SUSAN L. CARNEY, Circuit Judge:
This case calls on us to review the district court's resolution of several questions of New York law under its supplemental jurisdiction — primarily, its application of certain state statutes governing franchising and wages to plaintiffs' claims for compensation arising from their work, from the late 1980s through 2000, as delivery drivers for one or more defendant corporations owned by defendant Peter Glazman. Plaintiffs contend that defendants systematically undercompensated them for their work, purporting to treat them as franchisees while reaping disproportionate profits at plaintiffs' expense. On that basis, plaintiffs filed this action in 2001, alleging violations of the Fair Labor Standards Act, 29 U.S.C. §§ 201, et seq. ("FLSA"); the Federal Insurance Contribution Act, 26 U.S.C. §§ 3101, et seq. ("FICA"); the New York Labor Law, N.Y. Labor Law §§ 190, et seq. ("NYLL"); the New York Franchise Sales Act, N.Y. Gen. Bus. Law §§ 680, et seq. ("FSA")
Six years into in this long-running litigation, the district court dismissed plaintiffs' federal claims under the FLSA and FICA, but elected to exercise its supplemental jurisdiction to adjudicate the remaining state law claims, as to which dispositive motions had been submitted.
Defendants now appeal the district court's FSA rulings in plaintiffs' favor, contending principally that it was error for the district court to exercise supplemental jurisdiction over these state-law claims, and that plaintiffs' claims were in any event barred by the statute of limitations. Plaintiffs cross-appeal, challenging inter alia the district court's ruling that the statute of frauds barred their NYLL and contract claims for unpaid commissions.
For the reasons set forth below, we find no abuse of discretion in the district court's exercise of supplemental jurisdiction. We further conclude that the statute of limitations barred the FSA claims of six of the eight plaintiffs. Although we affirm the FSA award as to the remaining two plaintiffs, we determine that the related attorneys' fee award must be recalculated to reflect that modification in the substantive award. Finally, we decide — contrary to the district court — that the statute of frauds does not preclude plaintiffs from pursuing their NYLL and contract claims against defendants. Accordingly, we remand to the district court for further proceedings on these state-law claims and for recalculation of the FSA-related attorneys' fees.
Defendant Peter Glazman (also known as Peter Glassman) owns or controls defendants U.S. Pack Courier Services, Inc. ("USP Courier") and U.S. Pack Network Corp. ("USP Network") (collectively, "U.S. Pack" or "defendants"), corporations that provide package delivery services in the New York City metropolitan area.
Over the years, Glazman has sought to expand his package-delivery business through franchising (i.e., the granting of rights to others to engage in the company's business under a prescribed brand and marketing plan, in exchange for a fee).
A form Subscription Agreement ("SA"), which outlined the basic terms of the franchise arrangement, was attached as an exhibit to USP Network's 1996 prospectus. The SA required each subscriber to pay a $15,000 "subscription fee" in exchange for the right to receive delivery assignments through USP Network's central dispatch, and entitled each subscriber to a weekly paycheck based on accumulated commissions earned for deliveries made. Although subscribers could pay the entire subscription fee up front, many chose to pay in installments that were deducted weekly from their paychecks. Interest was due on the unpaid balance, however, and as of the publication of the 1996 prospectus, USP Network set the interest rate at 10% per annum.
USP Network also charged subscribers a one-time "training fee" of $50, a $30 generic "weekly fee," and a "beeper fee" of $5 to $7.50 per week. Moreover, according to the prospectus, subscribers were personally responsible for a host of operational expenditures, including the purchase or rental of a white cargo van (for purchase, estimated at $15,000 to $20,000); insurance premiums (estimated at $2,500 to $4,000); vehicle registration fees and motor vehicle taxes (estimated at $60 to $110); gasoline (estimated at $25 per tank); and other items, such as uniforms, hand truck equipment, and maps.
