Rivera-Pina v. Luxury Hotels International of Puerto Rico ( 2024 )


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  •           United States Court of Appeals
    For the First Circuit
    No. 22-1377
    JOSE A. RIVERA-PINA; DENISE MALAVE-FONSECA; ELIZABETH
    BRUNO-ORTEGA; EUNICE A. ROSARIO-ABREU; GUILLERMO E. DE LA
    CRUZ-ABREU; IRIS N. FLORES-CARABALLO; JAVIER
    RODRIGUEZ-RODRIGUEZ; JUAN C. ROMANACCE-RODRIGUEZ; LISBETH DE
    LEON-MARQUEZ; LUZ J. GARCIA-ORTIZ; MARISELA FIGUEROA-VEGA;
    RICHARD RIVERA-CANALES; ROLANDO A. LOPEZ-SOSA; RUBEN
    RODRIGUEZ-JIMENEZ; HOWARD DE LEON-RODRIGUEZ; EMILIO A.
    GABINO-SEVERINO; FRANCIS J. BROWN-RIVERA; GRACELYN PROCTOR; LUIS
    F. MALDONADO-FLORES; MARIBEL MENDOZA-MUNAYCO; RAFAEL
    LUGO-CINTRON; RICARDO RIVAS-PIMENTEL; SALVADOR BAEZ-PEREZ; SARA
    MUNIZ-CARASQUILLO; WANDA M. ORTIZ-OJEDA; AUREA E.
    VARGAS-RODRIGUEZ; CARLOS J. DEL VALLE-MALDONADO; CLAUDIO
    GARCIA-FEBLES; DANIEL NIEVES-MUNOZ; DAVID DE JESUS-SANCHEZ;
    DOLORES RODRIGUEZ-FELIZ; BRAULIO DE LEON-RODRIGUEZ; BELGICA
    BAUTISTA; SANTIAGO PEREZ-CRUZ; NOEMI MATOS-RIVERA; MYRIAM
    GARCIA-VIERA; MATEO CEPEDA-ROMERO; LUIS FERNANDEZ-SOUFFRON; LISA
    Y. SOTO-PENA; LETTY ZAYAS-MATTA; JOSE RIVERA-RIVERA; JESUS G.
    CRESPO-VARGAS; FELIX O. RAMOS-RIVERA; ENRIQUE ROSA-ESQUILIN;
    AMERICA SORIANO-GONZALEZ; DAVID ROMAN-RIVERA; EDGARDO
    JIMENEZ-QUINONES; BERNARD I. SANCHEZ-BISBAL; CATHERINE
    ANDINO-SANCHEZ; DIONISIO DIAZ-SUAREZ; EDUVIGIS
    HERNANDEZ-ALBERTO; GERARDO MERCED-OTERO; ISAAC V. LOPEZ-DIAZ;
    JAVIER MURATI-ROSA; JOSE A. GONZALEZ-RIOS; MARIA RONDON; MARIA
    SERRANO-RIVERA; NEYDIMAR OQUENDO-RODRIGUEZ; VANESSA
    RIVERA-CARRION; WILLIAM A. MERCED-NARVAEZ; YESENIA MONTES-COLON;
    SAMUEL TORRES-PEREZ; ROMAN HERRERA-GONZALEZ; RAUL DELGADO-PAGAN;
    CARLOS M. NINA-MORBAN; DAVID OTERO-RODRIGUEZ; ESTEBAN G.
    RIOS-SANTANA; JAIME R. CEPEDA-CRUZ; MANUEL DE LA ROSA-MERAN; ANA
    S. TORO-ORTIZ; CARMEN F. BONILLA-VALLEJO; EDWIN
    VAZQUEZ-GONZALEZ; JAIME MOUX-GONZALEZ; JOSE M. MARTINEZ-TORRES;
    MARTA PACHECO-ARROYO; ANGELO CUEVAS TAPIA; ANNETTE
    MARCANO-BETANCOURT; ZAIDA M. CLAUDIO-TORRES; CARLOS A.
