Pineda v. Skinner Services, Inc., No. 20-1097 (1st Cir. 2021)
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The First Circuit affirmed the district court's entry of a preliminary injunction against Skinner Services, Inc., and four individuals (collectively, Skinner) to prevent Skinner's acceleration of efforts to insulate their individual and corporate assets to avoid a meaningful recovery for Plaintiffs in the underlying action, holding that the district court did not abuse its discretion.
Plaintiffs, former low-wage employees of Skinner Demolition, sued Skinner on behalf of themselves and other similarly situated workers for unpaid wages. The court entered a protective order to prohibit Skinner from retaliating against any workers who participated in or assisted in the litigation. Skinner was subsequently held in contempt for violating the protective order. In the meantime, Skinner created four separate entities, which Plaintiffs alleged were used to dissipate or hide assets. The district court granted Plaintiffs' ensuing motion for injunctive relief, finding that Skinner likely had violated state and federal wage laws and was trying to transfer assets from its laborers' reach. The First Circuit affirmed, holding that the district court (1) had the authority to enter the preliminary injunction; and (2) did not abuse its discretion.
The court issued a subsequent related opinion or order on January 7, 2022.
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