Kroshnyi v. U.S. Pack Courier Services, Inc., No. 11-2789 (2d Cir. 2014)Annotate this Case
Plaintiffs, delivery drivers for one or more defendant corporations owned by defendant Peter Glazman, filed suit under federal and state laws, alleging that defendants systematically undercompensated them for their work, purporting to treat them as franchisees while reaping disproportionate profits at plaintiffs' expense. At issue was the district court's resolution of New York law under its supplemental jurisdiction. The court found no abuse of discretion in the district court's exercise of supplemental jurisdiction; concluded that the statute of limitations barred the New York Franchise Sales Act (FSA), N.Y. Gen. Bus. Law 680 et seq., claims of six of the eight plaintiffs; although the court affirmed the FSA award as to the remaining two plaintiffs, the court determined that the related attorneys' fee award must be recalculated to reflect that modification in the substantive award; decided that the statute of frauds does not preclude plaintiffs from pursuing their New York Labor Law, N.Y. Labor Law 190 et seq., and contract claims against defendant; and remanded for further proceedings on these state-law claims and for recalculation of the FSA-related attorneys' fees.