Rodriguez v. INTERNATIONAL COLLEGE OF BUSINESS AND TECHNOLOGY

356 F. Supp. 2d 92, 2005 U.S. Dist. LEXIS 2351, 2005 WL 387679
CourtDistrict Court, D. Puerto Rico
DecidedFebruary 17, 2005
DocketCIV. 03-223KHL)
StatusPublished
Cited by17 cases

This text of 356 F. Supp. 2d 92 (Rodriguez v. INTERNATIONAL COLLEGE OF BUSINESS AND TECHNOLOGY) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rodriguez v. INTERNATIONAL COLLEGE OF BUSINESS AND TECHNOLOGY, 356 F. Supp. 2d 92, 2005 U.S. Dist. LEXIS 2351, 2005 WL 387679 (prd 2005).

Opinion

ORDER

LAFFITTE, District Judge.

Before the Court is plaintiff William Cei-nos Rodriguez’s (“Ceinos”) motion for attorneys’ fees (Docket No. 18) and defendant International College of Business and Technology, Inc.’s (“International College”) motion to amend judgment (Docket No. 19) pursuant to Rule 59 of the Federal Rules of Civil Procedure. Fed.R.Civ.P. 59. In support of their motion to amend judgment, International College argues that (1) the statutory penalty period should terminate on the date that the complaint was filed or alternatively, on the date the complaint was answered, (2) the $80 penalty should be reduced, and (3) plaintiff should not be granted attorneys’ fees because he is not a prevailing party. Plaintiff has not objected to defendant’s motion to amend judgment.

For the reasons set forth below, defendant International College’s motion to amend judgment is granted in part and denied in part, and plaintiff Ceinos’ motion for attorneys’ fees is granted in part.

BACKGROUND

This case was tried before the Court on January '4, 2005. On January 12, 2005, after considering the evidence and the parties’ briefs, the Court entered an opinion and order (Docket No. 16) finding International College liable to plaintiff William Ceinos Rodriguez for violations of the Consolidated Omnibus Budget Reconciliation Act’s (COBRA) notice provisions. See 29 U.S.C. § 1166(a). The Court awarded plaintiff Ceinos $80 per day in statutory damages for the five hundred and five (505) days that International College was in violation of COBRA, for a total of $40,400.00 in statutory penalties. (See Docket No. 16.) The Court also awarded plaintiff Ceinos reasonable attorneys’ fees and costs. The Court dismissed plaintiff Carmen Rodríguez Capblanc’s claims in their entirety.

DISCUSSION

I. Defendant’s Motion to Amend Judgment

First, defendant International College contends that the penalty period should end on the date of filing the complaint, or in the alternative, on the date defendant answered the complaint.. The Court rejects these arguments. Statutory penalties for violations of COBRA notice requirements are calculated from the last date on which the plan administrator could have sent notice until the end of the continuation coverage period. See e.g., Lloynd v. Hanover Foods Corp., 72 *95 F.Supp.2d 469 (D.De.1999). The qualifying event, which triggers the notice obligation, should be calculated from the date of the occurrence of a status change which makes inevitable the loss of such coverage. Gaskell v. Harvard Coop. Soc’y, 3 F.3d 495, 499 (1st Cir.1993).

In the present case, the qualifying event (plaintiffs termination of employment) occurred on June 18, 2003. From this date, International College had forty-four (44) days to notify Ceinos of his right to continue coverage under the group health plan. See Gonzalez Villanueva v. Lambert, 339 F.Supp.2d 351, 358-59 (D.P.R.2004) (holding that when the employer and the plan administrator are the same entity, the employer has forty-four (44) days from the date of the qualifying event to notify qualified beneficiaries of their rights under COBRA). Defendant International College never complied with its obligation to provide proper notification of plaintiffs rights under COBRA, as set forth in 29 U.S.C. § 1166(a). Therefore, the statutory penalty period began on August 2, 2003, (the forty-fifth day after the qualifying event) and ended on December 18, 2004, (eighteen months after the qualifying event, which constitutes the maximum period of the continuation coverage allowed under COBRA). This results in a total of five hundred and five (505) days that International College was in breach of its COBRA notification obligation.

