Kastrati v. M.E.G. Restaurant Enterprises Ltd.

CourtDistrict Court, S.D. New York
DecidedJanuary 13, 2023
Docket1:21-cv-00481
StatusUnknown

This text of Kastrati v. M.E.G. Restaurant Enterprises Ltd. (Kastrati v. M.E.G. Restaurant Enterprises Ltd.) 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
Kastrati v. M.E.G. Restaurant Enterprises Ltd., (S.D.N.Y. 2023).

Opinion

DOCUMENT ELECTRONICALLY FILED UNITED STATES DISTRICT COURT DOC #: SOUTHERN DISTRICT OF NEW YORK re eee eee □□□ DATE FILED:__ 1/13/2023 MIKE KASTRATI, Plaintiff, OPINION AND ORDER ON ATTORNEYS’ FEES AND COSTS -against- M.E.G. RESTAURANT ENTERPRISES LTD. d/b/a NOVITA RESTAURANT, MARCO 1:21-CV-00481 (KHP) FREGONESE, and ELIZABETH YOSHIDA, Defendants. ~----------------------------------------------------------------X KATHARINE H. PARKER, UNITED STATES MAGISTRATE JUDGE

FACTUAL BACKGROUND?!

Plaintiff Mike Kastrati, who is Albanian, was employed by Defendant Novita Restaurant (“Novita”), an Italian restaurant, from in or about 2006 through April 3, 2019. (PI. Br. 1.) He started as a waiter and, by 2018, had worked his way up to a manager position. At the time he became a manager, Novita’s then owners, Defendants Marco Fregonese and Elizabeth Yoshida, offered Kastrati the opportunity to buy a twenty-percent share in the business. (/d.) Kastrati accepted the offer and made a capital investment in the amount of $95,000, becoming a minority owner. The transition to manager and part-owner did not go well. Kastrati claims that Fregonese and Yoshida began a campaign of discrimination and harassment against him because he is not Italian. (/d.) Additionally, contrary to Kastrati’s expectations, Fregonese and

1 The factual background is based on the allegations in the complaint. No factual findings have been made because there is a settlement without admission of liability.

Yoshida did not treat him as a co-owner and refused to allow him access to the financial records for the business. Instead, they prepared vague profit and loss statements that included inexplicable expenses and appeared to underreport revenue. When Kastrati complained about

Fregonese’s and Yoshida’s conduct, they allegedly retaliated against him by demoting him from manager to host, making false allegations against him and ultimately terminating his employment. (Id. at 2.) They hired an Italian man to replace Kastrati as manager. After Kastrati commenced litigation against Defendants, Fregonese and Yoshida effectuated a reverse stock split to remove Kastrati as an officer and shareholder of the business. They paid him $20,000 less than his initial investment in the business. (Id. at 3.)

PROCEDURAL BACKGROUND Kastrati retained Vladeck, Raskin & Clark, P.C. (“Vladeck”) to represent him in February 2019 due to his concerns about discrimination and retaliation. (Pl. Br. 3.) The Vladeck firm sent a letter to Defendants on Kastrati’s behalf in March regarding his claims and attempted to negotiate a resolution. When no resolution could be reached, the Vladeck firm filed a Charge of

discrimination with the United Stated Equal Employment Opportunity Commission (“EEOC”) on Kastrati’s behalf. (Id. at 3.) Shortly thereafter, Defendants terminated Kastrati’s employment. On January 19, 2021, after obtaining a Notice of Right to Sue from the EEOC, Kastrati timely filed this action, which asserted claims of discrimination and retaliation in violation of 42 U.S.C. § 1981, Title VII of the Civil Rights Act of 1964 (“Title VII”), the New York State Human Rights Law, and the New York City Human Rights Law. (Id. at 3-4.) He also brought a claim for

