Hernandez v. Manhattan Laundry Centers Inc

CourtDistrict Court, S.D. New York
DecidedMay 24, 2023
Docket1:18-cv-02843-VSB-JW
StatusUnknown

This text of Hernandez v. Manhattan Laundry Centers Inc (Hernandez v. Manhattan Laundry Centers 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
Hernandez v. Manhattan Laundry Centers Inc, (S.D.N.Y. 2023).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK --------------------------------------------------------- X : SOFIA HERNANDEZ JUAREZ, individually : and on behalf of others similarly situated, : : Plaintiff, : 18-CV-2843(VSB) : - against - : OPINION & ORDER : : MANHATTAN LAUNDRY CENTERS INC. : (D/B/A MANHATTAN LAUNDRY : CENTER), HERE TO CLEAN, INC (D/B/A : HERE TO CLEAN INC.), PRECIOUS 2 NY, : INC. (D/B/A PRECIOUS 2 NY, INC.), : EUNG HO (A.K.A CHOY) KIM, KRIS H : YUN, JOHN DOE (A.K.A MR. JIN), and : ASHIMA (A.K.A MRS. KIM, A.K.A MR. : KIM'S WIFE) DOE, : : Defendants. : : --------------------------------------------------------- X

Appearances:

Catalina Sojo CSM Legal P.C. New York, NY Counsel for Plaintiff

Peter Y Lee Lee LLC Edgewater, NJ Counsel for Defendants

VERNON S. BRODERICK, United States District Judge: On October 26, 2018, I ordered default on the issue of liability under the Fair Labor Standards Act (“FLSA”) be entered against Defendants Manhattan Laundry Centers Inc., Precious 2 NY, Inc., Here to Clean, Inc., Eung Ho Kim, and Kris H Yun. (Doc. 45 at 2.) I then referred the case to Magistrate Judge Kevin Nathaniel Fox for inquest on damages. (Doc. 46.) Before me is the Report and Recommendation (“R&R” or “Report”) addressed to me from Judge Fox regarding the damages issue, (Doc. 67), Plaintiff’s objections to the Report, (Doc. 69), and Defendants’ reply to Plaintiff’s objections, (Doc. 72). For the reasons below, the Report is ADOPTED in part and REJECTED in part.1 Plaintiff shall be awarded statutory damages of

$10,000 and attorneys’ fees and costs of $3,300, for a total of $13,300. Legal Standards and Applicable Law A. Reviewing the Report and Recommendation In reviewing a magistrate judge’s report and recommendation, a district court “may accept, reject, or modify, in whole or in part, the findings or recommendations made by the magistrate judge.” 28 U.S.C. § 636(b)(1). Parties may raise specific, written objections to the report and recommendation within 14 days of being served with a copy of the report. Id.; see also Fed. R. Civ. P. 72(b)(2). When a party submits a timely objection, a district court reviews de novo the parts of the report and recommendation to which the party objected. 28 U.S.C. §

636(b)(1); see also Fed. R. Civ. P. 72(b)(3). When neither party submits an objection to a report and recommendation, or any portion thereof, a district court reviews the report and recommendation for clear error. See, e.g., Lewis v. Zon, 573 F. Supp. 2d 804, 811 (S.D.N.Y. 2008); Baez v. RCO Restoration Corp., 20-cv-1066 (VSB) (JLC), 2021 WL 4077944, at *2 (S.D.N.Y. Sept. 8, 2021). Here, I will review the objected portion of the R&R de novo and review the rest for clear error. See, e.g. Schiff v. Yayi Int’l, Inc., 15-cv-359 (VSB), 2020 WL 3893345, at *4–5 (S.D.N.Y.

