Former Allstate Law Firm PC Paralegal Gets Default Pay Judgment

A former paralegal won about $3,500 in a default judgment against Allstate Law Firm PC after the company failed to respond to the action, with a ruling by a federal judge.

Jeremy Frey was initially entitled to approximately $1,178 for his final pay period but Allstate Law failed to compensate him, the US District Court for the District of Arizona said Tuesday.

Frey sued in June 2022 alleging violations of the Fair Labor Standards Act and state law. Neither Allstate Law nor defendants Rick Daniel Adams or Jane Doe Adams ever responded or otherwise appeared in this action, Judge Diane J. Humetewa said in the opinion.

• The court examined the case under Eitel v. McCool, which looks at six factors when deciding default judgments. The defendants were properly served, didn’t respond to the action, and if the motion wasn’t granted, Frey would “likely be without other recourse for recovery,” the judge said
• Frey also sufficiently pleaded his case based on facts from his complaint and the motion for default judgment which alleged he wasn’t paid, the court said. The money at stake was his salary and performance bonus which were proportionate to the work he performed, Humetewa said
• The court entered judgment against the defendants for minimum wage damages under FLSA and state law in the amount of about $3,533 plus post-judgment interest, Humetewa said. A motion for attorneys’ fees must be filed separately, the judge said
• The court didn’t have personal jurisdiction over Jane Doe Adams because a default judgment can’t be entered if a person hasn’t been properly served, the court said

Bendau Law Firm PLLC represented Frey.

The case is Frey v. Allstate Law Firm PC, D. Ariz., No. 22-cv-01053, 8/29/23.