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Lundy v. Catholic Health Sys. of Long Island, Inc.

Lundy v. Catholic Health Sys. of Long Island, Inc.

United States Court of Appeals for the Second Circuit

October 25, 2012, Argued; March 1, 2013, Decided

Docket No. 12-1453

Opinion

 [*109]  DENNIS JACOBS, Chief Judge:

CHS's, a respiratory therapist  [**2] and two nurses, allege that the Catholic Health System of Long Island Inc., a collection of hospitals, healthcare providers, and related entities (collectively, "CHS"), failed to compensate them adequately for time worked during meal breaks, before and after scheduled shifts, and during required training sessions. They sued on behalf of a purported class of similarly situated employees  [*110]  (collectively, "the Plaintiffs") and take this appeal from orders of the United States District Court for the Eastern District of New York (Seybert, J.), dismissing the claims asserted under the Fair Labor Standards Act ("FLSA"), the Racketeer Influenced and Corrupt Organizations Act ("RICO"), and the New York Labor Law ("NYLL").

We affirm the dismissal of the FLSA and RICO claims for failure to state a claim. We also affirm the dismissal of Plaintiffs' NYLL overtime claims, which have the same deficiencies as the FLSA overtime claims. However, because the district court did not explain why Plaintiffs' NYLL gap-time claims were dismissed with prejudice, we vacate that aspect of the judgment and remand for further consideration of the NYLL gap-time claims.

BACKGROUND

The original complaint, alleging violations  [**3] of FLSA and RICO, was filed in March 2010 by Daisy Ricks, a healthcare employee, on behalf of similarly situated employees, against the Long Island Health Network, Inc., Catholic Health Services of Long Island, and various related entities.2 The First Amended Complaint, filed in June 2010, substituted Dennis Lundy, Patricia Wolman, and Kelly Iwasiuk as lead plaintiffs, dropped some defendants, and added claims under NYLL and state common law. The twelve causes of action pleaded were FLSA, RICO, NYLL, implied contract, express contract, implied covenants, quantum meruit, unjust enrichment, fraud, negligent misrepresentation, conversion, and estoppel. This case is one of many similar class actions brought by the same law firm, Thomas & Solomon LLP, against numerous healthcare entities in the region. A dozen of them are currently on appeal before this Court.3

The FLSA claims focused on alleged unpaid overtime. In relevant part,  [**5] FLSA's overtime provision states that "no employer shall employ any of his employees . . . for a workweek longer than forty hours unless such employee receives compensation for his employment in excess of the hours above specified at a rate not less than one and one-half times the regular rate at which he is employed." 29 U.S.C. § 207(a)(1).4

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711 F.3d 106 *; 2013 U.S. App. LEXIS 4316 **; 163 Lab. Cas. (CCH) P36,101; 20 Wage & Hour Cas. 2d (BNA) 583; 2013 WL 765117

DENNIS LUNDY, on behalf of themselves and all other employees similarly situated, PATRICIA WOLMAN, KELLY IWASIUK, Plaintiffs-Appellants, DAISY RICKS, on behalf of herself and all other employees similarly situated, Plaintiff, - v.- CATHOLIC HEALTH SYSTEM OF LONG ISLAND INCORPORATED, DBA Catholic Health Services of Long Island, GOOD SAMARITAN HOSPITAL MEDICAL CENTER, MERCY MEDICAL CENTER, NEW ISLAND HOSPITAL, AKA St. Joseph Hospital, ST. CATHERINE OF SIENA MEDICAL CENTER, ST. CHARLES HOSPITAL AND REHABILITATION CENTER, ST. FRANCIS HOSPITAL, Roslyn, New York, OUR LADY OF CONSOLATION GERIATRIC CARE CENTER, NURSING SISTERS HOME CARE, DBA Catholic Care Home, JAMES HARDEN, Defendants-Appellees, LONG ISLAND HEALTH NETWORK, INCORPORATED, BROOKHAVEN MEMORIAL HOSPITAL MEDICAL CENTER INCORPORATED, AKA Brookhaven Memorial Hospital Medical Center, JOHN T. MATHER MEMORIAL HOSPITAL OF PORT JEFFERSON, NEW YORK, INCORPORATED, AKA John T. Mather Memorial Hospital, SOUTH NASSAU COMMUNITIES HOSPITAL, WINTHROP-UNIVERSITY HOSPITAL, TERRY HARGADON, BRIAN CURRIE, KATHLEEN MASIULIS, Defendants.

Subsequent History: As Amended March 8, 2013.

On remand at, Dismissed by, in part Wolman v. Catholic Health Sys. of Long Island, 2013 U.S. Dist. LEXIS 46327 (E.D.N.Y., Mar. 29, 2013)

Prior History:  [**1] Plaintiffs, on behalf of a purported class of similarly situated employees, appeal from the orders of the District Court for the Eastern District of New York (Seybert, J.), dismissing their claims under the Fair Labor Standards Act, the Racketeer Influenced and Corrupt Organizations Act, and New York Labor Law.

Wolman v. Catholic Health Sys. of Long Island, Inc., 853 F. Supp. 2d 290, 2012 U.S. Dist. LEXIS 21654 (E.D.N.Y., 2012)Nakahata v. New York-Presbyterian Healthcare Sys., 2011 U.S. Dist. LEXIS 8585 (S.D.N.Y., Jan. 28, 2011)Wolman v. Catholic Health Sys. of Long Island, 2010 U.S. Dist. LEXIS 137392 (E.D.N.Y., Dec. 30, 2010)Wolman v. Catholic Health Sys. of Long Island, 2011 U.S. Dist. LEXIS 48223 (E.D.N.Y., May 5, 2011)

Disposition: For the following reasons, the judgment is affirmed in part, and in part vacated and remanded.

CORE TERMS

overtime, district court, allegations, gap-time, shifts, uncompensated, amended complaint, breaks, mailings, meal, state law claim, scheduled, training, minutes, unpaid, supplemental jurisdiction, dismissal with prejudice, federal claim, employees, workweek, racketeering, fraudulent, courts, missed, dismissal without prejudice, motion to dismiss, minimum wage, forty hour, mail fraud, interrupted

Civil Procedure, Appeals, Standards of Review, De Novo Review, Defenses, Demurrers & Objections, Motions to Dismiss, Failure to State Claim, Pleadings, Complaints, Requirements for Complaint, Business & Corporate Compliance, Wage & Hour Laws, Scope & Definitions, Overtime & Work Periods, Minimum Wage, Subject Matter Jurisdiction, Supplemental Jurisdiction, Pendent Claims, Abuse of Discretion, Antitrust & Trade Law, Racketeer Influenced & Corrupt Organizations, Claims, General Overview, Fraud, Heightened Pleading Requirements, Fraud Claims