JTH TAX LLC d/b/a LIBERTY TAX SERVICE f/k/a JTH TAX, INC. v. EDWARD KUKLA, KARLY JEANTY, HARLINE JEANTY, and EXPERT TAX CONSULTANTS LLC

District Court, E.D. New York·Decided October 28, 2025·No. 2:22-cv-01542·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK --------------------------------X JTH TAX LLC d/b/a LIBERTY TAX SERVICE f/k/a JTH TAX, INC., ORDER Plaintiff, 22-CV-1542(JS)(JMW)

-against-

EDWARD KUKLA, KARLY JEANTY, HARLINE JEANTY, and EXPERT TAX CONSULTANTS LLC,

Defendants. --------------------------------X APPEARANCES For Plaintiff: JoAnna Marie Doherty, Esq. Peter G. Siachos, Esq. James L. Messenger, Esq. Gordon Rees Scully Mansukhani, LLP One Battery Park Plaza, 28th Floor New York, New York 10004

For Defendants: Vano I. Haroutunian, Esq. Edward Michael Tobin, Esq. Ballon Stoll Bader & Nadler, P.C. 1450 Broadway New York, New York 10018

SEYBERT, District Judge:

Presently before the Court are two fee applications of Plaintiff JTH Tax LLC d/b/a Liberty Tax Service f/k/a JTH Tax, Inc. (“Liberty” or “Plaintiff”). The first is Liberty’s so-called “Contempt Fee Application” (see ECF No. 73), and the second is its so-called “TRO Fee Application” (see ECF No. 78) (collectively, the “Fee Applications”), which were filed after the Court issued 1 orders holding (1) Defendants Edward Kukla, Karly Jeanty, Harline Jeanty, and Expert Tax Consultants LLC (“Defendants”) in contempt of the Court’s May 24, 2022 preliminary injunction order (see the

“Contempt Order” ECF No. 63), and (2) denying Defendants’ Motion for Preliminary Injunction and Temporary Restraining Order (see the “TRO Order” ECF No. 75), and entitled Plaintiff to recover attorney’s fees incurred in connection with the issuance of said orders. For the following reasons, the Fee Applications are GRANTED in part, to the extent the Court awards Plaintiff $39,246.85 in attorney’s fees. BACKGROUND

The Court presumes the parties are familiar with the facts of the case. For the reader’s convenience, it provides the following summary: After the Court granted Plaintiff’s preliminary injunction motion on May 24, 2022 (the “Preliminary Injunction Order” ECF No. 29), Plaintiff subsequently moved for default judgment and permanent injunction (see ECF No. 31); it also moved to hold Defendants in contempt for their violations of the Preliminary Injunction Order (the “Contempt Motion” ECF No. 48).

On December 15, 2022, the Court granted Plaintiff’s motions (see Contempt Order and the “Permanent Injunction Order” ECF No. 64; collectively the “Underlying Orders”). The Contempt Order held 2 “that Defendants, jointly and severally, shall be liable for the attorneys’ fees and litigation costs Liberty incurred in connection with the contempt motion.” (Contempt Order at 2.) On

January 13, 2023, Liberty filed its Contempt Fee Application, seeking (1) $47,047.93 in attorney’s fees and (2) $3,930.99 in purported costs, most of which are comprised of private investigator’s fees. (Contempt Fee Application at 3-4). After the Court issued the Underlying Orders, Defendants moved for a “a temporary restraining order and preliminary injunction preventing Plaintiff from enforcing” said Orders (the “TRO Motion”) (ECF No. 68 at 9.) On January 25, 2023, the Court

denied the TRO Motion, observing it served as “indicia of Defendants’ continued litigation of this action in bad faith.”1 (TRO Order at 6.) The Court’s denial order permitted Plaintiff to seek reimbursement for the attorney’s fees and costs incurred in responding to the TRO Motion, which Plaintiff subsequently sought in its March 9, 2023 TRO Fee Application. The TRO Fee Application

1 The Court further observed the TRO Motion was virtually identical to Defendants’ June 27, 2022 Motion for Temporary Restraining Order, which Defendants withdrew following a status conference with Magistrate Judge James M. Wicks. (ECF No. 46.) That prior motion sought to block enforcement of the Court’s Preliminary Injunction Order. 3 seeks $6,559.87 in attorney’s fees. (the “TRO Fee Application Motion,” ECF No. 78-2 at 5.)

