16-3049 Vaughn v. Phoenix House New York Inc. 

## UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT 

# SUMMARY ORDER

RULINGS BY SUMMARY ORDER DO NOT HAVE PRECEDENTIAL EFFECT. CITATION TO A SUMMARY ORDER FILED ON OR AFTER JA NUARY 1, 2007, IS PE RMITTED AND IS GOVERNE D BY FEDERAL RULE OF APPELLATE PROCEDURE 32.1 AND THIS COURT = S LOCAL RULE 32.1.1. WHEN CITING A SUMMARY ORDER IN A DOCUMENT FILED WITH THIS COURT, A PARTY MUST CITE EITHER THE FEDERAL APPENDIX OR AN ELECTRONIC DATABASE (W ITH THE NOTATION A SUMMARY ORDER @ ). A PARTY CITING TO A SUMMARY ORDER MUST SERVE A COPY OF IT ON ANY PARTY NOT REPRESENTED BY COUNSEL.

At a stated term of the United States Court of Appeals for the Second Circuit, held at the Thurgood Marshall United States Courthouse, 40 Foley Square, in the City of New York, on the 16 th day of January, two thousand eighteen.

PRESENT: ROBERT A. KATZMANN, Chief Judge, JOHN M. WALKER, JR., GUIDO CALABRESI, Circuit Judges.

__________________________________________ Mark Vaughn, Plaintiff-Appellant , v. 16-3049 Phoenix House New York Inc. Arthur Wallace, Substance Abuse Counselor, Brendon L. Hoffman, President, Phoenix House Programs of New York, Thomas Jasper, Chairman of Phoenix House Programs of New York, De nise Buckley, Managing Director, Phoenix House L.I.C., Howard Meitiner, Defendants-Appellees , Terrance Waring, House Manager of Phoenix House Long Island City Campus, Herman Lazada, Managing Director, Phoenix House Career Academy, William Brown, Substance Abuse Counselor, Phoenix House, Defendant s.

__________________________________________FOR PLAINTIFF-APPELLANT: Mark Vaughn, pro se , Brooklyn, NY.

FOR DEFENDANTS-APPELLEES: M ARIE D. H OWICK (Rachel G. Skaistis, on the brief ), Cravath, Swaine & Moore LLP, New York, NY.

Appeal from a judgment of the United States Di strict Court for the Southern District of New York (Abrams, J .). UPON DUE CONSIDERATION, IT IS HEREBY ORDERED, ADJUDGED, AND

DECREED that the judgment of the district court is AFFIRMED IN PART and VACATED IN

PART , and that this case is REMANDED to the district court for further proceedings consistent with this opinion. Plaintiff-Appellant Mark Vaughn, proceeding pro se , appeals from a judgment in favor of Defendants-Appellees. In 2009, Vaughn was orde red by the Kings County Supreme Court to participate in a drug rehabilitati on program as an alternative to prison. He was assigned to Phoenix House of New York, Inc., where he was required to perform certa in “job functions.” App. 23. After earlier refusals to abide by this requirement, Vaughn eventually complied upon being informed by the Kings County Supreme Court in April 2011 that “if [he was] kicked out of the program, [he would] go[] to jail.” App. 30. In May 2014, Vaughn sued Phoenix House and various of its employees and officers. He asserted claims under 42 U.S.C. §§ 1983 and 1994 and the Fair Labor Standards Act (“FLSA”), 29 U. S.C. §§ 201–19, as well as state and local laws

. This appeal follows the district court’s dism issal without prejudice of Vaughn’s first amended complaint and its dismissal with prejudi ce of his second amended complaint. See Vaughn v. Phoenix House Programs of N.Y. , No. 14 Civ. 3918, 2015 WL 5671902 (S.D.N.Y. Sept. 25, 2015) (“ Vaughn I ”); Vaughn v. Phoenix House Programs of N.Y. , No. 14 Civ. 3918, 2016 WL 4223748 (S.D.N.Y. Aug. 9, 2016) (“ Vaughn II ”). We assume the parties’ familiarity with the underlying facts, the procedural history of the case, and the issues on appeal.3 We review de novo the dismissal of a complaint pursuant to Federal Rule of Civil Procedure 12(b)(6), accepting all fa ctual allegations as true and dr awing all reasonable inferences in plaintiff’s favor. Biro v. Condé Nast , 807 F.3d 541, 544 (2d Cir. 2015). Because Vaughn

