Chaten v. Marketsmart LLC

CourtDistrict Court, D. Maryland
DecidedAugust 14, 2020
Docket8:19-cv-01165
StatusUnknown

This text of Chaten v. Marketsmart LLC (Chaten v. Marketsmart LLC) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chaten v. Marketsmart LLC, (D. Md. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

TIMOTHY CHATEN, * * Plaintiff, * * v. * Civil Action No. PX-19-1165 * MARKETSMART LLC, et. al, * * Defendants * * ******

REPORT AND RECOMMENDATIONS – ATTORNEY’S FEES AND COSTS

Pursuant to 28 U.S.C. § 636, and Local Rule 301.5(b), the Honorable Paula Xinis referred this case to me to issue a report and make recommendations as to the reasonableness of the attorney’s fees and costs sought by Plaintiff Timothy Chaten (“Plaintiff”). (ECF No. 36). This “Report and Recommendations” addresses the “Motion for Attorney Fees and Costs” (“Fee Motion”), the supplemental pleadings filed related thereto, and all memoranda in support of the same filed by Plaintiff. (ECF Nos. 31, 35, 36). I have reviewed Plaintiff’s pleadings, and the responses from Marketsmart, LLC, et. al. (“the Defendants”). (ECF Nos. 34, 37). I believe that the issues have been fully briefed, and do not believe that a hearing is necessary. L.R. 105.6. As set forth more fully below, I ultimately recommend that the Court grant in part, deny in part the motion. I. BACKGROUND

On or about April 22, 2019, Plaintiff filed his First Amended Complaint (“Amended Complaint”) for unpaid overtime wages. The Amended Complaint, which is eight pages in length, contained three counts, namely violations of: (1) the overtime provisions of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et. seq.; (2) the overtime provisions of the Maryland Wage and Hour Law (“MWHL”), Md. Code Ann., Labor & Employment Article § 3-401 et. seq.; and (3) the Maryland Wage Payment & Collection Law (“MWPCL”), Md. Code Ann., Labor & Employment Article § 3-501 et. seq. According to the Plaintiff, between on or about March 27,

2017 – March 15, 2019, he worked for Defendants on a salaried basis, however Defendants “misclassified” him as exempt from the FLSA and MWHL and, thus, did not pay him overtime wages as required by law. (ECF No. 8). According to the parties, between April 22, 2019 – June 5, 2019, they exchanged limited discovery, including propounding interrogatories and at least one request for production of documents. Key documents included the swipe card data produced by the Defendant, which Plaintiff’s counsel relied upon to determine the total of unpaid wages and corresponding liquidated damages amount. (ECF No. 25, p. 2; ECF No. 31-2, p.4). Between April 22, 2019 – June 5, 2019, there were no court appearances, nor were any motions filed either party. On June 5, 2019, forty-four days after the Amended Complaint was filed, Defendants made

an Offer of Judgment to Plaintiff in the amount of $12,500, plus court costs and “reasonable attorney’s fees to be determined by the court.” (ECF No. 18-1). On June 12, 2019, Plaintiff accepted the Offer of Judgment, which was later docketed in this court on June 18, 2019. (ECF No. 18-2). On June 25, 2019, the district court stayed discovery pending resolution of a contemplated joint motion to approve settlement. (ECF No. 22). Also on June 25, Plaintiff’s counsel provided a breakdown of attorney’s fees and costs reportedly incurred through that date. In addition, Plaintiff’s counsel estimated that an additional five hours of work were required to resolve the case (assuming no fee petition was necessary). (ECF Nos. 31-2, 34-2, 36). Counsel agreed to perform no work on the fee petition until July 1, 2019 to give Defendants an opportunity to accept Plaintiff’s demand. (Id.). On July 1, 2019, Defendants offered $15,000 in response to counsel’s demand. (ECF No. 34-3). Plaintiff’s counsel rejected counteroffer. (ECF 37-1, p. 26). On July 8, 2019, Defendant

