Fritch v. Orion Manufactured Housing Specialists Incorporated

District Court, D. Arizona·Decided December 19, 2023·No. 4:21-cv-00509·Unknown

Opinion

1 WO 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA

9 Jason Fritch, No. CV-21-00509-TUC-JGZ (JR)

10 Plaintiff, Order Re: Motion for Attorneys’ Fees

11 v.

12 Orion Manufactured Housing Specialists Incorporated, et al., 13 Defendants. 14 15 16 Plaintiff’s counsel successfully litigated this action to resolution, obtaining a 17 settlement for their client of $7,500 in unpaid wages and penalties. Now pending before 18 the Court is Plaintiff’s Motion for Attorneys’ Fees and Costs, in which Plaintiff seeks 19 $75,040 in attorneys’ fees and $1,818.23 in costs for the litigation. (Docs. 94 & 98.) 20 Defendants argue Plaintiff’s attorneys’ fees request is not reasonable and suggest the Court 21 should award fees of $3,610.80. (Doc. 97.) Both parties detail their efforts to settle the 22 case in support of their positions. Settlement offers may be considered by the Court in 23 awarding fees. See A.D. v. Cal. Highway Patrol, 712 F.3d 446, 461 (9th Cir. 2013) (“[T]he 24 district court has the discretion (1) to consider the amounts discussed in settlement 25 negotiations, or not; and (2) to give those amounts as much or as little weight as it sees 26 fit.”). 27 Upon review of the record, the Court concludes that Plaintiff’s requested fee is 28 unreasonable. For the reasons stated in this Order, the Court will award Plaintiff $25,000 1 in fees and $1,752.75 in costs. 2 I. Background 3 On December 8, 2021, Plaintiff Jason Fritch filed a Complaint alleging Defendant 4 Orion Manufactured Housing Specialists Incorporated and Defendant L. James Miller 5 (Defendants) failed to pay him overtime wages in violation of the Fair Labor Standards 6 Act (FLSA), 29 U.S.C. § 207. (Doc. 1.) On January 6, Plaintiff filed an Application for 7 Entry of Default against Defendants (Doc. 7), and the Clerk entered default (Doc. 8), which 8 the parties later agreed to set aside (Doc. 9). 9 On January 7, 2022, before filing an Answer to the Complaint, Defendants’ counsel 10 contacted Plaintiff’s counsel, admitted Defendants’ liability, and expressed a desire to 11 quickly settle the case. (Doc. 97-1 at 71.) Thereafter, the parties engaged in settlement 12 discussions via email. 13 On January 9, Plaintiff’s counsel stated he had authority to settle the case for 14 $13,000, inclusive of attorneys’ fees and costs. (Doc. 97-1 at 6; Doc. 94-5 at 2.) 15 On Thursday, January 13, Defendants’ counsel sent Plaintiff’s counsel a spreadsheet 16 showing Defendants’ calculations of hours worked, rate of pay, and liquidated damages, 17 for a total owed of $4,549.75. (Doc. 97-1 at 5.) Defendants offered $5,549.75 to settle the 18 action, the calculated amount of wages owed plus $1,000 (presumably for costs and 19 attorneys’ fees). (Id.) Defendants noted that Plaintiff did not appear to know how many 20 hours he had worked, his accurate rate of pay, or when his employment had ended, as the 21 allegations in his verified Complaint were inconsistent with Department of Economic 22 Security paperwork. (Id.) 23 Later that day, Plaintiff made a “last and final non-negotiable offer” of $11,000 to 24 settle, stating Plaintiff was “not willing to take a penny less.” (Id.) Plaintiff’s counsel 25 specified that the offer would expire Monday, January 17, at noon and stated that he would 26 give a breakdown of attorneys’ fees/costs and how much would go to his client if the offer 27 was accepted. (Id.)

