WILLIAM H. STEELE, Chief District Judge.
This matter comes before the Court on defendant's Unopposed Motion for Partial Summary Judgment (doc. 64) in this FLSA collective action. Pursuant to an Order (doc. 67) dated January 18, 2017, plaintiffs' counsel filed a Response (doc. 68) detailing plaintiffs' position on the merits of the Motion, as well as counsel's efforts to notify the affected opt-in plaintiffs of the imminent dismissal of their claims and to afford them an opportunity to be heard. The Motion is now ripe for disposition.
As set forth in the First Amended Complaint (doc. 5), plaintiffs Bobby Harris, Martha Morrissette and Joyce Arnold brought this action alleging that defendant, JMC Steel Group, Inc., failed to pay each of them overtime compensation of one and one-half times their regular rate of pay for hours worked in excess of 40 in a workweek, in violation of the Fair Labor Standards Act, 29 U.S.C. §§ 201 et seq. ("FLSA"). In particular, plaintiffs maintain that they were hourly, nonexempt employees of JMC Steel, and that they regularly worked over 40 hours per workweek. According to plaintiffs, JMC Steel required them to clock in 10 or more minutes before the beginning of their work shifts and to stay on the clock 10 or more minutes past the end of their shifts performing additional duties for the benefit of their employer. Despite this practice, plaintiffs allege, JMC Steel compensated them only for scheduled shift times, with no overtime pay for the pre-shift and post-shift time that they were required to remain on duty performing tasks for their employer.
From the outset, plaintiffs styled this case as an FLSA opt-in collective action and sought conditional certification pursuant to 29 U.S.C. § 216(b). On April 25, 2016, the Court entered an Order (doc. 42) granting plaintiffs' unopposed request for conditional certification. The April 25 Order "
Defendants now move for partial summary judgment seeking the dismissal of all claims brought by 31 opt-in plaintiffs.
In its Motion for Partial Summary Judgment, JMC Steel identifies four groups of opt-in plaintiffs as to whom it seeks dismissal, to-wit: (i) 24 opt-in plaintiffs who fall outside the temporal scope of the class definition; (ii) three opt-in plaintiffs who filed bankruptcy petitions after their FLSA claims accrued, but never disclosed those claims in bankruptcy schedules; (iii) three opt-in plaintiffs who never were employed by JMC Steel; and (iv) one opt-in plaintiff who worked no hours within the class period. Each category will be addressed in turn.
With respect to the 24 opt-in plaintiffs, JMC Steel presents substantial evidence that each of them lies outside the temporal boundaries of the class definition. In particular, defendant presents the Declaration of Alexandra Buchanan, a Human Resources Manager for the entity formerly known as JMC Steel. Buchanan details the separation dates for the 24 subject opt-in plaintiffs and demonstrates via business records that (with one exception) they all predated January 1, 2014. (Buchanan Decl. (doc. 66, Exh. A), ¶ 5 & Exh. 1.)
The second category of opt-in plaintiffs as to whom JMC Steel seeks summary judgment are those who filed for bankruptcy after their FLSA claims accrued, yet failed to list such claims on the appropriate bankruptcy schedules. Opt-in plaintiff Eddie Floyd Adams filed a Chapter 7 petition in Bankruptcy Court on July 5, 2016. (Doc. 66, Exh. B, at 2.) His signed "Consent to Become a Party Plaintiff" form was filed in this action more than six months earlier on December 23, 2015. (Doc. 7.) Far from disclosing his FLSA claims against JMC Steel in the bankruptcy schedules, Adams checked the "No" block when asked if he had "Claims against third parties" or "Other contingent and unliquidated claims of every nature." (Doc. 66, Exh. B, at 25.) Adams also checked the "No" block when asked in his schedules whether he had been a party in a lawsuit or court action within one year before filing for bankruptcy. (Id. at 48.) Similarly, opt-in plaintiff Gerald Jerome Huff had a pending Chapter 7 bankruptcy petition on February 2, 2016, when his consent form was filed in this action; however, he neither updated nor supplemented his bankruptcy schedules to disclose his claims against JMC Steel in this action. (See docs. 21 & 66, Exh. C at 21 & 39.) Finally, opt-in plaintiff Joshua Keith Knight filed a Chapter 7 petition in Bankruptcy Court on May 2, 2016, yet failed to disclose his FLSA claims against JMC Steel in his bankruptcy schedules, despite having signed a consent form filed in this action on December 23, 2015. (See docs. 7 & 66, Exh. D at 21 & 39.)