The SA provided that commission payments made by U.S. Pack to subscribers for deliveries would be based principally on the "type of delivery service requested [by the customer],"
On various dates between 1987 and 2000, each plaintiff began to work as a delivery driver for U.S. Pack.
The parties agree that defendants promised, in one form or another, to pay plaintiffs a fee for each delivery completed, rather than an hourly wage. They disagree, however, on how that fee was to be calculated. Plaintiffs contend that defendants orally promised to pay them a 60% commission on each delivery — that is, 60% of whatever the customer paid U.S. Pack for the delivery.
In 2001, plaintiffs filed their initial complaint,
Additionally, plaintiffs claimed that defendants violated two provisions of the FSA: section 683(1), which prohibits a franchisor from selling a franchise without first registering an "offering prospectus" with the New York State Department of Law (the "prospectus claim"); and section 687(2), which prohibits fraud in connection with the offer or sale of a franchise (the "fraud claim"). As to the fraud claim, plaintiffs alleged that, to induce plaintiffs' purchase of the franchises, defendants fraudulently represented that plaintiffs would earn 60% commissions on deliveries.
Over the course of the proceedings, the issues narrowed. In 2007, the district court granted defendants' motion for summary judgment on all federal claims.
After the court's summary judgment ruling, eight plaintiffs (Holesa, Imas, Kroshnyi, Maler, McFarland, Ondusko, Redaj, and Szycowski) proceeded to trial on the remaining FSA claims. The jury ultimately found the corporate defendants liable on all of those claims, except McFarland's prospectus claim under section 683(1). It awarded damages ranging from $3,180 to $27,839 per claim. The jury found Glazman not liable, however, on the claims made against him in his individual capacity.
After trial, defendants moved pursuant to Federal Rule of Civil Procedure 50(b) for judgment as a matter of law, arguing inter alia that (1) plaintiffs' FSA claims were barred by the FSA's three-year statute of limitations, and (2) the jury's award of damages on the FSA claims contravened the court's jury instructions, which
Both parties now appeal.
The eight plaintiffs who prevailed at trial on their FSA claims, as well as Bulikova and Vysovsky, cross-appeal principally from the court's summary judgment ruling on their NYLL and breach of contract claims. Plaintiffs argue, inter alia, that the statute of frauds does not bar these claims because, in their view, the oral agreement to pay 60% commissions is an at-will employment contract that could be performed within one year of its making. In addition, plaintiffs appeal the award of attorneys' fees, arguing that the district court erred in its calculation of the fee award. We address each of these arguments below.
Defendants contend that the district court abused its discretion by retaining supplemental jurisdiction over plaintiffs' state-law claims after dismissing all federal claims at the summary judgment stage. Although defendants did not object to the district court's exercise of jurisdiction at that time, they now argue that the court should not have retained jurisdiction because it interpreted the FSA in a novel way. Since a ruling in defendants' favor would dispose of the appeal and cross-appeal, we address this issue first.
We conclude that the district court did not abuse its discretion when it decided that the "advanced stage of the litigation and the Court's long familiarity with the issues in the case, combined with the likely hardship to both parties should plaintiff be forced to re-file in state court" weighed in favor of exercising supplemental jurisdiction. Vysovsky I, 2007 WL 3130562, at *6. By the time the federal claims were dismissed, the case had been before the district court for over six years. Furthermore, discovery had been completed, dispositive motions had been submitted, and the case would soon be ready for trial. See Raucci v. Town of Rotterdam, 902 F.2d 1050, 1055 (2d Cir. 1990) (affirming district court's retention of supplemental jurisdiction "given the extensive proceedings involving the pendent claims prior to the dismissal of the federal claim"). Finally, although we ultimately conclude that the district court erred in some of its interpretations of New York law, the state-law issues were not so groundbreaking as to preclude the exercise of jurisdiction, especially in light of the circumstances in which the discretionary decision arose. See Mauro v. S. New England Telecomms., Inc., 208 F.3d 384, 388 (2d Cir.2000). We therefore affirm the district court's decision to exercise supplemental jurisdiction over plaintiffs' state-law claims, and now proceed to the merits of this appeal.
