Gonzalez-Quinones et al v. Speight Seed Farms, Inc. et al

Filing 60

CONSENT JUDGMENT AND CONSENT ORDER, signed by US District Judge Terrence W. Boyle on 9/11/2014. (Fisher, M.)

IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF NORTH CAROLINA
EASTERN DIVISION
JUAN MANUEL HERNANDEZ-MARTINEZ,
behalf of himself and all other
similarly situated persons,

on

Plaintiffs,
CLASS ACTION

v.
Case No: 4-13-CV-82-BO

Speight Seed Farms, Inc., John Milton
Beaman, and Emma Ortega,
Defendants.

CONSENT JUDGMENT AND CONSENT ORDER
This
Standards

is a
Act

class action brought pursuant to the Fair Labor
("FLSA"),

29

Carolina Wage and Hour Act
seq.

U.S.C.

§§201

et

seq.

and

the

North

("NCWHA"), N.C.Gen.Stat. §§ 95-25.1 et

Plaintiff and the class assert claims under the Fair Labor

Standards

Act

("FLSA"),

29

Carolina Wage and Hour Act
95-25.25

alleging

plaintiff

and

that

others

U.S.C.

§§

( "NCWHA") ,

during

the

similarly

201-219,
N.C.

and

Stat.

North

§§ 95-2 4. 1 to

applicable

situated

the

time

were

period,

employed

as

temporary agricultural workers under the guestworker H-2A program
by defendants and suffered de facto wage deductions for various
pre-employment
their

expenses

employment by the

Florida

Pacific Farms,

that

they

defendants.

LLC,

incurred
See

305 F.3d 1228

as

a

condition

generally

Arriaga

(11th Cir. 2002).

of
v.

The

plaintiff and the class also alleged that during that same time
period

the

defendants

were

liable

for

payment

of

liquidated

damages under 29 U.S.C. § 216(b) and N.C.Gen.Stat. § 95-25.22(a1)

1

based upon their alleged failure to pay all wages when due under
N.C.Gen.Stat.
plaintiffs

§

95-25.6

pursuant

to

required by 29 U.S.C.
H-2A

plaintiff

through

the

deduction

and

use

system

of

the

§ 206(a)
the
an

that

minimum

N.C.Gen.Stat.

members

was

the

Doc.

rate

§§

disclosed

to

the

95-25.13(1)-(2)

and

for all hours worked by the named
of

allegedly

collective action claim.
(~~113-115).

at

that

alleged

involuntary

subject

of

savings

action

plan

wage

plaintiff's

the

35 at 14-18

class

FLSA

and at 39-40

(~~35-42)

As with the plaintiff's FLSA claim, this NCWHA class

claim was also based upon the plaintiff's allegations that those
wage deductions were not voluntary,
plaintiff
required

and
by

his
29

N.C.Gen.Stat.

co-workers
U.S.C.

below

206(a)

§§ 95-25.13(1)-(2),

written and signed wage
NCWHA.

§

See Doc.

95-25.8(a)(2)(i)

the
and

promised

minimum

disclosed

rate

pursuant

to

and occurred without the prior

deduction authorization

35 at 32-34
and

reduced the net wages of the

(~~93

and 97),

required by the

and N.C.Gen.Stat.

95-25.8(a)(3)(i).

Defendants

§§

denied

Plaintiff's allegations.
Among the defendants named in the plaintiff's Complaint are
John

Milton

("Beaman"),
labor

Beaman,

and

Mr.

supervisor

severally

Defendants deny.
2012,

principal

Speight Seed Farms,

contractor

jointly

the

of

Inc.,

when

employed

by

Speight

Seed

Farms,

and Emma Ortega,

the

plaintiff

Speight

and

was

the

Inc.
farm

allegedly

Beaman,

which

Plaintiff contends that during at least 2011 and

Beaman and Speight Seed Farms,

Inc.,

employers operating in and around Pitt County,

2

were agricultural
North Carolina for

which

they

used

or

employed

persons

like

the

plaintiff.

Defendants contend that Plaintiff and all other similarly situated
employees were employed by Speight Seed Farms, Inc., not Beamon.
The allegations of the complaint essentially allege that the
defendants violated the rights of the plaintiff and the class he
has been certified to represent under the FLSA and the NCWHA in a
number of different ways.
not limited to,

Those alleged ways included,

but are

the alleged failure to pay the plaintiff and the

class he has been certified to represent all wages when due under
N.C.Gen.Stat.
plaintiffs

95-25.6

§

pursuant

to

required by 29 U.S.C.
H-2A

plaintiff

through

the

deduction

and

use

of

at

the

system that

minimum

rate

N.C.Gen.Stat.
206(a)

§

an

the

of

allegedly

collective action claim.

to

95-25.13(1)-(2)

the
and

for all hours worked by the named

members

was

§§

disclosed

the

that

alleged

involuntary

subject

of

Doc. 35 at 14-18

class

savings

the

action

plan wage

plaintiff's

FLSA

and at 39-40

(~~35-42)

(~~113-115).

The defendants John Milton Beaman, Speight Seed Farms,

Inc.,

and Emma Ortega have at all times denied,

and continue to deny,

any violation of

regarding

the

FLSA and the

NCWHA

the

alleged

failure to pay wages when due or the alleged failure to pay at the
minimum

rate

pursuant

to

required

by

N.C.Gen.Stat.

