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602 F. App'x 682
9th Cir.
2015
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Background

  • Plaintiff Edgardo Seminiano sued Xyris Enterprise, Inc. under the FLSA and California Labor Code for unpaid wages; district court initially entered summary judgment in his favor based on deemed admissions.
  • Xyris appealed; this court previously reversed and remanded, holding Bucknum did not mandate treating defense counsel’s declaration of non-receipt as automatically insufficient.
  • On remand, the district court again found Xyris’s sworn declaration insufficient because defendants were reminded multiple times about unanswered requests for admission and had circumstances indicating avoidance of discovery.
  • Xyris did not file a proper Rule 36(b) motion to set aside the deemed admissions; the district court declined to withdraw them.
  • Seminiano sought to settle and dismiss his FLSA claim via a letter assisted by a former Xyris legal assistant; the court denied dismissal because FLSA settlements require court or Secretary of Labor approval to protect employees.
  • The district court awarded attorneys’ fees under the FLSA; the Ninth Circuit affirmed the district court’s factual findings and discretionary rulings and affirmed judgment.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Sufficiency of defense counsel's sworn declaration of non-receipt of requests for admission Counsel’s declaration was insufficient given reminders and discovery avoidance; admissions should stand Declaration could be sufficient under remand from prior reversal; Bucknum limits automatic finding of insufficiency Court: factual findings that declaration was insufficient were not clearly erroneous; admissions stand
Whether Xyris properly moved to withdraw or amend deemed admissions under Fed. R. Civ. P. 36(b) N/A (Seminiano opposed withdrawal) Xyris argued admissions should be set aside; did not file proper Rule 36(b) motion Court: Xyris failed to make proper motion; even if made, withdrawal denied due to lack of good cause and prejudice to Seminiano
Validity of dismissal/settlement of FLSA claims without formal approval Seminiano sought dismissal via letter (with assistance from former Xyris legal assistant) Xyris implied settlement/dismissal was acceptable Court: FLSA settlements require court or Secretary of Labor approval; dismissal denied because settlement occurred outside adversarial context and lacked proper safeguards
Award of attorneys’ fees under the FLSA Seminiano sought fees Xyris opposed Court: district court did not abuse its discretion in awarding fees; affirmed

Key Cases Cited

  • In re Bucknum, 951 F.2d 204 (9th Cir. 1991) (addressing treatment of counsel declarations about discovery receipt)
  • Husain v. Olympic Airways, 316 F.3d 829 (9th Cir. 2002) (standard for clear error review of district court factual findings)
  • Conlon v. United States, 474 F.3d 616 (9th Cir. 2007) (Rule 36(b) withdrawal requires motion)
  • In re Carney, 258 F.3d 415 (5th Cir. 2001) (deemed admissions can be withdrawn only by motion under Rule 36(b))
  • Perez v. Miami-Dade Cnty., 297 F.3d 1255 (11th Cir. 2002) (consideration of prejudice in Rule 36(b) decisions)
  • Nall v. Mal-Motels, Inc., 723 F.3d 1304 (11th Cir. 2013) (FLSA settlements require approval by Secretary of Labor or district court)
  • Lynn’s Food Stores, Inc. v. United States, 679 F.2d 1350 (11th Cir. 1982) (FLSA settlement approval protects against unfair waivers)
  • Brooklyn Sav. Bank v. O’Neil, 324 U.S. 697 (1945) (employees cannot waive FLSA protections informally)
  • Schulte, Inc. v. Gangi, 328 U.S. 108 (1946) (same principle regarding protections for wage claims)
  • Childress v. Darby Lumber, Inc., 357 F.3d 1000 (9th Cir. 2004) (standards for awarding attorneys’ fees under FLSA)
Read the full case

Case Details

Case Name: Edgardo Seminiano v. Xyris Enterprise, Inc.
Court Name: Court of Appeals for the Ninth Circuit
Date Published: May 12, 2015
Citations: 602 F. App'x 682; 13-56133
Docket Number: 13-56133
Court Abbreviation: 9th Cir.
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    Edgardo Seminiano v. Xyris Enterprise, Inc., 602 F. App'x 682