Olivares v. 1761 Fonda Mexico Magico LLC

CourtDistrict Court, S.D. New York
DecidedSeptember 28, 2022
Docket1:17-cv-01082-PGG-JW
StatusUnknown

This text of Olivares v. 1761 Fonda Mexico Magico LLC (Olivares v. 1761 Fonda Mexico Magico LLC) 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
Olivares v. 1761 Fonda Mexico Magico LLC, (S.D.N.Y. 2022).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

VICTOR MENDEZ OLIVARES, individually and on behalf of others similarly situated,

Plaintiff, ORDER

- against - 17 Civ. 1082 (PGG) (KNF)

1761 FONDA MEXICO MAGICO LLC, doing business as “Mexico Magico”; and PACO PAREDES,

Defendants.

PAUL G. GARDEPHE, U.S.D.J.: Plaintiff Victor Mendez Olivares commenced this putative collective action on February 13, 2017 against his former employers, Defendant 1761 Fonda Mexico Magico LLC (“Mexico Magico”) – a Mexican restaurant in the Bronx – and Defendant Paco Paredes – who owns and manages that restaurant. (Cmplt. (Dkt. No. 1) ¶¶ 1-4) Plaintiff alleges that, while employed by Defendants as a “food preparer, dishwasher, and . . . delivery worker,” Defendants failed to pay him minimum and overtime wages, in violation of the Fair Labor Standards Act (“FLSA”) and the New York Labor Law (“NYLL”). (Id. ¶¶ 5, 76-98) Plaintiff further alleges, inter alia, that Defendants failed to (1) pay him spread-of-hours wages and (2) provide him with wage statements and notices. (Id. ¶¶ 99-108) On July 13, 2018, this Court entered an order of default against Defendants (see Order of Default (Dkt. No. 43)), and referred the case to Magistrate Judge Kevin Fox for an inquest on damages. (Order of Reference (Dkt. No. 44)) Judge Fox has submitted a Report and Recommendation (“R&R”), recommending that (1) no damages be granted, because Plaintiff failed to present sufficient evidence from which to determine his damages with “reasonable certainty”; and (2) this Court issue an order to show cause why Plaintiff’s counsel should not be sanctioned, pursuant to Fed. R. Civ. P. 11, for presenting outdated law in Plaintiff’s Proposed Findings of Fact and Conclusions of Law (Dkt. No. 47). (See R&R (Dkt. No. 50)) Plaintiff has filed objections to Judge Fox’s R&R. (Dkt. No.

51) For the reasons stated below, Plaintiff’s objections will be sustained, and this Court will award damages to Plaintiff in the amounts set forth below. I. BACKGROUND A jury trial in this matter was scheduled to begin on June 25, 2018. (See Dkt. No. 23) However, after Defendants failed to appear at two scheduled conferences, the trial was adjourned sine die. (See Dkt. No. 32) In June 2018, Plaintiff obtained a Clerk’s Certificate of Default against each Defendant and moved for default judgment. (Dkt. Nos. 35-38) In support of his motion, Plaintiff submitted, inter alia, a Declaration by Plaintiff’s counsel – Colin Mulholland – in which

counsel sets forth Plaintiff’s calculation of damages and attorneys’ fees. (See Mulholland Decl. (Dkt. No. 38) ¶¶ 43-82; id., Ex. K (Dkt. No. 38-11) (Plaintiff’s declaration); id., Ex. L (Dkt. No. 38-12) (damages chart); id., Ex. M (Dkt. No. 38-13) (attorneys’ fees timesheet)) On July 19, 2018 – after conducting a show cause hearing (see Dkt. No. 41), this Court entered an order of default against Defendants (see Order of Default (Dkt. No. 43)), and referred the case to Judge Fox for an inquest on damages. (Order of Reference (Dkt. No. 44)) On August 3, 2018, Judge Fox issued an order directing Plaintiff to file “(1) proposed findings of fact and conclusions of law; and (2) an inquest memorandum, accompanied by supporting affidavits and exhibits, setting forth proof of his damages.” (Aug. 3, 2018 Mag. Order (Dkt. No. 45)) On August 24, 2018, Plaintiff filed his Proposed Findings of Fact and Conclusions of Law (“Proposed Findings”) (Dkt. No. 47) and Memorandum of Law (Dkt. No. 48), to which he attached, inter alia, a notarized document entitled “Declaration of Victor Mendez Olivares” (Dkt. Nos. 47-1, 48-11), a “Damages Calculation” chart (Dkt. No. 47-2, 48-