Second, defendant asserts that the $80 penalty should be reduced. Section 502(c) of ERISA, 29 U.S.C. § 1132(c), provides that if a group health plan administrator fails to provide the requisite COBRA notices, a court has the discretion to find the administrator personally liable to the participant for up to $110 per day from the date of failure until the date of correction. 29 U.S.C. § 1132(c)(1) (The maximum civil penalty was increased from $100 to $110. See 29 C.F.R. § 2575.502c-l). This penalty provision is meant to induce compliance with statutory notification requirements and to “be in the nature of punitive damages, designed more for the purpose of punishing violations than compensating the participant or beneficiary.” Scott v. Suncoast Beverage Sales, Ltd., 295 F.3d 1223, 1232 (11th Cir.2002). In the case at hand, the Court found that International College’s failure to provide proper COBRA notification prejudiced plaintiff. Moreover, the Court found that $80 per day was an appropriate penalty in view of testimony by defendant’s own witnesses which demonstrated that International College is in gross violation of COBRA in that it routinely does not provide COBRA notifications to employees and/or does not retain COBRA records.

After reviewing defendant’s arguments, the Court maintains that the $80 per day penalty was appropriate and fully within the Court’s discretion. However, as plaintiff has not proffered any objection to defendant’s request to decrease the penalty, the Court hereby reduces the statutory penalty to $65 per day for the five hundred and five (505) days that International College was in breach of its COBRA notification obligation, for a total statutory penalty of $32,825.00.

International College’s final argument is that plaintiff Ceinos is not a prevailing party, and thus is not entitled to attorneys’ fees. Specifically, International College reasons that Ceinos did not prevail because he initially sought an award in excess of one million dollars in the complaint, but was awarded a judgment of only $40,000.00. This argument is futile. A prevailing party is a party who “succeed[s] on any significant issue ... which achieves some of the benefits plaintiffs sought in bringing suit.” Maine School Admin. Dist. No. 35 v. Mr. R., 321 F.3d 9, 14 (1st Cir.2003) (quoting Hensley v. Eck- *96 erhart, 461 U.S. 424, 433, 103 S.Ct. 1933, 76 L.Ed.2d 40).

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

Related

Walsh v. Alpha Telekom LLC
D. Puerto Rico, 2022
Cofino-Hernandez v. Puerto Rico
230 F. Supp. 3d 69 (D. Puerto Rico, 2017)
Fontanillas-Lopez v. Morel Bauza Cartagena & Dapena LLC
59 F. Supp. 3d 420 (D. Puerto Rico, 2014)
Rodriguez-Garcia v. Municipality of Caguas
787 F. Supp. 2d 135 (D. Puerto Rico, 2011)
Santiago v. MUNICIPALITY OF ADJUNTAS
741 F. Supp. 2d 364 (D. Puerto Rico, 2010)
Rivera-Quintana v. Commissioner of Social Security
692 F. Supp. 2d 223 (D. Puerto Rico, 2010)
Guillemard-Ginorio v. Contreras
603 F. Supp. 2d 301 (D. Puerto Rico, 2009)
BATISTA-RIVERA v. Gonzalez
525 F. Supp. 2d 255 (D. Puerto Rico, 2007)
Michel-Ramos v. Arroyo-Santiago
493 F. Supp. 2d 249 (D. Puerto Rico, 2007)
Zayas v. Puerto Rico
451 F. Supp. 2d 310 (D. Puerto Rico, 2006)
Rosario-Urdaz v. Rivera-Hernandez
451 F. Supp. 2d 305 (D. Puerto Rico, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
356 F. Supp. 2d 92, 2005 U.S. Dist. LEXIS 2351, 2005 WL 387679, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rodriguez-v-international-college-of-business-and-technology-prd-2005.