325 F. Supp. 3d 1141
D. Kan.2018Background
- Kendra Ross (plaintiff) sued Royall Jenkins and three related entities (The Value Creators variants) alleging prolonged human trafficking/forced labor beginning in childhood, unpaid wages, state wage violations, conversion, unjust enrichment, and emotional distress; defendants defaulted.
- Clerk entered default under Fed. R. Civ. P. 55(a); plaintiff moved for default judgment under Rule 55(b)(2) and sought damages and attorneys' fees; the court held an evidentiary hearing.
- Facts found: Jenkins led a hierarchical cult (UNOI → The Value Creators) that coerced members (including Ross) into full‑time, unpaid work, controlled movement/communications, limited education and medical care, and forced relocations across multiple states.
- Court determined it had subject‑matter jurisdiction (federal TVPRA, FLSA, RICO claims) and personal jurisdiction (Kansas defendants present; nationwide service of process under RICO satisfied ends of justice for Jenkins).
- Court entered default judgment on all claims, finding violations of TVPRA (forced labor and trafficking), state trafficking statutes (KS, NY, NJ, OH), FLSA and state wage laws, RICO, and Kansas tort/quasi‑contract claims; it awarded restitution, emotional distress, punitive, liquidated, trebled RICO, conversion damages, and attorneys’ fees and costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Personal jurisdiction over Jenkins | Kansas defendants reside in Kansas; RICO permits nationwide service; ends of justice require Jenkins be haled where enterprise operated | Jenkins did not timely answer; argued via a pro se filing but raised no proper defense to jurisdiction | Court exercised personal jurisdiction: Kansas residents present and RICO nationwide service satisfied "ends of justice" requirement |
| Liability under TVPRA (forced labor, trafficking) | Ross was coerced from age 11–21, forced to work without pay, moved across states, isolated, malnourished, denied medical care and education; coercion and exploitation meet §1589/§1590 elements | Default — no factual defense admitted; legal conclusions challenged only insofar as they require more than pleadings | Default judgment: facts (pleadings + hearing testimony) establish forced labor and trafficking under TVPRA; defendants liable |
| FLSA and state minimum wage claims | Ross worked thousands of hours without pay across states; employer records absent so reasonable estimates of hours and prevailing wages apply | Default — no rebuttal or records produced | Default judgment: FLSA and state wage laws violated; plaintiff entitled to unpaid wages, liquidated damages (overtime), and attorneys' fees |
| Damages & Attorneys' fees | Sought restitution at prevailing wage, emotional distress ($800/day), punitive (equal to comp.), FLSA liquidated overtime, treble RICO, conversion, and $216k fees/costs (pro bono counsel) | Default — no contest; court must independently determine reasonableness and prevent double recovery among overlapping claims | Court awarded: restitution $453,517.20; emotional distress $2,920,000; punitive $3,373,517.20; liquidated damages $282,677.50 (overtime); trebled RICO net $907,034.40; conversion $1,800; attorneys' fees and costs $117,184.34 (lodestar adjusted to local rates) |
Key Cases Cited
- Mathiason v. Aquinas Home Health Care, Inc., 187 F. Supp. 3d 1269 (D. Kan. 2016) (default-judgment damages require established basis; well‑pleaded facts accepted but damages must be proven)
- Bixler v. Foster, 596 F.3d 751 (10th Cir. 2010) (party in default does not admit legal conclusions; court must ensure facts state a legitimate cause of action)
- United Mine Workers of Am. v. Gibbs, 383 U.S. 715 (1966) (federal question jurisdiction with supplemental jurisdiction for state claims arising from same nucleus of operative fact)
- Cory v. Aztec Steel Bldg., Inc., 468 F.3d 1226 (10th Cir. 2006) (RICO permits nationwide service where ends of justice require it)
- Anderson v. Mount Clemens Pottery Co., 328 U.S. 680 (1946) (in FLSA cases, employee may prove hours by reasonable estimate when employer records are inaccurate or absent)
- Hensley v. Eckerhart, 461 U.S. 424 (1983) (lodestar method: reasonable hours times reasonable rate for fee awards)
- BMW of N. Am., Inc. v. Gore, 517 U.S. 559 (1996) (standards for reviewing punitive‑damages excessiveness)
- Smith v. Wade, 461 U.S. 30 (1983) (punitive damages available for willful or reckless federal civil rights violations)
- Tal v. Hogan, 453 F.3d 1244 (10th Cir. 2006) (elements of civil RICO claim and use of predicate acts)
- Sabhnani v. Khan, 599 F.3d 215 (2d Cir. 2010) (awarding unpaid wages and doubling for overtime where appropriate under trafficking/FLSA context)