The Fee Applications are accompanied by invoices from Plaintiff’s counsel, Gordon Rees Scully Mansukhani, LLP (“Gordon Rees”), which show Gordon Rees charged $208.25 per hour for a junior associate and $263.50 to $335.75 per hour for partners. (the “Contempt Bill,” Ex. A, ECF No. 73-1, attached to the “Siachos Contempt Declaration,” Decl. of Peter G. Siachos; the “TRO Bill,” Ex. A, ECF No. 78-3, attached to the “Siachos TRO Declaration,” Decl. of Peter G. Siachos.) Plaintiff cites several Eastern District cases to support its contention that courts have approved

such rates. (See, e.g., Contempt Fee Application at 7 (citing PNC Equip. Fin., LLC v. Montauk Transp. Serv. Inc., No. 18-CV-5883, 2019 WL 8685091, at *4 (E.D.N.Y. Dec. 16, 2019), report and recommendation adopted, No. 18-CV-5883, 2020 WL 2219197 (E.D.N.Y. May 7, 2020))). Defendants’ separate oppositions to the Fee Applications are mostly verbatim and levy threadbare arguments that Gordon Rees’s rates “resulted directly from unnecessary and duplicative work

performed by Plaintiff” and “are not reasonable as a matter of law.” (“Contempt Fee Opposition” and “TRO Fee Opposition” collectively, the “Oppositions”) (see ECF No. 76 at 1, 3; ECF No. 4 80 at 1, 4.) The Oppositions cite sparsely to case law and do not identify any specific entries Defendants deem unnecessary or duplicative.

DISCUSSION I. Applicable Law re: Attorney’s Fees and Costs

“District courts have broad discretion to determine the amount of attorneys’ fees awarded, and the party requesting fees must submit documentation to support its request.” Perry v. High Level Dev. Contracting & Sec. LLC, No. 12-CV-2180, 2022 WL 1018791, at *14 (E.D.N.Y. Mar. 16, 2022), report and recommendation adopted, 2022 WL 1017753 (E.D.N.Y. Apr. 5, 2022). “In calculating attorney’s fees, the district court must first determine the ‘lodestar–the product of a reasonable hourly rate and the reasonable number of hours required by the case–[which] creates a presumptively reasonable fee.’” Stanczyk v. City of N.Y., 752 F.3d 273, 284 (2d

Cir. 2014) (brackets in original) (quoting Millea v. Metro-N. R.R. Co., 658 F.3d 154, 166 (2d Cir. 2011)); see also Hensley v. Eckerhart, 461 U.S. 424, 433 (1983) (“The most useful starting point for determining the amount of a reasonable [attorney’s] fee is the number of hours reasonably expended on the litigation multiplied by a reasonable hourly rate.”); McDonald ex rel. Prendergast v. Pension Plan of the NYSA-ILA Pension Trust Fund, 5 450 F.3d 91, 97 (2d Cir. 2006) (“In calculating attorney’s fee awards, district courts use the lodestar method—hours reasonably expended multiplied by a reasonable hourly rate.”); Division 1181

Amalgamated Transit Union-N.Y. Employees Pension Fund and Its Trustees v. D & B Bus Co., Inc., 270 F. Supp.3d 593, 617-20 (Part IV(E) re: fees), 628 (Part IV(F) re: costs) (E.D.N.Y. 2017). The burden is on the fee applicant to submit evidence to support the number of hours expended and the rates claimed. See Hensley, 461 U.S. at 437; see also Cleanup N. Brooklyn by Chantrtanapichate v. Brooklyn Transfer LLC, 373 F. Supp.3d 398, 403 (E.D.N.Y. 2019) (“The fee applicant bears the burden of adequately documenting and justifying the hours worked, rates sought, and costs expended.” (citing Monette v. County of Nassau, No. 11-CV-0539, 2016 WL 4145798, at *3, *10 (E.D.N.Y. Aug. 4, 2015); Pennacchio v. Powers, No. 05-CV-0985, 2011 WL 2945825, at *2 (E.D.N.Y. July 21, 2011)));

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JTH TAX LLC d/b/a LIBERTY TAX SERVICE f/k/a JTH TAX, INC. v. EDWARD KUKLA, KARLY JEANTY, HARLINE JEANTY, and EXPERT TAX CONSULTANTS LLC, (E.D.N.Y. 2025).

JTH TAX LLC d/b/a LIBERTY TAX SERVICE f/k/a JTH TAX, INC. v. EDWARD KUKLA, KARLY JEANTY, HARLINE JEANTY, and EXPERT TAX CONSULTANTS LLC (JTH TAX LLC d/b/a LIBERTY TAX SERVICE f/k/a JTH TAX, INC. v. EDWARD KUKLA, KARLY JEANTY, HARLINE JEANTY, and EXPERT TAX CONSULTANTS LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.