Kalloo ex rel. Unlimited Mechanical Co. of NY, Inc. v. Unlimited Mechanical Co. of NY, Inc.

977 F. Supp. 2d 209, 2013 WL 6662557, 2013 U.S. Dist. LEXIS 177716
CourtDistrict Court, E.D. New York
DecidedDecember 18, 2013
DocketNo. 11-CV-6215 NG RLM
StatusPublished
Cited by6 cases

This text of 977 F. Supp. 2d 209 (Kalloo ex rel. Unlimited Mechanical Co. of NY, Inc. v. Unlimited Mechanical Co. of NY, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kalloo ex rel. Unlimited Mechanical Co. of NY, Inc. v. Unlimited Mechanical Co. of NY, Inc., 977 F. Supp. 2d 209, 2013 WL 6662557, 2013 U.S. Dist. LEXIS 177716 (E.D.N.Y. 2013).

Opinion

GERSHON, United States District Judge:

In this case brought under the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq., and the New York Labor Law (“NYLL”), § 190 et seq., judgment [211]*211was entered in favor of the three plaintiffs against the defendants jointly and severally in the total amount of $71,451.49. Kalloo v. Unlimited Meek. Co. of NY, Inc., 977 F.Supp.2d 187, 208-09, 2013 WL 5574774, at *18 (E.D.N.Y. Oct. 10, 2013). The plaintiffs now seek an award of attorneys’ fees in the sum of $157,751.00 and costs in the sum of $9,276.36. See 29 U.S.C. § 216(b); N.Y.L.L. §§ 198(l-a), 663(1). Defendants do not challenge the availability of an award of reasonable fees and costs under both federal and New York law, but argue for substantial reductions from the amounts requested.

Plaintiffs’ Success at Trial

Even though the degree of success obtained by the attorneys in a given case has been described as “the most critical factor” in determining what constitutes a reasonable fee award, Farrar v. Hobby, 506 U.S. 103, 114, 113 S.Ct. 566, 121 L.Ed.2d 494 (1992), the Supreme Court has made clear, at least as far back as City of Riverside v. Rivera, 477 U.S. 561, 574, 106 S.Ct. 2686, 91 L.Ed.2d 466 (1986), that a statutory fee award need not be proportionate to the amount of damages plaintiffs actually recovered. In City of Riverside, the Court upheld a fee award under 42 U.S.C. § 1988 seven times greater than the amount of compensatory and punitive damages awarded. In doing so, the Court noted that damages awards, and not just awards of declaratory or injunctive relief, may secure important social benefits, including deterrence, and that a plaintiff who obtains relief in a civil rights suit vindicates policies Congress considered of the highest importance. The Court went on to note that a rule of proportionality — limiting fees to, say, one-third of a damages recovery — would be inconsistent with Congress’s recognition, in enacting § 1988, that “private-sector fee arrangements were inadequate to ensure sufficiently vigorous enforcement of civil rights.” Id. at 578, 106 S.Ct. 2686. As the Court of Appeals for the Second Circuit noted in Kassim v. City of Schenectady, 415 F.3d 246, 252 (2d Cir.2005), “we have repeatedly rejected the notion that a fee may be reduced merely because the fee would be disproportionate to the financial interest at stake in the litigation.” Indeed, a “court should compensate the plaintiff for the time his attorney reasonably spent in achieving the favorable outcome, even if ‘the plaintiff failed to prevail on every contention.’ ” Fox v. Vice, — U.S. -, 131 S.Ct. 2205, 2214, 180 L.Ed.2d 45 (2011) (quoting Hensley v. Eckerhart, 461 U.S. 424, 435, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983)).

The same reasoning applies to FLSA suits where, as in civil rights suits, Congress has determined that successful plaintiffs shall be awarded reasonable attorneys’ fees. See, e.g., Allende v. Unitech Design, Inc., 783 F.Supp.2d 509, 511-12 (S.D.N.Y.2011); Anthony v. Franklin First Fin., Ltd., 844 F.Supp.2d 504, 509 n. 10 (S.D.N.Y.2012); Merino v. Beverage Plus America Corp., 2012 WL 4468182, at *1 (S.D.N.Y. Sept. 25, 2012). Notably, cases determining awards of attorneys’ fees under the FLSA rely interchangeably on cases arising under § 1988. See, e.g., Barfield v. N.Y. City Health & Hosps. Corp., 537 F.3d 132, 151-53 (2d Cir.2008).

Here, plaintiffs’ attorneys in fact achieved considerable success. The three plaintiffs were each successful at trial. While they did not obtain the approximately $103,000 in combined damages which were claimed in the pretrial order, they did obtain over $71,000 in combined damages.1 And, while counsel for plaintiffs do not seek fees for defending the counter[212]*212claims brought against two of the plaintiffs, they did achieve complete vindication for their clients as to those counterclaims in that the counterclaims were found unproven at the trial.

The defendants rely heavily on the decision in Barfield, 537 F.3d at 153, where the Court of Appeals affirmed the district court’s exercise of discretion in reducing an FLSA fee request by 50% on the ground that the collective aspect of the action had failed. The defendants here ask the court to reduce the fee requested by 75%, rather than simply accept plaintiffs’ methodology of not seeking fees for the collective part of the action. I find that plaintiffs’ elimination of the limited fees involved in the collective aspect of the litigation is a fair way to adjust the fees to their success. In Barfield, the case was brought with counsel’s “anticipated relief for thousands,” but the action was not even certified as a collective action. Id. at 152. Here, in the exercise of my discretion, and under the very different facts of this case, I find plaintiffs’ methodology reasonable. Unlike in Barfield, the plaintiffs succeeded on their motion to certify a collective action based upon an anticipated 20 to 60 employees, but, of that limited number of potential plaintiffs, only the three named plaintiffs went forward. See Kalloo v. Unlimited Mech. Co. of NY, Inc., 908 F.Supp.2d 344, 348 (E.D.N.Y.2012).

Most significantly, and ignored by the defendants, the reduced award to plaintiffs attorneys in Barfield was nearly $50,000, despite the minimal damages of $1,744.50 that were awarded to the sole plaintiff.2 Considering plaintiffs’ success, I must go on to consider whether the fees and costs requested here to achieve that success are reasonable.

Billing Rates

“The reasonable hourly rate is the rate a paying client would be willing to pay.” Arbor Hill Concerned Citizens Neighborhood Ass’n v. Cnty. of Albany & Albany Cnty. Bd. of Elections, 522 F.3d 182,190 (2d Cir.2008) (addressing the various factors that may go into that determination). In determining the appropriate hourly rate, the court should, among other things, “attempt to approximate ‘the market rates prevailing in the community for similar services by lawyers of reasonably comparable skill, experience, and reputation.’ ” Green v. City of N.Y., 403 Fed.Appx. 626, 629 (2d Cir.2010) (quoting Gierlinger v. Gleason, 160 F.3d 858, 882 (2d Cir.1998)).

The billing rates requested here are unchallenged with the exception of the rate of $325.00 for associate Kara Miller, who billed the bulk of the hours. Defendants argue that her relative lack of experience means that her rate is not justified. On the contrary, Ms.

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Bluebook (online)
977 F. Supp. 2d 209, 2013 WL 6662557, 2013 U.S. Dist. LEXIS 177716, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kalloo-ex-rel-unlimited-mechanical-co-of-ny-inc-v-unlimited-mechanical-nyed-2013.