Castro v. Precision Demolition LLC et al
Filing
114
MEMORANDUM OPINION AND ORDER: The court grants defendants' renewed motion for judgment as a matter of law; denies as moot defendants' motion to alter or amend the judgment; grants in part plaintiff's motion to alter or amend the judgment; and denies as moot plaintiff's motion for judgment as a matter of law. (Ordered by Judge Sidney A Fitzwater on 7/11/2017) (ash)
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IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION
ARTURO CASTRO, and all others
similarly situated under
29 U.S.C. § 216(b),
Plaintiff,
VS.
PRECISION DEMOLITION LLC,
et al.,
Defendants.
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§ Civil Action No. 3:15-CV-0213-D
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§
MEMORANDUM OPINION
AND ORDER
Following a jury trial in this action alleging claims for unpaid overtime and retaliation
under the Fair Labor Standards Act of 1938 (“FLSA”), 29 U.S.C. § 201 et seq., plaintiff and
defendants move for judgment as a matter of law under Fed. R. Civ. P. 50(b) and to alter or
amend the judgment under Rule 59(e). For the reasons that follow, the court grants
defendants’ renewed motion for judgment as a matter of law, grants in part plaintiff’s motion
to alter or amend the judgment, and otherwise denies the motions. The court is filing today
an amended judgment in accordance with these rulings.
I
Castro brought this putative collective action on behalf of himself and all others
similarly situated against defendants Precision Demolition LLC and Precision Demolition,
LP (collectively, “Precision Demolition”), Holfords Prairie Partners, LLC (“Holfords”),
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Raymond D. Rinker III1 (“Rinker”); and Aaron Smith (“Smith”). Castro alleged claims for
unpaid overtime wages, under 29 U.S.C. § 216(b), and for retaliation, under 29 U.S.C. §
215(a)(3).
The parties tried the case to a jury, which returned a verdict partly in favor of Castro,
and partly in favor of defendants. Regarding Castro’s FLSA overtime claim, the jury found
that Castro had proved the essential elements of this claim against Precision Demolition,
Rinker, and Smith, but not against Holfords, and that Precision Demolition had willfully
violated the FLSA. The jury found that Precision Demolition owed Castro $608.85 for
unpaid overtime for travel time. Regarding Castro’s FLSA retaliation claim, the jury found
that Castro had proved all of the essential elements of this claim as to Precision Demolition
and awarded him $13,300 in “Back pay.”
The court entered judgment on the verdict, awarding Castro judgment against
Precision Demolition in the principal sum of $13,908.85, together with liquidated damages
in the sum of $608.85, and post-judgment interest on the foregoing sums at the rate of 0.57%
per annum. The court also ordered that Castro recover from Precision Demolition such
attorney’s fees and related nontaxable expenses as the court might thereafter award on timely
motion. The court assessed the taxable costs of court of Holfords, Rinker, and Smith against
Castro.
Castro now moves for judgment as a matter of law, contending that because Holfords
1
The complaint incorrectly identifies this defendant as Raymond D. Ricker III.
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is the general partner of the limited partnership that employed Castro (i.e., Precision
Demolition), Holfords is a joint employer and is jointly and severally liable for Castro’s
damages. Castro also moves to alter or amend the judgment to impose liability for his claims
on Holfords, Rinker, and Smith, and to award liquidated damages for his retaliation claim,
contending that liquidated damages are mandatory by law, and that, even if an award of
liquidated damages is discretionary, such an award is appropriate in this case to effectuate
the purposes of the anti-retaliation provisions of the FLSA.
Defendants move for judgment as a matter of law, contending that Castro failed to
prove that any defendant retaliated against him in violation of the FLSA, and to prove that
he would have both been neither demoted nor terminated but for his participation in activity
protected under the FLSA. Defendants move to alter or amend the judgment, contending that
the jury’s finding that any defendant retaliated against Castro is clearly erroneous, and that
the jury’s finding that Castro proved that he reasonably mitigated his damages is also clearly
erroneous.
II
Before turning to the merits of the parties’ motions, the court will address defendants’
motion for leave to supplement their renewed motion for judgment as a matter of law.
