Hargrove v. Sleepy's LLC, 051215 FED3, 12-2540

Docket Nº:12-2540, 12-2541
Opinion Judge:PER CURIAM.
Party Name:SAM HARGROVE; ANDRE HALL; MARCO EUSEBIO, individually and on behalf of all others similarly situated, Appellants v. SLEEPY'S LLC, Cross-Appellant in v. I STEALTH, LLC; EUSEBIO'S TRUCKING CORP; CURVA TRUCKING, LLC
Attorney:Anthony L. Marchetti, Jr., Esq. [Argued] Counsel for Appellants/Cross-Appellees. Kimberly J. Gost, Esq. Matthew J. Hank, Esq. [Argued] Holly E. Rich, Esq. Littler Mendelson Counsel for Appellee/Cross-Appellant. Harold L. Lichten, Esq. [Argued] Shannon Liss-Riordan, Esq. Lichten & Liss-Riordan Cou...
Judge Panel:BEFORE: JORDAN, SLOVITER, and NYGAARD, Circuit Judge
Case Date:May 12, 2015
Court:United States Courts of Appeals, Court of Appeals for the Third Circuit

SAM HARGROVE; ANDRE HALL; MARCO EUSEBIO, individually and on behalf of all others similarly situated, Appellants

v.

SLEEPY'S LLC, Cross-Appellant in

v.

I STEALTH, LLC; EUSEBIO'S TRUCKING CORP; CURVA TRUCKING, LLC

Nos. 12-2540, 12-2541

United States Court of Appeals, Third Circuit

May 12, 2015

NOT PRECEDENTIAL

ARGUED on April 23, 2013

On Appeal from the United States District Court for the District of New Jersey (D. N.J. No. 3-10-cv-01138) District Judge: Honorable Peter G. Sheridan

Anthony L. Marchetti, Jr., Esq. [Argued] Counsel for Appellants/Cross-Appellees.

Kimberly J. Gost, Esq. Matthew J. Hank, Esq. [Argued] Holly E. Rich, Esq. Littler Mendelson Counsel for Appellee/Cross-Appellant.

Harold L. Lichten, Esq. [Argued] Shannon Liss-Riordan, Esq. Lichten & Liss-Riordan Counsel for Amicus-Appellant.

BEFORE: JORDAN, SLOVITER, and NYGAARD, Circuit Judge[*]

OPINION [**]

PER CURIAM.

I.

Sleepy's, LLC is a New York-based mattress and bedding concern with six distribution centers, including one in Robbinsville, New Jersey. Sleepy's contracts with individuals and delivery companies (collectively, "deliverers") to provide delivery services to its customers. Each deliverer enters into a substantially similar contract with Sleepy's, known as an Independent Driver Agreement ("IDA"). These IDAs state that the deliverers are "independent contractors" and that they are "not employees of Sleepy's." App. at 127.

Appellants Marco Eusebio, Andre Hall, and Sam Hargrove each entered into an IDA with Sleepy's, either on behalf of business entities they controlled or on behalf of themselves. Eusebio created Eusebio's Trucking Corp. ("ETC") in September of 2003 and was listed as its president. ETC entered into two separate IDAs with Sleepy's, one in 2003 and one in 2005. Eusebio also helped create and partially owned Curva Trucking, LLC, which entered into an IDA with Sleepy's in 2008. Andrew Hall entered into an IDA with Sleepy's in 2005. Sam Hargrove formed I Stealth, LLC ("Stealth") in 2005 as a trucking firm. Stealth entered into an IDA with Sleepy's in 2008.

In 2010, Eusebio, Hall and Hargrove filed a complaint in the United States District Court for the District of New Jersey on behalf of a putative class alleging that Sleepy's misclassified them as independent contractors rather than employees and thus denied them protections and benefits under, inter alia, the Employee Retirement and Income Security Act, the Family Medical Leave Act, and the New Jersey Wage Payment Law. Specifically, the Appellants alleged that Sleepy's withheld and diverted money from their wages in violation of New Jersey's Wage Payment Law. They additionally alleged that they were not paid overtime for their work, a claim that would also arise under the New Jersey Wage and Hour Law.

After the parties filed cross-motions for summary judgment, the District Court entered an order granting Sleepy's motion for summary judgment and denying the Appellants' cross-motion. The District Court applied the "right to control" test set forth by the United States Supreme Court in Nationwide Mutual Insurance Co. v. Darden, 503 U.S. 318 (1992) and held that the Appellants were independent contractors and not employees. Thus, the District Court concluded, all of...

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