appears pro se , we are “constrained to conduct our examination w ith ‘special solicitude,’ interpreting the complaint to raise the ‘strongest claims that it suggests.’” Hill v. Curcione , 657 F.3d 116, 122 (2d Cir. 2011) (quoting Triestman v. Fed. Bureau of Prisons , 470 F.3d 471, 474–75 (2d Cir. 2006)). Upon review, we conclude that Vaughn’s claims under § 1983 are time barred. The only basis Vaughn asserts for state acti on is the role of the state co urt in gaining Vaughn’s compliance with Phoenix House’s rehabilitation program. Even assuming this would be sufficient to demonstrate state action, the most recent allegati on of state intervention occurred in April 2011. Accordingly, any injury from th e state action accrued in April 2011, more than three years before Vaughn filed his original complaint in May 2014. See Owens v. Okure , 488 U.S. 235, 251 (1989) (recognizing three-year statute of limitati ons for § 1983 claims in New York). We further conclude that Vaughn’s claim unde r § 1994, the federal anti-peonage statute, lacks any merit. Vaughn alleged that he owed P hoenix House “nothing in th e way of finances or payment,” Second Am. Compl. at 22, and he ther efore cannot demonstrate that his circumstances qualify as peonage because he was not “bound by the threat of a penal sanc tion to remain at his employment until [a] debt has been discharged.” Taylor v. Georgia , 315 U.S. 25, 29 (1942). We believe, however, that Vaughn’ s FLSA claim needs further analysis. This claim was dismissed below on the grounds that Vaughn is not “an ‘employee’ protected by that statute”4 because he received “‘the principa l benefit of [his] participation in the [rehabilitation] program,’” which he had entered “‘to resolve the criminal charges against him’” rather than “‘for the purpose of receiving monetary compensation.’” Vaughn II , 2016 WL 4223748, at *4 (quoting Vaughn I , 2015 WL 5671902, at *7–9). Yet in reaching this c onclusion, neither the district court nor the authority on which it relies addressed an important precedent that may bear on this question.

In Glatt v. Fox Searchlight Pictures, Inc. , 811 F.3d 528, 533 (2d Cir. 2016), we addressed the question of “under what circumstances an unpaid intern must be deemed an ‘employee’ under the FLSA and therefore compensated for his work.” In doing so, we expl ained that “the proper question is whether the intern or the employer is the primary bene ficiary of the relationship” and set out a non-exhaustive set of factors for courts to weigh as they consider “the ‘economic reality’ of the relationship.” Id. at 536–37 (quoting Barfield v. N.Y.C. Health & Hosps. Corp. , 537 F.3d 132, 141–42 (2d Cir. 2008)). Although that analysis was “confined to internships” and does not necessarily “apply to training programs in other cont exts” in light of “the relationship between the internship and the intern’s formal education,” id. at 537, the nature of that relationship may have some resemblance to the vocational training aspects of certain rehabilitation programs, a context in

which other courts have looked to the purpose of the work perfor med because “the presence of a rehabilitative element does not prec lude an employment relationship,” Williams v. Strickland , 87 F.3d 1064, 1067 (9th Cir. 1996). Nevertheless, Glatt was not addressed in Vaughn I or Vaughn II , nor in any of the briefing below or before this Court.

Rather than address in the first instance how Glatt may impact the resolution of this dispute, if at all, or whether di sposing of this matter at the motion to dismiss stage is appropriate in5 light of Glatt and Williams , we deem it best to vacate the decisi on below with respect to its analysis of Vaughn’s FLSA claim and to remand this matte r for further consider ation. This also necessitates vacating the dismissal of Vaughn’s clai ms under state and city law, as they were dismissed solely based upon the district court’ s determination not to exercise supplemental jurisdiction following dismissa l of Vaughn’s federal claims. See Vaughn II , 2016 WL 4223748, at *5. Although we express no opinion on the merits of Vaughn’s FLSA claim, we nevertheless find that its legal complexity is such that “a claim of this sort is best made with the assistance of counsel” and we therefore respectf ully “recommend that the dist rict court, on remand, appoint counsel to aid [Vaughn] in pursing this claim.” Triestman , 470 F.3d at 476; see also 28 U.S.C. § 1915(e)(1). For the foregoing reasons, we AFFIRM the judgment of the district court with respect to Vaughn’s causes of action pursuant to 42 U.S.C. §§ 1983 and 1994, we VACATE the judgment of

the district court with re spect to his causes of action under the FLSA, as well as hi s state and local claims, and we REMAND for further proceedings cons istent with this opinion.

FOR THE COURT: Catherine O’Hagan Wolfe, Clerk