Brian Uphoff and David Damon, Individually and on Behalf of a Class of Employees v. Elegant Bath, Ltd., Chuck Does It All, Inc., and Charles L. Crosby

176 F.3d 399, 5 Wage & Hour Cas.2d (BNA) 467, 1999 U.S. App. LEXIS 8223, 1999 WL 250849
CourtCourt of Appeals for the Seventh Circuit
DecidedApril 29, 1999
Docket97-2409, 98-1332
StatusPublished
Cited by107 cases

This text of 176 F.3d 399 (Brian Uphoff and David Damon, Individually and on Behalf of a Class of Employees v. Elegant Bath, Ltd., Chuck Does It All, Inc., and Charles L. Crosby) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Brian Uphoff and David Damon, Individually and on Behalf of a Class of Employees v. Elegant Bath, Ltd., Chuck Does It All, Inc., and Charles L. Crosby, 176 F.3d 399, 5 Wage & Hour Cas.2d (BNA) 467, 1999 U.S. App. LEXIS 8223, 1999 WL 250849 (7th Cir. 1999).

Opinion

BAUER, Circuit Judge.

Brian Uphoff (“Uphoff’) and David Damon (“Damon”) (collectively the “Plaintiffs”) filed an action against Chuck Does It All (“CDIA”) and Charles Crosby (“Crosby”) (collectively the “Defendants” 1 ), alleging that the Defendants were liable for unpaid overtime wages pursuant to the Fair Labor Standards Act of 1938 (the “FLSA”), 29 U.S.C. §§ 207(a), 215(a)(2), and 216(b). The Plaintiffs moved for summary judgment on the FLSA claim, arguing that: 1) the Defendants owed the Plaintiffs overtime wages; and 2) the Plaintiffs were entitled to liquidated damages under the FLSA. On May 15, 1997, the district court granted summary judgment with respect to the Plaintiffs’ overtime wage claim, but denied summary judgment as to the liquidated damages claim.

On May 27, 1997, the Plaintiffs filed a motion seeking $30,388.05 in attorneys’ fees and costs, pursuant to the FLSA, 29 U.S.C. § 216(b). On January 22, 1998, the district court awarded $17,119.20 in fees and costs, reducing the requested amount because: 1) the Plaintiffs’ attorneys’ billing rates were unreasonable; 2) a significant portion of the Plaintiffs’ attorneys’ billable hours were unnecessary and 3) the Plaintiffs’ expert witness fees were not recoverable.

On June 10, 1997, the Plaintiffs filed a motion to amend the district court’s judgment, pursuant to Fed.R.Civ.P. 59(e), seeking an award of prejudgment interest and a punitive penalty under Illinois law. The district court denied the Plaintiffs’ motion, concluding that the request should have been made prior to judgment. We affirm in part and reverse in part.

I. Background

Crosby owned and operated a company, CDIA, that installed and renovated kitchen and bathroom fixtures. The Plaintiffs were employed as kitchen and bathroom renovators for CDIA. Uphoff and Damon *404 were hired to work for CDIA in 1993 but were both terminated on July 1, 1996. While employed at CDIA, the Plaintiffs frequently were asked to and did work in excess of 40 hours per week. For each hour actually worked by the Plaintiffs, the Defendants paid the Plaintiffs “straight time” (i.e., their current hourly wage). The paychecks from the Defendants never included “overtime” pay (i.e., time-and-a-half) for hours worked by the Plaintiffs in excess of 40 per week. The actual number of hours worked by the Plaintiffs was recorded by Crosby on “sign-in” sheets, which was then transferred to the Plaintiffs’ pay stubs.

According to the Plaintiffs’ audit of CDIA’s payroll records, Uphoff was owed $4,066.50 and Damon was owed $2,126.07• in overtime wages. The Defendants did not dispute that the payroll records reflected an underpayment of overtime wages to the Plaintiffs in the amounts calculated in the Plaintiffs’ audit. But the Defendants asserted that they were not subject to FLSA liability or a liquidated damages penalty because they had adequately compensated the Plaintiffs for their overtime work through numerous cash payments and permissive use of company vehicles, materials, and supplies. The district court rejected the Defendants’ argument and held them liable for the entire amount of the overtime wages. However, the district court did not award liquidated damages under -the FLSA because it found that the Defendants acted in good faith and with a reasonable belief that they were compensating the Plaintiffs for their overtime hours.

Following the court’s judgment, the Plaintiffs moved for $80,338.05 in attorney’s fees. The fees were based on a rate of $320 per hour for Rossiello (the Plaintiffs’ lead counsel), $220 per hour for Dimopoulos (an associate), $190 per hour for Higgins-Brom and Quello (associates), and $102.50 per hour for paralegal time. In support of the request, the Plaintiffs submitted affidavits from their attorneys, who stated that they worked solely on a contingency basis, but that the rates sought were market rates for each respective attorney based on fee awards that they had received in previous Title VII and FLSA cases. The Defendants did not file affidavits contesting counsels’ assertion of their market rate. Instead, the Defendants submitted cases in which Plaintiffs’ counsel had received lower hourly rates than those requested in the immediate case.

In determining the appropriate hourly rates for Plaintiffs’ counsel, the district court did not adopt the Plaintiffs’ requested rates, but instead, applied hourly rates that the court had awarded Plaintiffs’ counsel in another recent FLSA case with similar issues. Moreover, after reducing the hourly rates, the district court deducted 8.3 hours of billed time as “unreasonable,” thereby reducing the Plaintiffs’ requested fee .amount from $30,338.05 to $17,119.20.

In addition to legal fees, the Plaintiffs also sought to recover the costs of an accountant emplqyed by the Plaintiffs’ counsel to calculate the Plaintiffs’ unpaid overtime wages. The district court denied recovery of the accountant’s cost, finding that there was no statutory basis to award the cost and that, in any event, the accountant’s fees were unnecessary in light of the simplistic nature of the overtime wage calculation.

On appeal, the Plaintiffs argue that the district court erred in: 1) entering summary judgment in favor of the Defendants on the liquidated damages claim; 2) denying their motion to amend the district court’s judgment to include prejudgment interest and a state law punitive penalty; 3) reducing the requested attorney’s fees from $30,338.05 to $17,119.20; and 4) disallowing other litigation costs.

II. DISCUSSION

A. Liquidated Damages and Prejudgment Interest

We consider concurrently Plaintiffs’ first two arguments. Section 216(b) *405 of the FLSA provides that the payment of liquidated damages is mandatory if an employer fails to compensate the employee for overtime wages. The statute sets the amount of liquidated damages as the amount of unpaid overtime compensation owed to the employee, plus an additional equal (doubled) amount. See 29 U.S.C. § 216(b). However, the statute also provides:

if the employer shows to the satisfaction of the court that the act or omission giving rise to such action was in good faith and had reasonable grounds for believing that his act or omission was not a violation of the [FLSA] ... the court may, in its sound discretion, award no liquidated damages or award any amount thereof not to exceed the amount specified in section 216 of this title.

29 U.S.C. § 260. The employer bears the burden of proving both good faith and reasonable belief. Shea v. Galaxie Lumber & Constr.

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176 F.3d 399, 5 Wage & Hour Cas.2d (BNA) 467, 1999 U.S. App. LEXIS 8223, 1999 WL 250849, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brian-uphoff-and-david-damon-individually-and-on-behalf-of-a-class-of-ca7-1999.