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Palmer v. Trump Model Management, LLC

Citations: 175 F. Supp. 3d 103; 26 Wage & Hour Cas.2d (BNA) 705; 2016 U.S. Dist. LEXIS 51061; 2016 WL 1544740Docket: 14 Civ. 8307(AT)

Court: District Court, S.D. New York; March 23, 2016; Federal District Court

Narrative Opinion Summary

In this case, the plaintiff, a Jamaican model, initiated a class action lawsuit against Trump Model Management, LLC, its president, and an unnamed CEO, alleging violations of the Fair Labor Standards Act (FLSA), the Immigration and Nationality Act (INA), and the Racketeer Influenced and Corrupt Organizations Act (RICO), among other claims such as breach of contract, unjust enrichment, fraud, and conversion. The plaintiff contended that she was misled into signing a 'Model’s Loan Agreement' and was underpaid, receiving only $3,880.75 over three years after deductions. The defendants moved to dismiss the case under Federal Rule of Civil Procedure 12(b)(6), arguing that the complaint lacked sufficient factual content. The court agreed, granting the motion to dismiss, noting that the plaintiff failed to specify hours worked for her FLSA claim and did not exhaust administrative remedies under the INA for her RICO claim. Additionally, the court declined supplemental jurisdiction over the state law claims, citing judicial economy and fairness. Consequently, the plaintiff's federal claims were dismissed, and the case was closed with directions for administrative corrections to the case caption.

Legal Issues Addressed

Exhaustion of Administrative Remedies under the Immigration and Nationality Act (INA)

Application: Plaintiff's failure to exhaust INA’s administrative procedures barred her RICO claim.

Reasoning: Plaintiff did not use the INA’s complaint procedures to address grievances against Defendants but instead claimed a RICO violation based on alleged misrepresentations regarding wages in her labor application.

Fair Labor Standards Act Minimum Wage Claim

Application: Plaintiff's claim failed due to insufficient factual support regarding hours worked and total remuneration, resulting in dismissal.

Reasoning: The Plaintiff’s claim fails as she has not specified the number of hours worked and does not dispute that her total pay of $3,880.75 over three years exceeds minimum wage.

Motion to Dismiss under Federal Rule of Civil Procedure 12(b)(6)

Application: The complaint must present sufficient factual content to support a plausible claim, accepting allegations as true and favoring the plaintiff.

Reasoning: The court reviewed the Defendants' motion to dismiss under Federal Rule of Civil Procedure 12(b)(6), establishing that to survive such a motion, the complaint must present sufficient factual content to support a plausible claim.

Racketeer Influenced and Corrupt Organizations Act (RICO) and Preemption by Immigration and Nationality Act (INA)

Application: RICO claims were dismissed as the INA provides specific administrative remedies, preempting the RICO claims.

Reasoning: The court ruled that the RICO statute is an inappropriate remedy, as the INA specifies administrative remedies for H-1B workers under Section 1182(n).

Supplemental Jurisdiction over State Law Claims

Application: The court declined to exercise supplemental jurisdiction over state common law claims after federal claims were dismissed.

Reasoning: Furthermore, Plaintiff's state common law claims for breach of contract, unjust enrichment, fraud, and conversion were also dismissed without prejudice after the federal claims were eliminated.