Defendants also appeal from the judgments entered against them on plaintiffs' FSA claims.
The FSA's statute of limitations provides that an action "shall not be maintained
Plaintiffs make two arguments in support of their contention that the FSA claims at issue were nonetheless timely filed. First, they argue that the statute of limitations began to run anew when their franchises were "transferred" from USP Network to USP Courier in April 1999 — less than two years before plaintiffs filed their complaint in March 2001, and well within the three-year limitations period. When the transfer occurred, U.S. Pack provided delivery drivers with a document entitled "Rules and Regulations of U.S. Pack Drivers." The document purported to be an "Agreement" between USP Network, USP Courier, and the driver. According to plaintiffs, entry into this transfer agreement reflected the start of a new franchise relationship.
In our view, however, plaintiffs' transfer theory fails at the start. The first paragraph of the transfer agreement provides that "[n]othing contained in this Agreement is intended to alter ... your Subscription Agreement with U.S. PACK NETWORK CORP. and/or U.S. PACK COURIER SERVICES, INC, as the case may be." J.A. 328. Moreover, plaintiffs and defendant Glazman testified that there was no change in the day-to-day operations of U.S. Pack or its relationship with its drivers as a result of the transfer. Plaintiffs have pointed to no evidence establishing that the alleged "transfer" from USP Network to USP Courier constituted the beginning of a new franchise agreement that would reset the statute of limitations. See United Magazine, 146 F.Supp.2d at 407 (rejecting plaintiffs' claim that changes to their franchise agreements restarted the limitations period); see also Bayit Care Corp., 843 F.Supp.2d at 385 (noting that, under the FSA, the "definition of `offer to sell' excludes `the renewal or extension of an existing franchise where there is no interruption in the operation of
Second, plaintiffs claim that because most of them did not pay their franchise fee in a lump sum when they first entered an agreement with U.S. Pack, but rather paid the fee through weekly deductions from pay, defendants committed a continuing violation of the FSA each time they deducted a franchise fee payment. Therefore, plaintiffs argue, any plaintiff whose paycheck reflected a deduction for a franchise fee installment payment after March 26, 1998, has a timely claim.
This argument also fails to persuade. Although we have not yet addressed the issue in a precedential opinion, at least one of the district courts in our Circuit has held (in a decision we later affirmed by summary order) that under the FSA, "continuous violations do not toll the statute of limitations." United Magazine, 146 F.Supp.2d at 407. Plaintiffs have failed to point us to any New York authority supporting a contrary interpretation, cf. Fantastic Enters., Inc. v. S.M.R. Enters., Inc., 143 Misc.2d 124, 540 N.Y.S.2d 131, 134 (Sup.Ct.1988) (rejecting plaintiffs' argument that the FSA imposes a continuing obligation on franchisors, because "to find otherwise would serve to emasculate the statute of limitations"), and we see no reason to depart from United Magazine's reasoning under the circumstances presented here. Indeed, this result is congruent, in our view, with the language and purpose of the FSA, which requires certain disclosures and prohibits fraud in connection with the "offer" and "sale" of franchises, but does not seek to regulate the ongoing operations of a franchise. See N.Y. Gen. Bus. Law §§ 683(1), 687(2), 691(1); see also Retail Software Servs., Inc. v. Lashlee, 854 F.2d 18, 21 (2d Cir.1988); David J. Kaufmann & David W. Oppenheim, Practice Commentaries to New York Franchise Act, N.Y. Gen. Bus. Law § 681 et seq., at VII(E) (McKinney 2013).
