Payne v. Tri-State Careflight, LLC

• Decision Date: 16 March 2019
• Docket Number: No. CIV 17-0796 JB\CG,No. CIV 14-1044 JB\KBM,CIV 14-1044 JB\KBM,CIV 17-0796 JB\CG
• Court: U.S. District Court — District of New Mexico
• Parties: WILLIAM D. PAYNE; NICOLE PAYNE; LESLIE B. BENSON; KEITH BASTIAN; JACQUELINE FERNANDEZ-QUEZADA; CASON N. HEARD; GREGORY OLDHAM AND SHERRY K. WELCH, on behalf of themselves and all others similarly situated, Plaintiffs, v. TRI-STATE CAREFLIGHT, LLC and BLAKE A. STAMPER, Defendants. Consolidated with: KRISTY BELL; DEBORAH BEREST; DANIEL BERGMAN; WILLIAM DALLAS BUNDRANT, JR; ROCKY H. BURROWS, II; CHASE CARTER; BRENDA CASAREZ; KARA CERVANTES; THOMAS CISLO; DAVID DANIELS; ADAM DOYLE; DARREN EEN; TOBY EICHER; LON ENOS; WALTER FABIAN; HAROLD JOSEPH FISHER; CHRISTINA FLEEMAN; LUKE FORSLUND; SALUSTIANO FRAGOSO; REHANNON GONZALES; KRISTEN GRADO; COURTNEY GUERRA; DARRIN HAMILTON; ALEXANDER HOWELL; DANIELLE IRVIN; ALLEN JACOBS; ALEX JONES; DONALD LUKE KEENAN; DANIEL KUHLER; SIMON LUCERO; RAPHAEL MAHAIM; NATHAN MAPLESDEN; ORLANDO MARQUEZ; CINDY D. MAXWELL; JENNIFER MAZZANTI; BETHANY MCCANDLESS; WILLIAM J. MCCONNELL; DAN MEEHAN; KEVIN NAPP; JAMES O'CONNOR; KATHY ONSUREZ-WILSON; ERIC PARKER; JASON PERRY; AMANDA PETERSEN; BRENT PLACE; JIMMY RONALD PRIMM, JR; PHILIP QUBAIN; PAUL RATIGAN; JOSEPH ROOT; DARON RUCKMAN; FREDERIC RUEBUSH; JENNIFER SALAVERRY; LAUREN SALAZAR; PAUL SERINO; CHRISTIAN SPEAKMAN; DANIEL ST. PETERS; IAN STEPHENS; USVALDO R. TRUJILLO; PAUL VACULA; GRACIELA VILLALOBOS; ERIC VOGT; GREG WALSH; TYLER WILKINS; VIRGINIA WILLIAMS; SARA YURKOVICH; TERRY ZACHARIAS and MICHAEL ZULASKI, Plaintiffs, v. TRI-STATE CAREFLIGHT, LLC and BLAKE A. STAMPER, Defendants.

WILLIAM D. PAYNE; NICOLE PAYNE; LESLIE B. BENSON;

KEITH BASTIAN; JACQUELINE FERNANDEZ-QUEZADA;

CASON N. HEARD; GREGORY OLDHAM AND SHERRY K. WELCH,on behalf of themselves and all others similarly situated, Plaintiffs, v. TRI-STATE CAREFLIGHT, LLC and BLAKE A. STAMPER, Defendants.

Consolidated with:

KRISTY BELL; DEBORAH BEREST; DANIEL BERGMAN;

WILLIAM DALLAS BUNDRANT, JR; ROCKY H. BURROWS, II; CHASE CARTER;

BRENDA CASAREZ; KARA CERVANTES; THOMAS CISLO; DAVID DANIELS;

ADAM DOYLE; DARREN EEN; TOBY EICHER; LON ENOS; WALTER FABIAN;

HAROLD JOSEPH FISHER; CHRISTINA FLEEMAN; LUKE FORSLUND;

SALUSTIANO FRAGOSO; REHANNON GONZALES; KRISTEN GRADO;

COURTNEY GUERRA; DARRIN HAMILTON; ALEXANDER HOWELL;

DANIELLE IRVIN; ALLEN JACOBS; ALEX JONES; DONALD LUKE KEENAN;

DANIEL KUHLER; SIMON LUCERO; RAPHAEL MAHAIM;

NATHAN MAPLESDEN; ORLANDO MARQUEZ; CINDY D. MAXWELL;

JENNIFER MAZZANTI; BETHANY MCCANDLESS; WILLIAM J. MCCONNELL;

DAN MEEHAN; KEVIN NAPP; JAMES O'CONNOR;

KATHY ONSUREZ-WILSON; ERIC PARKER;

JASON PERRY; AMANDA PETERSEN; BRENT PLACE;

JIMMY RONALD PRIMM, JR; PHILIP QUBAIN; PAUL RATIGAN;

JOSEPH ROOT; DARON RUCKMAN; FREDERIC RUEBUSH;

JENNIFER SALAVERRY; LAUREN SALAZAR;

PAUL SERINO; CHRISTIAN SPEAKMAN; DANIEL ST. PETERS; IAN STEPHENS;

USVALDO R. TRUJILLO; PAUL VACULA; GRACIELA VILLALOBOS;

ERIC VOGT; GREG WALSH; TYLER WILKINS; VIRGINIA WILLIAMS;

SARA YURKOVICH; TERRY ZACHARIAS and MICHAEL ZULASKI, Plaintiffs, v. TRI-STATE CAREFLIGHT, LLC and BLAKE A. STAMPER, Defendants.