A
Castro and defendants initially moved during trial for judgment as a matter of law
under Rule 50(a). After the court entered the judgment, both sides filed renewed motions for
judgment as a matter of law, under Rule 50(b), and motions to alter or amend the judgment,
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under Rule 59(e). The parties then filed a joint motion to extend the deadlines to respond to
the pending post-trial motions. Castro later moved for entry of a post-trial scheduling order.
Although defendants initially objected, they later withdrew their objections, and the court
granted Castro’s motion, setting February 17, 2017 as the deadline for the parties to
supplement their post-trial motions. Defendants did not supplement their renewed motion
for judgment as a matter of law by this deadline.
In Castro’s response to defendants’ renewed motion for judgment as a matter of law,
he asserts that the court should deny the motion because the pro forma renewed motion itself
contains no supporting briefing, and defendants failed to file any supplemental briefing by
the February 17, 2017 deadline. Alternatively, Castro argues that the court should deny
defendants’ motion for the same reasons it did so at trial.
Defendants maintain in reply that their renewed motion for judgment as a matter of
law is sufficient to preserve all issues and requests for relief made in that motion.
Alternatively, they request leave to supplement their renewed motion for judgment as a
matter of law.
B
In order to grant defendants’ motion for leave to supplement, the court must decide
whether to modify the February 17, 2017 deadline for the parties to supplement their posttrial motions. Although the time for filing a Rule 50(b) motion is governed, of course, by
Rule 50(b) itself, a motion to supplement such a motion is governed by the court’s
scheduling order.
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Rule 16(b)(4) states that “[a] schedule may be modified only for good cause and with
the judge’s consent.” “The ‘good cause’ standard focuses on the diligence of the party
seeking to modify the scheduling order.” Cut-Heal Animal Care Prods., Inc. v. Agri-Sales
Assocs., Inc., 2009 WL 305994, at *1 (N.D. Tex. Feb. 9, 2009) (Fitzwater, C.J.). Mere
inadvertence on the part of the movant, and the absence of prejudice to the nonmovant, are
insufficient to establish “good cause.” Id.; Price v. United Guar. Residential Ins. Co., 2005
WL 265164, at *4 (N.D. Tex. Feb. 2, 2005) (Fish, C.J.) (citing Geiserman v. MacDonald,
893 F.2d 787, 791 (5th Cir. 1990)). “Instead, the movant must show that, despite [its]
diligence, [it] could not reasonably have met the scheduling deadline.” Matamoros v.
Cooper Clinic, 2015 WL 4713201, at *2 (N.D. Tex. Aug. 7, 2015) (Fitzwater, J.) (citing S
& W Enters., L.L.C. v. SouthTrust Bank of Ala., N.A., 315 F.3d 533, 535 (5th Cir. 2003)).
The court assesses four factors when deciding whether to modify a scheduling order
under Rule 16(b)(4): “(1) the explanation for the failure to timely [file the supplement]; (2)
the importance of the [supplement]; (3) potential prejudice in allowing the [supplement]; and
(4) the availability of a continuance to cure such prejudice.” S & W Enters., 315 F.3d at 536
(citation, internal quotation marks, and brackets omitted). The court considers the four
factors holistically and “does not mechanically count the number of factors that favor each
side.” EEOC v. Serv. Temps, Inc., 2009 WL 3294863, at *3 (N.D. Tex. Oct. 13, 2009)
(Fitzwater, C.J.), aff’d, 679 F.3d 323 (5th Cir. 2012). When applying this multi-factor test,
the court usually denies motions to amend the scheduling order when the moving party fails
to demonstrate that, despite its diligence, it could not have reasonably met the scheduling
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deadline. See, e.g., id. (stating that court “remembers at all times that the good cause inquiry
focuses on the diligence of the party seeking to modify the scheduling order,” and finding
that movant had failed to satisfy good cause standard of Rule 16(b)(4) where it had not
provided plausible explanation for its delay, and that this failure to provide plausible
explanation outweighed the other factors in the court’s analysis).
C
1
Defendants’ explanation for failing to timely supplement their Rule 50 motion consists
of the following2: the “essence” of their arguments has been preserved in their renewed
motion and briefed in their motion to alter or amend and response to Castro’s motion to alter
or amend; any oversight associated with limited briefing can be corrected by granting leave
to supplement; and, although the conduct of counsel does not demonstrate good cause, “it is
also true that [g]ranting Defendants’ Motion will allow the parties to ensure that all issues
2
Although defendants do not cite Rule 16(b)(4) in their brief, they adequately address
the “good cause” standard and the four-factor analysis. “When a party . . . does not address
the good cause standard under Rule 16(b)(4), this court typically denies the motion for that
reason alone.” Wachovia Bank, Nat’l Ass’n v. Schlegel, 2010 WL 2671316, at *3 (N.D. Tex.