judicial dissolution of Novita pursuant to New York Business Corporation Law § 1104-a(a)(1) to obtain repayment of his investment in the business. Defendants filed a Motion for Judgment on the Pleadings as to the BCL claim in response to the Complaint. (Def.’s Mot. Summ. J., ECF No. 29.) On June 11, 2021, the Honorable Lorna G. Schofield dismissed Plaintiff’s BCL claim without prejudice based on

abstention grounds, leaving only the discrimination and retaliation claims. (ECF No. 38.) The parties engaged in substantial discovery including the exchange of thousands of documents (including video) and nine depositions. The parties also litigated several disputed discovery issues. (ECF Nos. 53, 73, 94.) Specifically, Plaintiff noted deficiencies in Defendants’ production and were successful in obtaining additional documents after bringing a discovery

motion. The parties also engaged in two mediations. At the outset of the case, they attended a mediation before a mediator affiliated with the Court’s court-annexed mediation program. That mediation was unsuccessful. After the completion of substantial discovery, the parties attended a settlement conference before the undersigned. That conference led to a settlement, except with respect to the issue of attorneys’ fees. Thus, the parties agreed to submit the attorneys’ fee dispute to the undersigned for resolution. The parties have

consented to my jurisdiction for all purposes pursuant to 28 U.S.C. 636(c) and Fed. R. Civ. P. 73. (ECF No. 104.) LEGAL STANDARD

A district court exercises “considerable discretion” in awarding attorneys’ fees. Arbor Hill Concerned Citizens Neighborhood Ass’n v. Cty. of Albany & Albany Cty. Bd. of Elections, 522 F.3d 182, 190 (2d Cir. 2008); see also Millea v. Metro-North R. R. Co., 658 F.3d 154, 166 (2d Cir. 2011); “The party seeking fees bears the burden of demonstrating that its requested fees are reasonable.” TufAmerica Inc. v. Diamond, 2016 WL 1029553, at *3 (S.D.N.Y. Mar. 9, 2016), reconsideration granted in part, 2016 WL 3866578 (S.D.N.Y. July 12, 2016), and on reconsideration in part, 2018 WL 401510 (S.D.N.Y. Jan. 12, 2018) (citing Blum v. Stenson, 465 U.S. 886, 897 (1984)) (internal citation omitted). Attorneys’ fees are awarded by determining a presumptively reasonable fee, or a

“lodestar,” reached by multiplying a reasonable hourly rate by the number of hours reasonably expended. TufAmerica Inc., 2016 WL 1029553, at *3 (citing Millea, 658 F.3d at 166); see also Bergerson v. N.Y. State Office of Mental Health, Cent. N.Y. Psychiatric Ctr., 652 F.3d 277, 289-90 (2d Cir. 2011). When evaluating hourly rates, the Court looks at “what a reasonable, paying client would be willing to pay, given that such a party wishes to spend the minimum necessary to litigate the case effectively.” Bergerson, 652 F.3d at 289 (internal citations and quotation marks omitted). The Second Circuit’s “forum rule” generally requires use of “the hourly rates employed in the district in which the reviewing court sits in calculating the presumptively reasonable fee.” Id.at 290

(internal citation and quotation marks omitted); see also TufAmerica Inc., 2016 WL 1029553, at *5 (rate must be “in line with those rates prevailing in the community for similar services by lawyers of reasonably comparable skill, experience, and reputation”) (internal citation and quotation marks omitted). Courts in this district also have recognized that an “attorney’s customary billing rate for fee-paying clients is ordinarily the best evidence of” a reasonable hourly rate. In re Stock Exchanges Options Trading Antitrust Litig., 2006 WL 3498590, at *9 (S.D.N.Y. Dec. 4, 2006). Finally, the Court may adjust base hourly rates to account for case-specific variables. Lilly v. City of New York, 934 F.3d 222, 230 (2d Cir. 2019); Arbor Hill Concerned Citizens Neighborhood Ass’n, 522 F.3d at 183-184.

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