No. CIV 14-1044 JB\KBM

No. CIV 17-0796 JB\CG

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW MEXICO

March 16, 2019

MEMORANDUM OPINION AND ORDER

THIS MATTER comes before the Court on Plaintiffs' Motion to Address Issue of Fed. R. Civ. P. 60 for Intervenors to Proceed with Third Amended Complaint or, Alternatively Fed. R. Civ. P. 60(B) Motion to Obtain Relief from Final Judgment, filed August 3, 2018 (Doc. 200)("Motion"). The Court held a hearing on September 26, 2018. See Clerk's Minutes at 1, filed September 26, 2018 (Doc. 215). The primary issues are: (i) whether the Basnet Intervenors,¹ who intervened in this proposed class action after the Court entered the Final Judgment, filed November 23, 2016 (Doc. 150), for the former named plaintiffs -- the Bastian Plaintiffs² -- and before the Court certified a class, can prosecute the Third Amended Representative and Class Action Complaint for Damages for Violations of New Mexico Minimum Wage Act and New Mexico Common Law, filed July 19, 2017 (Doc. 177)("Third Amended Complaint"), without seeking relief from the Final Judgment under rule 60 of the Federal Rules of Civil Procedure; (ii) whether, if the Basnet Intervenors must seek relief under rule 60, they can obtain relief under rule 60(b)(5), because the Defendants Tri-State Careflight, LLC and Blake Stamper satisfied the Final Judgment for the Bastian Plaintiffs; and (iii) whether, if the Basnet Intervenors must seek relief under rule 60, they can obtain relief under 60(b)(6), because the Final Judgment for the Bastian Plaintiffs and the consequent possibility that the Basnet Intervenors may not receive American Pipe and Construction Company v. Utah, 414 U.S. 538 (1974)("AmericanPipe"), tolling on all claims are extraordinary circumstances.³ The Court denies the Motion. The Court concludes: (i) the Basnet Intervenors must seek relief from the Final Judgment under rule 60 before filing the Amended Complaint, because the Basnet Intervenors' putative class interest is not an exception to finality; (ii) the Basnet Intervenors cannot satisfy rule 60(b)(5), because rule 60(b)(5) does not provide relief against finality when a defendant has satisfied a judgment; and (iii) the Basnet Intervenors cannot satisfy rule 60(b)(6), because the Basnet Intervenors could have earlier intervened, and the Final Judgment and the possibility that American Pipe tolling will not apply do not rise to extraordinary circumstances. Accordingly, the Basnet Intervenors cannot prosecute the Third Amended Complaint.

FACTUAL BACKGROUND

The Court takes its facts from the Third Amended Complaint. The Court provides these facts for background. It does not adopt them as the truth, and it recognizes that these facts are largely the Basnet Intervenors' version of events.

Tri-State Careflight operates an air ambulance service in New Mexico, Arizona, Colorado, and Nevada. See Third Amended Complaint ¶ 11, at 4. Tri-State CareFlight employs flight paramedics, flight nurses, and pilots at each of its New Mexico location. See Third Amended Complaint ¶ 81, at 9. The Defendants are or were all the Basnet Intervenors' employers within the definition provided in the New Mexico Minimum Wage Act, N.M. Stat. Ann. §§ 50-4-1 through -33 ("NMMWA"). See Third Amended Complaint ¶ 6, at 3. Tri-State CareFlight employs or employed the following people as pilots, nurses, or paramedics: Shailendra Basnet, Kristy Bell,Deborah Berest, Daniel Bergman, William Dallas Bundrant, Jr., Rocky H. Burrows, II, Chase Carter, Brenda Casarez, Michael Castro, Kara Cervantes, Thomas Cislo, David Daniels, Adam Doyle, Darren Een, Toby Eicher, Walter Fabian, Harold Joseph Fisher, Christina Fleeman, Luke Forslund, Salustiano Fragoso, Rehannon Gonzales, Kristen Grado, Courtney Guerra, Darrin Hamilton, Shane Herron, Alexander Howell, Danielle Irvin, Allen Jacobs, Erin Johnson, Alex Jones, Donald Luke Keenan, Daniel Kuhler, Simon Lucero, Raphael Mahaim, Nathan Maplesden, Cindy D. Maxwell, Jennifer Mazzanti, Bethany McCandless, Ron McDearmid, Dan Meehan, Kevin Napp, James O'Connor, Kathy Onsurez-Wilson, Eric Parker, Jason Perry, Amanda Petersen, Brent Place, Jimmy Ronald Primm, Jr., Philip Qubain, Paul Ratigan, Joseph Root, Daron Ruckman, Frederic Ruebush, Jennifer Salaverry, Paul Serino, Christian Speakman, Ian Stephens, Daniel St. Peters, Usvaldo R. Trujillo, Paul Vacula, Jennifer Valdez, Graciela Villalobos, Eric Vogt, Greg Walsh, Tyler Wilkins, Virginia Williams, Terry Zacharias, and Michael Zulaski. See Third Amended Complaint ¶¶ 12-80, at 4-9.

