Emerson Electric Co. v. Holmes

CourtDistrict Court, E.D. New York
DecidedMay 23, 2024
Docket2:16-cv-01390
StatusUnknown

This text of Emerson Electric Co. v. Holmes (Emerson Electric Co. v. Holmes) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Emerson Electric Co. v. Holmes, (E.D.N.Y. 2024).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK -------------------------------------------------------x EMERSON ELECTRIC CO.,

Plaintiff, MEMORANDUM & ORDER - against - 16-CV-1390 (PKC) (SIL)

ASSET MANAGEMENT ASSOCIATES OF NEW YORK, INC.; and DIANA GUZIK HOLMES, as legal successor of Charles S. Holmes,

Defendants. -------------------------------------------------------x PAMELA K. CHEN, United States District Judge: Plaintiff Emerson Electric Co. (“Plaintiff” or “Emerson”) initiated this action on March 21, 2016, seeking post-judgment relief from Defendants Charles S. Holmes (“Holmes”) and Asset Management Associates of New York, Inc. (“AMA”) based on two judgments that had previously been issued in Emerson’s favor in two other cases. (See Compl., Dkt. 1 (“Compl.”)); see also Judgment, Emerson Electric Co. v. Asset Mgmt. Assocs. of N.Y., Inc., No. 08-CV-1489 (DRH) (AYS) (E.D.N.Y. Aug. 13, 2015), Dkt. 82 (“8/13/15 Judgment”); Judgment, Asset Mgmt. Assocs. of N.Y., Inc. v. Emerson Telecomm. Prods., No. 08-CV-2128 (TCP) (AKT) (E.D.N.Y. Jan. 9, 2014), Dkt. 52 (“1/9/14 Judgment”). Following a bench trial held from October 11 to October 12, 2022 in the instant case (see 10/11/2022 Min. Entry; 10/12/2022 Min. Entry), this Court found that Plaintiff had proven all of its claims. See Emerson Elec. Co. v. Asset Mgmt. Assocs. of N.Y., Inc., No. 16-CV-1390 (PKC) (SIL), 2023 WL 4850528, at *2–3 (E.D.N.Y. July 28, 2023), Dkt. 119. Presently before the Court is Plaintiff’s motion for attorneys’ fees and costs pursuant to New York State Debtor and Creditor Law (“DCL”) § 276. (See generally Pl.’s Mem. of Law in Supp. of App. for Att’ys’ Fees, Dkt. 122 (“Pl.’s Br.”).) Plaintiff requests an award of $425,992.50 in attorneys’ fees and $275,281.52 in costs. (See id. at 2.) Defendants have not responded to Plaintiff’s motion. (See 9/13/2023 Docket Order.) For the reasons set forth below, the Court awards Plaintiff $416,926.80 in attorneys’ fees and $249,866.21 in costs. BACKGROUND1 Plaintiff filed the present action after AMA failed to satisfy two judgments issued in

Emerson’s favor. (See Compl. ¶¶ 13–48; Decl. of Leonard F. Lesser, Dkt. 121 (“Lesser Decl.”), ¶ 3.) Plaintiff alleged that “[d]uring the many years of litigation in this Court that resulted in the unpaid Judgments, Holmes[, AMA’s president, sole owner, and sole insider,] methodically stripped AMA of its assets . . . for the purpose of avoiding collection on the [j]udgments.” (Am. Compl., Dkt. 85 (“Am. Compl.”), ¶¶ 4–5.) Plaintiff asked that the fraudulent conveyances made by AMA to Holmes during and after the lawsuits that resulted in the underlying judgments be voided pursuant to DCL §§ 273-a and 276. (Id. ¶¶ 146, 168.) Plaintiff also sought to pierce AMA’s corporate veil to hold Holmes liable for the unpaid judgments. (Id. ¶¶ 49–129.) On October 11 and 12, 2022, the Court presided over a bench trial in this matter. (See 10/11/2022 Min. Entry; 10/12/2022 Min. Entry.) Then, on March 28, 2023, Defendant Holmes

unfortunately passed away. (See Dkts. 114, 115-2.) Subsequently, Plaintiff moved to substitute Diana G. Holmes, Holmes’s wife and the executor of his estate, as a proper party to this action. (Dkts. 115, 116.) On June 16, 2023, the Court ordered Diana G. Holmes to be substituted as a “legal successor of Charles S. Holmes.” (6/16/2023 Docket Order.) On July 28, 2023, the Court issued its Findings of Fact & Conclusions of Law nunc pro tunc, to be entered as of October 31, 2022. Emerson Elec. Co., 2023 WL 4850528, at *2. The