    DIAZ-MUNIZ; ANGEL L. SEMIDEY-SEPULVEDA; MAGDALIS GONZALEZ; CAROL
    RODRIGUEZ-SANCHEZ; CESAR R. MERCED-TORRES; CARLOS R.
    ARROYO-VEGA; EIMY CARRION-MARQUEZ; CRISTIAN CRISOSTOMO; JENNIFER
    MARRERO-COLON; DANNY A. GONZALEZ; JOSE L. ESCOBAR; EDWIN E.
    SANCHEZ-HENRIQUEZ; MARIA D. LOPEZ-COSME; ELIZABETH
    RODRIGUEZ-ACOSTA; MARIA E. ACEVEDO-RIVERA; ERNESTO MIDDELHOF;
    MIKE SOSA; JAMES HIGGINSHOTHAM-PADILLA; MILAGROS RIVERA-MERCADO;
    JENNIFER RODRIGUEZ-MARTINEZ; MILTON GINES-AYUSO; JOSE A.
    FIGUEROA-ENCARNACION; WILLIAM IZQUIERDO; JOSE A. VEGA-CRUZ;
    JUNIOR J. CEDANO NOVA; YAZMIN PAGAN LORIGA; CARMEN L. RUIZ;
    CHRISTIAN SANTIAGO RODRIGUEZ; ELSIE ALVAREZ RODRIGUEZ; GIOVANNA
    VARGAS; GLENDALY HERNANDEZ DIAZ; JEREMY BAPTISTE; JESSICA LUCAS
    MUOZ; JUAN G. BORRERO-ESCALERA; LEOMARY MARTINEZ MARTINEZ;
    MIGDALIA NIEVES FIGUEROA; RAMONA SANTANA ACOSTA; WILFREDO RIVERA
    VARGAS; AMARILIS ORTIZ PACHECO; CARLOS J. FONTANEZ DE JESUS;
    IRAIDA RODRIGUEZ SOTO; JOCELYN DIAZ MELENDEZ; JOSE M. SANCHEZ
    AGOSTO; RICHARD A. CHONG VALDES; YAJAIRA VELEZ GUZMAN; ALEXIER
    RAMOS MATOS; MIGUEL A. CRUZ MEDINA; NUBIA M. POLANIA MARTINEZ;
    EDUARDO MARTINEZ RIVERA; JENNIFER GONZALEZ MARTINEZ; ILEANA
    ACEVEDO; JUAN C. LOPEZ RIVERA; NESTOR MALDONADO CRUZADO; ATREYU
    RIVERA OSORIO; LIZALLI CACERES SOLIS; WILFREDO GARCIA BOY;
    YANIRA DAVILA GONZALEZ; ANTHONY VARGAS MEDERO; AMANDA BERRIOS
    DIAZ; EVA J. PESQUERA RODRIGUEZ; MISAEL J. PAGAN; ZULIN
    VILLANUEVA ORELLANO; CAMILLE OQUENDO; FELIPE J. NIEVES SANTOS;
    NOMAR MARQUEZ ARROYO; SAMUEL RIVERA LEBRON; YANEURI RESTITUYO;
    BARBARA CANALES MALDONADO; EDWIN RAMOS SERRANO; JAFED ESCOBAR
    AYALA; CARLA C. MONTALVO ANABITARTE; MICHAEL DIAZ COLON; ZINNIA
    JIMENEZ; GIOVANNI MARTINEZ RIOS; LUIS A. ALICEA SANTOS; YAMILLIE
    MELENDEZ RIVERA,
    Plaintiffs, Appellants,
    v.
    LUXURY HOTELS INTERNATIONAL OF PUERTO RICO, d/b/a Ritz-Carlton
    Hotel Spa & Casino,
    Defendant, Appellee.
