Lee v. Agape Health Management, Inc.

CourtDistrict Court, E.D. Virginia
DecidedDecember 16, 2024
Docket1:22-cv-00311
StatusUnknown

This text of Lee v. Agape Health Management, Inc. (Lee v. Agape Health Management, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lee v. Agape Health Management, Inc., (E.D. Va. 2024).

Opinion

UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF VIRGINIA Alexandria Division

JONG CHEON LEE ) ) Plaintiff, ) ) v. ) Civil Action No. 1:22-cv-311 (WEF) ) AGAPE HEALTH MANAGEMENT, INC., ) et al. ) ) Defendants. ) _______________________________________)

MEMORANDUM OPINION AND ORDER This case is before the Court on Plaintiff’s Motion for Attorney’s Fees and Costs (Dkt. 16). Plaintiff sued his employer pursuant to the Fair Labor Standards Act (FLSA), 29 U.S.C. § 207. The parties ultimately entered into a settlement agreement the terms of which were approved by the Court. (Dkt. 17). The settlement agreement provides for this Court to make an award of reasonable attorney’s fees and costs to Plaintiff’s counsel.1 For the reasons set forth below and in accordance with the Fourth Circuit’s decision in Jong Lee v. Agape Health Management, Inc., No. 23-1582, 2024 WL 3565309, (4th Cir. July 29, 2024), the Court GRANTS Plaintiff’s motion (Dkt. 16) but for an amount less than Plaintiff’s counsel requested. Specifically, the Court finds that a total award of $20,150.83, consisting of $19,565.93 for attorney’s fees and $584.90 for costs and expenses, is reasonable and supported by the record in this case.

1 The settlement agreement required the parties to meet and confer in an attempt to agree on an award of attorney’s fees and costs. If the parties were unable to agree, then the issue would be decided by this Court. The parties met and conferred but were unable to reach an agreement. I. Factual and Procedural Background This civil action was brought by Plaintiff against his employer, Agape Health Management, Inc. (“Agape”) and its owner, chairman, and CEO Sun Ok Lee and president Dong Chul Choi (collectively the “Defendants”).2 (Dkt. 1). Agape is a company that provides adult care services,

including home care. Plaintiff was an employee of Agape who worked directly with patients as a personal care aide and was paid an hourly wage. (Id. at 3). Plaintiff alleged that Defendants violated the FLSA by failing to pay him the required time and a half for overtime work and by retaliating against him for refusing to return payments made to him by Defendants pursuant to Defendants’ settlement with the U.S. Department of Labor. (Id. at 6–9) Unlike the consolidated case, there was no motions practice in this case prior to settlement, although the case did proceed through written discovery. (Dkt. 9; see also Dkt. 16 at 2). The parties settled all claims after mediation by the undersigned on September 27, 2022. The settlement agreement required, among other things, Defendants to make a payment to Plaintiff and to pay reasonable attorney’s fees and costs of litigation to Plaintiff’s counsel. The parties agreed on the

amount to be paid to Plaintiff, but they could not agree on the award of attorney’s fees and costs, and instead decided to submit the matter to the undersigned for determination. Thus, on February 21, 2023, the parties consented to the undersigned’s jurisdiction to approve the FLSA settlement and determine the appropriate grant of attorney’s fees and costs. (Dkt. 12). On March 3, 2023, the District Judge entered an order conferring jurisdiction on the undersigned. (Dkt. 13). On March 27, 2023, the undersigned approved the settlement as to Plaintiff but continued the matter for further briefing and argument on the issuance of attorney’s fees and costs. (Dkt. 17).

2 Several similar cases against Defendants were consolidated into Son v. Agape Health Management, et al, No. 1:20-cv-1047, for pretrial and settlement purposes. This was the last case filed in a series of related cases, and as a result was not included in the consolidation orders. On March 24, 2023, Plaintiff’s counsel filed his Motion for Attorney’s Fees as well as a brief in support. (Dkt. 16). Defendants filed a response in opposition on April 7, 2023. (Dkt. 18). Plaintiff’s counsel filed a reply in response to Defendants’ opposition on April 18, 2023. (Dkt. 23). The undersigned heard oral argument from the parties on April 28, 2023 (Dkts. 28) and, in an

ensuing order, awarded Plaintiff’s counsel, Mr. Ryu, $30,000 in attorney’s fees and $584.90 in costs. (Dkt. 29). The parties cross-appealed the award and on July 29, 2024, the United States Court of Appeals for the Fourth Circuit issued an opinion vacating this Court’s award of attorney’s fees and remanding the case for further proceedings. (Dkts. 42, 43); Jong Lee v. Agape Health Management, Inc., No. 23-1582, 2024 WL 3565309, (4th Cir. July 29, 2024). Thereafter, the parties filed supplemental briefs (Dkts. 51, 54) and the undersigned heard additional oral argument from the parties on September 20, 2024, and took the matter under advisement to issue this Order. II. Discussion A. Standard of Review In an FLSA action, the statutory fee-shifting mechanism provides that a “prevailing party”

is entitled to recover “reasonable attorney’s fees” and the “costs of the action.” See 29 U.S.C. § 216(b). When an FLSA action is adjudicated on the merits, the “prevailing party” is typically clear, but in cases where the parties settle, the parties must agree that a particular party has “prevailed.” See Jackson v. Estelle’s Place, LLC, 391 F. Appx. 239, 242 (4th Cir. 2010) (“because the parties have agreed that Appellants are prevailing parties, Appellants are entitled to an award of attorney’s fees and costs that they establish as reasonable”). However, where, as in this case, the parties’ settlement agreement does not establish a “prevailing party” but provides that the Court will determine “reasonable attorney’s fees” to be awarded to Plaintiff in case the parties fail to agree, the Court will apply a general “reasonableness” standard in making the award. Jong Lee, No. 23-1582, at *7 (citing In re Abrams & Abrams, P.A., 605 F. 3d 238, 243 (4th Cir. 2010) (internal quotation marks and citations omitted) (collecting cases) (“Nor is the reasonableness standard limited to the fee-shifting context . . . the law of this circuit has long been clear that federal district courts have inherent power and an obligation to limit attorneys’ fees to a reasonable

amount”)). The Court must undertake a three-step process to properly calculate an attorney’s fee award. McAfee v. Boczar, 738 F. 3d 81, 88 (4th Cir. 2013). First, the Court must “determine the lodestar figure by multiplying the number of reasonable hours expended times a reasonable rate.” Id. (quoting Robinson v. Equifax Info. Servs., LLC, 560 F. 3d 235, 243 (4th Cir. 2009)). At this step, “[t]o ascertain what is reasonable in terms of hours expended and the rate charged, the court is bound to apply” the factors adopted in Barber v. Kimbrell’s, Inc., 577 F. 2d 216, 226 n.28 (4th Cir. 1978). Id. (citing Johnson v. Georgia Highway Express Inc., 488 F. 2d 714, 717–19 (5th Cir. 1974)). The twelve Barber factors are: (1) the time and labor expended; (2) the novelty and difficulty of the questions raised; (3) the skill required to properly perform the legal services rendered; (4) the attorney's opportunity costs in pressing the instant litigation; (5) the customary fee for like work; (6) the attorney's expectations at the outset of the litigation; (7) the time limitations imposed by the client or circumstances; (8) the amount in controversy and the results obtained; (9) the experience, reputation and ability of the attorney; (10) the undesirability of the case within the legal community in which the suit arose; (11) the nature and length of the professional relationship between attorney and client; and (12) attorneys' fees awards in similar cases.

Id. at 88 n.5.

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