1 The facts and procedural background of this case have been set forth in detail previously in this litigation. See generally Emerson Elec. Co., 2023 WL 4850528, at *2–3. The Court will recount only those facts necessary to resolve the instant motion for attorneys’ fees and costs. Court found that Plaintiff had proven all of its claims by a preponderance of the evidence. Id. at *2. Most relevant to the present motion, the Court found that Plaintiff had proven its DCL § 276 claim and was entitled to attorneys’ fees. Id. at *2, 7–8, 17. The Court directed Plaintiff to submit a fee application with all necessary supporting documentation within thirty days. Id. at *2.

Plaintiff filed the present motion on August 28, 2023. (See Dkts. 121, 122.) Thereafter, the Court issued an order permitting Defendants to file an opposition by September 12, 2023. (See 8/29/2023 Docket Order.) No opposition was filed, and on September 13, 2023, the Court deemed Plaintiff’s motion to be unopposed and fully briefed. (See 9/13/2023 Docket Order.) Subsequently, on February 20, 2024, the Court directed Plaintiff to file additional documentation in support of its motion. (See 2/20/2024 Docket Order.) Plaintiff submitted the requested documentation on April 13, 2024. (See Dkt. 125.) LEGAL STANDARD DCL § 276 authorizes courts to award reasonable attorneys’ fees to a prevailing plaintiff who establishes actual intent to defraud. N.Y. Debt. & Cred. § 276-a; see also In re Palermo, No.

08-CV-7421 (RPP), 2011 WL 3874866, at *17 (S.D.N.Y. Sept. 2, 2011) (“If actual intent to defraud is established, ‘Section 276-a expressly mandates that the [c]ourt shall fix the reasonable attorneys’ fees of the creditor [and that] the creditor shall have judgment therefor against the debtor and the transferee.’” (quoting In re Kovler, 249 B.R. 238, 245 (Bankr. S.D.N.Y. 2000))), aff’d, 549 F. App’x 38 (2d Cir. 2014) (summary order). In the Second Circuit, the lodestar, which is “the product of a reasonable hourly rate and the reasonable number of hours required by the case,” is the starting point for determining a “presumptively reasonable fee.” Stanczyk v. City of New York, 752 F.3d 273, 284 (2d Cir. 2014) (quoting Millea v. Metro-North R.R. Co., 658 F.3d 154, 166 (2d Cir. 2011)). District courts have broad discretion, using “their experience with the case, as well as their experience with the practice of law, to assess the reasonableness” of each component of a fee award. Fox Indus., Inc. v. Gurovich, No. 03-CV-5166 (TCP) (WDW), 2005 WL 2305002, at *2 (E.D.N.Y. Sept. 21, 2005) (quoting Clarke v. Frank, 960 F.2d 1146, 1153 (2d Cir. 1992)); see also Lilly v. City of New York,

934 F.3d 222, 234 (2d Cir. 2019) (explaining that “district courts [are afforded] broad discretion in awarding attorneys’ fees because they are much closer to the details of each individual case and can better determine what is reasonable and appropriate in the fee calculus for the particular case”). Reasonable hourly rates are informed in part by the rates “prevailing in the community for similar services by lawyers of reasonably comparable skill, experience, and reputation.” Luciano v. Olsten Corp., 109 F.3d 111, 115 (2d Cir. 1997) (internal quotation marks omitted). A district court should “bear in mind all of the case-specific variables that [the court] and other courts have identified as relevant to the reasonableness of [attorneys’] fees in setting a reasonable hourly rate.” Arbor Hill Concerned Citizens Neighborhood Ass’n v. Cnty. of Albany & Albany Cnty. Bd. of Elections, 522 F.3d 182, 190 (2d Cir. 2008) [hereinafter Arbor Hill]. A presumptively reasonable fee “boils down

to what a reasonable, paying client would be willing to pay, given that such a party wishes to spend the minimum necessary to litigate the case effectively.” Simmons v. N.Y.C.

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