Lucas v. JJ's of Macomb, Inc.
Lucas v. JJ's of Macomb, Inc.
Opinion of the Court
This cause is before the Court on Plaintiff Sebastian Lucas's Motion for Equitable Tolling of the Statute of Limitations (d/e 12). For the reasons stated below, the Court GRANTS the motion.
I. BACKGROUND
Plaintiff filed his Complaint (d/e 1) on December 20, 2016 and his Amended Complaint (d/e 26) on May 30, 2018. Plaintiff brings claims under the Fair Labor Standards Act (FLSA),
In July 2014, over two years before Plaintiff brought this action, another assistant manager employed at a different franchisee than Defendant brought an FLSA collective action in the Northern District of Illinois. That plaintiff sued her franchisee and the Jimmy John's corporate franchisor for unpaid overtime wages. The Court certified the collective action, and 660 plaintiffs opted-in, including Mr. Lucas. Mr. Lucas [hereinafter Plaintiff] then brought this action against Defendant, who was his franchisee employer. Defendant is different from the franchisee defendant in the Northern District-the Northern District did not have personal jurisdiction over Defendant. Over a dozen Northern District opt-in plaintiffs have filed similar suits across the country. See e.g., *885Ruder v. CWL Invs. LLC, No. 16-cv-4460,
On March 9, 2017, the Northern District enjoined Plaintiff and the other collective action members who had brought similar cases from pursuing the proceedings in this and the other District Courts. See In re Jimmy John's Overtime Litigation, No. 14-cv-5509 (N.D. Ill.). On April 3, 2017, pursuant to a joint motion by both parties, and in light of the injunction, this Court stayed the proceedings in this matter pending further order of the Northern District. On December 14, 2017, the Seventh Circuit reversed the Northern District's injunction against the proceedings in other courts against other franchisees. See In re Jimmy John's Overtime Litigation,
On April 6, 2017, three days after this Court stayed this case, Plaintiff filed a Motion for Equitable Tolling of the Statute of Limitations (d/e 12) asking the Court to toll the statute of limitations from March 9, 2017, the date on which the Northern District issued the injunction, to December 14, 2017, when the Seventh Circuit reversed the injunction. On September 20, 2017, Plaintiff supplemented his motion with an order in Beck v. Savory Sandwiches, Inc., a case similar to this one in which the Court tolled the statute of limitations on the plaintiff's claims with respect to the defendant's (another Jimmy Johns franchise operator) current and former employees who were eligible to opt-in to that case. (d/e 15-1).
II. LEGAL BACKGROUND
Under the FLSA, employees may bring a collective action against an employer to recover unpaid overtime compensation on behalf of themselves and on behalf of other similarly situated employees.
Moreover, under the FLSA, the statute of limitations continues to run for each potential plaintiff until he or she opts in to the lawsuit. The FLSA requires that an action "be commenced within two years after the cause of action accrued," unless the violation was willful, in which case a three-year statute of limitations applies.
The statute of limitations in FLSA suits is not jurisdictional and equitable tolling can be applied. Bergman v. Kindred Healthcare, Inc.,
*886III. ANALYSIS
Plaintiff argues that the Court should equitably toll the statute of limitations for the nine-month period that the injunction was in place to avoid the possibility that putative plaintiffs will lose the potential benefits of the lawsuit.
A. Plaintiff diligently pursued this action and extraordinary circumstances exist.
For equitable tolling to apply, the plaintiff must show: 1) that he pursued his rights diligently and 2) that extraordinary circumstances prevented a would-be party's timely filing. Knauf Insulation, Inc.,
Plaintiff has diligently prosecuted this case. Plaintiff filed his Motion to Toll the Statute of Limitations three days after this Court stayed these proceedings. Before filing his motion, Plaintiff obtained a modification to the injunction by the Northern District allowing him to file the motion. This action commenced when Plaintiff filed suit after opting into the collective action in the Northern District to preserve the claims against this franchisee.
