Knox v. Hooper's Crab House, Inc.

CourtDistrict Court, D. Maryland
DecidedNovember 18, 2019
Docket1:17-cv-01853
StatusUnknown

This text of Knox v. Hooper's Crab House, Inc. (Knox v. Hooper's Crab House, Inc.) 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
Knox v. Hooper's Crab House, Inc., (D. Md. 2019).

Opinion

IN THE U.S. DISTRICT COURT FOR THE DISTRICT OF MARYLAND

Casey Knox *

On behalf of herself and * others similarly situated * Plaintiffs * v. Case No. 1:17-cv-01853-JMC * Hooper’s Crab House, Inc., et al * Defendants

MEMORANDUM AND ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFFS’ MOTION FOR ATTORNEYS’ FEES AND COSTS Plaintiff Casey Knox brought suit against Defendants Hooper’s Crab House, Inc., Pete Shepard, Royette Shepard, Patrick Brady, and Ryan Intrieri (“collectively Defendants”) on behalf of herself and all other similarly situated persons (collectively “Plaintiffs”) for alleged violations of the Fair Labor Standards Act (“FLSA”) and related state laws in a so-called “hybrid” class/collective action. On August 22, 2019, after conducting a fairness hearing, the Court entered a final judgment approving the settlement of the matter and certifying the settlement class. (ECF No. 157). Pursuant to the terms of their settlement agreement, the parties consented to be bound by my determination as to the appropriate amount of attorneys’ fees and costs to be awarded to Plaintiffs. (ECF No. 114-1 at 16). I have considered Plaintiffs’ Motion, Defendants’ Response in Opposition thereto, and Plaintiffs’ Reply in support thereof. (ECF Nos. 159, 165 and 166). The issue is fully briefed, and no hearing is necessary. See Loc. R. 105.6 (D. Md. 2018). For the foregoing reasons, I will grant Plaintiffs’ Motion in part, but will also reduce the requested amount as detailed below. I will also deny Plaintiffs’ request for post-judgment interest. I. BACKGROUND

The pending dispute arises from the resolution of a “two-year long hybrid class/collective action,” involving fifty1 workers, and recovery amounting to more than $400,000. (ECF No. 166 at 11). Plaintiffs request an award of attorneys’ fees in the amount of $440,049.00, as well as costs and expenses in the amount of $21,478.16, for a total of $461,527.15, plus post-judgment interest at the rate of 10% from August 22, 2019, through the date of payment. (ECF No. 159 at 49). Defendants do not challenge the $21,478.16 in costs. Accordingly, the Court evaluates the fees sought below. II. LEGAL STANDARD Section 216(b) of the FLSA expressly provides that “in addition to any judgment awarded to the plaintiff or plaintiffs,” the Court must “allow a reasonable attorney's fee to be paid by the

defendant, and costs of the action.” 29 U.S.C. § 216(b). Though a settlement is not a judgment, attorneys’ fees are virtually always part of an FLSA resolution, and here the parties have specifically provided for a binding determination of such fees by the Court as part of their settlement agreement. (ECF 157). In such cases, the Court is guided by a “reasonableness” standard. Amaya v. Power Design, Inc., 2018 WL 690838, at *2 (D. Md. Feb. 2, 2018). The “lodestar” analysis outlined by the Supreme Court in Hensley v. Eckerhart, 461 U.S. 424 (1983), is the starting point for calculating an award of reasonable attorneys’ fees. Eastern Associated Coal Corp v. Director, 724 F.3d 561, 570–71 (4th Cir. 2013). A lodestar amount is defined as “a reasonable hourly rate multiplied by hours reasonably expended.” Grissom v. Mills

