Gutierrez v. The 1873 Club of Texarkana

District Court, W.D. Arkansas·Decided July 22, 2022·No. 4:20-cv-04108·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT WESTERN DISTRICT OF ARKANSAS TEXARKANA DIVISION

COURTNEY GUTIERREZ PLAINTIFF

v. Case No. 4:20-cv-4108

THE 1873 CLUB OF TEXARKANA; CROSSTIES OF TEXARKANA, INC.; CROSSTIES TEXARKANA HOLDINGS, INC.; ALLISON MUNN; JOE GAY; and RONALD LESLIE MUNN DEFENDANTS

ORDER Before the Court is Plaintiff’s Motion for Costs and Attorneys’ Fees. (ECF No. 31). Defendants responded. (ECF No. 33). Plaintiff replied. (ECF No. 34). The matter is ripe for consideration. I. BACKGROUND On December 15, 2020, Plaintiff filed this action, alleging that Defendants willfully violated the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq., and the Arkansas Minimum Wage Act (“AMWA”), Ark. Code Ann. § 11-4-201, et seq., by failing to pay her for all hours worked, including overtime. Defendants answered, denying liability. On April 20, 2021, the parties filed their joint Rule 26(f) report. After that, the docket reflects no other activity in this case until October 8, 2021, when the parties filed a joint motion for referral to settlement conference. The Court granted that motion, and the conference was initially set for December 2, 2021. It was later cancelled and ultimately reset for March 18, 2022. The parties attended the settlement conference with the Honorable Mark E. Ford, United States Magistrate Judge for the Western District of Arkansas, and tentatively settled Plaintiff’s claims as to liability damages only. They then moved for, and received, the Court’s approval of their settlement agreement. The Court dismissed Plaintiff’s claims with prejudice, except to the extent that they involve attorneys’ fees and costs. On that issue, the parties asked for thirty days to try to settle the issue of fees and costs. If they could not agree on fees and costs, Plaintiff would file a contested fee petition.

The parties could not agree, so Plaintiff has now filed her motion for attorneys’ fees and costs. Defendants oppose the motion. II. DISCUSSION Plaintiff asks for an award of $14,017.25 in attorneys’ fees and $1,062.00 in costs, for a total of $15,079.25. Defendants argue these amounts are unreasonable and should be reduced. The Court will separately address fees and costs. A. Attorneys’ Fees Plaintiff asks for $14,017.25 in attorneys’ fees. Defendants argue this amount is too much and should be reduced. The FLSA contains a fee-shifting scheme that mandates an award of reasonable attorneys’

fees to a prevailing plaintiff. See 29 U.S.C. § 216(b). The AMWA provides similarly. See Ark. Code Ann. § 11-4-218(a)(1)(B)(ii). There is no dispute that Plaintiff is a prevailing party in this case. The burden of proving reasonable attorneys’ fees rests with Plaintiff, the fee applicant here. See Hensley v. Eckerhart, 461 U.S. 424, 437 (1983). She must submit evidence supporting the hours worked and rates claimed. Id. at 433. The starting point for determining attorneys’ fees is the lodestar, which is calculated by multiplying the number of hours reasonably expended by the reasonable hourly rate.1 Fish v. St.

1 The Court considers twelve factors when calculating the lodestar: (1) time and labor required; (2) novelty and difficulty of the questions; (3) skill requisite to perform the legal service properly; (4) preclusion of other employment due to acceptance of the case; (5) the customary fee; (6) whether the fee is fixed or contingent; (7) time limitations imposed by the client or the circumstances; (8) the amount involved and the results obtained; (9) the experience, Cloud State Univ., 295 F.3d 849, 851 (8th Cir. 2002). “[T]he lodestar method produces an award that roughly approximates the fee that the prevailing attorney would have received if he or she had been representing a paying client who was billed by the hour in a comparable case.” Perdue v. Kenny A. ex rel. Winn, 559 U.S. 542, 546 (2010). “A reasonable fee is one that is adequate to

attract competent counsel, but . . . [does] not produce windfalls to attorneys.” Hendrickson v. Branstad, 934 F.2d 158, 162 (8th Cir. 1991). Defendants argue that Plaintiff’s requested attorneys’ fees are not based on reasonable rates or a reasonable number of hours. The Court will separately determine reasonable rates and hours, and then will use them to calculate the lodestar. 1. Reasonable Hourly Rates Plaintiff requests attorneys’ fees for the work of five attorneys, a paralegal, and a student law clerk. For the attorneys, she seeks rates of $383.00 per hour for Josh Sanford; $300.00 per hour for Vanessa Kinney; $285.00 per hour for Krista Sheets; $190.00 per hour for Courtney Lowery; and $150.00 per hour for Samuel Brown. She seeks rates of $100.00 per hour for the

paralegal and $75.00 per hour for the law clerk. Defendants argue these rates are excessive and should be reduced. A “reasonable hourly rate” is the ordinary rate for similar work in the community where the case is litigated, which in this case is Texarkana, Arkansas. See Miller v. Dugan, 764 F.3d 826, 831 (8th Cir. 2014). Plaintiff offers no evidence of the prevailing rate in Texarkana for services like those performed in this case, but the Court can use its own experience and knowledge

reputation, and ability of the attorneys; (10) the undesirability of the case; (11) the nature and length of the professional relationship with the client; and (12) awards in similar cases. Hensley, 461 U.S. at 430 n.3. For AMWA claims, the Court considers mostly identical factors outlined in Chrisco v. Sun Industries, Inc., 304 Ark. 227, 229-30, 800 S.W.2d 717, 718-19 (1990). of prevailing market rates to determine reasonableness. See Warnock v. Archer, 397 F.3d 1024 (8th Cir. 2005). Plaintiff’s attorneys are experienced in litigating wage and hour cases.2 But this was not a novel or complicated case, and it did not require any special skill to do the services provided.

Plaintiff alleged that she worked for Defendants for three months and was not properly paid minimum wage and overtime. After Defendants answered the complaint and the parties filed their joint Rule 26(f) report, the docket reflects that the case sat dormant until the parties asked to go to settlement conference, where they settled Plaintiff’s claims as to liability in the amount of $6,400.00. No substantive issues were ever litigated and the joint motion for referral to settlement conference was the first motion filed in the case. The case was never certified as a class or collective action, and no other plaintiff joined or opted in. Apparently, Plaintiff sent initial discovery requests to Defendants, but then agreed that Defendants did not have to respond because settlement talks were already underway. Nothing indicates that this case was undesirable, that taking it precluded counsel’s employment elsewhere, or that any time limitations were imposed.

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Gutierrez v. The 1873 Club of Texarkana, (W.D. Ark. 2022).

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