    APPEAL FROM THE UNITED STATES DISTRICT COURT
    FOR THE DISTRICT OF PUERTO RICO
    [Hon. Pedro A. Delgado-Hernández, U.S. District Judge]
    Before
    Barron, Chief Judge,
    Montecalvo and Rikelman, Circuit Judges.
    Jorge L. Marchand Heredia for appellants.
    Anabel Rodríguez-Alonso, with whom Corporate Legal Advisors,
    L.L.C., Ivy Mercado-Ramos, and Raquel Román-Morales were on brief,
    for appellee.
    May 3, 2024
    BARRON,   Chief   Judge.       The   appellants     are   former
    employees of Luxury Hotels International of Puerto Rico, d/b/a
    Ritz-Carlton Hotel Spa & Casino ("Ritz-Carlton"), which operated
    a hotel in Isla Verde, Puerto Rico.      They are challenging a grant
    of summary judgment to Ritz-Carlton on their claims alleging that
    Ritz-Carlton violated federal and Puerto Rico law in connection
    with Ritz-Carlton's discharge of the employees after the hotel
    closed in the wake of Hurricanes Irma and Maria.       We affirm.
    I.
    Of the several claims that the employees originally
    brought in a Puerto Rico court against Ritz-Carlton, only two are
    at issue in this appeal.        Those claims relate to the following
    facts, which are not in dispute.
    Hurricane Irma struck Puerto Rico on September 6, 2017,
    and Hurricane Maria struck Puerto Rico on September 19 and 20,
    2017.   Ritz-Carlton closed the hotel to the public on September
    20, 2017, and thereafter only a limited group of its employees
    performed any work at the property.
    On   November   17,   2017,   Ritz-Carlton   gave    individual
    written notices to 699 of its employees stating: "you[] will be
    laid off from your jobs" effective retroactively starting on
    October 6, 2017, and "remain[ing] in effect as [Ritz-Carlton]
    continue[s] evaluating the extent of the damages caused by the
    natural disasters and until [Ritz-Carlton is] able to determine
    - 4 -
    when the Hotel will reopen its doors and continue with its normal
    operations."      On    March    19,     2018,      Ritz-Carlton     notified      the
    employees that their employment would be terminated permanently on
    April 30, 2018.
    The employees then sued Ritz-Carlton in a Puerto Rico
    court,   alleging      violations      of   Puerto     Rico    and   federal      law.
    Ritz-Carlton removed the case to the United States District Court
    for the District of Puerto Rico and, after discovery had concluded,
    filed a proposed statement of uncontested facts and moved for
    summary judgment.
    The employees objected to the proposed statement of
    uncontested facts as well as to the motion of summary judgment,
    and   the   employees     also    filed      a      motion    to   strike   two    of
    Ritz-Carlton's exhibits.         After further motion practice by the
    parties,    the   District       Court       granted     summary     judgment       to
    Ritz-Carlton on all the employees' claims, denied the employees'
    motion to strike Ritz-Carlton's exhibits, and dismissed the case.
    Rivera-Pina v. Luxury Hotels Int'l of P.R., No. 18-1719 (PAD),
    
    2022 WL 993639
     (D.P.R. Mar. 31, 2022).
    Among the claims for which the District Court granted
    summary judgment are the two that are at issue in this appeal.
    Those claims allege violations of, respectively, Puerto Rico Law
    80 of 1976, and the federal Worker Adjustment and Retraining
    Notification ("WARN") Act, 
    29 U.S.C. §§ 2101-09
    .