June 30, 2010) (Fitzwater, C.J.) (citing Serv. Temps, 2009 WL 3294863, at *1) (addressing
motions for leave to amend). But the court has made exceptions in cases where the movant
does not address the Rule 16(b)(4) good cause standard, but the grounds on which it relies
to establish good cause are relatively clear. See, e.g., Nieves v. John Bean Techs. Corp.,
2014 WL 2587577, at *2 (N.D. Tex. June 10, 2014) (Fitzwater, C.J.) (“Nieves neither
identifies the correct standard nor cites Rule 16(b)(4) in her brief, but the grounds on which
she relies enable the court to apply the pertinent four-factor test.”); Cartier v. Egana of Switz.
(Am.) Corp., 2009 WL 614820, at *2 (N.D. Tex. Mar. 11, 2009) (Fitzwater, C.J.) (“Cartier
does not brief its motion under the Rule 16(b)(4) good cause standard or related case law, but
the grounds on which it relies to establish good cause are relatively clear.”).
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are properly sharpened, and analyzed pursuant to the standards of both Rule 50 and Rule
59(e), in anticipation of the Court making its final rulings in this case.” Ds. 3/24/17 Br. at
5. None of these arguments, however, provides the court with an explanation for why,
despite their diligence, defendants could not have reasonably met the February 17, 2017
deadline. Moreover, defendants did not object to Castro’s motion for entry of a post-trial
scheduling order, which specifically included a proposed deadline for filing “supplemental
briefing and evidentiary support for renewed motions for judgment as a matter of law.” P.
1/20/2017 Mot. at 4. Defendants failed to supplement their renewed motion by the courtordered deadline to which they did not object. The court therefore concludes that defendants
have failed to provide a satisfactory explanation for their failure to timely supplement their
Rule 50(b) motion. This factor weighs against granting defendants’ motion for leave to
supplement their renewed motion for judgment as a matter of law.
2
The second factor considers the importance of the supplement. Defendants contend
that “[t]he importance of granting Defendants’ Motion is clear in that no other avenue is
available by which no Defendant may file such briefing.” Ds. 3/24/17 Br. at 5. Castro agrees
that supplementing defendants’ renewed Rule 50(b) motion with briefing and evidentiary
support is important, and, in fact, “critical” to defendants’ position, but he contends that “the
very importance of properly supplementing the Renewed JMOL weighs against Defendants’
request.” P. 4/14/17 Br. at 4.
The court concludes that although the requested relief is important, this factor weighs
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only slightly in favor of modifying the scheduling order because, as defendants explain in
their brief,
[t]he essence of Defendants’ arguments, preserved in its
Renewed JMOL, and briefed and/or argued in its Motion to
Alter or Amend, and its Response to Defendants’ Motion to
Alter or Amend, is based in an assertion of “no evidence,” or
“insufficient evidence.” Although proving the negative, which
lies at the heart of a “no evidence” issue can sometimes be
challenging, Defendants did brief the same in its own Motion to
Alter or Amend, and in Response to Plaintiff’s Motion to Alter
or Amend.
Ds. 3/24/17 Br. at 5. In other words, because the arguments in support of defendants’
renewed motion for judgment as a matter of law are included in their motion to alter or
amend the judgment3—and because, as the court explains below, the court is willing to
consider that briefing in deciding defendants’ renewed motion for judgment as a matter of
law—it is not important that defendants be permitted to supplement their renewed motion for
judgment as a matter of law.
3
The third factor considers potential prejudice in allowing the supplement.
Castro contends that he will be prejudiced if defendants are granted leave to
supplement their renewed motion for judgment as a matter of law because permitting such
3
Defendants do not contend that, if the court permits them to supplement their
renewed Rule 50(b) motion, they will attempt to include any arguments or evidence beyond
what they have already included in their Rule 59(e) briefing.