As defendant correctly points out, these circumstances implicate equitable principles of judicial estoppel. "The purpose of judicial estoppel is to protect the integrity of the judicial process by prohibiting parties from changing positions according to the exigencies of the moment. ... Specifically, judicial estoppel is designed to prevent a party from asserting a claim in a legal proceeding that is inconsistent with a claim taken by the party in a previous preceding [sic]." Robinson v. Tyson Foods, Inc., 595 F.3d 1269, 1273 (11
With respect to the first factor, the failure of Adams, Huff and Knight to identify their wage-related claims against JMC Steel in their signed, sworn bankruptcy schedules plainly amounts to the taking of inconsistent positions under oath in a prior proceeding. After all, "[a] debtor seeking shelter under the bankruptcy laws must disclose all assets, or potential assets to the bankruptcy court." Ajaka v. Brooksamerica Mortg. Corp., 453 F.3d 1339, 1344 (11
As for the second factor (i.e., whether said inconsistencies were calculated to make a mockery of the judicial system), the Eleventh Circuit requires "intentional contradictions, not simple error or inadvertence." Burnes, 291 F.3d at 1286. "[S]uch intent may be inferred from the record." Robinson, 595 F.3d at 1275. Thus, "[i]n considering judicial estoppel for bankruptcy cases, the debtor's failure to satisfy its statutory disclosure duty is `inadvertent' only when, in general, the debtor either lacks knowledge of the undisclosed claims or has no motive for their concealment." Id. (citation omitted). Adams, Huff and Knight have not and cannot credibly disclaim knowledge of their FLSA claims against JMC Steel, given that they personally signed consent forms to join this litigation as plaintiffs. Yet they never have disclosed — or sought to amend their bankruptcy schedules to disclose — these claims in Bankruptcy Court, despite having many months to do so. Nor can these plaintiffs plausibly deny a motive for concealing their FLSA claims, given Eleventh Circuit authorities recognizing a debtor's direct financial motive for doing so.
After careful consideration of the foregoing, as well as all other relevant facts and circumstances appearing in the record, the Court finds that principles of judicial estoppel preclude opt-in plaintiffs Eddie Adams, Gerald Jerome Huff and Joshua Keith Knight from pursuing their FLSA claims against JMC Steel in these proceedings. In the absence of explanatory or mitigating facts (which plaintiffs have not offered), the Court exercises its discretion to hold that Adams, Huff and Knight are
The third and fourth categories of opt-in plaintiffs as to whom defendant seeks summary judgment may be dispatched quickly. Category three consists of those opt-in plaintiffs who never worked for JMC Steel at all. Specifically, defendant's evidence is that JMC Steel has no record that opt-in plaintiffs Demarious K. Dock, Damien McCaskey or Brooks Jackson, Jr., were ever employed by the company. (Buchanan Decl., ¶¶ 6, 8.) Far from contesting that evidence, plaintiffs' counsel indicates that Jackson, Jr. and McCaskey actually worked for the plant adjacent to JMC Steel and were paid by an entity called "Tuboscope," not JMC Steel; and that Dock worked for a temporary staffing service called Elwood Staffing, not JMC Steel. (Doc. 68, ¶¶ 4, 9, 10.) Summary judgment is appropriate as to these opt-in plaintiffs' claims because all evidence before the Court reflects that they never worked for defendant.
Finally, the fourth category of opt-in plaintiffs identified in the Motion for Partial Summary Judgment consists of one individual, Barry Hurd. Defendant presents competent record evidence that Hurd worked zero hours for JMC Steel after January 1, 2014. (Buchanan Decl., ¶ 7 & Exh. 2.) Plaintiffs' counsel, having spoken to Hurd about this issue, does not dispute defendant's evidentiary showing. (Doc. 68, ¶ 8.) Because the conditionally certified class is limited to those JMC Steel employees who worked in excess of 40 hours in a work week after January 1, 2014, and because Hurd never worked
For all of the foregoing reasons, it is
DONE and ORDERED.