Gary v. Carbon Cycle Arizona LLC

CourtDistrict Court, D. Arizona
DecidedAugust 16, 2019
Docket2:18-cv-02796
StatusUnknown

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

Bluebook
Gary v. Carbon Cycle Arizona LLC, (D. Ariz. 2019).

Opinion

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

9 Michael Gary, No. CV-18-02796-PHX-JAT

10 Plaintiff, ORDER

11 v.

12 Carbon Cycle Arizona LLC, et al.,

13 Defendants. 14 15 At issue is Plaintiff Michael Gary’s Motion for Attorneys’ Fees and Costs (Doc. 50) 16 to which Defendants Jerald F. Kovacich, Tom Mulholland, Samuel W. Grossman, Carbon 17 Cycle Energy, LLC, Carbon Cycle Arizona, LLC, and Carbon Cycle Holdings, LLC filed 18 a Response (Doc. 51), and Plaintiff filed a Reply (Doc. 57). The Court now rules on 19 Plaintiff’s Motion. 20 I. BACKGROUND 21 On September 5, 2018, Plaintiff brought this action against Defendants Carbon 22 Cycle Arizona, LLC, Carbon Cycle Energy, LLC, Carbon Cycle Holdings, LLC, 23 Samuel W. Grossman, Jerry Kovacich, Carlos E. Sala,1 and Tom Mulholland. 24 (Doc. 1 at 1). In his Complaint, Plaintiff asserted claims for failure to pay minimum wage 25 in violation of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §§ 201–219 and the 26 Arizona Minimum Wage Statute, A.R.S. §§ 23-362–23-364, and failure to make timely 27 1 Plaintiff voluntarily dismissed Defendant Carlos E. Sala without prejudice 28 pursuant to Fed. R. Civ. P. 41(a)(1)(A)(i) on January 24, 2019. (Doc. 49). 1 and reasonable payment of wages in violation of the Arizona Wage Statute, A.R.S. §§ 23- 2 351, 23-353, and 23-355. (Id. at 1–2). Plaintiff sought to recover unpaid minimum wage 3 compensation, liquidated damages, and statutory penalties for Defendants’ alleged 4 violations of the FLSA, as well as unpaid wages, treble damages, and statutory penalties 5 for Defendants’ alleged violations of the Arizona Wage Statute. (Id. at 2). 6 Plaintiff asserts that on November 26, 2018, Defendants Carbon Cycle Arizona, 7 LLC, Carbon Cycle Energy, LLC, Carbon Cycle Holdings, LLC, Jerry Kovacich, and Tom 8 Mulholland transferred a gross amount of $11,490.64, less applicable taxes to equal a net 9 amount of $8,492.33, via direct deposit into Plaintiff’s bank account. (Doc. 50 at 2).2 On 10 January 14, 2019, these Defendants sent a Rule 68 Offer of Judgment to Plaintiff, which 11 stated:

12 Defendants Jerry Kovacich, Tom Mulholland, Carbon Cycle 13 Energy, LLC, Carbon Cycle Arizona, LLC, Carbon Cycle Holdings, LLC (“Defendants”) hereby offer to allow judgment 14 to be entered in favor of Plaintiff Michael Gary and against 15 these Defendants, in full resolution of all claims raised in the Complaint, as follows: 16 In addition to all sums previously paid, Defendants will 17 pay to Plaintiff the sum of five thousand dollars ($5,000), exclusive of taxable court costs and attorney’s fees, for all 18 claims sought in Plaintiff’s complaint. Defendants reserve the 19 right to object to any costs and fees sought by Plaintiff if this offer is accepted. 20 21 (Doc. 46-1 at 1). Plaintiff accepted Defendants’ Jerry Kovacich, Tom Mulholland, Carbon 22 Cycle Energy, LLC, Carbon Cycle Arizona, LLC, Carbon Cycle Holdings, LLC Rule 68 23 Offer of Judgment on January 16, 2019. (Doc. 46-2 at 1). Thereafter, these Defendants 24 filed a Notice of Acceptance of Rule 68 Offer of Judgment on January 22, 2019. (Doc. 46). 25 On January 23, 2019, the Clerk of the Court entered judgment against Carbon Cycle 26