    - 5 -
    At the relevant time, Law 80 provided that certain
    employees      who   are    "wrongfully     terminated"     are   entitled   to
    statutorily defined amounts of severance pay unless there was
    "[j]ust     cause     for    discharge."          Labor   Transformation     and
    Flexibility Act, No. 4, secs. 4.3-4.4, §§ 1-2, 
    2017 P.R. Laws 82
    ,
    133-35.       According     to   the    employees'   complaint,   Ritz-Carlton
    violated Law 80 by terminating the employees "without just cause,
    and [Ritz-Carlton] did not pay the indemnity [that the employees]
    were entitled to receive."         In support of the claim, the complaint
    alleged that the employees had been "informed that they were being
    laid off because the company was going to cease operations" but
    that "said closing of operations was not a bona fide one and was
    done   with    the   intention     of   discriminating    against   plaintiffs
    because of their age and seniority in order to bring younger
    employees and [workers] with less seniority to perform the duties
    performed      by    [plaintiffs]."         The    complaint   requested     the
    statutorily defined amounts of severance pay to which the employees
    claimed they were entitled.
    The WARN Act provides in relevant part that an "employer
    shall not order a . . . mass layoff until the end of a 60-day
    period after the employer serves written notice of such an order
    . . . to each affected employee."             
    29 U.S.C. § 2102
    (a)(1).        The
    WARN Act defines "mass layoff" in relevant part as:
    (3) . . . a reduction in force which--
    - 6 -
    (A) is not the result of a plant closing;
    and
    (B) results in an employment loss at the
    single site of employment during any
    30-day period for--
    (i)
    (I) at least 33 percent of the
    employees    (excluding    any
    part-time employees); and
    (II) at least 50     employees
    (excluding     any   part-time
    employees); or
    (ii)   at   least    500    employees
    (excluding       any        part-time
    employees).
    
    29 U.S.C. § 2101
    (a)(3).     The WARN Act further defines "employment
    loss" in relevant part as, "(A) an employment termination, other
    than a discharge for cause, voluntary departure, or retirement,
    (B) a layoff exceeding 6 months, or (C) a reduction in hours of
    work of more than 50 percent during each month of any 6-month
    period."   
    29 U.S.C. § 2101
    (a)(6).    In other words, under the WARN
    Act, if a layoff does not exceed six months, then the "reduction
    in force" has not "result[ed] in an employment loss" and so is not
    a "mass layoff" that gives rise to an obligation under the WARN
    Act to provide notice.     However, the WARN Act further provides:
    A layoff of more than 6 months which, at its
    outset, was announced to be a layoff of 6
    months or less, shall be treated as an
    employment loss under this chapter unless--
    - 7 -
    (1) the extension beyond 6 months is
    caused    by    business    circumstances
    (including   unforeseeable   changes   in
    price or cost) not reasonably foreseeable
    at the time of the initial layoff; and
    (2) notice is given at the time it
    becomes reasonably foreseeable that the
    extension beyond 6 months will be
    required.
    
    29 U.S.C. § 2102
    (c).
    In addition, the WARN Act provides the following:
    (a) Civil actions against employers
    (1) Any employer who orders a plant
    closing or mass layoff in violation of
    section 3 of this Act shall be liable to
    each aggrieved employee who suffers an
    employment loss as a result of such
    closing or layoff for--
    (A) back pay for each day of
    violation at a rate of compensation
    not less than the higher of--
    (i) the average regular rate
    received   by  such   employee
    during the last 3 years of the
    employee’s employment; or
    (ii) the final regular rate
    received by such employee; and
    (B) benefits under an employee
    benefit plan described in section
    3(3) of the Employee Retirement
    Income Security Act of 1974 (29
    U.S.C. 1002(3)) . . . .
    Such liability shall be calculated for the
    period of the violation, up to a maximum of 60
    days, but in no event for more than one-half
    the number of days the employee was employed
    by the employer.
    - 8 -
    29 U.S.C § 2104(a)(1).
    However, the WARN Act then goes on to provide:
    (2) The amount for which an employer                is
    liable . . . shall be reduced by--
    (A) any wages paid by the employer to the
    employee for the period of the violation;
    (B) any voluntary and unconditional
    payment by the employer to the employee
    that is not required by any legal
    obligation; and
    (C) any payment by the employer to a
    third party or trustee (such as premiums
    for health benefits or payments to a
    defined contribution pension plan) on
    behalf of and attributable to the
    employee for the period of the violation.
