Roberto Vasconcelo v. Miami Auto Max, Inc.

981 F.3d 934
CourtCourt of Appeals for the Eleventh Circuit
DecidedNovember 25, 2020
Docket19-10679
StatusPublished
Cited by105 cases

This text of 981 F.3d 934 (Roberto Vasconcelo v. Miami Auto Max, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roberto Vasconcelo v. Miami Auto Max, Inc., 981 F.3d 934 (11th Cir. 2020).

Opinion

USCA11 Case: 19-10679 Date Filed: 11/25/2020 Page: 1 of 19

[PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT ________________________

No. 19-10679 ________________________

D.C. Docket No. 1:17-cv-21765-RNS

ROBERTO VASCONCELO,

Plaintiff-Appellant, versus

MIAMI AUTO MAX, INC., KENNYA QUESADA,

Defendants-Appellees.

________________________

Appeal from the United States District Court for the Northern District of Georgia _______________________

(November 25, 2020)

Before WILLIAM PRYOR, Chief Judge, HULL and MARCUS, Circuit Judges.

WILLIAM PRYOR, Chief Judge:

Roberto Vasconcelo sued his employer, Miami Auto Max, for violating the

Fair Labor Standards Act and sought over $12,000 in unpaid wages and liquidated

damages. He refused an offer of judgment for $3,500 and went to trial, where he USCA11 Case: 19-10679 Date Filed: 11/25/2020 Page: 2 of 19

won a verdict of only $97.20 plus an equal amount in liquidated damages. As the

prevailing party, he then requested about $60,000 in attorney’s fees and costs. But

the district court awarded him only 37 percent of his requested attorney’s fees and

taxed against him the costs incurred by the parties after the offer of judgment.

Vasconcelo appeals both the final judgment and the order awarding fees and taxing

costs. But his appeal of the final judgment is untimely, and his appeal of the order

awarding attorney’s fees and taxing costs has no merit. We dismiss in part and

affirm in part.

I. BACKGROUND

Vasconcelo worked as a sales associate for Miami Auto Max from

November 2016 until July 2017. Miami Auto Max paid its sales associates a “draw

against commission”; associates earned commissions on the cars they sold and

were paid a weekly draw against their commissions of an amount equal to the

minimum wage multiplied by their number of hours worked. To the extent a sales

associate’s draw exceeded his earned commissions, the difference was carried

forward in perpetuity and applied against future commissions. Vasconcelo

struggled to sell enough cars to offset the draws against his commissions, and his

total draws exceeded his commissions by $2,739.21 after his last month on the job.

On May 12, 2017, Vasconcelo sued Miami Auto Max and its owner, Kennya

Quesada, to recover damages for unpaid wages under the Fair Labor Standards

2 USCA11 Case: 19-10679 Date Filed: 11/25/2020 Page: 3 of 19

Act. He alleged that his weekly draws were not wages at all, but a debt owed to

Miami Auto Max. He also alleged that he was required to work off the clock and

not paid a minimum wage for those hours, that Miami Auto Max took unwarranted

deductions from his time logged, and that it did not pay him on time. Based on the

theory that none of his weekly draws counted as minimum-wage payments, he

estimated that he was owed $6,397.65 in unpaid wages plus an equal amount in

liquidated damages under the Fair Labor Standards Act, for a total of $12,795.30.

On December 5, 2017, Miami Auto Max made Vasconcelo an offer of

judgment under Federal Rule of Civil Procedure 68. It offered $3,500 “inclusive of

liquidated damages, plus a reasonable amount of attorney[’s] fees and costs

incurred to date.” The offer specified that “any resulting judgment shall [not] be

construed as an admission by Defendants of any liability in this action, or that

Plaintiff has suffered any damage.” Vasconcelo did not accept the offer.

The case proceeded to a two-day jury trial. Vasconcelo argued that Miami

Auto Max’s entire “draw against commission” plan violated the Fair Labor

Standards Act. He also presented testimony that his manager twice failed to adjust

his time cards to reflect that he had been working since 9:00 a.m. after he forgot to

punch in until around 3:00 p.m., which meant that he was not paid for 12 hours of

work. The jury found that Miami Auto Max had failed to pay Vasconcelo a

minimum wage for all hours worked and awarded him $97.20 in damages, exactly

3 USCA11 Case: 19-10679 Date Filed: 11/25/2020 Page: 4 of 19

12 hours of minimum-wage payments. The district court entered judgment in favor

of Vasconcelo for $97.20.

After trial, Vasconcelo moved to amend the judgment to include an

additional $97.20 in liquidated damages under the Fair Labor Standards Act and a

reservation of jurisdiction for the district court to enter an award of fees and costs

as required under the Act. He also moved for judgment as a matter of law on one

alleged violation of the Act, and he moved alternatively for a new trial based on

improper jury instructions.

The district court denied Vasconcelo’s motion for judgment as a matter of

law or a new trial, but it granted in part his motion to amend the judgment. It

vacated the final judgment, reserved jurisdiction over the issue of attorney’s fees,

and agreed that the new final judgment should include an award of $97.20 in

liquidated damages. The district court made clear that it was not entering a new

final judgment, but that it would do so after the issue of fees and costs had been

resolved.

Meanwhile, Miami Auto Max moved to tax its $1,340 in post-offer costs

against Vasconcelo under Rule 68. And Vasconcelo moved to tax all $3,951.29 of

his costs against Miami Auto Max, as well as for $55,990 in attorney’s fees, both

as provided in the Fair Labor Standards Act. The district court referred the motions

for fees and costs to a magistrate judge.

4 USCA11 Case: 19-10679 Date Filed: 11/25/2020 Page: 5 of 19

The magistrate judge recommended taxing Miami Auto Max’s post-offer

costs against Vasconcelo under Rule 68. He reviewed Vasconcelo’s request for

attorney’s fees line by line and recommended excluding roughly 40 hours of work

from the lodestar calculation. And he recommended further reducing Vasconcelo’s

fee request by 70 percent based on his limited success at trial. The parties filed a

flurry of objections and responses, and the district court announced it would enter a

final judgment on the merits while the parties continued to litigate attorney’s fees

and costs.

On October 30, 2018, the district court entered a final judgment for $194.40

in damages. On January 22, 2019, it adopted the magistrate judge’s

recommendations in full. It explained that the magistrate judge’s lodestar

calculation was no longer correct in the light of a later-revealed scrivener’s error,

but it corrected the error and adopted the originally recommended $13,083 fee

award as a 63 percent (instead of 70 percent) reduction to the lodestar. And it

agreed that Miami Auto Max’s post-offer costs should be taxed against Vasconcelo

under Rule 68. On February 21, 2019, Vasconcelo appealed both the final

judgment and the order awarding fees and costs.

II. STANDARD OF REVIEW

We review for abuse of discretion an award of attorney’s fees under the Fair

Labor Standards Act. Kreager v. Solomon & Flanagan, P.A., 775 F.2d 1541, 1543

5 USCA11 Case: 19-10679 Date Filed: 11/25/2020 Page: 6 of 19

(11th Cir. 1985). We review an interpretation of Rule 68 de novo, but we review

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981 F.3d 934, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roberto-vasconcelo-v-miami-auto-max-inc-ca11-2020.