Hernandez v. Woodstock Bar & Grill LLC

CourtDistrict Court, D. Maryland
DecidedSeptember 29, 2022
Docket1:18-cv-01582
StatusUnknown

This text of Hernandez v. Woodstock Bar & Grill LLC (Hernandez v. Woodstock Bar & Grill LLC) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hernandez v. Woodstock Bar & Grill LLC, (D. Md. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT 0 FOR THE DISTRICT OF MARYLAND

ERIKA HERNANDEZ, et ail.,

v. . Civil Action No. CCB-|! 8-1582

WOODSTOCK BAR & GRILL LLC, ef al.

MEMORANDUM "Plaintiffs Erika Hernandez and Denia Paz (collectively, the “plaintiffs”) move the court to award attorneys’ fees against defendants Woodstock Bar & Grill, LLC and Ghayan Ali Goraya (collectively, the “Woodstock defendants”). (ECF 77, Pls.’ Mot. for Att’ys’ Fees.) The Woodstock defendants opposed the motion (ECF 83, Defs.’ Opp.), and the plaintiffs replied (ECF 88, Pls.’ Reply.) No oral argument is necessary. See Local Rule 105.6. For the reasons below, the court will Grant the motion. The court will award the plaintiffs $11,120.75 in attorneys’ fees against Goraya, $63,875.80 against Woodstock. The plaintiffs will be awarded $423.20 in costs against Goraya, and $423.20 in costs against Woodstock. .

BACKGROUND Erika Hernandez and Denia Paz worked for Players Bar & Grill, which became the Woodstock Bar & Grill after Ghayan Ali Goraya purchased and renamed the operation in 2017. (ECF 1, Compl. 7 15-16, 21.) In June 2018, Hernandez and Paz sued Players, Woodstock, and □ □ their respective owners, for violating the F ederal Fair Labor Standards Act (“FLSA”), the Maryland Wage and Hour Law, and the Maryland Wage Payment and Collection Law. (id. at q 1.) The plaintiffs sought damages including unpaid overtime wages, liquidated damages, treble damages, attorneys’ fees, and costs. 1°

In January 2019; counsel for Woodstock and Goraya offered to settle the dispute for . $20,000. (ECF 34-2, January 29, 2019, A. Turner Email, at 2.)! The Woodstock defendants asserted that this sum exceeded their potential liability, including approximately 50% of the plaintiffs’ total attorneys’ fees and costs. Plaintiffs’ counsel rejected this offer. At the time, the □□□ other defendants—Players and Simon Sadoun, Players’s owner—had not yet offered to settle. (ECF 84-3, January 28, 2019, M. Kurzyna Email, at 9.) The plaintiffs asserted that Woodstock and Goraya’s settlement offer ignored Woodstock’s potential liability for Players’s overtime violations under a theory of successor liability. (id. at 2, 7, 9.) Woodstock and Goraya’s counsel argued □□□□ “the Fourth Circuit has not accepted successor liability under the FLSA.” (/d. at 8.)-A week later, Woodstock and Goraya’s counsel asserted that plaintiffs’ counsel was negotiating in bad faith because only Woodstock, not Goraya, could be liable under successor liability. (ECF 84-4, February 5, 2019, A. Turner Email, at 2.) After a scheduling conference call on March 6, 2019, counsel ‘for Woodstock and Goraya emailed plaintiffs’ counsel to confirm the Woodstock defendants’ intent to tender the plaintiffs, what the Woodstock defendants believed to be, full satisfaction of their potential liability. (ECF 84-11, March 6, 2019, Email from A. Turner.) On March 8, 2019, the Woodstock defendants tendered that amount, along with what the defendants believed to be roughly.50% of the plaintiffs’ attorneys’ fees. (ECF 84-12, Payment Tender Letter.) The defendants, in their letter tendering payment, requested that Goraya be dismissed from the case. (/d. at 4; see also ECF 84-13, ECF 84-14.) Plaintiffs’ counsel declined, arguing that the tendered $5,500 in attorneys’ fees did not

