Andrews v. City of New York

118 F. Supp. 3d 630, 2015 U.S. Dist. LEXIS 101115, 2015 WL 4622489
District Court, S.D. New York·Decided August 3, 2015·No. No. 10-Cv-2426 (SHS)·Published·Cited by 11 cases

Opinion

OPINION & ORDER

SIDNEY H. STEIN, District Judge.

I. BACKGROUND.

In March of this-year, the Court approved as fair and reasonable the settlement of this employment discrimination action, which was brought on behalf of a collective of 5,213 individuals employed by the City of New York as School Safety Agents (SSAs), a predominantly female group. {See Dkt. No. 324.) Plaintiffs alleged that by paying them less than Special Officers (SOs), a predominantly male group of City employees who performed similar , work,- the City discriminated against them in violation of Title VII of the Civil Rights Act of 1964, '42 U.S.C. §§ 2000e et seq., the New York State Human Rights Law, N.Y. Exec. Law §§ .290. et seq., and the Equal Pay Act, 29 U.S.C. §§ 206(d) et seq.

Plaintiffs agreed to settle all claims against the City in exchange for back pay awards ranging from $250 to $7,000 per plaintiff depending upon such factors as their dates and lengths of employment. {See Stipulation of Settlement, Dkt. No. 262-1 ¶23.) The parties stipulated and agreed that “the rates of pay for SSAs and SOs shall be equalized according [to] the provisions of Section 6 of the 2010-2018 Memorandum of Agreement” negotiated between the City and the Local 237, International Brotherhood of Teamsters (“the Union”), just prior to the settlement of this action. {Id. ¶ 22; 2010-2018 Memorandum [634] of Agreement ¶ 6, Ex. H to Decl. of James Linsey dated February 6, 2015.) The settlement agreement also provides for service awards of $18,000 for each named plaintiff. (Stipulation of Settlement ¶ 23(f).) The back pay awards total somewhat more than $32 million. (See Jnt. Mem. of Law in Supp. of Mot. for Prelim. Approval of a Class Action Settlement at 15; LLF Mem. of Law in Supp. of Mot. for Att’y Fees (“LLF Mem. in Supp.”) at 1, Dkt. No. 283-1.) The Court approved this settlement agreement as fair and reasonable on March 26, 2015. (See Dkt. No. 324.)

Plaintiffs’ attorneys — the Linsey Law Firm, PLLC (“LLF”) — seek an award of attorney’s fees as well as reimbursement of their costs. LLF requests that the Court order the City to pay statutory fees in the amount of $3,830,466 and statutory costs in the amount of $872,082 pursuant to the fee-shifting provision of - the Fair Labor Standards Act (FLSA).1 (See LLF Mem. in Supp. at 1; LLF Updated Billing Summary (“Billing Summary”), Dkt. No. 320-2.) All parties — and the Court— agree that LLF is entitled to reasonable statutory attorney’s fees. However, LLF then goes on to ask the Court to place the statutory fees it is entitled to into a “common settlement fund,” which, according to LLF, consists not only of the $32 million in back pay to plaintiffs provided for in the settlement agreement, but also of $43.3 million in accelerated future pay raises to SSAs that were negotiated between the Union and the City and embodied in the 2010-2018 Memorandum of Agreement. Out of that so-called “common fund,” LLF now seeks a total of $11.5 million in fees.

The City and the named plaintiffs — now represented by separate counsel — adamantly oppose LLF’s request to be awarded a percentage of what LLF refers to as the “common fund.”2 The Court has reviewed LLF’s request and finds that it is entitled to a reduced award of statutory fees and costs, but not to a percentage of plaintiffs’ recovery.

II. Discussion

A. LLF is Entitled to Statutory Fees and Costs but is Not Entitled to a Percentage of Plaintiffs’ Recovery

The FLSA contains the applicable fee-shifting provision for violations' of the Equal Pay Act which provides as follows: “The court in such action shall, in addition to any judgment awarded to the plaintiff or plaintiffs, allow a reasonable attorney’s fee to be paid by the defendant, and costs of the action.” 29 U.S.C. § 216(b). Plaintiffs are the prevailing party for the purposes of the statute “if they succeed on any significant issue in litigation which achieves some of the benefit the parties sought in bringing suit.” Hensley v. Eckerhart, 461 U.S. 424, 433, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983).3 Where plaintiffs obtain a favorable settlement in an [635] action brought pursuant to the FLSA, they constitute prevailing parties and are entitled to attorney’s fees. “The fact that [plaintiffs] prevailed through a settlement rather than through litigation does not weaken [plaintiffs’] claim to fees.” Kahlil v. Original Old Homestead Rest, Inc., 657 F.Supp.2d 470, 474 (S.D.N.Y.2009) (quoting Maher v. Gagne, 448 U.S. 122, 129, 100 S.Ct. 2570, 65 L.Ed.2d 653 (1980)), The Court and the parties agree that plaintiffs are the prevailing party and LLF is therefore entitled to recover reasonable statutory attorney’s fees and costs to be paid by the City.

As noted above, LLF argues that it should receive a percentage of what it refers to as the “common fund” in addition to reasonable statutory attorney’s fees. For the reasons that follow, LLF’s contention is unprecedented, unsupported and unavailing.

“From time immemorial it has been the rule in this country that litigants are expected to pay their own expenses, including their own attorneys’ fees, to prosecute or defend a lawsuit.” Goldberger v. Integrated Resources, Inc., 209 F.3d 43, 47 (2d Cir.2000) (citing Alyeska Pipeline Serv. Co. v. Wilderness Soc’y, 421 U.S. 240, 247, 95 S.Ct. 1612, 44 L.Ed.2d 141 (1975)). However, there are exceptions to this so-called “American Rule,” where instead of attorney’s fees being paid pursuant to a fee agreement between a party and counsel, a court determines a fee award based on statutory requirements or equitable doctrines. These exceptions include fee-shifting statutes such as the FLSA, enacted in order to “encourag[e] the private prosecution of certain favored actions, by requiring defendants who have violated plaintiffs’ rights to compensate plaintiffs for the costs they incurred to enforce those rights.” Florin v. Nationsbank of Georgia, N.A., 34 F.3d 560, 562-63 (7th Cir.1994) (citing County of Suffolk v. Long Island Lighting Co., 907 F.2d 1295, 1327 (2d Cir.1990)).

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Andrews v. City of New York, 118 F. Supp. 3d 630, 2015 U.S. Dist. LEXIS 101115, 2015 WL 4622489 (S.D.N.Y. 2015).

118 F. Supp. 3d 630 (Andrews v. City of New York) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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