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supplementation will further delay any recovery of damages.4 Defendants maintain that
Castro will not be prejudiced because he will have a right to respond to defendants’
supplemental motion, and the amount of time required to allow all briefing, responses, and
replies is “notable, but not excessive” given that more than six months have already passed
since the court entered judgment in the instant case. Ds. 3/24/17 Br. at 5.
The court finds that this factor weighs against granting defendants’ motion.
Permitting supplemental briefing would require the court to postpone its decision on the
pending post-trial motions, thereby prejudicing Castro. But as the court explains below, the
court can consider the arguments, authorities, and evidence on which defendants rely in
support of their Rule 59(e) motion when deciding their renewed motion for judgment as a
matter of law. Accordingly, defendants will not be prejudiced by the court’s denying their
motion to supplement their renewed motion.
4
Castro contends:
Plaintiff has already filed a response to the Defendants’
Renewed JMOL, Plaintiff has already fully briefed all of the
post-trial motions in this matter as they have been filed, some of
which bear strong parallels to the issues set out in Defendants’
Renewed JMOL, and the relief requested by Defendants will
further delay any recovery by Plaintiff of damages awarded
pursuant to the FLSA. In essence, Defendants are requesting to
“turn back the clock” on their Renewed JMOL to be able to
brief that motion with the added benefit of having first reviewed
all the other post-trial briefing in this matter without even stating
with what materials they intend to supplement the Renewed
JMOL.
P. 4/14/17 Br. at 5-6.
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4
The fourth factor considers the availability of a continuance to cure any prejudice.
To the extent that the concept of a continuance means a trial continuance, because this case
has already been tried, this factor does not apply. If the concept of continuance is enlarged
to include any type of continuance, the court concludes that postponing its decision on the
pending post-trial motions would prejudice Castro.
5
The court now considers the four factors holistically. “It does not mechanically count
the number of factors that favor each side. And it remembers at all times that the good cause
inquiry focuses on the diligence of the party seeking to modify the scheduling order.” Serv.
Temps, 2009 WL 3294863, at *3.
Assessing the four factors together, the court concludes that defendants have not
demonstrated good cause to modify the scheduling order. Defendants have failed to provide
a plausible explanation for their delay, particularly given their awareness of, and failure to
object to, the proposed post-trial scheduling order that specifically included the February 17,
2017 deadline for filing supplemental briefing and evidentiary support for renewed motions
for judgment as a matter of law. Additionally, Castro will be prejudiced by the delay
associated without permitting such supplementation, but defendants will not, because the
supplementation is not important considering that defendants will be able to make their Rule
50(b) arguments in the context of their Rule 59(e) motion. And a continuance either is not
available (because the case has already been tried) or will prejudice Castro.
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Accordingly, because defendants have not demonstrated the good cause required by
Rule 16(b)(4), the court denies their motion for leave to supplement their renewed motion
for judgment as a matter of law.
III
The court now turns to the merits of defendants’ motions.
A
In their renewed motion for judgment as a matter of law, defendants move for relief
on the following ground:
Plaintiff failed to meet his burden to prove to a preponderance
of the evidence that he was retaliated against by any defendant
in violation of the FLSA. Further, Plaintiff failed to prove to a
preponderance of the evidence that he would neither have [been]
both demoted and terminated but for his alleged participation in
activity protected under the FLSA.
Ds. 10/14/16 Br. at 2. As noted above, see supra § II(C)(2), although defendants have not
supplemented their Rule 50(b) motion for judgment as a matter of law with “detailed briefing
setting forth the arguments, authorities, and evidence on which [they] rel[y],” Ds. 10/14/16
Br. at 2, they contend that they have briefed the “essence” of their arguments in connection
with their Rule 59(e) motion to alter or amend the judgment. Because Castro has had an
adequate opportunity to respond to defendants’ Rule 59(e) motion and will not be prejudiced
by the court’s considering the arguments and evidence presented in the motion, and because
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the court is aware of no procedural rule that prohibits it from doing so,5 the court will treat
the defendants’ brief in support of their Rule 59(e) motion as though it had been properly
incorporated into defendants’ renewed Rule 50(b) motion. Accordingly, although the court
has denied defendants’ motion for leave to supplement their Rule 50(b) motion, it will
nonetheless consider the arguments, authorities, and evidence on which defendants rely in
support of their Rule 59(e) motion in deciding their renewed motion for judgment as a matter
of law.