PROCEDURAL BACKGROUND

This case has a long and complicated procedural history. The Court recited this procedural history in its Memorandum Opinion and Order, 327 F.R.D. 433, filed June 21, 2018 (Doc. 198)("Consolidation MOO"). The Court incorporates that recitation throughout the procedural background that the Court provides below. The Court also includes footnotes from the Consolidation MOO.

This case is a wage-and-hour dispute. See Third Amended Complaint ¶ 1, at 2. The Plaintiffs seek to recover: (i) unpaid overtime compensation under the NMMWA; and (ii) otherunpaid compensation on a theory of unjust enrichment. See Third Amended Complaint ¶¶ 95-128, at 12-18.

In September, 2014, William D. Payne and Nicole Payne, "on behalf of themselves and all others similarly situated," filed their original complaint against Tri-State CareFlight and Stamper. Representative Action Complaint for Damages for Violation of New Mexico Minimum Wage Act and Unjust Enrichment at 1, Payne v. Tri-State Careflight, LLC, D-101-CV-2014-02048 (First Judicial District, County of Santa Fe, State of New Mexico)(Montes, J.), filed November 17, 2014 in federal court (Doc. 1-1)("Original Complaint"). Tri-State CareFlight and Stamper removed the case to federal court on November 17, 2014. See Notice of Removal, filed November 17, 2014 (Doc. 1)("Notice of Removal"). They based removal on the Court's diversity jurisdiction. See Notice of Removal ¶ 4, at 2.

On August 24, 2015, W. Payne and N. Payne moved to amend the Original Complaint to: (i) eliminate a claim for certain uncompensated travel time from the Original Complaint; and (ii) add an additional named Plaintiff -- Leslie B. Benson. See Plaintiffs' Amended Opposed Motion for Leave to File First Amended Complaint, filed August 24, 2015 (Doc. 44)("First Motion to Amend"). On September 4, 2015, W. Payne and N. Payne filed Plaintiffs' Motion for and Brief in Support of Class Certification, filed September 4, 2015 (Doc. 48)("First Motion for Class Cert.").⁴ The Court held a hearing on the First Motion to Amend on October 28, 2015. See Clerk's Minutes, filed October 28, 2015 (Doc. 67)("Oct. 28th Clerk's Minutes"); Notice of Motion Hearing, filed October 16, 2015 (Doc. 64). At an October 28, 2015, hearing, the Court granted the First Motion to Amend. See Oct. 28th Clerk's Minutes at 1; Order at 1, filed March 14, 2016 (Doc. 112). Later that day, W. Payne and N. Payne filed their First Amended Representative Action Complaint for Damages for Violation of New Mexico Minimum Wage Act, filed October 28, 2015 (Doc. 68)("Amended Complaint").⁵

By November, 2015, W. Payne, N. Payne, and Benson resolved their individual claims against the Defendants. On November 19, 2015, the Paynesreached a settlement with the Defendants in which the Defendants agreed to provide them with full relief under the NMMWA, i.e., all the relief they requested in the Amended Complaint. See Memorandum Opinion and Order at 47, 2016 WL 9738302, at *25, filed August 12, 2016 (Doc. 138)("Intervenor MOO"). Benson, meanwhile, signed a global release of his claims against Tri-State CareFlight and Stamper on October 22, 2015. See Settlement Agreement and General Release at 1-3 (dated October 22, 2015), filed December 9, 2015 (Doc. 71-1).

With W. Payne, N. Payne, and Benson's claims resolved, a new set of named Plaintiffs -- Keith Bastian, Cason N. Heard, Gregory Oldham, Sherry K. Welch, and Jacqueline Fernandez-Quezada -- sought to keep the case alive by intervening pursuant to rule 24 of the Federal Rules of Civil Procedure. See Opposed Motion to Intervene as Parties Plaintiff and Class Representatives at 1, filed December 15, 2015 (Doc. 73)("First Intervention Motion"). In the First Intervention Motion, the intervenors asserted:

[N]one of the currently named Plaintiffs will be able to pursue this matter either individually or on behalf of the putative class members who were deprived of overtime pay pursuant to Defendants' uniform and unlawful overtime

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