This case also involves extraordinary circumstances. Litigation in the Northern District resulted in an injunction of the proceedings in this Court. See In re Jimmy John's Overtime Litigation, No. 14-cv-5509 (N.D. Ill.). Such an injunction is "particularly rare." See In re Jimmy John's Overtime Litigation,
Some courts have noted that the court cannot assess the diligence of a plaintiff who has not opted in. See Davis v. Vanguard Home Care, LLC, No. 16-CV-7277,
Courts have considered several factors when determining whether to toll the statute of limitations despite preclusion of assessment of the diligence of the putative plaintiffs: 1) whether the extraordinary circumstances were beyond the control of the plaintiff or the putative plaintiffs; 2) whether refusal to toll the statute of limitations would result in hardship for the putative plaintiffs; and 3) whether tolling prejudices the defendant. Struck v. PNC Bank N.A.,
i. The extraordinary circumstances are beyond the control of Plaintiff and the putative plaintiffs.
The extraordinary circumstances of this case are well-beyond the control of Plaintiff or the potential class members. For tolling to apply, the circumstances causing the delay and the putative plaintiff's ignorance must be an "external obstacle ... that stood in his way." Menominee Indian Tribe of Wisconsin v. United States, --- U.S. ----,
ii. Refusal to toll the statute of limitations would result in hardship to the putative plaintiffs.
A denial of Plaintiff's request to toll the statute of limitations would result in hardship to putative plaintiffs who would lose their time to bring their claim as part of this litigation due to the delay. This lost time works to deprive the putative plaintiffs of their claim. See Partlow v. Jewish Orphans' Home of Southern Cal., Inc.,
Defendant argues that putative plaintiffs could have joined this action or brought their own suit during the stay, and, therefore, any extraordinary circumstances that may exist did not prevent the potential opt-ins from joining the suit or otherwise pursuing their rights. See *888Sylvester,
iii. Tolling will not prejudice Defendant.
The substantial hardship suffered by the putative plaintiffs must be balanced with the potential prejudice that tolling could impose on the defendant. "As an equitable matter, the inquiry should focus on fairness to both parties. As part of the determination of the possible prejudice to the defendant, the court should ask whether the defendant was aware of the potential scope of liability when the complaint was filed." Kellgren v. Petco Animal Supplies, Inc., No. 13cv644,
Tolling will not unfairly prejudice Defendant because Defendant was able to know the potential scope of its liability when the Amended Complaint was filed. The Complaint defines the putative plaintiffs as non-exempt assistant managers of Defendant during the statutory period. See Amend. Compl. ¶ 1. It is reasonable to assume that Defendant possesses the identity of those persons and their work records (hours, pay, etc.). Therefore, it is reasonable to assume that Defendant was well-aware of its potential liability at the filing of the Amended Complaint. See Kellgren,
Given that the extraordinary circumstances of this case prevented Plaintiff from seeking conditional certification of the collective action and from seeking authorization to notify putative plaintiffs of the action, the Court agrees with Plaintiff that the statute of limitations should be tolled for the period in which the injunction precluded Plaintiff from pursuing this action. During this finite period of time-from March 9, 2017 to December 14, 2017-an extraordinary circumstance existed: another court enjoined the proceedings in this court. Despite the injunction, Plaintiff was diligent to preserve the claims in this Court by seeking leave from the Northern District of Illinois to file the Motion to Toll the Statute of Limitations in this Court. In a very similarly situated *889case, the Colorado District Court in Beck v. Savory Sandwiches, Inc., tolled the statute of limitations due to the same extraordinary circumstances as exist in this case-injunction of the proceedings by the Northern District.
