Park v. Khims Market Inc

CourtDistrict Court, E.D. New York
DecidedAugust 19, 2025
Docket1:24-cv-07437
StatusUnknown

This text of Park v. Khims Market Inc (Park v. Khims Market Inc) 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
Park v. Khims Market Inc, (E.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK ------------------------------------------------------------X MYOUNG SU PARK, on behalf of himself and a collective of similarly situated individuals, REPORT AND Plaintiff, RECOMMENDATION 24 CV 7437 (DG) (CLP) -against-

KHIMS MARKET INC., et al.,

Defendants.

------------------------------------------------------------X POLLAK, United States Magistrate Judge: On October 24, 2024, plaintiff Myoung Su Park commenced this action, on behalf of himself and others similarly situated, against defendants Khims Market Inc, d/b/a Khim’s Millenium Market (“KMM”), The Mileu Market Inc, d/b/a Mileu Market (“MM”) (collectively, the “corporate defendants”), and Sang Kyu Khim (the “individual defendant”), alleging violations of the Fair Labor Standards Act, 29 U.S.C. §§ 201 et seq. (the “FLSA”), and New York Labor Law §§ 190 et seq., §§ 650 et seq. (the “NYLL”). (Compl.1). On November 12, 2024, plaintiff served individual defendant Sang Kyu Khim by leaving the summons and Complaint at Mr. Khim’s residence with Heung Khim, who confirmed she resided with Mr. Khim, and mailing a copy to his last known address. (ECF No. 6). Defendant Khim failed to answer or otherwise respond to the Complaint, and on December 17, 2024, plaintiff requested a Certificate of Default to be entered against individual defendant Khim. (ECF No. 7). On December 19, 2024, the Clerk entered default as to individual defendant Khim. (ECF No. 8).

1 Citations to “Compl.” refer to plaintiff’s Complaint filed October 24, 2024 (ECF No. 1). In a January 14, 2025 status report to the court, plaintiff indicated that he had been unable to serve the corporate defendants, as their business locations are permanently closed. (ECF No. 9). On February 21, 2025, plaintiff moved for default judgment against individual defendant Khim only (the “Motion”). (ECF No. 10).

On February 25, 2025, the Honorable Diane Gujarati, United States District Judge, referred the Motion for Default Judgment to the undersigned for a Report and Recommendation. (Electronic Order, dated 2/25/2025). On June 13, 2025, this Court set an Inquest Hearing for July 15, 2025, which was adjourned until July 21, 2025 upon plaintiff’s request. (ECF Nos. 13, 15). On July 18, 2025, plaintiff requested a further adjournment of the July 21, 2025 Inquest Hearing, explaining that plaintiff would be in South Korea until the end of August. (ECF No. 17). On July 18, 2025, the Court adjourned the Inquest Hearing sine die, noting that in light of plaintiff’s unavailability, the Court had reviewed the Motion and attached papers and concluded that the Inquest Hearing was not necessary. (Electronic Order, dated 7/18/2025). For the reasons set forth below, the Court respectfully recommends that the motion for

default judgment be granted, and that plaintiff Khim be awarded (1) $224,000 in damages and (2) $4,781.42 in counsel fees and costs, for a total of $228,781.42, plus (3) $27.62 per day in prejudgment interest, starting on September 5, 2023, until final judgment is entered, and (4) post- judgment interest until the judgment is paid in full. FACTUAL BACKGROUND According to the Complaint, defendants KMM and MM are domestic corporations doing business in Brooklyn, New York. (Compl. ¶¶ 6, 7). Defendant Sang Kyu Khim, who resides in New York, is alleged to be the owner of KMM and MM and exercises control over KMM and MM’s day-to-day operations, including how employees are paid. (Id. ¶¶ 11, 12, 13). Plaintiff alleges that beginning in September 10, 2022 until his employment ended on August 30, 2024, he was employed by defendants as a sushi chef at KMM, a grocery store. (Id. ¶ 5). According to plaintiff, he worked six days a week from 6:00 a.m. until 4:00 p.m. daily. (Id. ¶ 10). He alleges that he was paid $1,440 per week when working six days a week and $1,200

per week when he worked five days a week. (Id. ¶ 12). Plaintiff alleges that despite working more than sixty (60) hours a week on a regular basis, he was never paid time and a half in overtime pay for hours worked more than forty (40) in a week. (Id. ¶ 14). In addition, plaintiff alleges that from April 20, 2024 until August 30, 2024, defendants failed to pay plaintiff any wages at all. (Id. ¶ 13). Plaintiff also alleges that defendants failed to provide him with wage notices or wage statements such as pay stubs that included information as to hours worked, the applicable hourly rate, the overtime rate, and tax withholdings. (Id. ¶¶ 16, 17). In addition to alleging collective action claims on behalf of other similarly situated employees, plaintiff’s Complaint contains claims of failure to pay minimum wages, in violation

of the FLSA and NYLL (Counts One and Three), failure to pay overtime wages, in violation of the FLSA and NYLL (Counts Two and Four), claims of wage notice and wage statement violations, in violation of NYLL §§ 195(1) and (3) (Counts Five and Six), and failure to provide paid sick leave, in violation of NYLL § 196-b (Count Seven). (Id.) DISCUSSION I. Legal Standard Rule 55 of the Federal Rules of Civil Procedure sets forth a two-step process for entry of a default judgment. See Enron Oil Corp. v. Diakuhara, 10 F.3d 90, 95-96 (2d Cir. 1993). First, the Clerk of Court enters the default pursuant to Rule 55(a) by notation of the party’s default on the Clerk’s record of the case. See id.; Fed R. Civ. P. 55(a) (providing that “[w]hen a party against whom a judgment for affirmative relief is sought has failed to plead or otherwise defend, and that failure is shown by affidavit or otherwise, the clerk must enter the party’s default”). Second, after the Clerk of Court enters a default against a party, if that party fails to appear or otherwise move to set aside the default pursuant to Rule 55(c), the court may enter a default

judgment. See Fed. R. Civ. P. 55(b). The Second Circuit has cautioned that since a default judgment is an extreme remedy, it should only be entered as a last resort. See Meehan v. Snow, 652 F.2d 274, 277 (2d Cir. 1981); see also Sheet Metal, Air, Rail & Transp. Workers Loc. Union No. 127 v. Frank Torrone & Sons, Inc., No. 14 CV 2224, 2018 WL 4771897, at *4 (E.D.N.Y. Oct. 3, 2018), adopting report and recommendation, 2018 WL 6161655 (E.D.N.Y. Sept. 4, 2018). While the Second Circuit has recognized the “push on a trial court to dispose of cases that, in disregard of the rules, are not processed expeditiously [and] . . . delay and clog its calendar,” it has held that the district court must balance that interest with its responsibility to “[afford] litigants a reasonable chance to be heard.” Enron Oil Corp. v. Diakuhara, 10 F.3d at 95-96. Thus, in light of the “oft-stated

preference for resolving disputes on the merits,” default judgments are “generally disfavored,” and doubts should be resolved in favor of the defaulting party. Id. Accordingly, a plaintiff is not entitled to a default judgment as a matter of right simply because a defendant is in default. See Erwin DeMarino Trucking Co. v. Jackson, 838 F. Supp. 160, 162 (S.D.N.Y. 1993) (noting that courts must “supervise default judgments with extreme care to avoid miscarriages of justice”).

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Bluebook (online)
Park v. Khims Market Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/park-v-khims-market-inc-nyed-2025.