' Citations to the page numbers generally may refer to the ECF pagination at the top of the document where a document’s original pagination is unclear. ? Although the court may not consider settlement communications in some circumstances, see Fed. R. Civ. P. 408, the parties waived such protection for the relevant documents. . x 2

satisfy the Woodstock defendants’ obligations. Contrary to Goraya’s assertions that he was liable only for a quarter of the total attorneys’ fees (ECF 83, at 10), plaintiffs’ counsel asserted “the bulk of the fees [were] apportionable to Mr. Goraya and Woodstock” due to Mr. Turner’s “back-and- forth on successor liability” (ECF 84-15, March 13, 2019, Email from M. Kurzyna). In April 2019, Mr. Turner moved to withdraw his appearance on behalf of Woodstock, apparently to allow the plaintiffs to move for a default judgment against Woodstock. (ECF 21,

Turner’s Mot. to Withdraw; ECF 2 Order Granting Mot. to Withdraw.)° Then Mr. Turner moved for summary judgment on Goraya’s behalf, arguing the claims against Goraya were moot since he tendered payment for the claimed damages in full. Before the motion was ruled on , however, on June 3, 2019, the plaintiffs and the Woodstock defendants agreed to the essential terms of a settlement. (ECF 41-1, June 3, 2019,

_ Email from A. Turner.) On July 25, 20 19, Mr. Kurzyna sent the agreement, signed by the plaintiffs, to Turner. (ECF 40-4.) On August 9, 2019, Mr. Turner wrote to Mr. Kurzyna apologizing for the delay and stated that “[m]y client indicated that he will send me the signed agreement today.” (ECF 40-5.) On September 4, 2019, however, Turner wrote to Kurzyna that his client’s “financial circumstances have changed and, as a result, we need to revise the draft agreement slightly.” (ECF 40-6.) The revision involved changing the settlement agreement so that Goraya was no longer jointly and severally liable with Woodstock Bar & Grill for the total settlement amount. (/d.) Such changes were not acceptable to the plaintiffs, and they moved to enforce the settlement agreement.

3 As a corporate entity, Defendant Woodstock Bar and Gril, LLC must have counsel or face entry of a default judgment within 30 days of striking counsel’s appearance. See Local Rule 101.2.

(ECF 40.) The court denied the plaintiffs’ motion because the proposed settlement agreement was unenforceable under the Maryland Statute of Frauds. (ECF 44, Mem.; ECF 45, Order.)*> On June 19, 2020, the plaintiffs “discovered that Defendants had sold the restaurant to Main Stage [Grille LLC] a year earlier, leaving Woodstock with no assets.” (ECF 88, at 7.) So on June 23, 2020, the plaintiffs moved to amend their complaint by adding Main Stage as a defendant. (ECF 49, Mot. for Leave to File Am. Compl.) After briefing the motion for leave, the parties informed the court that they were ready to settle, So the court denied the motion for leave to amend without prejudice. (ECF 62.) This time around, the parties executed a settlement agreement (ECF 75), which the court approved (ECF 76). The settlement agreement provides the following: (1) Woodstock consents to a $6,650 judgment in the plaintiffs’ favor; (2) Woodstock consents to the court’s determination of reasonable attorneys? fees and costs attributable to it; (3) Goraya consents to the court’s determination of reasonable attorneys’ fees and costs attributable to himn; and (4) Goraya guarantees to pay the balance remaining on the judgment against Woodstock, up to $25,000.00, in the event of an

uncured default by Woodstock. (ECF 75.) _ Il. - LEGAL STANDARD Successful plaintiffs in FLSA actions are entitled to reasonable attorney’s fees and costs. 29 U.S.C. § 216(b). Although the payment of attorney’s fees and costs to employees prevailing under the FLSA is mandatory, “{t]he amount of the attorney’s fees. . . is within the sound discretion of the trial court.” Burnley v. Short, 730 F.2d 136, 141 (4th Cir. 1984). In deciding

4 Although the plaintiffs and the Woodstock defendants did not have an enforceable settlement agreement at this time, the court approved a settlement agreement between the plaintiffs and the Players defendants on September 25, 2019. (ECF 39, Order Approving Settlement.) > The plaintiffs do not seek attorneys’ fees related to this motion. □

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Hernandez v. Woodstock Bar & Grill LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hernandez-v-woodstock-bar-grill-llc-mdd-2022.