Hendricks v. JP Morgan Chase Bank, NA

• Decision Date: 15 December 2009
• Docket Number: Civil Action No. 3:08-CV-613 (JCH).
• Citation: 677 F. Supp.2d 544
• Parties: Damian HENDRICKS and Michael Minzie, Plaintiffs, v. J.P. MORGAN CHASE BANK, N.A., Defendant.
• Court: U.S. District Court — District of Utah

677 F.Supp.2d 544

Damian HENDRICKS and Michael Minzie, Plaintiffs, v. J.P. MORGAN CHASE BANK, N.A., Defendant.

Civil Action No. 3:08-CV-613 (JCH).

United States District Court, D. Connecticut.

December 15, 2009.

Richard Eugene Hayber, Hayber Law Firm LLC, Hartford, CT, Steven Bennett Blau, Blau Brown & Leonard, LLC, New York, NY, for Plaintiffs.

Debra S. Morway, Samuel S. Shaulson, Morgan, Lewis & Bockius, New York, NY, Scott E. Ross, Thomas A. Linthorst, Morgan Lewis & Bockius LLP, Princeton, NJ, for Defendant.

RULING RE: DEFENDANT'S MOTION FOR SUMMARY JUDGMENT AS TO PLAINTIFF DAMIAN HENDRICKS (Doc. No. 59) AND DEFENDANT'S MOTION FOR SUMMARY JUDGMENT AS TO PLAINTIFF MICHAEL MINZIE (Doc. No. 63)

JANET C. HALL, District Judge.

I. INTRODUCTION

Plaintiffs Damian Hendricks ("Hendricks") and Michael Minzie ("Minzie") bring this action, individually and on behalf of other similarly situated individuals, against defendant J.P. Morgan Chase Bank, North America ("JPMorgan"),¹ their former employer. Hendricks and Minzie, ex-employees of JPMorgan's "Hedge Fund Services business," allege that they suffered damages because JPMorgan failed to pay them overtime wages, in violation the Fair Labor Standards Act ("FLSA") and Connecticut state law. 29 U.S.C. § 207(a)(1); Conn. Gen.Stat. § 31-76c. JPMorgan filed motions for summary judgment against Hendricks (Doc. No. 59) and Minzie (Doc. No. 63) on July 10, 2009, arguing that Hendricks, a former "Fund Accounting Specialist," and Minzie, a former "Fund Accounting Analyst,"² are exempt from the overtime pay requirements of the FLSA and Connecticut law because they were employed in a bona fide professional capacity. 29 U.S.C. § 213(a)(1); Conn. Gen.Stat. § 31-58(f). In the alternative, JPMorgan argues that Hendricks and Minzie are exempt from the FLSA's overtime pay requirements because they were employed in a bona fide administrative capacity. Id.

For the following reasons, the court denies both JPMorgan's Motion for Summary Judgment as to Hendricks (Doc. No. 59), and JPMorgan's Motion for Summary Judgment as to Minzie (Doc. No. 63).

II. STANDARD OF REVIEW

In a motion for summary judgment, the burden is on the moving party to establish that there are no genuine issues of material fact in dispute and that it is entitled to judgment as a matter of law. See, e.g., Nebraska v. Wyoming, 507 U.S. 584, 590, 113 S.Ct. 1689, 123 L.Ed.2d 317 (1993); White v. ABCO Engineering Corp., 221 F.3d 293, 300 (2d Cir.2000). Once the moving party has met its burden, in order to defeat the motion, the nonmoving party must "set forth specific facts showing that there is a genuine issue for trial," Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 256, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986), and present such evidence as would allow a factfinder to find in his or her favor, Graham v. Long Island R.R., 230 F.3d 34, 38 (2d Cir.2000).

When assessing the record, the trial court must resolve all ambiguities and draw all inferences in favor of the party against whom summary judgment is sought. Anderson, 477 U.S. at 255, 106 S.Ct. 2505; Graham, 230 F.3d at 38. "This remedy that precludes a trial is properly granted only when no rational finder of fact could find in favor of the non-moving party." Carlton v. Mystic Transp., Inc., 202 F.3d 129, 134 (2d Cir. 2000). "When reasonable persons, applying the proper legal standards, could differ in their responses to the question" raised on the basis of the evidence presented, the question must be left to the factfinder. Sologub v. City of New York, 202 F.3d 175, 178 (2d Cir.2000).

III. STATEMENT OF FACTS³

At the heart of this dispute is the issue of the nature of the plaintiffs' job duties as JPMorgan employees. The parties offer divergent characterizations of the tasks and responsibilities of both Hendricks and Minzie at JPMorgan. While the differences in the parties' positions will be discussed in further depth in Section IV, infra, this section provides general information about the plaintiffs' roles and backgrounds.

A. Plaintiff Hendricks

From approximately March 26, 2007, to April 4, 2008, Hendricks worked for JPMorgan as a "Fund Accounting Specialist" in Greenwich, Connecticut. Defendant's Local Rule 56(a)(1) Statement as to Plaintiff Damian Hendricks at ¶ 9 (hereinafter "Hendricks 56(a)(1)"). In this role, Hendricks was a member the "Financial Reporting" group, which is part of JPMorgan's "Hedge Fund Services"⁴ business. Id. As a Fund Accounting Specialist, Hendricks earned an annual salary of $68,000 and was also eligible for bonuses. Id. at ¶ 10.