B
“A motion for judgment as a matter of law ‘challenges the legal sufficiency of the
evidence to support the verdict.’” Jacobs v. Tapscott, 516 F.Supp.2d 639, 643 (N.D. Tex.
2007) (Fitzwater, J.) (quoting Hodges v. Mack Trucks, Inc., 474 F.3d 188, 195 (5th Cir.
2006)), aff’d, 277 Fed. Appx. 483 (5th Cir. 2008).
Judgment as a matter of law is appropriate with respect to an
issue if there is no legally sufficient evidentiary basis for a
reasonable jury to find for a party on that issue. This occurs
when the facts and inferences point so strongly and
overwhelmingly in the movant’s favor that reasonable jurors
could not reach a contrary verdict. In considering a Rule 50
motion, the court must review all of the evidence in the record,
drawing all reasonable inferences in favor of the nonmoving
party; the court may not make credibility determinations or
weigh the evidence, as those are jury functions. In reviewing
the record as a whole, the court must disregard all evidence
5
See, e.g., Elm Ridge Expl. Co. v. Engle, 721 F.3d 1199, 1216 (10th Cir. 2013) (noting
that sufficiency of the evidence is properly raised under Rule 50(b), not 59(e), and treating
party’s Rule 59(e) motion “as the functional equivalent of a Rule 50(b) motion, thereby
preserving Elm Ridge’s Rule 50(a) motion issue for appellate review.”).
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favorable to the moving party that the jury is not required to
believe. That is, the court should give credence to the evidence
favoring the nonmovant as well as that evidence supporting the
moving party that is uncontradicted and unimpeached, at least
to the extent that that evidence comes from disinterested
witnesses.
Id. (quoting Brennan’s Inc. v. Dickie Brennan & Co., 376 F.3d 356, 362 (5th Cir. 2004)).
The court will “‘uphold a jury verdict unless the facts and inferences point so strongly and
so overwhelmingly in favor of one party that reasonable [jurors] could not arrive at any
verdict to the contrary.’” Goodner v. Hyundai Motor Co., 650 F.3d 1034, 1039 (5th Cir.
2011) (alteration in original) (quoting Cousin v. Trans Union Corp., 246 F.3d 359, 366 (5th
Cir. 2001)). “In other words, the ‘jury verdict must be upheld unless there is no legally
sufficient evidentiary basis for a reasonable jury to find as the jury did.’” Id. at 1039-40
(quoting Foradori v. Harris, 523 F.3d 477, 485 (5th Cir. 2008)).
C
Defendants move for judgment as a matter of law on the jury’s finding that Precision
Demolition retaliated against Castro, in violation of the FLSA. They maintain that, to
succeed on his retaliation claim, Castro was required to prove by a preponderance of the
evidence that
a.
b.
c.
d.
He engaged in protected activity;
He was demoted and his employment was later
terminated;
That the defendant in question would not have demoted
[Plaintiff] and later terminated his employment but for
[Plaintiff’s] engaging in the protected activity; and
The Defendant in question was [Plaintiff’s] employer.
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Ds. 10/14/16 Br. at 4. Defendants maintain that, because there is no evidence in the record
that Precision Demolition terminated Castro’s employment, Castro failed to prove elements
(b) and (c), and the jury’s finding of retaliation is clearly erroneous.6 Defendants also
contend that, assuming arguendo that the January 16, 2015 Employee Reprimand
(“Reprimand”) could be considered a termination, the Reprimand is entirely unconnected to
Castro’s purported complaint regarding his overtime because there is no evidence that Bryan
Dunbar (“Dunbar”), the Human Resources Director who drafted the Reprimand, or anyone
else at Precision Demolition knew about Castro’s complaint at the time the Reprimand was
issued.
Castro responds that the evidence is sufficient to support the jury’s finding that
Precision Demolition terminated his employment: he was given the choice to sign the
Reprimand and be suspended without pay indefinitely, or not sign the Reprimand, in which
case his employment with Precision Demolition would end; he refused to sign the Reprimand
because he believed it contained false allegations regarding his conduct; and as a result of
his refusal to sign the Reprimand, his employment with Precision Demolition was terminated.