1 For purposes of this Order, I assume familiarity with the underlying facts and analysis as set forth in Judge Fox’s Report and Recommendation. (See generally R&R.) July 9, 2020) (reviewing objected portion of the damages award issued by a magistrate judge de novo and the rest for clear error); Murphy v. Lajaunie, No. 13-cv-6503 (RJS), 2019 WL 642695, at *2 (S.D.N.Y. Feb. 15, 2019) (same); Jowers v. DME Interactive Holdings, Inc., No. 00 Civ. 4753 LTS KNF, 2006 WL 1408671, at *2 (S.D.N.Y. May 22, 2006) (same); but see Reiseck v.

Universal Communs. of Miami, Inc., No. 06 Civ. 0777(LGS), 2014 WL 5364081, at *1 n.1 (S.D.N.Y. Oct. 22, 2014) (in dicta, referring to “damages inquest” as “non-dispositive motions” that are subject to the lower standard of review under Rule 72(a)). B. Determining Damages After entry of default judgment against a defendant on a particular claim, “the court must ‘conduct an inquiry in order to ascertain the amount of damages with reasonable certainty.’” Orient Express Container Co. v. Verde Textile USA Corp., 430 F. Supp. 3d 1, 3 (S.D.N.Y. 2019) (quoting Credit Lyonnais Sec. (USA) v. Alcantara, 183 F.3d 151, 152 (2d Cir. 1999)). Plaintiff must establish damages “unless the amount is liquidated or susceptible of mathematical computation.” Loop Prod. v. Capital Connections LLC, 797 F. Supp. 2d 338, 352 (S.D.N.Y.

2011) (citing Flaks v. Koegel, 504 F.2d 702, 707 (2d Cir. 1974)). A plaintiff “bears the burden of establishing [its] entitlement to recovery and thus must substantiate [its] claim with evidence to prove the extent of [its] damages.” Am. Jewish Comm. v. Berman, No. 15CV5983LAKJLC, 2016 WL 3365313, at *3 (S.D.N.Y. June 15, 2016), report and recommendation adopted, No. 15-CV-5983 (LAK), 2016 WL 4532201 (S.D.N.Y. Aug. 29, 2016) (quoting Dunn v. Advanced Credit Recovery Inc., No. 11 CIV. 4023 PAE JLC, 2012 WL 676350, at *2 (S.D.N.Y. Mar. 1, 2012), report and recommendation adopted, No. CIV 4023 PAE, 2012 WL 1114335 (S.D.N.Y. Apr. 3, 2012)). “[I]t is not necessary for the District Court to hold a hearing, as long as it has ensured that there [is] a basis for the damages specified in the default judgment.” Seifts v. Consumer Health Sols. LLC, 61 F. Supp. 3d 306, 316 (S.D.N.Y. 2014) (quoting Transatlantic Marine Claims Agency, Inc. v. Ace Shipping Corp., 109 F.3d 105, 111 (2d Cir. 1997)). “Even in the absence of a hearing, however, the district court cannot simply rely on the Plaintiff’s statement of damages; there must be a basis upon which the court may establish damages with

reasonable certainty.” House v. Kent Worldwide Mach. Works, Inc., 359 Fed.App’x. 206, 207 (2d Cir. 2010) (citing Transatlantic Marine Claims Agency, Inc., 109 F.3d at 111). “[Courts] have interpreted this to mean that, even when the defendant defaults and is not present to object, damages must be based on admissible evidence.” Id. The damages that the court awards “must not differ in kind from, or exceed in amount, what is demanded in the pleadings.” Fed. R. Civ. P. 54(c); see Silge v. Merz, 510 F.3d 157, 160 (2d Cir. 2007) (explaining that limiting damages to those specified in complaint “ensures that a defendant who is considering default can look at the damages clause, satisfy himself that he is willing to suffer judgment in that amount, and then default without the need to hire a lawyer”). In FLSA cases, a plaintiff must produce “sufficient evidence” to show the hours they

worked “as a matter of just and reasonable inference.” Doo Nam Yang v. ACBL Corp., 427 F. Supp. 2d 327, 335 (S.D.N.Y. 2005) (citing Anderson v. Mt. Clemens Pottery Co., 328 U.S. 680, 688 (1946)).

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