B. This Opinion is Not Advisory.
Defendant argues that an order tolling the statute of limitations would be advisory, arguing that tolling may have no effect because, since Plaintiff has not sought certification, it is possible that no plaintiff will opt-in or that the Court will not grant the certification. See Davis,
Defendant cites to several cases in which a court has denied a motion to toll the statute of limitations because the court had not yet conditionally certified the collective action. In United States v. Cook, the Federal Circuit reversed the district court's tolling of the statute of limitations before the court had conditionally certified the collective action. The Federal Circuit reasoned that the district court's order was advisory because the putative plaintiffs were not party to the controversy and, therefore, the order could not affect the rights of the litigants in the case. Id.; see also Miller-Basinger,
It is axiomatic that the Court cannot issue advisory orders. However, Cook and the other cases Defendant relies on do not establish that tolling the statute of limitations before conditional certification is necessarily advisory. Numerous courts have tolled the statute of limitations for putative plaintiffs prior to conditional certification of a collective action. See, e.g., Stickle v. SCIWestern Market Support Center, L.P., No. CV 08-083,
Further, a number of courts have tolled the statute of limitations after conditional certification but before any putative plaintiffs have opted-in or even been notified. See, e.g., Bergman,
In the Northern District, 660 plaintiffs have joined the litigation against the corporate defendant and twelve other actions have been brought across the country against franchisees like Defendant. The Amended Complaint identifies the putative plaintiffs as assistant managers of Defendant, who owns six stores. See Amend. Compl. ¶¶ 1, 6. Therefore, tolling in this case affects a not-insubstantial group, and the case law does not support a finding that uncertainty as to whether any putative plaintiffs will opt-in is fatal to tolling.
Further, a litigant can assert the rights of third parties such as a request to toll the statute of limitations as to the putative plaintiffs if three conditions are met: 1) the plaintiff has an injury in fact; 2) there was some hindrance to the third parties in asserting their own rights; and 3) the plaintiff shares a close relationship to the third parties. Campbell v. Louisiana,
First, Plaintiff has sufficiently alleged that he has suffered injury of unpaid overtime wages. Amend. Compl. ¶ 42. Second, the extraordinary circumstances here hindered the putative plaintiffs in asserting their own rights by preventing them from receiving notice of the action. Third, a close relationship could be established by the conditional certification of a collective action, as the plaintiff must show that the members are "similarly situated" employees. Here, however, conditional certification has been precluded and delayed by the injunction, subsequent appellate action, and the corresponding stay. The extraordinary circumstances of this case are the very reason that Plaintiff was precluded from seeking the Court's assessment of the parameters of the similarly situated employees.
Alternatively, Plaintiff and the putative plaintiffs may have a close relationship if they share common issues or interests. See Ind. Democratic Party v. Rokita,
The Complaint defines the putative plaintiffs as assistant managers of Defendant during the statutory period who were misclassified and denied overtime wages. Plaintiff, therefore, shares the common interest with putative plaintiffs of recovering overtime assistant manager wages from Defendant. See Amend. Compl. ¶¶ 1, 47.
The issue of equitable tolling also can be an issue common among the plaintiff and the collective action members. "Some equitable tolling issues may, at least in theory, be common to the similarly situated employees in a class. FLSA affirmative defenses can, and sometimes do, present questions capable of class-wide determination." Davis,
Here, Plaintiff seeks tolling only as to those with whom he shares a common interest-namely, the collection of unpaid overtime wages as required by the FLSA from Defendant. Amend. Compl. ¶ C. Given that the establishment of the relationship between Plaintiff and putative plaintiffs was stymied by the unusual injunction and stay in this case, and the common issues that apply to Plaintiff and putative plaintiffs as to FLSA wages and this very tolling issue, it is equitable that the statute of limitations be tolled for putative plaintiffs for the nine months of the stay. A court that tolls the statute of limitations acts in equity. In equity, the Court must consider the circumstances of the case and the justice of the outcomes. Plaintiff must be able to assert the putative plaintiffs' rights as to the statute of limitations as justice requires.
IV. CONCLUSION
Plaintiff's Motion for Equitable Tolling of the Statute of Limitations (d/e 12) is GRANTED. The statute of limitations is tolled from March 9, 2017 to December 14, 2017 on Plaintiff's claim with respect to all of Defendant's current and former employees who are eligible to opt-in to this litigation.
Reference
- Full Case Name
- Sebastian LUCAS v. JJ'S OF MACOMB, INC.
- Cited By
- 4 cases
- Status
- Published