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320 F. Supp. 3d 338
United States District Court
2018
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Background

  • In Sept. 2015 the U.S. Marshals Service (USMS) awarded a contract to Walden Security to provide armed Court Security Officers (CSOs) for federal courthouses in Puerto Rico; the contract set a minimum qualification: completion of a certified law‑enforcement academy or a USMS‑recognized waiver.
  • Plaintiffs Rafael López‑Santos and Erasmo Domena‑Ríos had worked as CSOs for Akal (the prior contractor) for ~32 years but lacked the specified academy certificates.
  • Walden held town halls and offered employment to Akal CSOs conditioned on meeting the contract's qualification requirements; Walden informed López and Domena they were ineligible because they lacked certificates.
  • Plaintiffs were informed their services would not be required as of December 1, 2015; Walden did not request USMS waivers that might have preserved their employment despite no certificates.
  • Plaintiffs sued under Puerto Rico Law 80 seeking statutory separation pay for wrongful discharge; both parties filed cross‑motions for summary judgment and agreed no material facts were in dispute.
  • The court framed the dispute as a legal question whether Law 80 applied given Walden’s status and whether Walden was a successor employer under Article 6 of Law 80.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Law 80 applies because Walden was plaintiffs' employer López & Domena contend they were effectively displaced by Walden and entitled to Law 80 protections Walden argues it never employed plaintiffs; Law 80 applies only to employer‑employee relationships Court held Law 80 inapplicable because Walden never employed plaintiffs; plaintiffs concede they were not Walden employees
Whether Walden is a "successor" employer under Law 80 Article 6 (liability on business transfer) Plaintiffs argue Walden succeeded Akal in providing courthouse security and thus should be liable as successor employer Walden contends there was no transfer/acquisition of a going business—USMS simply awarded a new contract—so Article 6 does not apply Court held Walden is not a successor: no business acquisition occurred; Article 6 inapplicable

Key Cases Cited

  • Celotex Corp. v. Catrett, 477 U.S. 317 (summary judgment burden and standard)
  • Hoyos v. Telecorp Commc'ns, Inc., 488 F.3d 1 (1st Cir. 2007) (Law 80 wrongful discharge framework)
  • Quality Cleaning Prod. R.C., Inc. v. SCA Tissue N. Am., LLC, 794 F.3d 200 (1st Cir. 2015) (choice of substantive law in diversity actions; Puerto Rico law applies)
  • Alvarado‑Rivera v. Oriental Bank & Tr., 914 F. Supp. 2d 198 (D.P.R. 2012) (analysis of successor‑employer concept under Law 80)
  • Rodríguez v. Exec. Airlines, Inc., 180 F. Supp. 3d 129 (D.P.R. 2016) (defining successorship as transfer of business ownership)
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Case Details

Case Name: López-Santos v. Metro. Sec. Servs., Inc.
Court Name: United States District Court
Date Published: Jun 14, 2018
Citations: 320 F. Supp. 3d 338; Civil No. 16–2071(FAB)
Docket Number: Civil No. 16–2071(FAB)
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    López-Santos v. Metro. Sec. Servs., Inc., 320 F. Supp. 3d 338