12), and a document describing Plaintiff’s attorneys’ fees and costs (Dkt. Nos. 47-3, 48-13). On March 4, 2019, Judge Fox issued an R&R, recommending that (1) no damages be granted, because Plaintiff had not presented sufficient evidence from which to determine his damages with “reasonable certainty”; and (2) this Court issue an order to show cause why Plaintiff’s counsel should not be sanctioned, pursuant to Fed. R. Civ. P. 11, for presenting outdated law in Plaintiff’s Proposed Findings as to the calculation of such damages. (See R&R (Dkt. No. 50)) On the first point, Judge Fox acknowledges that Plaintiff submitted a declaration stating the time periods/hours he worked and payments he received, but Judge Fox states that neither this declaration – nor any other declaration or affidavit submitted in response to Judge

Fox’s order – addresses the amount of damages and attorneys’ fees Plaintiff seeks or how such an amount is to be calculated. (Id. at 4)1 Judge Fox notes that a chart regarding Plaintiff’s damages is attached to Plaintiff’s Proposed Findings and his Memorandum of Law, but that this chart is not accompanied by any “affidavit or other admissible evidence identif[ying] that document or explain[ing] its content.” (Id. at 4-5) Judge Fox thus concludes that Plaintiff has not demonstrated the amount of damages to which he is entitled “with reasonable certainty,” and recommends that he be awarded no damages. (Id. at 5-6)

1 The page numbers of documents referenced in this Order correspond to the page numbers designated by this District’s Electronic Case Files (“ECF”) system. As to the second point, Judge Fox finds that Plaintiff’s Proposed Findings – signed by Attorney Colin Mulholland on August 24, 2018 – misstates the law with respect to whether Plaintiff is entitled to recover liquidated damages under both the FLSA and NYLL. (Id. at 5) Judge Fox notes that Mulholland dedicates “over five pages” to the discussion of whether

Plaintiff is entitled to duplicative liquidated damages, but that the case law cited in that discussion was rendered “obsolete” by Rana v. Islam, 887 F.3d 118 (2d Cir. 2018). (See id.; see Rana, 887 F.3d at 123 (holding that an employee who prevails on claims for unpaid wages under the FLSA and NYLL is not entitled to duplicative recovery of liquidated damages under both statutes)) Because of Mulholland’s inclusion of such “obsolete” legal arguments, Judge Fox recommends that this Court issue an order directing Mulholland to show cause why he should not be sanctioned pursuant to Fed. R. Civ. P. 11. (R&R (Dkt. No. 50) at 5-6) On March 7, 2019, Plaintiff filed objections to Judge Fox’s R&R, challenging each of Judge Fox’s recommendations. (Pltf. Obj. (Dkt. No. 51)) With respect to damages, Plaintiff notes that he submitted declarations regarding the hours he worked and the pay he

received in both his original default judgment materials – submitted to this Court in June 2018 – and in supplementary materials requested by Judge Fox. (Id. at 5-6) Plaintiff also notes that he submitted a memorandum of law – with an attached damages chart and timesheet – supporting his calculation for damages and attorneys’ fees. (Id. at 5 (citing Dkt. Nos. 48, 48-12, 48-13)) Plaintiff’s damages chart and timesheet2 had previously been submitted to this Court in June 2018, attached to a declaration from Mulholland. (Id. at 6-7 (citing Dkt. Nos. 38, 38-12, 38-13)) Plaintiff argues that these submissions provide a sufficient basis from which to compute damages

2 The timesheet submitted in response to Judge Fox’s order reflects additional costs incurred since the prior timesheet had been submitted. (Compare Mulholland Decl., Ex. M (Dkt. No. 38- 13), with Inquest Br., Ex. M (Dkt. No.

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Olivares v. 1761 Fonda Mexico Magico LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/olivares-v-1761-fonda-mexico-magico-llc-nysd-2022.