1 Although Plaintiff contends that this action involved 84 workers, Counsel provides no support for such, and the Court did not find such within the record. See, e.g., (ECF No. 149 at 1) (“Plaintiff Casey Knox . . . and on behalf of the forty-nine initial ‘FLSA Opt-In’ Plaintiffs . . .”); (ECF No. 114 at 2) (“resulting in a total of forty-nine (49) FLSA Opt-In Plaintiffs); (ECF No. 114-1 at 6) (“There are presently forty-nine 49 FLSA Opt-In Claimants plus Class Representative.”); (ECF No. 102) (providing after conditional certification was granted, forty-seven putative class members joined, and two more members sought to opt-in late). Corp., 549 F.3d 313, 320 (4th Cir. 2008). In this Circuit, in arriving at an appropriate figure, courts consider twelve so-called “Johnson” factors: These include: (1) [T]he time and labor required; (2) the novelty and difficulty of the questions; (3) the skill requisite to properly perform the legal service; (4) the preclusion of other employment by the attorney due to acceptance of the case; (5) the customary fee; (6) whether the fee is fixed or contingent; (7) time limitations imposed by the client or the circumstances; (8) the amount involved and the results obtained; (9) the experience, reputation, and ability of the attorneys; (10) the “undesirability” of the case; (11) the nature and length of the professional relationship with the client; and (12) awards in similar cases. Thompson, 2002 WL 31777631, at *6 n.19 (citing Johnson v. Georgia Highway Express, Inc., 488 F.2d 714, 717–19 (5th Cir. 1974)).

When considering the total number of hours expended, the Court generally considers factors one, two, and seven, although Defendants’ Opposition focuses primarily on factor one. In assessing the reasonableness of the rates charged per hour, factors three, four, five, six, nine, eleven, and twelve are potentially relevant, although Defendants’ Opposition chiefly addresses factors three, five, nine and twelve (focusing mostly on a perceived lack of support for the rates given the relative lack of experience of some counsel involved, and the rates for some of these same counsel in other cases). Once a court determines the lodestar figure, courts “subtract fees for hours spent on unsuccessful claims related to successful ones” and award “some percentage of the remaining amount, depending on the degree of success enjoyed by the plaintiff.” Robinson v. Equifax Information Servs., 560 F.3d 235, 244 (4th Cir. 2009). A trial court may exercise its discretion in determining the lodestar amount because it possesses “superior understanding of the litigation,” and the matter is “essentially” factual. Thompson, 2002 WL 31777631, at *6 n.18. III. DISCUSSION As outlined above, there is a three-step process for awarding statutory fees under the FLSA. At the outset, the Court notes that Defendants’ opposition does not argue for a reduction based on the “most critical factor in determining the reasonableness of a fee award — the degree of success obtained by the Plaintiff.” Hensley, 461 U.S. at 436–37. Rather, Defendants seek a forty percent reduction overall, arguing that Plaintiffs’ lodestar calculation includes unreasonable hourly rates

and an unreasonable number of hours worked at virtually every stage of litigation. (ECF No. 165 at 9). Given that Plaintiffs’ degree of success apparently is not contested, the Court will address Defendants’ arguments regarding rates and time spent. A. Reasonable Hourly Rate A court’s first task in determining an appropriate rate is to look to the prevailing markets in the relevant community. Prusin v. Canton’s Pearls, LLC, 2019 WL 4438609, at *3 (D. Md. Mar. 12, 2019). “The prevailing market rate may be established through affidavits reciting the precise fees that counsel with similar qualifications have received in comparable cases; information concerning recent fee awards by courts in comparable cases; and specific evidence of counsel’s actual billing practice or other evidence of the actual rates which counsel can command

in the market.” Spell v. McDaniel 824 F.2d 1380

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Related

Hensley v. Eckerhart
461 U.S. 424 (Supreme Court, 1983)
Fryer v. ASAP FIRE & SAFETY CORP., INC.
658 F.3d 85 (First Circuit, 2011)
Grissom v. the Mills Corp.
549 F.3d 313 (Fourth Circuit, 2008)
Robinson v. Equifax Information Services, LLC
560 F.3d 235 (Fourth Circuit, 2009)
Fryer v. ASAP FIRE AND SAFETY CORP., INC.
758 F. Supp. 2d 29 (D. Massachusetts, 2010)
Johnson v. Georgia Highway Express, Inc.
488 F.2d 714 (Fifth Circuit, 1974)
Spell v. McDaniel
824 F.2d 1380 (Fourth Circuit, 1987)

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Knox v. Hooper's Crab House, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/knox-v-hoopers-crab-house-inc-mdd-2019.