Pagano v. HN & Sons LLC

CourtDistrict Court, E.D. New York
DecidedAugust 28, 2025
Docket1:22-cv-04897
StatusUnknown

This text of Pagano v. HN & Sons LLC (Pagano v. HN & Sons LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pagano v. HN & Sons LLC, (E.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK ------------------------------------------------------------- x BENJAMIN PAGANO, PAIGE ACEVEDO, and MAGGIE MCNEIL, on behalf of themselves and all others similarly situated, REPORT AND RECOMMENDATION Plaintiffs, 22 Civ. 4897 (BMC) (VMS) -against-

HN & SONS LLC d/b/a Bushwick Public House, DERIHU 18 LLC a/k/a Chispa, and HOOMAN ENAYATIAN,

Defendants. ------------------------------------------------------------- x Vera M. Scanlon, United States Magistrate Judge: Before the Court is the motion of Plaintiffs Benjamin Pagano, Paige Acevedo and Maggie McNeil, on behalf of themselves and all others similarly situated (“Plaintiffs”), for an award of attorneys’ fees, see generally ECF Nos. 87-87-1, pursuant to the District Court’s September 19, 2023, Order imposing sanctions (the “Sanctions Order”), see 9/19/2023 Order, on Defendants HN & Sons LLC, doing business as Bushwick Public House (“Bushwick”); Derihu 18 LLC, also known as Chispa (“Derihu”); and Hooman Enayatian (“Mr. Enayatian” and, collectively with Bushwick and Derihu, “Defendants”). For the reasons discussed below, the Court respectfully recommends that Plaintiffs’ motion be granted in part and denied in part, and that, pursuant to the Sanctions Order, Plaintiffs be awarded $8,000.00 in attorneys’ fees and $582.90 in costs, totaling $8,582.90. I. BACKGROUND Plaintiffs, Bushwick and Mr. Enayatian filed a joint letter, in which Plaintiffs raised two issues: (1) that “Plaintiffs, through responses to third-party subpoenas from Defendants’ former Point of Sales (‘POS’) vendors, discovered eighteen (18) additional putative class members that Defendants have previously failed to disclose,” as well as “at least three (3) other names that were discovered from some of the POS vendor responses that Plaintiffs received prior,” ECF No. 70 at 1-2, and (2) that, in response to Plaintiffs’ request to Defendants for “all of their employment policies and handbooks, including a binder containing same” in both locations,

“Defendants have previously responded that no such documents existed” but, “during the subsequent depositions of Defendant David Laroda . . . and Defendant Josh Beckett . . . , both managers testified that such documents and binders did in fact exist in both locations,” id. at 2 (citation omitted). The District Court construed Plaintiffs’ portion of the joint letter as a motion for sanctions and granted it, reasoning (1) that “[i]t was not up to plaintiffs to go learn who defendants’ employees were from defendants’ vendors,” which “was defendants’ obligation,” and (2) that Defendants cannot “claim in response to written discovery requests that it has no employment policies or handbooks and then have its managers testify that it does – or, at least did.” 9/19/2023 Order. The District Court sanctioned Defendants “in an amount equal to the

reasonable attorneys’ fees and costs that plaintiffs have incurred in seeking and obtaining these documents and information from third parties,” to which the parties could stipulate or as to which Plaintiffs could move for relief, and instructed that it would “provide the jury with an adverse inference instruction at trial concerning the missing policies and manuals which have inexplicably ceased to exist.” Id. Plaintiffs subsequently moved for an award of attorneys’ fees pursuant to the Sanctions Order. See generally ECF Nos. 87-87-1. Defendants opposed the motion. See generally ECF Nos. 88-88-2. Plaintiffs replied.1 See generally ECF No. 89. The District Court referred the motion to the undersigned for a report and recommendation. II. DISCUSSION Federal Rule of Civil Procedure 37(c)(1)(A) provides that, “[i]f a party fails to provide

