Gonzalez v. Fresh Start Painting Corp.

District Court, S.D. New York·Decided August 26, 2022·No. 7:18-cv-11124·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK NORLAN GONZALEZ, et al., MEMORANDUM OPINION Plaintiffs, AND ORDER

-against- 18-CV-11124 (PMH) FRESH START PAINTING CORP., et al.,

Defendants. PHILIP M. HALPERN, United States District Judge: Norlan Gonzalez (“Gonzalez”), Holman Calderon Arce (“Arce”), and Juan Urrutia (“Urrutia,” and collectively, “Plaintiffs”) bring this action against Fresh Start Painting Corp. (“Fresh Start”) and Gregory Fucci, Jr. (“Fucci,” and with Fresh Start, “Defendants”) seeking, inter alia, redress for violations of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq., and New York State Labor Law (“NYLL”), N.Y. Lab. Law §§ 195, 650 et seq. (See Doc. 1, “Compl.”). Plaintiffs filed their Complaint on November 29, 2018. (See id.). Defendants filed their Answer on February 1, 2019. (Doc. 10). On February 7, 2020, Judge Román—before whom this matter proceeded before it was transferred to this Court on April 3, 2020—issued: (1) an Order of Reference referring this case to Magistrate Judge Paul E. Davison for general pretrial matters; and (2) a Civil Case Discovery Plan and Scheduling Order. (Doc. 22; Doc. 23). After receiving extensions, discovery in this matter closed on December 31, 2020. (See Doc. 42; see also Doc. 43 (joint letter from the parties advising, on December 30, 2020, that discovery was complete)). The parties thereafter engaged in pretrial practice with jury selection slated to begin on January 5, 2022. (See Doc. 51; Doc. 58; Doc. 59; Doc. 60; Doc. 61; Doc. 62; Doc. 63; Doc. 64; Doc. 65; Doc. 67; Doc. 68; Doc. 69; Doc. 70; Doc. 71; Doc. 72; see also Dec. 7, 2021 Min. Entry). On December 17, 2021—approximately two weeks before trial—the parties advised jointly that: [w]ith the mediator’s assistance, the Parties were able to resolve in principle only that portion of Plaintiffs’ claims that concern Defendants’ statutory liability to the Plaintiffs, as alleged. The Parties were unable to reach settlement of that portion of Plaintiffs’ claims related to recovery of their attorneys’ fees and costs, which the Parties previously agreed would be determined by the Court.

(Doc. 74 at 1). The Court issued an Order cancelling trial and scheduled a telephone conference for December 20, 2021. (Doc. 75). Counsel appeared for the December 20, 2021 telephone conference and later that same day, in compliance with the discussion held on the record, filed a Proposed Stipulation and Order for the Court’s approval. (Dec. 20, 2021 Min. Entry; Doc. 76; Doc. 76-1). The Stipulation and Order (“Stipulation”) was entered the next day. (Doc. 77). The parties, in the Stipulation, agreed to “meet and confer in good faith to resolve the open claim as to the amount of attorneys’ fees and costs” and, in the event no agreement was reached, set a briefing schedule for a motion seeking that relief. (Id. ¶¶ 1-2). The Stipulation provided further, in pertinent part, as follows: [i]n the event the fee application requires determination by the Court, the Parties agree to be bound by the monetary amount determined by the Court. The Parties agree that such amount shall be incorporated into a subsequent Settlement Agreement submitted for approval, which shall provide for Judgment to be entered against Defendants, jointly and severally, in an amount so determined by the Court for attorneys’ fees and costs.

