Shayo v. CentSai Inc.
1:23-cv-00365
E.D.N.YDec 21, 2023Background
- Plaintiff Lukas Shayo alleges CentSai Inc. and its owners Arindam Nag and Doria Lavagnino failed to pay wages for work performed in violation of the FLSA, NYLL, and NYC's FIFA, along with state law claims for breach of contract and unjust enrichment.
- Shayo was first engaged as an unpaid intern in 2020, later working as a paid "Editorial Assistant" and submitting numerous invoices, which were often paid late or incompletely; a final invoice allegedly remains unpaid.
- CentSai is a Delaware corporation with a business address in Brooklyn, NY; both Nag and Lavagnino reside in Kings County, NY and had authority over employment conditions.
- Plaintiff sought default judgment after Defendants failed to appear or answer the complaint; the Clerk entered default, and Plaintiff moved for default judgment totaling $67,704.50 in damages and fees.
- The Court reviewed the motion for procedural and substantive sufficiency before considering any default judgment.
- The case proceeded before Magistrate Judge Marutollo on referral from Judge Irizarry. The motion was denied without prejudice for procedural and substantive deficiencies.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Failure to pay wages and provide required documents | Defendants did not pay required wages, made late payments, and failed to provide statements/contracts as required by law | None presented (default posture) | Motion denied; procedural and substantive deficiencies |
| Compliance with Local Rules for Default Judgment | Shayo asserts service and notice were provided via business address | None presented | Motion denied; not compliant with Local Rules 7.1, 55.2 |
| Sufficiency of FLSA coverage allegations | Shayo claims Defendants are employers under FLSA and engaged in interstate commerce | None presented | Motion denied; Complaint lacked specific factual basis |
| Entitlement to default judgment | Shayo seeks judgment for unpaid wages and damages as Defendants defaulted | None presented | Denied without prejudice; may refile if deficiencies cured |
Key Cases Cited
- Greyhound Exhibitgroup, Inc. v. E.L.U.L. Realty Corp., 973 F.2d 155 (2d Cir. 1992) (on the acceptance of well-pleaded facts, but not damages, in default judgment analysis)
- Enron Oil Corp. v. Diakuhara, 10 F.3d 90 (2d Cir. 1993) (preference for resolving matters on merits over default judgments)
- Shah v. New York State Dep’t of Civ. Serv., 168 F.3d 610 (2d Cir. 1999) (district court discretion in default judgments)
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (requirement of specific factual allegations over conclusory statements)