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Johnson v. Carlo Lizza & Sons Paving, Inc.

Citations: 160 F. Supp. 3d 605; 2016 U.S. Dist. LEXIS 14450; 2016 WL 524640Docket: 15 Civ. 7423 (PAE)

Court: District Court, S.D. New York; February 4, 2016; Federal District Court

Narrative Opinion Summary

In this case, plaintiffs, employed as flagmen, brought a legal action against multiple paving companies and their CEO, alleging unpaid overtime and failure to pay prevailing wages on public works projects in New York City. Plaintiffs claimed violations of the Fair Labor Standards Act (FLSA) and New York Labor Law (NYLL), along with breach-of-contract and quasi-contract claims. The defendants moved to dismiss the breach-of-contract and quasi-contract claims, arguing that administrative remedies were not exhausted. Plaintiffs simultaneously sought conditional certification for a collective action under the FLSA to include similarly situated employees. The court denied the defendants' motion to dismiss, holding that plaintiffs could pursue their breach-of-contract claims as third-party beneficiaries without exhausting administrative remedies. The court also allowed for alternative quasi-contract claims. Conditional certification for the FLSA action was granted, enabling plaintiffs to notify potential class members. The court instructed revisions to the proposed notice for clarity and approved the notice method, requiring defendants to provide contact information for class members. The ruling underscores the court's broad discretion in collective action certification and the permissibility of alternative pleading under New York law.

Legal Issues Addressed

Breach of Contract for Prevailing Wages

Application: Plaintiffs allege they are third-party beneficiaries of public works contracts requiring prevailing wages, permitting them to bring a breach-of-contract claim without first exhausting administrative remedies.

Reasoning: The prevailing-wage requirement is integral to public works contracts, establishing a contractual obligation towards employees, allowing them to pursue breach-of-contract claims directly.

Fair Labor Standards Act (FLSA) Conditional Certification

Application: The Court grants conditional certification for an FLSA collective action involving flagmen and other construction employees employed by the defendants, allowing the plaintiffs to notify potential opt-in class members.

Reasoning: The Court grants conditional certification for flagmen and other construction employees employed by the defendants in New York over the three years preceding the Complaint's filing.

Jurisdiction and Supplemental State Law Claims

Application: The Court exercises supplemental jurisdiction over state-law claims, finding no substantial legal complexity that would warrant declining jurisdiction.

Reasoning: Retaining jurisdiction over the related breach-of-contract claims is deemed efficient, allowing for comprehensive adjudication of the pending FLSA and NYLL claims.

Quasi-Contract Claims under New York Law

Application: The Court allows plaintiffs to assert claims of unjust enrichment and quantum meruit as alternative claims, despite the existence of a valid contract, in accordance with Federal Rule of Civil Procedure 8(d).

Reasoning: New York law allows alternative pleading of quasi-contract claims even when a valid contract is acknowledged, as long as the claims are contingent on the absence of the contract's enforceability.