Regarding causation, Castro contends that he testified at trial that, on or about the third week
6
Defendants cite the January 16, 2015 Employee Reprimand, which states: “[Castro]
is given an opportunity to resign from employment. If [Castro] chooses to remain employed
by Precision Demolition, his employment will be suspended without pay until further notice
while the office attempts to place him on another crew. By signing below, [Castro] expresses
that he wishes to remain employed.” Ds. 10/14/16 Br. at 4. Defendants also cite to Castro’s
admission, during cross-examination, that he was aware that his employment was not being
terminated and that he was merely being reprimanded.
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that he was on the job at the Robinson Center, he first complained to Hugo Martinez
(“Martinez”) and Leonardo Contreras (“Contreras”) about Precision Demolition’s failure to
pay overtime. He maintains that the immediate response to his complaint was a threat to
remove him as a machine operator; that although Martinez did not draft the Reprimand,
Martinez acknowledged that he communicated with Dunbar shortly before the Reprimand
was created; that although Martinez stated there were other reasons for the Reprimand (i.e.,
Castro’s failure to follow instructions), none of these reasons is reflected in the Reprimand;
that inconsistent explanations for an adverse employment action can be evidence that
supports a finding that an employer retaliated; and that
[g]iven the conflicting evidence introduced at trial, and
particularly the closeness in time between Plaintiff’s complaints
and the reprimand, the discrepancies between what was written
in the reprimand and what [Martinez] alleges to have discussed
with [Dunbar], and the fact that the reprimand itself is
admittedly false on its face, it was not clearly erroneous for the
jury to conclude that the false reprimand was generated because
of Plaintiff’s complaints to [Martinez and Contreras] regarding
the Defendants’ failure to properly pay overtime[.]
P. 3/10/17 Br. at 6.
Defendants contend in reply that an analysis of the four corners of the Reprimand
shows that every possible outcome “grow[s] out of Plaintiff’s choices,” Ds. 3/24/17 Reply
at 3; that Castro has consistently testified regarding his awareness that no defendant ever
terminated his employment with Precision Demolition; and that even though the Reprimand
contained a typographical error, the content of the Reprimand is accurate regarding Castro’s
conduct and accurately represents Precision Demolition’s intent to merely reassign, not
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terminate, Castro. Regarding causation, defendants argue that Dunbar was solely responsible
for drafting the Reprimand; that Martinez informed Dunbar that Castro was no longer needed
but also that he did not want Castro to be fired; and that there is therefore no support for
Castro’s assertion that he carried his burden on “but-for” causation. Defendants also dispute
Castro’s “inconsistent explanations” arguments and contend that the entire record is devoid
of any evidence that anyone at Precision Demolition knew about Castro’s overtime
complaints, and that there is therefore no link between the Reprimand and Castro’s purported
complaint.7
D
The court holds that a reasonable jury could not have found that Precision Demolition
terminated Castro’s employment. Castro testified and introduced evidence at trial that he
was told during a January 9, 2015 telephone call that his supervisor (Martinez) did not want
him on the job any longer; that when he arrived at Precision Demolition’s main office on
January 16, 2015 to pick up his paycheck, he was presented with a Reprimand; and that the
Reprimand stated:
7
Castro objects to the evidence submitted in support of defendants’ reply, contending
that this court’s local civil rules governing reply briefs do not allow a party to file an
additional evidentiary appendix in support of a reply without first obtaining leave of court.
This rule applies, however, only to appendixes filed in support of summary judgment reply
briefs. See Dethrow v. Parkland Health Hosp. Sys., 204 F.R.D. 102, 104 (N.D. Tex. 2001)
(Fitzwater, J.) (holding that party may not file summary judgment reply appendix without
first obtaining leave of court). Even so, because the court has not considered the evidence
in defendants’ reply appendix in deciding their renewed motion for judgment as a matter of
law, the court overrules Castro’s objections as moot.
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Description of Problem: [Castro] was scheduled to work through
the weekend of January 10, 2015, and he notified his supervisor,
Hugo Martinez, on the evening of Friday, January 9, 2015 that
he needed to return to Dallas and would not be able to work
through the weekend. When Hugo asked [Castro] why he did
not give any more notice, [Castro] told Hugo he was sorry, but
he had to go. He then left town and abandoned his employment.
Corrective Action: [Castro] is given an opportunity to resign
from employment. If [Castro] chooses to remain employed by
Precision Demolition, his employment will be suspended
without pay until further notice while the office attempts to
place him on another crew. By signing below, [Castro]
expresses that he wishes to remain employed and he understands
that if he abandons his job with no notice and no excuse again,
his employment will be terminated immediately.
