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Guerrero v. Club Quarters Mgmt. Co. LLC

Hotel Workers' Claim Is Viable Under Displaced Building Service Workers Protection Act

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DECISION AND ORDER I. BACKGROUND Plaintiffs move to amend their complaint. C.P.L.R. §3025(b). All remaining defendants collectively cross-move to dismiss the complaint, whether in its original form or in its proposed amended form, and for sanctions. C.P.L.R. §3211(a)(1) and (7); 22 N.Y.C.R.R. §130-1.1. Since defendants do not otherwise oppose plaintiffs’ motion, the court focuses on the facts alleged in the complaint and presumes them to be true. Himmelstein, McConnell, Gribben, Donoghue & Joseph, LLP v. Matthew Bender & Co., Inc., 37 N.Y.3d 169, 175 (2021); Connaughton v. Chipotle Mexican Grill, Inc., 29 N.Y.3d 137, 141 (2017); Seaman v. Schulte Roth & Zabel LLP, 176 A.D.3d 538, 538 (1st Dep’t 2019). Plaintiffs are workers who were employed at a building at 52 William Street, New York, New York, which operated as the Wall Street Hotel. They allege that defendants McSam Hotel Group, LLC, a hotel developer, SCCQ Downtown, LLC, a subsidiary of McSam Hotel, and Sam Chang, founder, sole member, and manager of McSam Hotel, purchased the building from its prior owner in January 2017. Aff. of James E. Murphy Ex. A (Compl.) 66, NYSCEF No. 45. On August 2, 2019, defendants McSam Hotel, SCCQ Downtown, and Chang entered a Termination Agreement with the entity that had been managing the hotel. Id. 61. Those defendants also terminated all plaintiffs’ employment on August 2, 2019, and then engaged defendant Wall Management Company, LLC, to manage and operate the Wall Street Hotel. Id.

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