Ako v. Arriva Best Security Inc
3:22-cv-01751
N.D. Tex.Aug 19, 2024Background
- Plaintiff Diby Ako sued Arriva Best Security, Inc. ("ABS") and Amoifo Koffi for alleged violations of the Fair Labor Standards Act (FLSA), claiming they failed to pay minimum wage and overtime for work performed as a Firewatch Services Guard.
- Defendants failed to answer, resulting in clerk entries of default. Previous motion for default judgment was denied due to procedural defects and insufficient factual allegations on FLSA coverage.
- Ako renewed his motion for default judgment, addressing previous procedural shortcomings (including military status and competency of defendant Koffi).
- The renewed motion alleged individual and enterprise FLSA coverage, but only in conclusory terms, without specific factual support on interstate commerce involvement or business volume.
- The magistrate judge again recommended denial of default judgment due to inadequate pleading of FLSA coverage (individual or enterprise).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Procedural requirements for default judgment | Ako argued all requirements, including SCRA, now satisfied | No opposition (defaulted) | Court found procedural requirements were met |
| Employer-employee relationship under FLSA | Ako asserted both Koffi and ABS were his "employers" | No opposition (defaulted) | Court agreed relationship was plausibly pled |
| FLSA individual coverage (interstate commerce) | Claimed job involved interstate communication and duties | No opposition (defaulted) | Court held allegations insufficient |
| FLSA enterprise coverage (gross revenue/interstate) | Claimed enterprise had requisite sales/employees but relied on conclusory pleadings | No opposition (defaulted) | Court held allegations insufficient |
Key Cases Cited
- New York Life Ins. Co. v. Brown, 84 F.3d 137 (5th Cir. 1996) (sets forth steps to obtain default judgment in federal court)
- Rogers v. Hartford Life & Accident Ins. Co., 167 F.3d 933 (5th Cir. 1999) (default judgments disfavored; cases should be resolved on merits)
- Gray v. Powers, 673 F.3d 352 (5th Cir. 2012) (economic realities test for employer status under FLSA)
- Donovan v. Grim Hotel Co., 747 F.2d 966 (5th Cir. 1984) (liability of corporate officers with operational control under FLSA)
- Johnson v. Heckmann Water Res., Inc., 758 F.3d 627 (5th Cir. 2014) (requirements to state a claim under FLSA)