(Id. ¶ 3). The parties, failing to reach an agreement as to legal fees and costs, filed their motion papers in accordance with the schedule outlined in the Stipulation: Plaintiffs filed their moving papers on January 10, 2022, and Defendants filed their opposition papers on January 17, 2022. (Doc. 78; Doc. 79; Doc. 80; Doc. 81; Doc. 82). Plaintiffs sought an award of $319,928.05, representing: (1) $314,397.50 in fees; and (2) $5,530.55 in costs. (Doc. 79 ¶ 7). The Court, upon review of the submissions, scheduled oral argument to proceed in-person on February 28, 2022. (See Doc. 83; Doc. 86). On the record at the February 28, 2022 appearance, the Court directed the parties to confer further to resolve the dispute without the Court’s intervention. (Feb. 28, 2022 Min. Entry). Counsel met in the jury room, outside the Court’s presence. (Id.). No resolution was, however, reached. (Id.). The Court, at that proceeding: (1) concluded that the claimed costs ($5,530.55) were reasonable and would be awarded; and (2) directed that by March 11, 2022: (a) Defendants would serve and file a line-by-line analysis of what charges they believed were unreasonable (alongside explanations therefor); and (b) Plaintiffs would serve and file a detailed affirmation outlining, with

exact dates, the tenure at the firm of each person who billed to this matter. (Id.). The parties filed their supplemental submissions on March 11, 2022. (Doc. 87; Doc. 88). For the reasons set forth below, the motion for fees and costs is GRANTED IN PART. BACKGROUND The underlying dispute in this matter—as set forth in the Complaint, which totals just over 14 double-spaced pages—is a straightforward labor case in which Plaintiffs complain generally that Defendants “fail[ed] to pay earned wages, including earned overtime wages, fail[ed] to pay earned wages when due, fail[ed] to furnish Plaintiffs with required pay rate notices and wage statements, and for Defendants’ unjust enrichment from their foregoing unlawful acts.” (Compl. ¶ 1). The parties have settled Plaintiffs’ claims—subject to Court approval in accordance with

Cheeks v. Freeport Pancake House, Inc., 796 F.3d 199 (2d Cir. 2015) and its progeny—for $85,000. (Doc. 77; Doc. 79 ¶ 3; Doc. 81 ¶ 13). The single issue standing in the way of submitting a settlement for the Court’s review is the attorneys’ fees to be awarded Plaintiffs’ counsel. Between January 16, 2018 and November 29, 2018 (i.e., from counsel’s first encounter with Plaintiffs through the Complaint’s filing), counsel billed approximately 89.00 hours. (Doc. 79-1 at 2-8). That period included roughly: (1) 7.00 hours to draft, review, revise, translate, and send the initial demand letter to Defendants; (2) 4.00 hours to draft, review, revise, meet about, and send a follow-up demand e-mail to Defendants; (3) 18.00 hours to calculate, review, revise, and meet to discuss Plaintiffs’ damages and settlement demands; (4) 21.00 hours to draft, review, revise, meet, correspond regarding, “[r]eview status of plaintiffs’ review” of, and finalize the Complaint and Consents to Become a Party Plaintiff; and (5) 12.00 hours to translate the Complaint and Consents to Become a Party Plaintiff.

From November 30, 2018 through February 9, 2021 (i.e., the Case Management Conference following close of discovery), counsel billed approximately 365.00 hours. (Id. at 8- 34). That period included about: (1) 10.00 hours to prepare 20 document demands, 8 interrogatories, and an unclear number of deposition notices; (2) 11.00 hours to respond to 30 document demands and 8 interrogatories, and produce 10 pages of documents in response to Defendants’ document demands; (3) 107.00 hours preparing for 5 depositions; (4) 52.00 hours to take 2 and defend 3 depositions; and (5) 23.00 hours to prepare a summary judgment motion that was never pursued.1 From February 10, 2021 until November 19, 2021 (i.e., filing opposition to Defendants’ motions in limine), counsel billed approximately 285.00 hours. (Id. at 34-46). The tasks billed in

this span include around: (1) 130.00 hours to prepare the 12-page Proposed Joint Pretrial Order;

1 Of the 52.00 hours billed in connection with appearing for depositions, the majority of entries are billed in blocks that make it impossible to decipher just what time was committed to any given task.

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Gonzalez v. Fresh Start Painting Corp., (S.D.N.Y. 2022).

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