    
    29 U.S.C. § 2104
    (a)(2).
    The   employees'    complaint      alleged   that   Ritz-Carlton
    violated the WARN Act by failing to give them sufficient notice
    prior to their ultimate termination. In that regard, the complaint
    alleged that the "termination was effective on April 30, 2018, but
    the layoff for closing of operations was notified on March 19,
    2018, in other words, 41 days prior to the effectiveness of the
    termination."   Thus, according to the complaint, the employees
    were "entitled to be compensated by the payment of sixty (60) days
    of salaries and benefits" as well as attorneys' fees and costs.
    The   District     Court   granted     summary      judgment   to
    Ritz-Carlton on the Law 80 claim on the ground that the record
    - 9 -
    established, as a matter of law, that Ritz-Carlton had terminated
    the employees' employment with "just cause."          Rivera-Pina, 
    2022 WL 993639
    , at *8-9.    The District Court then granted summary judgment
    to Ritz-Carlton on the WARN Act claim on the ground that the record
    established, as a matter of law, there had been no WARN Act
    violation and that, even if there had been, various payments that
    Ritz-Carlton had made to the employees would completely offset
    Ritz-Carlton's monetary liability.         Id. at *12.
    The employees timely appealed.1
    II.
    "We review a district court's grant of summary judgment
    de novo."   González-Cabán v. JR Seafood Inc., 
    48 F.4th 10
    , 14 (1st
    Cir. 2022).      "In considering the arguments on appeal, we must
    construe the record in the light most favorable to the non-moving
    party and resolve all reasonable inferences in that party's favor."
    
    Id.
     (cleaned up).    "Summary judgment is appropriate when 'there is
    no genuine dispute as to any material fact and the movant is
    entitled    to   judgment   as   a   matter    of   law.'"   
    Id.
       (quoting
    1 Ritz-Carlton argues on appeal that the employees' brief
    violates Federal Rule of Appellate Procedure 28(a)(6) because the
    employees "did not cite a single reference to parts of the record
    to sustain their contentions," and Ritz-Carlton contends that this
    "violation alone warrants affirming the dismissal." The employees
    do not make any argument rebutting this contention. However, we
    do not decide here whether there has been such a violation or, if
    so, whether the violation alone would warrant affirming, because
    we conclude that the merits of the case warrant an affirmance.
    - 10 -
    Feliciano-Muñoz v. Rebarber-Ocasio, 
    970 F.3d 53
    , 62 (1st Cir.
    2020)).
    III.
    We start with the employees' challenge to the District
    Court's grant of summary judgment to Ritz-Carlton on their Law 80
    claim.    The employees recognize that they cannot succeed on this
    claim if the record shows that Ritz-Carlton terminated their
    employment for "just cause." In ruling that the record established
    as a matter of law that the termination was for "just cause," the
    District Court explained that it was "uncontested" that the hotel
    "closed its doors to the public on September 20, 2017[,] and has
    not reopened for business."    Rivera-Pina, 
    2022 WL 993639
    , at *8.
    The District Court then went on to conclude that the "closing
    constitutes just cause for [the employees'] discharge."   
    Id.
    The employees do not suggest that there is any factual
    dispute "that the Hotel has been closed."    They also acknowledge
    that, "as a general rule, the owner [of the hotel] has the
    authority to do that."   Consistent with that understanding, Law 80
    defined "just cause" at the relevant time as "such reasons that
    affect the proper and regular operations of an establishment,
    including . . . [the f]ull, temporary, or partial closing of the
    - 11 -
    operations of the establishment."2    Id. at *8 (emphasis added);
    see also Labor Transformation and Flexibility Act, sec. 4.4, § 2.
