding qualification to testify rests within the district court's discretion." Clena Investments, Inc., 280 F.R.D. at 661 (citing Berdeaux v. Gamble Alden Life Ins. Co., 528 F.2d 987, 990 (5th Cir. 1976) (footnote omitted)).
Ms. Vernon's lack of experience in litigation is not, by itself, enough to exclude her as a witness. While Ms. Vernon has never participated in a FLSA case, her twenty-seven years of experience in real estate qualifies her as an expert in determining the market value of the room that Plaintiff occupied during her work as a maid. See, e.g., Nature's Prod., Inc. v. Natrol, Inc., 2013 WL 11275370, at *4 (S.D. Fla. Oct. 8, 2013) ("Although he has never been published or testified as an expert-and his educational background is not included in the report-his experience in the branding field constitutes sufficient qualification for testimony regarding branding.") (citing United States v. Cordoba, 2012 WL 3620306, at *3-4 (S.D. Fla. Aug. 21, 2012) (holding that "on-the-job experience" could suffice to qualify an expert "under the relatively low qualifications threshold of Daubert")). Ms. Vernon has valued properties on the same street that Plaintiff occupied during her employment at Defendant's residence, meaning she has specialized knowledge on the value of real estate properties in the area. Because of Ms. Vernon's experience in determining the value of real estate properties, Plaintiff's argument that Ms. Vernon is unqualified is
Plaintiff's next argument is that Ms. Vernon's opinions and testimony are inadmissible because she relied on almost no data in her expert report and that she reviewed only two property listing sheets in the Key Biscayne area. Plaintiff claims that these listing sheets are inapposite because the properties are smaller in square footage than Defendant's home. Plaintiff also contends that Ms. Vernon's expert report is defective because she failed to (1) inspect the premises before issuing her opinion, (2) review a single electric/water/cable bill, or (3) review the public records as to whether there was a mortgage on the property. Therefore, Plaintiff concludes that Ms. Vernon's expert opinion is not based on any facts or data and must be excluded as unreliable.
"The reliability standard is established by Rule 702's requirement that an expert's testimony pertain to `scientific . . . knowledge,' since the adjective `scientific' implies a grounding in science's methods and procedures, while the word `knowledge' connotes a body of known facts or of ideas inferred from such facts or accepted as true on good grounds." Daubert, 509 U.S. at 580. This entails an assessment of whether the "methodology underlying the testimony is scientifically valid." Id. at 592. The four non-exhaustive factors used to evaluate the reliability of a scientific expert opinion include the following:
Frazier, 387 F.3d at 1262 (citations omitted).
"Notably, however, these factors do not exhaust the universe of considerations that may bear on the reliability of a given expert opinion, and a federal court should consider any additional factors that may advance its Rule 702 analysis." Quiet Tech, 326 F.3d at 1341. When determining whether a party has met its burden, "[a] trial judge has `considerable leeway' in deciding how to determine when a particular expert's testimony is reliable and how to establish reliability." Coconut Key Homeowners Ass'n, Inc. v. Lexington Ins. Co., 649 F.Supp.2d 1363, 1371 (S.D. Fla. 2009) (quoting Graff v. Baja Marine Corp., 310 F. App'x 298, 302 (11th Cir. 2009)). Accordingly, "[t]o the extent that expert opinions are derived from literature review, witness interviews and data analysis, they are not automatically rendered unreliable by their non-susceptibility to empirical verification." United States v. Levinson, No. 10-80166-CR, 2011 WL 1467225, at *4 (S.D.Fla. Mar. 17, 2011) (citing Am. Gen. Life Ins. Co. v. Schoenthal Family, LLC, 555 F.3d 1331, 1338 (11th Cir.2009)).
Plaintiff's arguments are unpersuasive because, after a thorough review of the underlying expert reports, we find that Ms. Vernon used a reliable methodology of comparable sales (and rentals) to determine what is generally accepted in the real estate community for Defendant's residence in the years 2012-2016 and `.
As for Plaintiff's remaining arguments, we find that they are equally unpersuasive because it is not clear why Ms. Vernon was required to inspect the premises before issuing her opinion
Plaintiff's final argument is that Ms. Vernon's expert report is defective because she used an incorrect standard to approximate Defendant's cost credit. The standard that Ms. Vernon used was the fair value of Defendant's room. Yet, Plaintiff suggests that the correct standard is the reasonable cost to the employer. Because Ms. Vernon used the wrong standard, Plaintiff concludes that her expert report is unhelpful and must be excluded.