Thus, the statute of limitations bars the claims of all plaintiffs who purchased franchises from U.S. Pack before March 26, 1998. Only Ondusko, Kroshnyi, and McFarland bought their franchises after this date. Ondusko, however, purchased his franchise not from U.S. Pack, but from another driver, Vysovsky. Therefore, Ondusko's claim is derivative of Vysovsky's. And because Vysovsky purchased his franchise before March 26, 1998, Ondusko's claim is also time-barred.
In sum, only Kroshnyi and McFarland have asserted timely FSA claims. We therefore reverse the district court's judgment with respect to the FSA claims of Holesa, Imas, Maler, Ondusko, Redaj, and Szycowski.
We now consider U.S. Pack's argument that the remaining FSA plaintiffs, Kroshnyi and McFarland, are nevertheless barred from recovering damages on their FSA claims because the Act limits their remedies to rescission.
The remedies provision of the FSA provides in relevant part:
N.Y. Gen. Bus. Law § 691(1). Defendants contend that this provision limits plaintiffs' remedies under the FSA to rescission (i.e., the unwinding of the franchise agreement
Defendants offer primarily two arguments to support their reading of the FSA's remedies provision.
Second, defendants cite a related provision of the statute, section 691(2), which provides that a defendant-franchisor can avoid liability for FSA violations altogether if, before the initiation of suit, the franchisor contacts the plaintiff-franchisee and offers "to refund the consideration paid together with interest at six percent per year from the date of payment, less the amount of income earned by the franchisee from the franchise." N.Y. Gen. Bus. Law § 691(2). Defendants claim that this provision demonstrates that the FSA does not contemplate damages for plaintiffs who earned more income from their franchise than they paid in franchise fees (i.e., those who earned a "net profit"). According to defendants, the rescission offer under section 691(2) would not provide any benefit to a plaintiff who made a "net profit" because the income earned from the franchise would exceed the consideration paid; under those circumstances, rescission would result only in the plaintiff-franchisee having to hand over her profits to the defendant-franchisor. To avoid this "absurd" result, defendants argue, we should interpret section 691(1) as limiting recovery under the FSA to plaintiffs who suffered a net loss on their franchise. Appellants' Br. at 15.
In our view, however, we need not delve into this thorny question of New York law to resolve the instant appeal. Even assuming arguendo that defendants' interpretation of section 691(1) is correct, and rescission is the maximum remedy available under the statute, we see no reason to disturb the jury's verdict in favor of Kroshnyi and McFarland on their FSA claims. Indeed, as explained below, because the district court instructed the jury in accordance with U.S. Pack's own view of
With respect to the prospectus claim, for example, the district court instructed the jury that it could award rescission if the failure to register was willful and material, but "[i]f you find that ... U.S. Pack's failure to register the offering prospectus was not willful and material, then those plaintiffs are entitled to an award of damages short of rescission." J.A. 817 (emphasis added). Moreover, in connection with the fraud claim, the court explained to the jury:
J.A. 819 (emphasis added). After receiving these instructions, the jury awarded Kroshnyi $4,325 on his prospectus claim and $7,783 on his fraud claim. It awarded McFarland nothing on his prospectus claim and $3,640 on his fraud claim.
On appeal, defendants contend that, because each plaintiff received more money in commissions from U.S. Pack than he paid in franchise fees, the jury's damages award is inconsistent with both the court's instructions and the evidence adduced at trial.
Defendants contend that the franchise fees charged to each plaintiff were capped at $15,000. But because both Kroshnyi and McFarland paid the fees through weekly deductions from pay
Considering all of the evidence in the light most favorable to plaintiffs — as we must — we cannot say that a reasonable juror would have been "compelled" to conclude that plaintiffs made a net profit on their franchises. See Tuccio v. Marconi, 589 F.3d 538, 540 (2d Cir.2009) (stating that judgment as a matter of law is warranted "only if, viewing the evidence in the light most favorable to the non-moving party, a reasonable juror would be compelled to find in favor of the moving party"); see also Indu Craft, Inc. v. Bank of Baroda, 47 F.3d 490, 496 (2d Cir.1995) ("[W]hen reviewing the sufficiency of the damages evidence, we are guided by the principle that if a plaintiff has shown it more likely than not that it has suffered damages, the amount of damages need only be proved with reasonable certainty."). Therefore, assuming without deciding that defendants are correct that the FSA caps damages at rescission and that plaintiffs who make a net profit on their franchises have no remedy under the statute, we nonetheless affirm the district court's award of damages in favor of Kroshnyi and McFarland on their FSA claims.