filed a motion for settlement, to which Plaintiff responded that same day with his own motion for settlement. (ECF Nos. 24, 25). Of note is that the parties stated that they decided to settle the case early to avoid extensive discovery and to keep costs low so that additional financial resources would be available for settlement. (ECF No. 24, p.2; ECF No. 25, p.3). Judicial approval of the settlement followed the issuance of a report and recommendations. (ECF Nos. 27, 29). On November 25, 2019, Plaintiff filed his petition for attorney’s fees and costs and memorandum in support thereto. (“Plaintiff’s Fee Motion”) (ECF No. 31). Defendants responded on January 10, 2020. (“Opposition”) (ECF No. 34). After the Opposition was filed, on February 10, 2020, Plaintiff’s counsel submitted a “Notice of Errata as to Plaintiff’s Motion for Attorney’s Fees and Costs,” (“Errata Notice”) due to errors in the initial attorney’s fees spreadsheet. (ECF

No. 35). That same day, Plaintiff’s counsel also filed “Plaintiff’s Reply in Support of Motion for Attorney’s Fees and Costs and Request for Supplement(sic) Fees for Time Spent Drafting the Reply Brief.” (“Reply-Request”) (ECF No. 36). On March 10, 2020, Defendant’s filed a motion for leave to file a surreply. (ECF No. 37). On March 24, 2020, Plaintiff’s counsel filed a “Plaintiff’s Status Report,” in which he articulated that he had until May 5, 2020 to file an opposition to Defendants’ motion for leave to file a surreply. (ECF No. 38). On May 4, 2020, this Court denied Plaintiff’s request to file an opposition to the Defendants’ surreply request. (ECF No. 39).1

1 Defendants’ motion for leave to file a surreply is granted. The surreply directly addresses issues raised by Plaintiff in his “Notice of Errata,” which was filed after Defendants Opposition. Defendants need a meaningful opportunity to respond to that Errata Notice. See Khoury v. Meserve, 268 F.Supp.2d 600, 605 (D. Md. 2003), aff’d, 85 Fed. Appp’x 960 (4th Cir. 2004)(per curium). In addition, the Court finds that the proposed surreply “provides In his Plaintiff’s Fee Motion, Plaintiff sought $21,584.50 in attorney’s fees and $611.00 in costs.2 Via the Errata Notice, Plaintiff requested $27,269.00 in attorney’s fees due to a “mathematical error” present in the Excel program used by counsel to generate the spreadsheet. (ECF Nos. 31; 35, ¶2). Plaintiff’s Reply-Request sought an additional $2,023.50 in attorney’s fees

for 7.10 hours purportedly expended in preparing the reply to the Opposition. (ECF No. 36). Thus, Plaintiff now seeks $29,292.50 in fees, with the amount of costs remaining the same, for a total amount of $29,903.50. II. STANDARD OF REVIEW A plaintiff who prevails on an FLSA claim is entitled to the payment of attorney’s fees and costs. 29 U.S.C. § 216(b).3 However, the amount awarded for fees and costs is discretionary. See Randolph v. Powercomm Construction, Inc., 715 Fed. App’x 227, 230 (4th Cir. 2017); Burnley v. Short, 730 F.2d 136, 141 (4th Cir. 1984). In order to recover attorney’s fees and costs, a plaintiff must be a “prevailing party.” Hensley v. Eckerhart et al., 461 U.S. 424, 433 (1983).4 Because judgment has been entered in Plaintiff’s favor, he is indisputably a “prevailing party” entitled to

attorney’s fees. Id. at 433 (Plaintiff is a prevailing party . . .if successful “on any significant issue in litigation which achieves some of the benefit . . . sought in bringing suit”). To calculate the amount to be awarded in attorney’s fees, a court must determine what is reasonable. Hensley, 461 U.S. at 433. To do so, courts engage in a three-step process. First, a court must calculate the lodestar, “the number of reasonable hours expended times a reasonable rate.”

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Chaten v. Marketsmart LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chaten-v-marketsmart-llc-mdd-2020.