Gonzalez v. Scalinatella, Inc.

112 F. Supp. 3d 5, 2015 U.S. Dist. LEXIS 78620, 2015 WL 3757069
CourtDistrict Court, S.D. New York
DecidedJune 12, 2015
DocketNo. 13cv3629 (PKC)(MHD)
StatusPublished
Cited by60 cases

This text of 112 F. Supp. 3d 5 (Gonzalez v. Scalinatella, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gonzalez v. Scalinatella, Inc., 112 F. Supp. 3d 5, 2015 U.S. Dist. LEXIS 78620, 2015 WL 3757069 (S.D.N.Y. 2015).

Opinion

MEMORANDUM & ORDER

MICHAEL H. DOLINGER, United States Magistrate Judge.

Plaintiff Ezequiel Gonzalez commenced this lawsuit under the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq., and the New York Labor Law (“NYLL”), alleging, inter alia, underpayment of wages and illegal tip retention. By letter dated November 24, 2014, the parties informed the District Court that they had successfully negotiated a settlement of plaintiffs claims and were attempting to come to an agreement on plaintiffs attorneys’ fees. Failing to do so, plaintiff has moved for an award of fees. For the reasons that follow, plaintiffs application is granted in part and denied in part.

PROCEDURAL BACKGROUND

On May 30, 2013, plaintiff filed a complaint “on behalf of himself and others similarly situated” against defendants Scalinatella, Inc., doing business as Scali-natella Ristorante, and related principals [9]*9Alfio Ruocoo and Luigi Russo. (Compl. p. 1 & ¶¶ 5-6). Plaintiff alleged, inter alia, that defendants had violated the FLSA by refusing to pay the minimum wage and overtime compensation and failing to properly apprise the employees of their rights, and had violated the NYLL by refusing to pay overtime compensation and failing to provide various notices required under state law. (Id. at ¶¶ 41-45, 51-56).

On October 3, 2013, plaintiff moved for conditional certification of the lawsuit as a representative collective action under the FLSA “on behalf of all tipped employees, including waiters, runners, busboys, and bartenders employed by defendants within the last six years.” (Memorandum & Order dated November 22, 2013 [docket no. 35]; see also Pl.’s Mot. to Conditionally Certify Class [docket nos. 17-19]). On November 22, 2013, Judge Castel granted that application and ordered defendants to produce names and contact information for the relevant pool of tipped employees (Memorandum & Order dated November 22, 2013), and, on December 9, 2013, the court approved the proposed notice and opt-in form. (See Endorsed order dated December 9, 2013 [docket no. 40]). No additional plaintiffs joined the suit.

Aside from a number of discovery disputes (see docket nos. 15-16, 26, 28-34, 44-46), the only other significant pre-settlement activity was plaintiffs motion to certify the class. (Docket nos. 47-50). Ultimately, Judge Castel denied that motion on the basis of plaintiffs failure to demonstrate “that the class is sufficiently numerous that joinder of all members is impracticable.” (Order dated August 28, 2014 [docket no. 67]).

Shortly thereafter, we scheduled a-settlement conference with the parties, which was held on October 8, 2014. Subsequently, on- November 24; 2014, the parties jointly wrote to the District Judge, informing him that the parties had “reached an agreement in principle as to settlement of Plaintiffs claims” and “are in the process of negotiating an agreement for Plaintiffs attorneys’ fees.” (Letter dated November 24, 2014 [docket no. 70]). They stated that “[s]hould the parties fail- to reach an agreement on the amount of Plaintiffs attorneys’ fees, Plaintiff will submit a fee application to the Court by December 31, 2014.” (Id.). That application indeed followed. (Docket nos. 72-74).

PLAINTIFF’S APPLICATION

On December 31, 2014, plaintiff filed an application for $81,252.50 in attorneys’ fees and $1,150.60 in out-of-pocket expenses. (Docket nos. 72-74). Plaintiff asserts that the requested sum—a “lodestar” figure representing 249.1 attorney and paralegal hours multiplied by various hourly rates— is reasonable under the case law governing fee- awards. (See PL’s Mem. 3). Plaintiff attaches.a declaration and time-sheets embodying the foundational evidence for his request. (Docket no. 73).

Defendants oppose this application. (Docket no. 79). They argue that plaintiffs counsel’s hourly rates and- the time purportedly spent on this litigation are unreasonable, and also assert that any lodestar must be reduced, inter alia, in light of the limited scope of plaintiffs recovery. (Defs.’ Opp. Mem. 2-14), Defendants also contend that'“[plaintiffs litigation costs are not well documented and must be reduced.” (Id. at 15).

Plaintiff counters each of defendants’ arguments to varying degrees and also increases his sought-after award by $2,520.00, to account for counsel’s work on the memorandum in reply. (Pl.’s Reply Mem. 9).

For the reasons that follow, we , grant plaintiffs motion in the sum of $48,366.50 in attorneys’ fees , and $1,150.60 in disbursements.

[10]*10ANALYSIS-

I. Defendants’ Introductory Arguments

We will -set forth the general standards applicable to FLSA and NYLL fee applications — that is, the so-called lodestar figure — below. See infra 20-21. Although courts ordinarily derive the lodestar amount as an initial matter, for clarity’s sake, we begin our assessment of this application with several of defendants’ other arguments in opposition to plaintiffs motion, including (1) that plaintiffs counsel’s award must be- roughly proportionate to plaintiff’s recovery under the' settlement agreement, (2) that any award must be reduced in light of plaintiffs “lack of success,” (3) that plaintiffs alleged failure to properly comply with Rule 26 of the- Federal Rules of Civil ‘ Procedure warrants precluding him from any monetary recovery, including fees, and (4) that the timing of plaintiff’s agreement to settle reflects bad faith, and that therefore recovery of fees for time spent in the later stages of litigation is inappropriate. We take these arguments in turn.

a. Plaintiff’s Counsel’s Award Need Not be Proportionate to their Client’s Recovery Under the Settlement Agreement

Defendants press that we should “exercise [our] discretion and reduce the excessive and unreasonable fees sought by Plaintiff to no more than $7,500.00 in light of the disproportionately low amount of damages Plaintiff recovered.” (Defs.’ Opp. Mem. 5). Said another way, defendants contend that “an across-the-board percentage cut in the number of hours claimed and/or in the amountus warranted because the amount of Plaintiffs settlement (a mere $7,500.00) is grossly disproportionate to the amount sought in attorney’s fees (approximately $81,252.50),” and they point 'out that “Plaintiffs damages amount to approximately 12.7% of the amount he seeks in attorneys’ fees.” (Id. at 4-5).

Defendants cite two non-FLSA cases for this specific proposition, Levy v. Powell, 2005 WL 1719972, *6 (E.D.N.Y. July 22, 2005), and Morris v. Eversley, 343 F.Supp.2d 234, 246 (S.D.N.Y.2004). (Id. at 5). However, while both of these decisions assess the reasonableness of a fee award through, inter alia, a comparison of the requested award and the success obtained for the client, they each also emphasize the limited utility of this type of analysis. See Levy, 2005 WL 1719972 at *6 (citing Hine v. Mineta, 253 F.Supp.2d 464, 467 (E.D.N.Y.2003), for the “strong presumption that the ‘lodestar’ calculation represents the ‘reasonable’ fee, even when that calculation is disproportionate to the amount of damages awarded to the successful plaintiff”); Morris,

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112 F. Supp. 3d 5, 2015 U.S. Dist. LEXIS 78620, 2015 WL 3757069, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gonzalez-v-scalinatella-inc-nysd-2015.