The FSA provides that a prevailing plaintiff is entitled to recover reasonable attorneys' fees and costs. N.Y. Gen. Bus. Law § 691(1). On cross-appeal, plaintiffs argue that the district court abused its discretion because it failed to calculate the "lodestar" value when awarding fees. Because we reverse the judgments entered in favor of six of the plaintiffs on their FSA claims, as discussed above, we must remand for a recalculation of attorneys' fees in any event. Upon remand, we strongly suggest that the district court begin its calculation by first performing a lodestar analysis, which calculates reasonable attorneys' fees by multiplying the reasonable hours expended on the action by a reasonable hourly rate. See Perdue v. Kenny A. ex rel. Winn, 559 U.S. 542, 552-55, 130 S.Ct. 1662, 176 L.Ed.2d 494 (2010) (addressing lodestar analysis under federal fee-shifting statute); Matakov v. Kel-Tech Const., Inc., 84 A.D.3d 677, 924 N.Y.S.2d 344, 345-46 (1st Dep't 2011) (applying the lodestar method under New York law).
We turn next to plaintiffs' argument on cross-appeal that the district court erred when it granted summary judgment for defendants on the breach of contract and NYLL claims, concluding that the statute of frauds barred the claims. Almost all
As an initial matter, plaintiffs argue that the district court abused its discretion by permitting defendants to amend their answer to assert, somewhat belatedly, a statute of frauds defense. The Federal Rules provide that courts "should freely give leave [to amend] when justice so requires." Fed.R.Civ.P. 15(a)(2). Indeed, "[i]n the absence of any apparent or declared reason ... such as undue delay, bad faith or dilatory motive on the part of the movant ... [or] undue prejudice to the opposing party by virtue of allowance of the amendment ... the leave sought should, as the rules require, be `freely given.'" Foman v. Davis, 371 U.S. 178, 182, 83 S.Ct. 227, 9 L.Ed.2d 222 (1962). We review the district court's grant of leave to amend for abuse of discretion, and, "[e]xcept when required by the demands of justice in the particular case, ... almost invariably defer to the discretion exercised by the trial court." Evans v. Syracuse City Sch. Dist., 704 F.2d 44, 47 (2d Cir.1983).
Plaintiffs filed their second (and final) amended complaint on June 21, 2004. Defendants responded with their answer on August 11, 2004. Not until November 15, 2005 — more than a year after filing the answer and four months after the close of discovery — did defendants move to amend their answer to assert the statute of frauds defense (as well as the defenses of estoppel, release, and waiver). Defendants filed their motion to amend jointly with their motion for summary judgment.
Plaintiffs contend that they suffered "extreme" prejudice from the late amendment because they had no opportunity to conduct discovery about whether there were any terms in the oral agreement that would prevent it from being performed within one year. Appellees' Reply Br. at 18. They also argue that they were prejudiced because if the statute of frauds defense had been asserted sooner, it would have affected their settlement calculations. We are not persuaded.