29

U.S.C.

§§

§

206(a)

and

95-25.13(1)-(2).

as

disclosed

In

addition,

nothing in this consent order or in the settlement of this action
should be construed as an admission or finding of any violation of
the

Act

or

wrongdoing

of

any

kind

3

or

nature

by

these

same

defendants,

and that therefore,

upon the date that final payment

is made and all other actions specified in this Consent Order are
taken in compliance with its terms, defendants John Milton Beaman,
Speight Seed Farms,

Inc., and Emma Ortega shall be fully released

and forever discharged from any and all claims, demands,

charges,

complaints, rights, and causes of action by the plaintiff and the
members of the class he has been certified to represent that arise
or may arise against defendants John Milton Beaman,
Farms,

Inc.,

Speight Seed

and Emma Ortega including but not limited to those

under the Fair Labor Standards Act and the NCWHA for the period
from January 1, 2010 through the date that this Court enters that
consent order.
The

named

plaintiff

Speight Seed Farms,
into this

Inc.,

and

defendants

John

Milton

Beaman,

and Emma Ortega have decided to enter

consent order and to settle the claims

and potential

claims of the named plaintiff and the members of the class he has
been certified to represent against defendants John Milton Beaman,
Speight

Seed

Farms,

Inc.,

and Emma

Ortega

in

this

case

effort to avoid further protracted and costly litigation.
end,

in

an

To that

the named plaintiff and the members of the class the named

plaintiff
Mil ton

has

Beaman,

been

certified

Speight

Seed

to

represent

Farms,

Inc.,

and
and

defendants
Emma

Ortega

mutually stipulated to the entry of this Consent Order,
Court,

therefore,

upon

consideration

being fully advised of the premises,
ORDERS and DECREES:

4

of

the

record

John
have

and the

herein

and

( 1)

By

Martinez
Inc.,

consent

of

and defendants

and Emma Ortega,

subject

to

the

plaintiff

Juan

John Mil ton Beaman,

Manuel

Speight

HernandezSeed Farms,

the terms of this Consent Order shall be

enforcement

by

any

person ( s)

who

would

receive

any

benefit from a full and complete execution of its terms.
( 2)

Starting

with

September

16,

2014,

defendants

Speight

Seed Farms,

Inc. and John Milton Beaman shall pay $1,000.00 on or

before

16th day

the

trust

of

each month

account

of

the

for

twenty-five

the

P.A.

until such time as until such time as those same defendants

the

additional

settlement

payments

On or before September 4,

days of the August 20,

required

and

Smith,

above of the

Willis,

2014

the

parties'

Doc. 50-1 at 2-3.

(or within fifteen

(15)

the law firm of Ward and Smith,
Willis,

P.A.

check written on the trust account of the

firm of Ward and Smith,
Ward

2014.

by

shall transfer to the Law Office of Robert J.

by trust account

J.

2014 date on which the Court approved the

final settlement of this action)
P.A.

Robert

$25,000.00 being the total amount of

Settlement Agreement after August 16,
(3)

of

months

into

have made all 25 payments,

Law Office

(25)

P. A.

P.A.

all funds

pursuant

to

Settlement Agreement

the

held by the

law firm of

terms

(Doc.

law

of

paragraph

50-1

at

2)

D. i.

approved by

the Court.
( 4)
Seed

If

Farms,

any

substantial

Inc.

and/ or

Speight Seed Farms,
winding

up

of

the

Inc.

asset

John

Mil ton

is sold or

business

of

of

business

Beaman

doing

of

Speight

business

as

trans fer red as part of the

Speight

5

the

Seed

Farms,

Inc.

and/ or

John Milton Beaman doing business as Speight Seed Farms,
any

time

before

Beaman have

Speight

made

all

of

Seed
the

Farms,

Inc.

36 monthly

and/or

John

payments

Inc. at
Milton

described

in

paragraphs D.i.-iv. above of the Settlement Agreement (Doc. 50-1)
approved by the Court's Order filed on August 20, 2014
defendants

Speight

Seed

Farms,

Inc.

and/or

(Doc. 58),

John Milton

Beaman

shall pay or transfer and are ORDERED to pay and transfer to the
Law Office of Robert
obtained

from

any

J.

such

Willis,

P. A.

transaction

the net gain or asset ( s)
as

a

credit

against

any

remaining settlement payment(s) due under the terms of paragraphs
D.i.-iv. of the Settlement Agreement

(Doc.

50-1)

approved by the

Court's Order (Doc. 58) before defendant Speight Seed Farms, Inc.
and/ or John Mil ton Beaman may take title to or receive payment
from any the transfer of any such asset.
The undersigned parties agree and stipulate that this Consent
Order resolves all matters between defendants and plaintiff Juan
Manuel

Hernandez-Martinez

Amended Complaint that was

that

are

filed

alleged

in

the

in the above-captioned action,

and the plaintiff's claims against all defendants
with prejudice

except

that

the

plaintiff's

Court

retains

are dismissed

jurisdiction over

this action to the extent necessary to enforce the terms of this
Consent Judgment and Consent Order.
This the ~ day of

6