DeVary v. National Securities Corporation

District Court, S.D. New York·Decided December 4, 2024·No. 1:21-cv-07869·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK JAMES DEVARY, Plaintiff, 21 Civ. 7869 (DEH) v.

NATIONAL SECURITIES CORPORATION, OPINION FORTE CAPITAL GROUP, INC., AND ORDER Defendants.

DALE E. HO, United States District Judge: Before the Court is Plaintiff James DeVary’s motion for attorney’s fees and post-judgment interest. See ECF No. 43. For the reasons set forth below, Plaintiff’s motion is GRANTED IN PART. Defendant Forte Capital Group Inc. (“Forte”) is ordered to pay to Plaintiff $30,105.00 in attorney’s fees, plus post-judgment interest at the applicable statutory rate. BACKGROUND The Court assumes familiarity with the background facts of this case as previously summarized in its March 27, 2024 Memorandum Opinion and Order. See March 27, 2024 Mem. Op. and Order (“Op.”), ECF No. 41. As relevant here, Plaintiff successfully filed an opposition to Forte’s motion to vacate an arbitration award and cross-motion to confirm the award, see Pl.’s Mem. in Opp’n to Def.’s Mot. to Vacate (“Pl.’s Opp’n”), ECF No. 31, and now seeks attorney’s fees for that work, as well as an order of post-judgment interest. Pl.’s Mot. for Att’y Fees and Post Judgment Int. (“Pl.’s Br.”) 2, ECF No. 43. 1. Underlying Action

The facts are detailed in the Court’s Memorandum Opinion and Order confirming the arbitration award. See Op. Accordingly, the Court largely assumes the parties’ familiarity with the underlying facts and procedural history, to which it refers only as necessary to explain this decision. Plaintiff held the title of Senior, or Executive, Vice President at Forte, in which capacity he worked as a financial advisor who sold investments and earned commissions. Id. at 1. Forte, a financial advising firm, was registered as a branch office of National Securities Corporation (“National”), a registered securities broker-dealer. Id. at 2. On March 2, 2021, National terminated

Plaintiff’s services. Id. at 3. On September 21, 2021, Plaintiff filed suit against National and Forte, alleging, inter alia, that the firms failed to pay Plaintiff over $300,000 in commissions earned from February 1, 2021, to March 2, 2021. Id. On December 20, 2021, pursuant to the terms of the parties’ arbitration agreement, the Court granted the parties’ proposed order to stay all proceedings pending the parties’ FINRA dispute resolution arbitration proceedings. Id. 2. The Arbitration Award, Forte’s Motion to Vacate the Award, and the District Court’s Denial Thereof

On June 15, 2023, after having conducted a five-day hearing, a three-member FINRA panel (“the Panel”) granted an arbitration award (“Award”) to Plaintiff, holding in relevant part that: (1) Forte is liable for and shall pay to Plaintiff $227,656.40 in statutory damages pursuant to § 198(1- a) of the New York Labor Law; (2) Forte is liable for and shall pay to Plaintiff $105,000 in attorneys’ fees pursuant to Art. 6 § 198(1-a) of the New York Labor Law; and (3) Forte and National are jointly and severally liable for and shall pay to Plaintiff $400 to reimburse the nonrefundable portion of the filing fee previously paid to FINRA Dispute Resolution Services. Id. On July 21, 2023, Forte filed a motion to vacate the Award. See Forte’s Br., ECF No. 26- 1. On September 29, 2023, Plaintiff filed his opposition brief. See Pl.’s Opp’n. On March 27, 2024, the Court denied Forte’s motion to vacate the Award and granted Plaintiff’s cross-motion to confirm the Award. Op. 12. This motion for attorney’s fees followed. 3. Overview of Plaintiff’s Request for Attorney’s Fees and Post-Judgment Interest

Plaintiff now seeks compensation for the fees expended on opposing Forte’s motion to vacate the Award, pursuant to Rule 54(d)(2) of the Federal Rules of Civil Procedure and Article 6 § 198(1-a) of the New York Labor Law. Pl.’s Br. 2–3. Specifically, Plaintiff seeks $40,140 in fees for hours worked by attorney Orit Goldring of the Goldring Firm in opposing Forte’s motion to vacate. Id. at 3–5. Those fees are summarized below: Table 1: Requested Attorney’s Fees

Name Hourly Rate Time Spent Total Fees Orit Goldring $600 66.9 hours $40,140.00

See id. at 4–5. Further, Plaintiff claims that Forte has yet to pay the confirmed Award. Pl.’s Br. 2, 5. Accordingly, in addition to the aforementioned attorney’s fees, Plaintiff also seeks an order of post-judgment interest on the Award. Id. Plaintiff claims that it is proper for the Court to order 9% per annum post-judgment interest on the Award, which is comprised of $227,656.40 in statutory damages, $105,000.00 in attorneys’ fees, and $400.00 in reimbursement for Plaintiff’s nonrefundable portion of the filing fee paid to FINRA. Id. at 5. With respect to the $400.00 reimbursement (for which the Panel held that Forte is jointly and severally liable), National already paid $200.00, and therefore, according to Plaintiff, Forte owes the remaining half—$200.00. Id. Thus, Plaintiff claims that he should be awarded 9% interest per annum on the total Award of $332,856.40 from June 15, 2023 until Forte chooses to pay the Award. Id. In sum, Plaintiff seeks a total of $40,140.00 in fees, as well as post-judgment interest of 9% per annum on the total Award of $332,856.40. LEGAL STANDARDS Section 198(1-a) of the New York Labor Law (“§ 198(1-a)”) provides that “[i]n any action instituted in the courts upon a wage claim by an employee or the commissioner in which the employee prevails, the court shall allow such employee to recover the full amount of . . . all reasonable attorney’s fees[.]” N.Y. Lab. Law § 198(1-a). The starting point for determining the reasonable fee award is the “lodestar” amount, which is “the product of a reasonable hourly rate

and the reasonable number of hours required by the case.” Millea v. Metro-N. R.R. Co., 658 F.3d 154, 166 (2d Cir. 2011).1 The lodestar is not “conclusive in all circumstances,” and it may be adjusted when it fails to “adequately take into account a factor that may properly be considered in determining a reasonable fee.” Id. at 167. Guidelines for determining each element of the lodestar amount follow. 1. Reasonable Hourly Rates

A reasonable hourly rate is “the rate a paying client would be willing to pay.” Arbor Hill Concerned Citizens Neighborhood Ass’n v. Cnty. of Albany, 522 F.3d 182, 190 (2d Cir. 2008). Reasonable fees compensate counsel only for “hours reasonably expended on the litigation,” and not for “hours that are excessive, redundant, or otherwise unnecessary[.]” Hensley v. Eckerhart, 461 U.S. 424, 433–34 (1983). In setting a reasonable hourly rate, courts consider case-specific variables known as the Johnson factors. Arbor Hill, 522 F.3d at 190. The Johnson factors are: (1) the time and labor required; (2) the novelty and difficulty of the questions; (3) the level of skill required to perform the legal service properly; (4) the preclusion of employment by the attorney due to acceptance of the case; (5) the attorney's customary hourly rate; (6) whether the fee is fixed or contingent; (7) the time limitations imposed by the client or the circumstances; (8) the amount involved in the case and the results obtained; (9) the experience, reputation, and ability of the attorneys; (10) the “undesirability” of the case; (11) the nature and length of the professional relationship with the client; and (12) awards in similar cases.

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