In our view, plaintiffs suffered little, if any, prejudice from the grant of leave to amend. Discovery was not necessary because each plaintiff was a party to the alleged oral agreement and therefore, presumably, well aware of the agreement's terms. In any event, the district court explained that "[e]xtensive discovery was conducted on the circumstances surrounding the oral and written agreements." Vysovsky I, 2007 WL 3130562, at *3. Because defendants raised the statute of frauds defense in their motion for summary judgment, plaintiffs had an adequate opportunity to argue against its application to this case. And although the late assertion of the defense may have had an effect on plaintiffs' assessment of settlement value, plaintiffs still had ample opportunity to
Because plaintiffs have neither suffered significant prejudice from the grant of the motion to amend, nor pointed to any evidence of bad faith on the part of U.S. Pack, we conclude that the district court acted within its discretion in granting U.S. Pack's motion to amend its answer to assert a statute of frauds defense.
Plaintiffs further argue that the district court erred when it concluded that the alleged oral agreements to pay 60% commissions could not be performed within one year and were therefore barred by the statute of frauds. New York's statute of frauds provides, in relevant part, as follows:
N.Y. Gen. Obl. Law § 5-701(a).
New York courts generally construe the statute of frauds narrowly, voiding only those oral contracts "which by their very terms have absolutely no possibility in fact and law of full performance within one year." D & N Boening, Inc. v. Kirsch Beverages, Inc., 63 N.Y.2d 449, 454, 483 N.Y.S.2d 164, 472 N.E.2d 992 (1984). Indeed, "[w]herever an agreement has been found to be susceptible of fulfillment within that time, in whatever manner and however impractical, [the New York Court of Appeals] has held the one-year provision of the Statute to be inapplicable, a writing unnecessary, and the agreement not barred." Id. at 455, 483 N.Y.S.2d 164, 472 N.E.2d 992.
Plaintiffs do not allege that the oral commission agreements contained an express termination provision.
Under New York law, "absent an agreement establishing a fixed duration, an employment relationship is presumed to be a hiring at will, terminable at any time by either party." Sabetay v. Sterling Drug, Inc., 69 N.Y.2d 329, 333, 514 N.Y.S.2d 209, 506 N.E.2d 919 (1987); see also Reddington v. Staten Island Univ. Hosp., 511 F.3d 126, 137 (2d Cir.2007). For this reason, New York courts have consistently held that oral employment agreements lacking a fixed duration are not covered by the statute of frauds, because they could theoretically be terminated by either party within one year of their making. See, e.g., Cron v. Hargro Fabrics, Inc., 91 N.Y.2d 362, 367, 670 N.Y.S.2d 973, 694 N.E.2d 56 (1998) (alleged oral agreement to pay bonuses as part of an at-will employment relationship not barred by statute of frauds); Hubbell v. T.J. Madden Constr. Co., 32 A.D.3d 1306, 823 N.Y.S.2d 318,
To support its conclusion that plaintiffs had to allege an express termination provision to relieve the alleged oral commission agreements of the requirements of the statute of frauds, the district court relied on Burke v. Bevona, 866 F.2d 532 (2d Cir.1989). But Burke arose from a very different set of facts: there, the plaintiff based his breach of contract claim on his allegation that a union local promised him that he would have a job "for as long as you live," or "for as long as you want, until you retire." Id. at 534. Because the alleged lifetime employment agreement in Burke was not terminable at-will, it would be barred by the statute of frauds unless it had an express termination provision. Id. at 538. Burke does not purport to overrule the long line of New York cases discussed above. See, e.g., Berardi v. Fundamental Brokers, Inc., Nos. 89 Civ. 5143, 90 Civ. 0646(JSM), 1992 WL 27169, at *2-3 (S.D.N.Y. Feb. 5, 1992) (distinguishing Burke and holding that an express termination provision was not required to take the oral agreement to pay bonuses to employees outside the statute of frauds).
We conclude, therefore, that with respect to plaintiffs' breach of contract and NYLL claims, the district court erred in granting summary judgment for defendants based on the statute of frauds defense.
