Matakov v. Kel-Tech Construction Inc.

84 A.D.3d 677, 924 N.Y.S.2d 344
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMay 31, 2011
StatusPublished
Cited by10 cases

This text of 84 A.D.3d 677 (Matakov v. Kel-Tech Construction Inc.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matakov v. Kel-Tech Construction Inc., 84 A.D.3d 677, 924 N.Y.S.2d 344 (N.Y. Ct. App. 2011).

Opinion

Order, Supreme Court, New York County (Jane S. Solomon, J.), entered April 1, 2010, which granted the motion of plaintiffs’ class counsel for approval of attorneys’ fees in the amount of $200,000, modified, on the law and the facts, to the extent of remanding the matter to Supreme Court for an evidentiary hearing to determine an appropriate award of attorneys’ fees, and otherwise affirmed, without costs.

The subject motion seeks attorneys’ fees incurred in connection with the settlement of two related class actions. Plaintiffs brought the actions alleging, inter alia, breach of contract and violation of the Labor Law, to obtain prevailing wages for work they had performed at New York City public schools pursuant to public contracts. Following more than five years of litigation, the parties entered into a stipulation of class action settlement (stipulation), pursuant to which defendant-appellant was to pay [678]*678the difference between the wages paid to class members and prevailing wages, provided that the total settlement amount not exceed $600,000. Also pursuant to the stipulation, defendant agreed to pay class counsel’s attorneys’ fees, provided such fees were reasonable and did not exceed $200,000. Pursuant to procedures outlined in the stipulation, plaintiffs’ total recovery was determined to be $116,648.66.

The court properly applied the lodestar method to calcúlate plaintiffs’ class counsel’s fee rather than the percentage method (see Nager v Teachers’ Retirement Sys. of City of N.Y., 57 AD3d 389 [2008], lv denied 13 NY3d 702 [2009]; Flemming v Barnwell Nursing Home & Health Facilities, Inc., 56 AD3d 162, 165-166 [2008], affd 15 NY3d 375 [2010]). However, the record demonstrates that class counsel failed to establish through competent evidence that its fees were consistent with “customary fee[s] charged for similar services by lawyers in the community with like experience and of comparable reputation,” or were reasonable (Friedman v Miale, 69 AD3d 789, 791-792 [2010], lv denied 16 NY3d 706 [2011] [internal quotation marks omitted]). Class counsel also failed to submit evidence reflecting the training, background, experience and skill of some individual attorneys who performed work in connection with the class actions (see Matter of Rahmey v Blum, 95 AD2d 294, 302 [1983]). The record reflects that a great deal of expense on all sides could have been avoided had plaintiffs’ claims been appropriately investigated before a lawsuit was filed; concomitantly the number of hours expended was apparently excessive. In our view, the court should have undertaken an analysis as to whether all 1,256 hours expended by class counsel’s attorneys, and the 433 hours worked by its paralegals, were useful and reasonable (see Lunday v City of Albany, 42 F3d 131, 134 [2d Cir 1994]).

Notwithstanding the motion court’s observations that the litigation was “contentious,” “heated” and “hard-fought,” in light of the fact that the fee far exceeded plaintiffs’ recovery, we remand the matter to Supreme Court for an evidentiary hearing to determine an appropriate amount of reasonable attorneys’ fees to be awarded (see Friar v Vanguard Holding Corp., 125 AD2d 444, 447 [1986]). Concur — Friedman, Catterson and Román, JJ.

Mazzarelli, J.E, and Manzanet-Daniels, J, dissent in part in a memorandum by Mazzarelli, J.E, as follows: I agree with the majority that the motion court properly applied the lodestar method in ascertaining the appropriate fee due to class counsel. However, the record reflects that the court, which was intimately familiar with the contentious nature of a litigation that was ag[679]*679gressively litigated by both sides, gave appropriate consideration to each of the lodestar factors, including the quality of class counsel’s representation. Accordingly, a hearing on the application would be a poor allocation of judicial resources.

It is well established that a trial court’s fee award in a class action is entitled to broad deference, “and will not be overturned absent an abuse of discretion, such as a mistake of law or a clearly erroneous factual finding” (Goldberger v Integrated Resources, Inc., 209 F3d 43, 47 [2d Cir 2000]).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Matter of Surveillance Tech. Oversight Project v. New York City Police Dept.
2025 NY Slip Op 03265 (Appellate Division of the Supreme Court of New York, 2025)
Matter of Oustatcher v. Clark
2025 NY Slip Op 02653 (Appellate Division of the Supreme Court of New York, 2025)
OSK IX, LLC v. Desir
2024 NY Slip Op 32224(U) (New York Supreme Court, New York County, 2024)
281 St. Nicholas Partners LLC v. Blake
Appellate Terms of the Supreme Court of New York, 2017
Saul v. Cahan
New York Supreme Court, 2016
Kroshnyi v. U.S. Pack Courier Services, Inc.
771 F.3d 93 (Second Circuit, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
84 A.D.3d 677, 924 N.Y.S.2d 344, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matakov-v-kel-tech-construction-inc-nyappdiv-2011.