    The employees appear to be premising their challenge on
    appeal on the ground that the "general rule" that a termination of
    employment based on a closing is for "just cause" does not apply
    to this case because a reasonable trier of fact could find on this
    record that Ritz-Carlton closed this hotel without "just cause."
    In that regard, the employees argue that "there is absolutely no
    admissible evidence whatsoever in the record of the alleged damages
    suffered by the Hotel because of the Hurricanes."     They further
    contend that there is "contradictory evidence on the record because
    all the [hotel] officials that testified on depositions said they
    never saw a damages report and don't even know whether they existed
    or not" and that Ritz-Carlton "was misrepresenting the real reason
    for the closing of the hotel because in the following months
    construction crews . . . were working for the following months
    demolishing rooms in the hotels that were not damaged by the
    Hurricanes." In consequence, the employees argue, there were "many
    2 The text from Law 80 that the District Court quoted was in
    the statute at the time of Ritz-Carlton's alleged violation. See
    Labor Transformation and Flexibility Act, sec. 4.4, § 2. In 2022,
    Puerto Rico amended the statute by deleting the phrase, "such
    reasons that affect the proper and regular operations of an
    establishment," but retaining "[f]ull, temporary, or partial
    closing of the operations of the establishment" as a sufficient
    condition for deeming an employee to "have been terminated for
    cause." Act No. 41-2022, sec. 17, § 2, 2022 P.R. Laws.
    - 12 -
    issues of fact to be resolved at trial" concerning the real reason
    for the hotel's closure.
    These   arguments,   however,    are   all   premised   on   the
    contention that, as the employees put it, if "you don't provide a
    justified reason for the closing you have to pay severance under"
    Law 80.   But the text of Law 80 does not support the proposition
    that, even when the termination was based on the closing, the
    closing -- rather than the termination of employment -- had to be
    for "just cause."   And the employees neither develop an argument
    in support of a contrary conclusion nor cite authority under Puerto
    Rico law for our reaching one.   We thus see no basis for concluding
    that the District Court erred in ruling that the "inquiry is
    whether there is just cause for the discharge," and that "the full,
    temporary or partial closing of operations is just cause," such
    that "[o]nce that just cause is shown, the Law 80 inquiry ends."
    Rivera-Pina, 
    2022 WL 993639
    , at *9 (emphasis added); see also Cruz
    v. Bristol-Myers Squibb Co., PR, Inc., 
    699 F.3d 563
    , 571-72 (1st
    Cir. 2012) (explaining that an employer "show[s] that there was
    just cause for . . . dismissal" under Law 80 simply when it shows
    that there was a "[f]ull, temporar[y] or partial closing of the
    operations of the establishment" such as when the employer "was
    engaged in a large-scale reduction in force").
    In light of our conclusion on this score, it follows
    that we would have no basis for holding that the District Court
    - 13 -
    erred in determining that the employees' employment was terminated
    for "just cause," even if we were to assume that there were a
    genuine issue of material fact about why the hotel was closed.3
    For, while the employees assert in their recitation of the facts
    that the "problem was that [Ritz-Carlton] was misrepresenting the
    real reason for the closing of the hotel because in the following
    months construction crews . . . were working for the following
    months demolishing rooms in the hotels that were not damaged by
    the Hurricanes," they develop no argument on appeal (nor did they
    develop any such argument below) that the termination of their
    employment was not based on the closing.      Their only developed
    argument is that there is a genuine issue of material fact as to
    whether the closing itself was justified.   But, for the reasons we
    have explained, that contention does not support our concluding
    that the District Court erred in granting summary judgment to Ritz-
    Carlton on the Law 80 claim.
    3 Inlight of our conclusion on this score, we need not address
    whether the employees are right in contending that the District
    Court impermissibly relied on inadmissible evidence regarding the
    extent of damages, and that it was Ritz-Carlton's burden to prove
    that there was "just cause," as the employees do not contest that
    there was a "[f]ull, temporary, or partial closing of the
    operations of the establishment."
    - 14 -
    IV.
