Hogan v. General Electric Co.

144 F. Supp. 2d 138, 2001 U.S. Dist. LEXIS 6876, 2001 WL 568105
District Court, N.D. New York·Decided May 24, 2001·No. 1:97-cv-00135·Published·Cited by 5 cases

Opinion

MEMORANDUM-DECISION AND ORDER

HURD, District Judge.

I. BACKGROUND

This action was brought pursuant to the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. § 621-34. Plaintiff Carmen LaPorta (“LaPorta” or plaintiff) has made a post-trial application for 1) pre-judgment and post-judgment interest, 2) attorneys fees, costs, and disbursements, 3) adoption of the jury’s award of front pay, and 4) a judgment that defendant General Electric Company (“GE”) willfully violated the ADEA as a matter of law. GE does not oppose plaintiffs motion for pre-judgment and post-judgment interest; however, it does oppose plaintiffs remaining requests. Oral argument was heard on May 11, 2001 in Utica, New York. Decision was reserved.

II. FACTS

Plaintiffs John Hogan (“Hogan”) and David Rees (“Rees”) filed an age discrimination charge with the Equal Employment Opportunity Commission (“EEOC”) in July 1996, alleging that GE violated the ADEA when it conducted an involuntary reduction in force in July 1995. The EEOC issued right to sue letters in December 1996. Hogan and Rees then commenced this action, asserting claims under the ADEA and the New York State Human Rights Law, (“HRL”), N.Y. Exec. Law § 296(6) (McKinney 1993 & Supp. 2000). Plaintiffs LaPorta and William Sheehan (“Sheehan”) joined the action in June 1998 as “opt-in” plaintiffs under the Fair Labor Standards Act, 29 U.S.C. § 216(b). Following discovery and motion practice, each plaintiffs claims of disparate impact and disparate treatment age discrimination and Hogan and Rees’ HRL claims proceeded to trial. 1

On March 28, 2001, after a thirteen day jury trial, the jury found in favor of La-Porta on his disparate treatment age discrimination claim. However, the jury found in favor of GE with respect to 1) the plaintiffs’ common claim of disparate impact age discrimination, 2) Hogan’s, Rees’, and Sheahan’s disparate treatment claims, and 3) Hogan’s and Rees’ HRL claims. The jury awarded LaPorta $ 117,000 lost back pay and issued an advisory verdict of front pay in the amount of $ 110,000 payable over seventeen years.

II. DISCUSSION

A. Pre-judgment and Post-judgment Interest

Plaintiff seeks, and defendant does not oppose, an award of pre-judgment interest on his back pay award, pursuant to 29 U.S.C. § 626(b). “In an ADEA case, prejudgment interest is designed to compensate the plaintiff for loss of the use of money wrongfully withheld through an un *141 lawful discharge.” Reichman v. Bonsig-nore, Brignati & Mazzotta, P.C., 818 F.2d 278, 281 (2d Cir.1987).

Determining the rate to apply for pre-judgment interest is a matter left to the discretion of the district court. See Endico Potatoes, Inc. v. CIT Group/Factoring, Inc., 67 F.3d 1063, 1071 (2d Cir. 1995). When calculating pre-judgment interest, courts in the Second Circuit “often apply the rate of interest provided in 28 U.S.C. § 1961.” Robinson v. Instructional Sys., Inc., 80 F.Supp.2d 203, 208 (S.D.N.Y.2000) (citations omitted). 2 The plaintiff requests that pre-judgment interest be calculated according to § 1961. The defendant does not oppose.

The appropriate methodology to calculate the amount of pre-judgment interest involves three steps. “First, the award[ ] should be divided pro rata over the appropriate time period.” Id. Second, the rate of interest referred to in § 1961 is applied. Id. Finally, the interest is compounded annually. Id.

In the present case, at the first step, the back pay award of $ 117,000 is divided by 70 months (July 1995 through May 2001). This results in $ 1,671.43 per month or $ 20,057.14 per year in back pay. The rate of interest according to the most recent publication by the Board of Governors of the Federal Reserve System is 3.76 percent. See Federal Reserve Statistical Release, Selected Interest Rates, at http://www.federalreserve.gov/releases/Hl5 (May 21, 2001). Applying this rate and compounding the interest annually results in an award of $ 15,930.01 in prejudgment interest. 3 In addition, the judgment shall reflect a post-judgment interest rate of 3.76 percent, pursuant to § 1961.

B. Attorneys Fees

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Hogan v. General Electric Co., 144 F. Supp. 2d 138, 2001 U.S. Dist. LEXIS 6876, 2001 WL 568105 (N.D.N.Y. 2001).

144 F. Supp. 2d 138 (Hogan v. General Electric Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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