information or identify a witness as required by Rule 26(a) or (e), . . . the court, on motion and after giving an opportunity to be heard[,] . . . may order payment of the reasonable expenses, including attorney’s fees, caused by the failure.”2 In determining the amount of attorneys’ fees to be awarded as such a sanction, “[c]ourts employ the ‘lodestar’ method . . . , multiplying the number of hours reasonably spent by counsel on the matter by a reasonable hourly rate.” Martinez v. City of New York, 330 F.R.D. 60, 66 (E.D.N.Y. 2019) (citations omitted). The burden to “document[] the appropriate hours expended and hourly rates” rests with the party seeking the award. Id. (citation & quotations omitted). The Court addresses Plaintiffs’ request for an award of attorneys’ fees and for an award of costs each in turn.

A. Attorneys’ Fees Plaintiffs request an award of $20,088.00 in attorneys’ fees, representing 28.6 hours of work by William Li at the hourly rate of $450.00 and 21.0 hours of work by Stephen Bourtin at the hourly rate of $450.00 with a ten percent overall reduction to account for duplicative efforts and administrative work. See ECF No. 87 at 2-3; ECF No. 89 at 3-4.

1 Derihu never filed an appearance, and Bushwick and Mr. Enayatian have since defaulted. See generally ECF No 119.

2 Although the Sanctions Order does not explicitly refer to this Rule, the Court construes the portion of the Sanctions Order relating to the imposition of attorneys’ fees as an exercise of the District Court’s authority pursuant to this Rule. In opposition, Defendants raise arguments as to both the number of hours claimed and the hourly rates claimed. See generally ECF No. 88. As to the number of hours claimed, Defendants argue that “a majority of the fees requested are unrelated to the time and expense incurred to subpoena the third-party point-of-sale

vendors,” as “many of the entries concern circulation of the collective action notice, and other discovery issues, which were not included in the Court’s September 19, 2023[,] Order.” Id. at 1. Defendants propose that the Court award attorneys’ fees for, “at most[,] a combined 13.8 hours on efforts to subpoena the third-party point-of-sale provide[r]s,” consisting of 3.3 hours for work performed by William Li and 10.5 hours for work performed by Stephen Bourtin. Id. at 1-2. As to the hourly rates claimed, Defendants contend that “the hourly rate of $450.00 per hour requested by Plaintiff[s’] counsel is excessive, and improperly relies on precedent from the Southern District.” Id. at 2 (citation omitted). Defendants proposed that “[a] more appropriate hourly rate for Mr. Li is $325.00 per hour, and the hourly rate for Mr. Bourtin, who is not on Mr. Li’s website, should be $200 per hour[].” Id. (citations omitted). Overall, Defendants propose

that Plaintiffs be awarded $2,538.00 in attorneys’ fees, representing a twenty percent reduction from $3,172.50, which is Defendants’ proposed calculation of attorneys’ fees based on 3.3 hours of work performed by William Li at the hourly rate of $325.00 and 10.5 hours of work performed by Stephen Bourtin at the hourly rate of $200.00. See id. In reply, Plaintiffs respond to Defendants’ arguments as to the number of hours claimed and the hourly rates claimed. See generally ECF No. 89. As to the number of hours claimed, Plaintiffs contend that Defendants “erroneously argue[] that the Order only limits Plaintiffs’ fee application for time spent on obtaining third- party discovery from Defendants’ former point of sales . . vendors and/or credit card processors” but that the Sanctions Order “was issued in response to the parties’ September 18, 2023[,] joint letter . . . in which Plaintiffs informed the Court, inter alia, of Plaintiffs’ continued identification of additional putative class members due to Defendants’ failure to disclose them and Defendants’ continued refusal to provide key relevant wage policies.” Id. at 1 (citation omitted). Plaintiffs

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Pagano v. HN & Sons LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pagano-v-hn-sons-llc-nyed-2025.