    We now turn to the employees' challenge to the District
    Court's grant of summary judgment to Ritz-Carlton on their WARN
    Act claim.   In so ruling, the District Court correctly described
    the employees as alleging that "their termination was effective on
    April 30, 2018, for which they received a notification on March
    19, 2018 (41 days prior to the effectiveness of the termination)"
    and that in consequence "Ritz-Carlton violated the statute and
    must compensate them with 19 days-worth of salaries and benefits,
    plus attorney's fees."   Rivera-Pina, 
    2022 WL 993639
    , at *12.   The
    District Court concluded that, as a matter of law, the claim was
    without merit on this record.   
    Id.
    To explain why, the District Court began by setting forth
    its reasons for concluding that, as a matter of law, there had
    been no showing that the WARN Act had been violated.   The District
    Court explained as follows in that regard:
    On November 17, 2017, Ritz-Carlton issued WARN
    notices to its employees informing them of
    their layoffs effective October 6, 2017, as a
    consequence of damage to the hotel resulting
    from the hurricanes.    It was reasonable for
    Ritz-Carlton to so inform the employees,
    albeit 
    29 U.S.C. § 2102
    (b)(2)(B) did not
    require notice.
    The layoffs were to continue in effect while
    Ritz-Carlton evaluated the extent of the
    damages caused by the hurricanes, and until it
    was able to determine when the hotel would
    reopen its doors and continue with its normal
    operations. Plaintiffs' last day of work was
    - 15 -
    September 20, 2017.    The March 2018 notice
    came about six months later, when it became
    foreseeable that the layoffs could exceed six
    months.   Because those terminations derived
    from the hurricanes, no 60-day advance notice
    was necessary. Nevertheless, in providing the
    termination    notices    in   March    2018,
    Ritz-Carlton complied with the WARN notice
    framework.
    
    Id.
     (citations omitted).
    The District Court also went on to hold, however, that
    Ritz-Carlton was entitled to summary judgment on the employees'
    WARN Act claim even if the record gave rise to a genuine issue of
    material fact as to whether there had been a WARN Act violation.
    And    that    was    so,   the   District     Court     explained,      because    of
    § 2104(a)(2)(B) of the statute.                That provision, as set forth
    above, reduces an employer's monetary liability for a WARN Act
    violation by "any voluntary and unconditional payment by the
    employer      to    the   employee   that    is    not   required   by    any   legal
    obligation."          
    29 U.S.C. § 2104
     (a)(2)(B).              Accordingly,        the
    District Court concluded that "if there was an advance-notice
    violation, the 19-day deficit would have been covered by the
    32-hour weekly payments that plaintiffs received from September
    20, 2017, to December 14, 2017; the April 12, 2018, payment; and
    the    health-plan        coverage   that    Ritz-Carlton      provided     to     the
    employees up to March 31, 2018."              Rivera-Pina, 
    2022 WL 993639
    , at
    *12.    The District Court then further stated in a footnote that,
    "[f]rom       the    record,   these   were       voluntary   and   unconditional
    - 16 -
    payments not required by any legal obligation."         
    Id.
     at *12 n.17.
    Thus, the     District Court concluded, "the WARN claim must be
    dismissed."    Id. at *12.4
    Given this separate § 2104(a)(2)(B)-based ground for
    granting    summary   judgment   to   Ritz-Carlton,   the   employees   can
    succeed on their challenge on appeal only if they can show that
    the District Court erred in ruling that the "19-day deficit would
    have been covered" by the payments Ritz-Carlton made. Rivera-Pina,
    
    2022 WL 993639
    , at *12.       But, in challenging that aspect of the
    District Court's ruling, the employees' argument reads in its
    entirety:
    [I]t is clear that in November 2017 the
    employees were not terminated as Mrs. Cooper
    clearly stated in her deposition. Mrs. Cooper
    was the person that recommended the lay off of
    the appellant[s] on March 2018.       At that
    moment the defendant did not pay any benefit
    or salary to the employees during that time.