Ds. 10/14/16 App. at Ex. A.8 Castro testified that he refused to sign the Reprimand because
he believed it contained a false statement. Castro did not produce any evidence from which
a reasonable jury could have found that Precision Demolition (or anyone at Precision
Demolition who had the authority to do so) actually terminated Castro’s employment. He
argues that the Reprimand gave him only two options: “1) sign the reprimand and be
suspended without pay indefinitely; or, 2) not sign the reprimand in which case his
employment with Defendants would end.” P. 3/10/17 Br. at 3. But the Reprimand does not
state that Castro’s refusal to sign it would result in his termination. And the trial record does
not include any other evidence that would have enabled a reasonable jury to find that
8
Defendants’ October 14, 2016 appendix does not comply with the requirements of
N.D. Tex. Civ. R. 56.6(b)(3), which requires that each page of an appendix be sequentially
numbered. Accordingly, the court cites the appendix by the exhibit letter designation.
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Precision Demolition terminated Castro’s employment.9
Because a reasonable jury could not have found that Precision Demolition terminated
Castro’s employment, the court holds that there was insufficient evidence for a reasonable
jury to have found that Precision Demolition retaliated against Castro.10 Accordingly, the
court grants defendants’ renewed motion for judgment as a matter of law and dismisses
Castro’s retaliation claim with prejudice.11
9
Castro does not contend that he was constructively discharged, which would have
required that he prove that “the employer made the employee’s working conditions so
intolerable that a reasonable employee would feel compelled to resign.” Barrow v. New
Orleans S.S. Ass’n, 10 F.3d 292, 297 (5th Cir. 1994) (addressing constructive discharge in
the ADEA context).
10
Castro does not dispute that, under the court’s instructions to the jury, in order to
prevail on his FLSA retaliation claim, he was required to prove both that he was demoted and
that he was later terminated. Nor does he contend that the court’s jury instructions requiring
that he prove both demotion and termination were erroneous. Although a demotion alone
can constitute an adverse employment action that will support a FLSA retaliation claim,
Castro’s retaliation claim is based on his “demotion and discharge.” See Compl. ¶ 24 (“The
demotion and firing of [Castro] is in direct violation of 29 U.S.C. § 215(a)(3) because the
motivating factor for said demotion and discharge was a demand for legally mandated wages
and, as a result, [Castro] has been damaged.” (emphasis added)). Moreover, Castro both
requested, and did not object to, a jury instruction that required proof of a demotion and
termination. See P. 8/22/16 Proposed Jury Instructions and Interrogatories at 25 (requiring
plaintiff to prove that he was “retaliated against,” and defining retaliation as “taking steps to
demote Plaintiff and eventually terminating Plaintiff because Plaintiff made a complaint for
unpaid overtime wages under the [FLSA].” (emphasis added)).
11
Because the court is dismissing Castro’s retaliation claim, it denies as moot
defendants’ motion under Rule 59(e) to alter or amend the judgment on the grounds that the
following jury findings are clearly erroneous: (1) that any defendant retaliated against Castro,
and (2) that Castro carried his burden to prove by a preponderance of the evidence that he
acted reasonably to mitigate his damages. The court also denies Castro’s Rule 59(e) motion
to the extent he contends he is entitled to recover liquidated damages for his retaliation claim.
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Page 19 of 22 PageID 1879
IV
The court now turns to Castro’s motions for judgment as a matter of law and to alter
or amend the judgment.
A
Castro moves for judgment as a matter of law on the basis that, as the general partner
of Precision Demolition (the limited partnership that employed Castro), Holfords is Castro’s
employer, as defined by the FLSA. Castro moves to alter or amend the judgment to provide
“that [Castro] shall recover his damages, jointly and severally, from [Precision Demolition],
Holfords, and Mr. Rinker and Mr. Smith.” P. 10/14/16 Br. at 5. He also contends that his
costs should be taxed against each defendant and that no defendant’s costs should be taxed
against him. Defendants do not respond to these grounds of Castro’s motions.