28 1The page numbers referenced throughout this Order are the electronic page numbers in the CM/ECF header of each document. 1 The next day, Friday, January 14, Defendants’ counsel requested clarification about 2 the $11,000 settlement offer, stating, “I don’t know how I can analyze this offer without 3 knowing what [Plaintiff] claims he worked or what your attorneys’ fees are.” (Id. at 4.) 4 Counsel offered to send two checks to Plaintiff, one for unpaid overtime and one for 5 liquidated damages, and to talk about Plaintiff’s attorneys’ fees or moving the lawsuit 6 forward. (Id.) 7 Ten minutes later, Plaintiff’s counsel replied, “My client rejects all tendered 8 payments and will not cash the checks. I have litigated this issue many times.” (Id.) 9 In response, Defendants’ counsel indicated he would call Plaintiff’s counsel. (Id. at 10 3.) Further, Defendants’ counsel reiterated that Defendants were willing to pay what they 11 understood to be owed to Plaintiff based on Defendants’ records of hours worked, and also 12 to pay reasonable attorneys’ fees and costs. (Id.) Defendants again noted that the verified 13 Complaint contained incorrect facts and expressed their doubt as to Plaintiff’s truthfulness 14 about the hours he had worked based on Plaintiff’s lack of records and statements that are 15 easily proved to be false. (Id.) Defendants also noted that Plaintiff had refused to provide 16 Defendants with his attorneys’ fees and costs. (Id.) Defendants’ counsel concluded, “If 17 we are correct as to what he is owed, I don’t think a judge is going to award you any 18 additional fees or costs.” (Id.) 19 Two minutes later, Plaintiff’s counsel responded with one sentence: “So, are you 20 rejecting our offer?” (Id.) 21 It appears counsel spoke over the phone later that day. That afternoon, Defendants’ 22 counsel sent Plaintiff’s counsel an email asking him to confirm that the terms of the offer 23 were for Defendants to pay $11,000 for Plaintiff’s FLSA claims and attorneys’ fees/costs 24 and that Plaintiff would not provide a breakdown of that number between FLSA claims 25 and attorneys’ fees/costs, nor provide what Plaintiff believes he is owed for unpaid 26 overtime or how many hours of overtime Plaintiff claims he had worked. (Id. at 2.) 27 Plaintiff’s counsel responded seven minutes later: “At this time, there is no offer on 28 the table from our side as Defendants have declined our non-negotiable final offer.” (Id.) 1 Three days later, on January 17, 2022, Plaintiff amended his complaint and filed a 2 Collective Action Complaint for Compensation under the FLSA. (Doc. 11.) The next day, 3 Plaintiff filed a Motion for Conditional Certification. (Doc. 12.) Plaintiff proposed the 4 collective action consist of: “All persons who work[ed] for Defendants Orion 5 Manufactured Housing Specialists, Inc., and/or L. James Miller; who work[ed] over 40 6 hours in any given workweek as a past or present worker, and who only received straight 7 time for all hours worked over 40 in a given workweek.” (Id.) Defendants did not object 8 to the conditional certification, but did take issue with some aspects of Plaintiff’s proposed 9 notice. (Doc. 24.) Magistrate Judge Jacqueline Rateau issued a Report and 10 Recommendation (R&R) in which she recommended the Court conditionally certify the 11 class, but amend the proposed notice in several ways. (Doc. 38.) Neither Plaintiff nor 12 Defendants objected to the R&R. 13 On May 3, 2022, while the R&R was pending, Plaintiff made a new settlement offer 14 of $7,500 to Plaintiff, plus either $17,500 in attorneys’ fees or a motion for attorneys’ fees. 15 (Doc. 94-5 at 4.) 16 On May 18, 2022, this Court adopted the R&R in full, thus conditionally certifying 17 the class. (Doc. 43.) 18 On July 27, 2022, Plaintiff offered to settle the case for $25,000, inclusive of 19 attorneys’ fees and costs. (Doc. 94-5 at 5.) At that point, the one person who had opted in 20 to the collective action had opted out (Docs. 44, 49, 50), and Magistrate Judge Rateau had 21 issued a R&R recommending the Court deny Plaintiff’s Motion to Toll the Statute of 22 Limitations (Docs. 35, 51). 23 On August 4, 2022, Defendants offered to settle the case for $12,000 inclusive of 24 attorneys’ fees and costs. (Doc.

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