Carazani v. Zegarra
2013 U.S. Dist. LEXIS 93752
| D.D.C. | 2013Background
- Carazani (Bolivian) worked for Zegarra as a live‑in housekeeper after they signed a written employment contract (2006–2008) promising set hourly pay, overtime, paid holidays/vacation, tax payments, meals/lodging, and employer‑paid medical insurance.
- In the U.S., Carazani alleges she worked 66–75 hours/week for ~3 years, was paid only $8.50 total (to keep a bank account open), had her and her son’s documents withheld, was isolated and threatened, and became undocumented when Zegarra failed to renew her visa.
- Carazani incurred large medical bills and alleges forced labor/trafficking, FLSA and TVPA violations, breach of contract, and state torts; she escaped in 2009 and sued in 2012.
- Zegarra initially answered but then stopped participating: she failed discovery, ignored court orders and a status hearing, and appears to have left the country.
- The court found Zegarra in default under Fed. R. Civ. P. 37 for discovery noncompliance, deemed well‑pleaded allegations admitted, calculated damages from the record without a hearing, and entered default judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether sanctions/default judgment under Rule 37 are warranted for discovery noncompliance | Carazani: Zegarra repeatedly ignored court orders, discovery, and hearings, warranting default | Zegarra: no responsive argument (ceased participation) | Court granted default judgment for willful, repeated noncompliance |
| Choice of law for breach‑of‑contract/quantum meruit claims | Carazani: Virginia law governs because contract was performed in VA | No responsive argument | Court applied Virginia law under D.C. conflict rules |
| Damages for breach of contract, overtime, and related wage claims (including TVPA restitution) | Carazani: unpaid contract wages, overtime, vacation/holiday pay, and medical expenses; TVPA/FLSA relief available | Denied allegations in Answer but made no responsive calculations | Court awarded $71,914.94 (breach) and $37,926.34 (quantum meruit) after applying prevailing wage levels and FLSA principles |
| Availability and amount of statutory/compensatory/punitive damages under TVPA and FLSA (liquidated damages, emotional distress, punitive) | Carazani: liquidated damages under FLSA, emotional distress and punitive damages under TVPA—seeks large awards (daily rate for emotional distress; punitive equal to compensatory) | Denied but did not defend or provide mitigating proof of good faith or inability to pay | Court awarded $102,606.21 in FLSA liquidated damages, $433,200 in emotional distress (at $400/day), and $543,041.28 in punitive damages (1:1 ratio to compensatory); total judgment $1,188,688.77 |
Key Cases Cited
- Shepherd v. Am. Broad. Cos., 62 F.3d 1469 (D.C. Cir. 1995) (default judgment justified for unresponsive parties and sanctioning discovery misconduct)
- Link v. Wabash R.R. Co., 370 U.S. 626 (1962) (courts may protect docket against dilatory litigants)
- Webb v. District of Columbia, 146 F.3d 964 (D.C. Cir. 1998) (three‑part test supporting default as a Rule 37 sanction)
- Shea v. Donohoe Constr. Co., 795 F.2d 1071 (D.C. Cir. 1986) (default is sanction of last resort but exhaustion not required)
- Transatlantic Marine Claims Agency, Inc. v. Ace Shipping Corp., 109 F.3d 105 (2d Cir. 1997) (court may determine damages on papers when basis for amount exists)
- D'Camera v. Dist. of Columbia, 722 F. Supp. 799 (D.D.C. 1989) (liquidated damages under FLSA unless employer proves good faith)
- Gurung v. Malhotra, 851 F. Supp. 2d 583 (S.D.N.Y. 2012) (TVPA restitution can be awarded under contract terms or FLSA methodology)
- H.F. Livermore Corp. v. Aktiengesellschaft Gebruder Loepfe, 432 F.2d 689 (D.C. Cir. 1970) (district courts have power to dismiss or sanction to protect docket)