27 2 Plaintiff uses the phrase “Defendants” in his Motion for Attorneys’ Fees and Costs (Doc. 50) to “refer to Carbon Cycle Arizona, LLC, Carbon Cycle Energy, LLC, Carbon 28 Cycle Holdings, LLC, Jerry Kovacich, and Tom Mulholland.” (Id. at 2 n.1). 1 Arizona LLC, Carbon Cycle Energy LLC, Carbon Cycle Holdings LLC, Jerry Kovacich, 2 and Tom Mulholland in the amount of $5,000.00, exclusive of taxable court costs and 3 attorney’s fees. (Doc. 48). 4 On January 28, 2019, Plaintiff filed the Motion for Attorneys’ Fees and Costs 5 (hereinafter, “Motion”) at issue, seeking recovery of his attorneys’ fees in the amount of 6 $13,487.50 and $1,072.90 in costs. (Doc. 50 at 9). Plaintiff specifies that his Motion is 7 directed at Carbon Cycle Arizona, LLC, Carbon Cycle Energy, LLC, Carbon Cycle 8 Holdings, LLC, Jerry Kovacich, and Tom Mulholland. (Id. at 2 n.1). Defendants, as well 9 as Defendant Samuel Grossman, filed a Response (Doc. 51) on February 12, 2019.3 Also 10 on February 12, 2019, Plaintiff filed its Reply (Doc. 57). 11 On April 12, 2019, Plaintiff accepted Defendant Samuel W. Grossman’s Rule 68 12 Offer of Judgment for “the sum of two hundred fifty dollars ($250.00), exclusive of taxable 13 court costs and attorney’s fees, for all claims sought in Plaintiff’s complaint.” (Docs. 64; 14 64-1).4 In accordance with Plaintiff’s Notice of Acceptance of Offer of Judgment (Doc. 15 64), the Clerk of Court entered judgment against Defendant Samuel Grossman in the 16 amount of $250.00, exclusive of taxable court costs and attorney’s fees. (Doc. 65). 17 Unless specified otherwise, the Court uses the phrase “Defendants” in this Order to 18 refer to Carbon Cycle Arizona, LLC, Carbon Cycle Energy, LLC, Carbon Cycle Holdings, 19 LLC, Jerry Kovacich, and Tom Mulholland. 20 II. ELIGIBILITY AND ENTITLEMENT TO FEES 21 Plaintiff requests $13,487.50 in attorneys’ fees and $1,072.90 in costs in accordance 22 with Fed. R. Civ. P. 54(d), LRCiv 54.2, and 29 U.S.C. § 216(b), the FLSA fee-shifting 23 statute which “provides for attorney fees and costs to a successful plaintiff.” Haworth v. 24 State of Nev., 56 F.3d 1048, 1050 n.1 (9th Cir. 1995); (see Doc. 50 at 1, 9). For the reasons 25 that follow, the Court concludes that Plaintiff is eligible for, and entitled to, attorneys’ fees

26 3 The Court deemed this Response timely in its February 12, 2019 Order. (Doc. 56).

27 4 Unlike the Rule 68 Offer of Judgment made on behalf of the other Defendants, however, the Offer of Judgment from Defendant Samuel Grossman explicitly states that 28 “[b]y making this offer, Defendant Grossman is not admitting liability.” (Doc. 64-1 at 2). 1 and non-taxable costs. 2 A. Whether Plaintiff was the Prevailing Party 3 Plaintiff argues that it is the prevailing party—and therefore entitled to attorneys’ 4 fees—because the filing of this action caused Defendants to pay unpaid wages to Plaintiff 5 and because Plaintiff accepted Defendants’ Rule 68 Offer of Judgment. (Doc. 50 at 3). 6 Defendants do not contest that Plaintiff is the prevailing party. (See Doc. 51). 7 “[P]laintiffs may be considered ‘prevailing parties’ for attorney’s fees purposes if 8 they succeed on any significant issue in litigation which achieves some of the benefit the 9 parties sought in bringing suit.” Hensley v. Eckerhart, 461 U.S. 424, 433 (1983). In Farrar 10 v. Hobby, the Supreme Court clarified that “a plaintiff ‘prevails’ when actual relief on the 11 merits of his claim materially alters the legal relationship between the parties by modifying 12 the defendant’s behavior in a way that directly benefits the plaintiff.” Farrar v. Hobby, 506 13 U.S. 103, 111–12 (1992). Notably, “[a] judgment for damages in any amount, whether 14 compensatory or nominal, modifies the defendant’s behavior for the plaintiff’s benefit by 15 forcing the defendant to pay an amount of money he otherwise would not pay.” Id. at 113. 16 In this case, Plaintiff accepted Defendants’ Rule 68 Offer of Judgment, (Doc.

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Gary v. Carbon Cycle Arizona LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gary-v-carbon-cycle-arizona-llc-azd-2019.