JOHNSTON et al v. TITAN LOGISTICS & RESOURCES, LLC et al

Filing 406

Memorandum ORDER denying 380 MOTION to Compel Tax Records by UNITED VISION LOGISTICS. Details more fully stated in the order. Signed by Judge Nora Barry Fischer on 1/13/21. (cjo)

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF PENNSYLVANIA
GLENWOOD JOHNSTON; et al, on
behalf of themselves and similarly situated
employees,

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Plaintiffs,
v.
TITAN LOGISTICS & RESOURCES,
LLC; TONY DIGIAMBERDINE; and
UNITED VISION LOGISTICS,
Defendants.

Civ. A. No. 17-1617
Judge Nora Barry Fischer

MEMORANDUM ORDER
Presently before the Court is Defendant United Vision Logistics’ (“UVL”) Motion to
Compel Tax Records (Docket No. 380), the Memorandum of Law in Support of Defendant UVL’s
Motion to Compel Tax Records (Docket No. 381), and Plaintiffs’ Opposition to UVL’s Motion to
Compel Tax Records (Docket No. 391). UVL’s Motion [380] is DENIED for the following
reasons.
In its Motion, UVL seeks an order compelling Plaintiffs to furnish all responsive
documents to UVL’s Document Request No. 8, as amended, which asks for, “all tax returns, IRS
Forms W-2, and IRS Forms 1099” from the years in which Plaintiffs claim they worked for UVL.
(Docket No. 380 at 1).
Under Rule 26(b)(1), “discovery may be had of ‘any matter relevant to the subject matter
involved in the action’ and ‘[r]elevant information need not be admissible at the trial if the
discovery appears reasonably calculated to lead to the discovery of admissible evidence.’” Samuel,
Son & Co. Inc. v. Beach, No. CIV.A. 13-128E, 2014 WL 5089718, at *3 (W.D. Pa. Oct. 9, 2014)

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(quoting Fed. R. Civ. P. 26). “Issues relating to the scope of discovery permitted under the Federal
Rules of Civil Procedure rest in the sound discretion of the court.” Id. “[T]he moving party bears
the initial burden to show the relevance of the requested information and that it is proportional to
the needs of the case.” Hetzel v. Adaptive Health, LLC, No. CV 19-336, 2020 WL 7061634, at *1
(W.D. Pa. Apr. 9, 2020). “[O]nce this initial burden is met, the burden shifts to the party resisting
discovery to demonstrate the lack of relevance of the requested documents or that responding to
the discovery would be unduly burdensome.” Id.
As to the discoverability of tax records in particular, “[p]ublic policy favors the
nondisclosure of income tax returns.” Id. (quoting DeMasi v. Weiss, 669 F.2d 114, 119 (3d Cir.
1982)). “Whether tax returns are discoverable turns on whether (1) the tax returns are relevant to
the subject matter of the action; and (2) there is a compelling need for the returns because the
information contained therein is not otherwise readily obtainable.” Id. (citing In re Sunrise Secs.
Litig., 130 F.R.D. 560, 578 (E.D. Pa. 1989)).
In this case, the parties contest both (1) whether Plaintiffs were employees—as opposed to
independent contractors—of UVL; and (2) whether UVL was a joint employer of Plaintiffs. The
present question before the Court is whether Plaintiffs’ tax records are relevant to either of those
inquiries. In this Court’s estimation, they are not.
Under the first inquiry, the Third Circuit utilizes a six-factor “economic realities” test to
determine whether a worker is an “employee” or an “independent contractor” under the FLSA. See
Verma v. 3001 Castor, Inc., 937 F.3d 221, 229 (3d Cir. 2019); Silla v. One Three Five, Inc., No.
CV 17-1393, 2020 WL 6292736, at *5 (W.D. Pa. Oct. 27, 2020). Given that Plaintiffs have
demonstrated good cause to uphold the expectation of confidentiality in their tax records, as well
as the availability of reliable financial information from other sources, namely, the W-2s produced

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by Plaintiffs and emails demonstrating that UVL mangers knew Terminal 750 paid drivers as W2 employees, (see Docket Nos. 391-2; 391-3; 391-4), UVL has failed to show why “all [of
Plaintiffs’] tax returns” are relevant. See Farmers & Merchants Nat. Bank v. San Clemente Fin.
Grp. Sec., Inc., 174 F.R.D. 572, 585 (D.N.J. 1997) (concluding that the tax returns would not show
anything beyond the information already produced). This Court also agrees with Plaintiffs that
Verma plainly demonstrates that “employer-imposed ‘independent contractor’ classifications are
irrelevant to the actual merits of the economic realities test.” 937 F.3d at 239; (Docket No. 391 at
5).
Under the second inquiry, nor are Plaintiffs’ tax returns relevant to the joint-employer
factors established in In re Enter. Rent-A-Car Wage & Hour Employment Practices Litig., 683
F.3d 462 (3d Cir. 2012). The joint employer inquiry “serve[s] to identify whether the alleged joint
employer exerts significant control over the relevant employees.” Id. at 468. UVL points to no
controlling law from this Circuit that demonstrates that Plaintiffs’ personal tax records are relevant
to determining this control.
AND NOW, this 13th day of January, 2021, for the foregoing reasons,
IT IS HEREBY ORDERED that UVL’s Motion to Compel Tax Records [380] is DENIED.
/s Nora Barry Fischer
Nora Barry Fischer
Senior United States District Judge
cc/ecf: All counsel of record

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