Finally, we briefly address defendants' argument that even if plaintiffs' breach of contract and NYLL claims are not barred by the statute of frauds, we may affirm the district court's grant of summary judgment on the alternative ground that plaintiffs, by their course of conduct, impliedly waived these claims. Waiver is "the voluntary and intentional abandonment of a known right which, but for the waiver, would have been enforceable." Nassau Trust Co. v. Montrose Concrete Prods. Corp., 56 N.Y.2d 175, 184, 451 N.Y.S.2d 663, 436 N.E.2d 1265 (1982). Implied waiver may be found where a party exhibits "such conduct or failure to act as to evince an intent not to claim the purported advantage." Hadden v. Consolidated Edison Co. of N.Y., 45 N.Y.2d 466, 469, 410 N.Y.S.2d 274, 382 N.E.2d 1136 (1978). It is well established, however, that "negligence, oversight, or thoughtlessness" does not create a waiver, and waiver "cannot be inferred from mere silence." Peck v. Peck, 232 A.D.2d 540, 649 N.Y.S.2d 22, 23 (2d Dep't 1996).
Defendants assert that plaintiffs knew they were not paid 60% commissions on each delivery but failed to object to the calculation of their commission payments until the filing of this lawsuit. Although plaintiffs' weekly commission statements made no reference to the delivery fees
Based on our review of the record, we conclude that plaintiffs have at the very least raised a genuine issue of fact as to whether they voluntarily and intentionally abandoned their right to collect 60% commissions, thus precluding us from affirming summary judgment for defendants on this alternative basis. See Voest-Alpine Int'l Corp. v. Chase Manhattan Bank, N.A., 707 F.2d 680, 685 (2d Cir.1983) (stating that where waiver is not established "directly, unmistakably or unequivocally," issue of intent to waive right is "properly left to the trier of fact"). A jury could conclude that plaintiffs, most of whom had limited proficiency in English, were unaware that they were not receiving 60% commissions. Plaintiffs' inability or failure to compare U.S. Pack's advertising materials to their commission statements is at least as consistent with mere "negligence, oversight, or thoughtlessness," which is not enough to create waiver, as it is with the "voluntary and intentional abandonment of a known right." The testimony by Holesa, Imas, Ondusko and Szycowski also fails to establish that those plaintiffs knew that they were not receiving 60% commission payments and voluntarily and intentionally waived that right.
In sum, we conclude that the FSA's statute of limitations runs from the inception of the plaintiffs' franchise relationships with defendants. Accordingly, the statute of limitations bars the claims of the six plaintiffs (Holesa, Imas, Maler, Ondusko, Redaj, and Szycowski) who began working for U.S. Pack more than three years before the filing of the complaint. We nevertheless affirm the jury's award of FSA damages to plaintiffs Kroshnyi and McFarland, both of whom filed timely claims. We further conclude, however, that the district court erred in granting summary judgment on plaintiffs' breach of contract and NYLL claims based on the statute of frauds. A jury could find that the oral agreements to pay 60% commissions were employment agreements, presumed terminable at-will, and thus capable of performance within one year. The statute of frauds therefore does not bar their enforcement. We have considered the parties' remaining arguments and find them to be without merit.
For the foregoing reasons, we
N.Y. Gen. Bus. Law § 681(3).
Id. § 683(1).
In the midst of trial, the district court also dismissed the claims of two plaintiffs — Pavel Vysovsky and Milan Petrilak — who were unable to obtain visas to come to the United States for trial. Vysovsky raises no arguments related to the dismissal of his FSA claims, but joins in the arguments related to the NYLL and contract claims. Petrilak is not a party to this appeal. Thus, only those plaintiffs listed in note 10, supra, are named appellants whose rights are being adjudicated in this appeal.
According to defendant Glazman's testimony, most drivers were charged about $250-270 per week for their vehicle rental and franchise fee, so the $271 amount that both plaintiffs recalled might, in actuality, have represented the combined cost of the franchise fee and rental. But what matters for our purposes is that a reasonable jury could have resolved this factual dispute in plaintiffs' favor, finding that U.S. Pack charged each man as much as $271.15 per week for vehicle rental alone.