B
“Rule 59(e) motions serve the narrow purpose of allowing a party to correct manifest
errors of law or fact or to present newly discovered evidence.” Davila v. Walmart Stores,
Inc., 2017 WL 1509303, at *1 (N.D. Tex. Apr. 27, 2017) (Fitzwater, J.) (citing Arrieta v.
Yellow Transp., Inc., 2009 WL 129731, at *1 (N.D. Tex. Jan. 20, 2009) (Fitzwater, C.J.)).
“Such motions are not the proper vehicle for rehashing old arguments or advancing theories
of the case that could have been presented earlier.” Arrieta, 2009 WL 129731, at *1 (quoting
AMS Staff Leasing, NA, Ltd. v. Associated Contract Truckmen, Inc., 2005 WL 3148284, at
*3 (N.D. Tex. Nov. 21, 2005) (Fitzwater, J.). The movant must demonstrate valid reasons
to justify the court’s reconsideration of a prior ruling. See Hearn v. Quarterman, 2008 WL
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Page 20 of 22 PageID 1880
679030, at *3 (N.D. Tex. Mar. 13, 2008) (Fitzwater, C.J.).
While a district court has considerable discretion in deciding whether to reopen a case
under Rule 59(e), reconsideration of a judgment after its entry is an extraordinary remedy
that should be used sparingly. See Templet v. HydroChem Inc., 367 F.3d 473, 479 (5th Cir.
2004). Rule 59(e) generally “favor[s] the denial of motions to alter or amend a judgment[.]”
S. Constructors Grp., Inc. v. Dynalectric Co., 2 F.3d 606, 611 (5th Cir. 1993) (footnote
omitted).
C
1
The court begins with defendant Holfords. It is undisputed that Holfords is the
general partner of Precision Demolition. Under Texas law, general partners of a limited
partnership are jointly and severally liable with each other and with the partnership for
partnership debts. Forney 921 Lot Dev. Partners I, L.P. v. Paul Taylor Homes, Ltd., 349
S.W.3d 258, 272-73 (Tex. App. 2011, pet. denied); see also Tex. Bus. Org. Code §
153.152(b) (West 2012) (“Except as provided by this chapter or the other limited partnership
provisions, a general partner of a limited partnership has the liabilities of a partner in a
partnership without limited partners to a person other than the partnership and the other
partners.”). Accordingly, the court holds that Holfords is jointly and severally liable for
Castro’s unpaid overtime compensation under Texas law, without considering whether it also
qualifies as Castro’s employer under the FLSA.
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Page 21 of 22 PageID 1881
2
Turning to Rinker and Smith, the jury found that Castro had proved each of the
essential elements of his FLSA overtime claim as to these defendants. Defendants do not
appear to oppose the court’s altering or amending the judgment to reflect that, as Castro’s
employers, Rinker and Smith are jointly and severally liable for Castro’s unpaid overtime
compensation from Precision Demolition. Accordingly, the court holds that Rinker and
Smith are also jointly and severally liable for Castro’s FLSA unpaid overtime compensation.
The court therefore grants Castro’s motion under Rule 59(e) to the extent he requests
that the court alter or amend the judgment to provide that he recover for unpaid overtime,
jointly and severally, from Precision Demolition, Holfords, Rinker, and Smith.12
V
As a result of the jury verdict and the court’s decisions today, Castro is recovering
from defendants, jointly and severally, the modest sum of $608.85 in unpaid overtime
compensation and liquidated damages of $608.85. He is not recovering against them on any
other basis, including for retaliation. Accordingly, the court concludes in its discretion that
each party should bear his or its own taxable costs of court. This does not preclude Castro
from recovering such reasonable attorney’s fees and related nontaxable expenses as the court
may hereafter award on timely motion.
12
Because the court is granting this ground of Castro’s Rule 59(e) motion, it need not
also address whether Castro is entitled to relief under Rule 50(b).
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*
*
Page 22 of 22 PageID 1882
*
For the foregoing reasons, the court grants defendants’ renewed motion for judgment
as a matter of law; denies as moot defendants’ motion to alter or amend the judgment; grants
in part Castro’s motion to alter or amend the judgment; and denies as moot Castro’s motion
for judgment as a matter of law. The court is today entering an amended judgment consistent
with this memorandum opinion and order.
SO ORDERED.
July 11, 2017.
_________________________________
SIDNEY A. FITZWATER
UNITED STATES DISTRICT JUDGE
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