Hendricks has a bachelor's degree in accounting, and he has accordingly taken advanced accounting classes covering, inter alia, "generally accepted accounting principles" ("GAAP"). Id. at ¶¶ 4-5. Prior to joining JPMorgan, Hendricks held various accounting-related roles for multiple companies, including Pepsi Bottling Group and General Electric. Id. at ¶¶ 6-7. However, Hendricks is not a certified public accountant ("CPA") and has never "taken the CPA exam." Deposition of Damian Hendricks at 14 (hereinafter "Hendricks Dep.").

At JPMorgan, Hendricks was one of seven Fund Accounting Specialists in the Financial Reporting Group within Hedge Fund Services. Plaintiff Damian Hendricks's Local Rule 56(a)(2) Statement at ¶ 16 (hereinafter "Hendricks 56(a)(2)") (Doc. No. 90). These seven Fund Accounting Specialists reported to three supervisors and one manager. Id. Hendricks's job involved working with "financial statements," which are reports that provide detailed financial information about a particular hedge fund. Hendricks Dep. at 77 (A "financial statement is just the financial position of the particular fund. It tells you everything. Just a transparency of how the fund is doing, whether good or bad financially."). A financial statement includes multiple components, including a balance sheet,⁵ income statement,⁶ statement of cashflows,⁷ statement of changes in net assets,⁸ financial highlights,⁹ schedules of investments, and financial footnotes.¹⁰ Hendricks 56(a)(1) at ¶ 12.

As a Fund Accounting Specialist, Hendricks helped to prepare drafts of certain components of financial statements, including balance sheets, income statements, and financial footnotes. See, e.g., Hendricks 56(a)(2) at ¶¶ 11, 23, 34, 51.¹¹ As part of this process, he reviewed financial statements for potential inaccuracies, reviewed financial footnotes for both substantive correctness and typographical errors, and prepared responses to questions about financial statements posed by outside auditors. Id. at ¶¶ 23-27, 51, 70. In general, Hendricks performed his job in accordance with "day-to-day checklists," which "guided him in completing his daily tasks." Id. at ¶ 11.

Hendricks did not have contact with clients; instead, when client concerns arose, Hendricks and other Fund Accounting Specialists were notified by their JPMorgan supervisors. Id. at ¶ 62. In general, Hendricks's supervisors delegated him assignments, reviewed his work, and prepared his performance reviews. Hendricks Dep. at 65.

B. Plaintiff Minzie

Minzie worked for JPMorgan in Greenwich, Connecticut, as a "Fund Accounting Analyst" from approximately June 6, 2007, to approximately November 13, 2007. Minzie 56(a)(1) at ¶ 18. Minzie served in this role as a member of the "Portfolio Accounting" group, which is a part of JPMorgan's Hedge Fund Services business. Minzie's annual salary as a Fund Accounting Analyst was $84,000; Minzie was also eligible for bonuses. Id. at ¶ 20.

Minzie is a graduate of Borough of Manhattan Community College, where he received an associate's degree in finance and banking in 1988. Id. at ¶ 5. Minzie has also taken classes towards a bachelor's degree with a major in finance and a minor in economics. Id. at ¶ 7. In 2002, Minzie received a "Series 7" license for general security representatives.¹² Id. at ¶ 8.

At the time he was hired by JPMorgan, Minzie had almost 20 years of experience in the financial services industry. Minzie 56(a)(2) at ¶ 16. Though he is not a CPA, Minzie has held various "accounting and operational positions" at multiple financial services firms over the course of his career and, prior to joining JPMorgan, he had held two positions in hedge fund accounting. Minzie 56(a)(1) at ¶ 11-14; Minzie 56(a)(2) at ¶ 16. While Minzie acknowledges that he gained both "accounting" and "operations" experience prior to his employment at JPMorgan, Minzie stresses that the bulk of his pre-JPMorgan career was spent in "operations" and not "accounting." See, e.g., Minzie 56(a)(2) at ¶ 12.

In his role as a Fund Accounting Analyst for JPMorgan, Minzie's responsibilities included generating various reports for hedge fund clients, such as daily Profit and Loss statements¹³ and monthly Net Asset Value statements. Id. at ¶ 22. Minzie also responded to ad hoc client requests, Minzie 56(a)(1) at ¶ 93, performed "cash reconciliations,"¹⁴ Minzie 56(a)(2) at ¶ 22, and reviewed and investigated certain changes in the prices of securities held by hedge fund clients. Id. at ¶¶ 49-60. Minzie's responsibilities often varied depending on the needs of his clients, as "different clients had different deliverables, requested a variety of different services, and had entirely different processes for the delivery of accounting services." Minzie 56(a)(1) at ¶ 41; Minzie 56(a)(2) at ¶ 41. Minzie interacted with "third parties such as prime brokers and counterparties," Minzie 56(a)(1) at ¶ 84, and "interacted with clients on a sporadic basis." Minzie 56(a)(2) at ¶ 87.

IV. DISCUSSION

A. Federal Claims

The FLSA provides 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). However, this requirement does not apply...