Mertens v. Benelux Corporation
1:24-cv-00276
W.D. Tex.May 19, 2025Background
- Plaintiffs are former wait staff at Palazio Men’s Club in Austin, Texas, alleging wage and tip violations by their employer, Benelux Corporation and two individual defendants.
- Plaintiffs claim they were paid $2.13/hour plus tips, were required to share tips with managers, work off-the-clock, and faced unlawful payroll deductions and IRS reporting.
- Plaintiffs seek to bring both FLSA collective action (minimum wage and tip misappropriation) and state law class claims (including fraudulent tax return filing and new contract/quasi-contract claims).
- Prior to this motion, Plaintiffs filed an Amended Complaint, and four of the six plaintiffs' claims are stayed due to arbitration or interlocutory appeal.
- The current motion is a request for leave to file a Second Amended Complaint, adding state law claims for breach of contract, quantum meruit, promissory estoppel, unjust enrichment, or money had and received, which Defendants oppose as futile.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| FLSA Preemption of State Law | Contract claims remedy more than FLSA | FLSA preempts state wage claims | No preemption—claims for pay above minimum wage are viable |
| Sufficiency of State Law Pleading | Sufficient details alleged for contracts | Insufficient factual detail; elements lacking | Plaintiffs plead all required elements sufficiently |
| Leave to Amend Standard | Justice requires leave; not futile | Amendment would be futile | Amendment is not futile; leave granted |
Key Cases Cited
- Stripling v. Jordan Prod. Co., LLC, 234 F.3d 863 (5th Cir. 2000) (futility of amendment is a substantial reason to deny leave; applies Rule 12(b)(6) standard)
- Aldridge v. Mississippi Dep’t of Corr., 990 F.3d 868 (5th Cir. 2021) (FLSA preempts redundant state law wage claims, but not claims outside FLSA’s remedial scope)
- Smith Int’l., Inc. v. Egle Group, LLC, 490 F.3d 380 (5th Cir. 2007) (elements of breach of contract under Texas law)
- Hill v. Shamoun & Norman, LLP, 544 S.W.3d 724 (Tex. 2018) (elements of quantum meruit under Texas law)
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (pleading standard for plausibility under Rule 12(b)(6))