The helpfulness requirement "goes primarily to relevance. Expert testimony which does not relate to any issue in the case is not relevant and, ergo, non-helpful." Quiet Tech. DC-8, Inc., 326 F.3d at 1347 (quoting Daubert, 509 U.S. at 591). In addition to being relevant, "expert testimony is admissible if it concerns matters that are beyond the understanding of the average lay person" and offers something "more than what lawyers for the parties can argue in closing arguments." Frazier, 387 F.3d at 1262-63 (citations omitted). While "[a]n expert may testify as to his opinions on an ultimate issue of fact . . . he `may not testify as to his opinion regarding ultimate legal conclusions.'" Umana-Fowler v. NCL (Bahamas) Ltd., 49 F.Supp.3d 1120, 1122 (S.D. Fla. 2014) (quoting Delatorre, 308 F. App'x at 383). The Eleventh Circuit has made clear that "merely telling the jury what result to reach is unhelpful and inappropriate." Umana-Fowler, 49 F. Supp. 3d at 1122 (citing Montgomery v. Aetna Cas. & Sur. Co., 898 F.2d 1537, 1541 (11th Cir. 1990)).
The employer has the burden in showing that it is entitled to a cost credit under the FLSA and "[t]he regulations require employers to keep certain records of the cost incurred in furnishing board, lodging or other facilities . . . and also require the employer to maintain records showing additions or deductions from wages paid for board, lodging or other facilities on a work week basis." New Floridian Hotel, Inc., 676 F.2d at 474 (citing 29 C.F.R. 516.28(b)); see also Washington v. Miller, 721 F.2d 797, 803 (11th Cir. 1983) ("The employer has the burden of showing that he is entitled to the credits claimed under § 3(m) of the FLSA.") (citing New Floridian Hotel, Inc., 676 F.2d at 468). In situations where an employer has been unable to meet his or her burden, courts have denied these costs altogether. See Washington, 721 F.2d at 803 ("[T]o separate the reasonable cost of these facilities from the total cost plus profit would require the Court to speculate on the basis of an inadequate and inaccurate record. Under these circumstances, the New Floridian case requires that the Defendant be denied credit for the meals, wine, lodging and other facilities.").
The FLSA's "regulations provide only two ways to calculate the value of in-kind compensation—reasonable cost or fair value—and an employer must use whichever is less." Balbed v. Eden Park Guest House, LLC, 881 F.3d 285, 290 (4th Cir. 2018) (citing 29 C.F.R. § 531.3(c)). The authority for determining the reasonable cost
29 C.F.R. § 531.33(a).
Indeed, 29 C.F.R. § 531.3 explains to an employer how to make the determination of reasonable costs when an employer is not already subject to a determination by the Administrator:
29 C.F.R. § 531.3.
In this case, Ms. Vernon's expert report is defective because (1) she provided evidence of the fair value of Plaintiff's lodging in the absence of the Department of Labor, and (2) did so without a reasonable cost analysis. Beginning with the first defect, the FLSA's regulations only provide three methods to determine reasonable costs or fair value: (1) the employer may calculate the reasonable costs "in accordance with the requirements set forth in [29 C.F.R.] § 531.3," (2) the employer may request that a determination of reasonable costs be made by the Administrator, or (3) the employer may request that a determination of fair value be made by the Administrator. 29 C.F.R. § 531.33(a).
The second reason Ms. Vernon's expert report is defective is because she failed to assess the actual cost
Yet, Ms. Vernon never provided an actual cost analysis in her expert report — meaning there is no way of determining if the actual cost or the fair value assessment is lower. This means, that even if we ignore the prior defect, Defendant could not use Ms. Vernon's expert report (which is premised on fair value) because there is no way of knowing whether that amount is higher or lower than the actual cost of Plaintiff's lodging.
Making matters worse, Defendant cannot petition the Department of Labor to provide a fair value or reasonable cost assessment of Defendant's housing on the eve of trial — in addition to the fact that Defendant failed to keep any contemporaneous records to provide an actual cost assessment. See 29 C.F.R. § 516.27(a) ("[A]n employer who makes deductions from wages of employees for `board, lodging, or other facilities' . . . shall maintain and preserve records.").
For the foregoing reasons, it is hereby