    The District Court ignored all this evidence
    that showed there were issues of fact in this
    case that made impossible the issuance of a
    summary judgment.
    And, notably, in this passage, the employees do not dispute that
    Ritz-Carlton paid each of the terminated employees the following
    4 To the extent that the employees mean for their challenge
    regarding the admission of exhibits 229 and 233 to be applicable
    to their WARN Act claim, any potential relevance of those exhibits
    concerns only the existence of a violation of the WARN Act. But
    because we need not address whether there was in fact a violation
    of the WARN Act, we similarly need not address the employees'
    challenge to the admission of those exhibits.
    - 17 -
    amounts: weekly payments from September 20, 2017 to December 14,
    2017, worth 32 hours of work per week; health insurance coverage
    until March 31, 2018; and a lump sum payment of $1,000 on April
    12, 2018.    Nor do they argue that these amounts -- whether
    separately or in any combination -- were less than the amounts
    that Ritz-Carlton would have owed to the employees if Ritz-Carlton
    had violated the WARN Act.   Nor do they dispute -- in fact, they
    conceded at oral argument -- that the payments were "voluntary"
    ones, notwithstanding that § 2104(a)(2)(B) provides that "[t]he
    amount for which an employer is liable . . . shall be reduced by
    . . . any voluntary and unconditional payment by the employer to
    the employee that is not required by any legal obligation."   Nor,
    finally, do they dispute that the payments were "unconditional"
    payments under § 2104(a)(2)(B).     Cf. Loc. Joint Exec. Bd. of
    Culinary/Bartender Tr. Fund v. Las Vegas Sands, Inc., 
    244 F.3d 1152
    , 1159 (9th Cir. 2001) (finding that certain severance payments
    were not "voluntary and unconditional," as they had been offered
    "on the condition that the employees remain on the job until the
    hotel casino closed"); Castro v. Chi. Hous. Auth., 
    360 F.3d 721
    ,
    733 (7th Cir. 2004) (finding that certain severance payments were
    not "voluntary and unconditional," as they were "intimately tied
    to settlement agreements in which the unions agreed to drop all
    pending lawsuits").
    - 18 -
    We are aware that the record shows that the weekly
    payments worth 32 hours of work per week, which were made from
    September     to   December      2017,       preceded    the   notification     that
    Ritz-Carlton provided in March of the termination that occurred in
    April.      And the employees did assert at oral argument -- albeit
    for   the    first      time    --    that    those     payments    cannot   reduce
    Ritz-Carlton's liability unless they have a "link" to the April
    2018 termination.         But the employees have failed to develop an
    argument about what kind of "link" is required under the WARN Act
    or why such a "link" was absent here.                   Nor have they pointed to
    any authority that indicates that the District Court's reliance on
    the   various      payments     was    erroneous        because    the   assertedly
    necessary "link" between the payments and the notification of
    termination was missing.              Thus, the employees have failed to
    provide us with any ground that would permit us to conclude the
    District     Court      erred   in    relying      on   the    various   concededly
    "voluntary" payments as an independent ground for granting summary
    judgment to Ritz-Carlton on the WARN Act claim.                   See United States
    v. Leoner-Aguirre, 
    939 F.3d 310
    , 319 (1st Cir. 2019) (explaining
    that arguments raised for the first time at oral argument are
    deemed waived); see also United States v. Zannino, 
    895 F.2d 1
    , 17
    (1st Cir. 1990) ("[I]ssues adverted to in a perfunctory manner,
    unaccompanied      by    some   effort       at   developed    argumentation,   are
    deemed waived.").
    - 19 -
    V.
    For the foregoing reasons, the judgment of the District
    Court is affirmed.
    - 20 -
    

Document Info

Docket Number: 22-1377

Filed Date: 5/3/2024

Precedential Status: Precedential

Modified Date: 6/12/2024