Tuck v. Shroyer

CourtDistrict Court, D. New Hampshire
DecidedJuly 24, 2024
Docket1:22-cv-00152
StatusUnknown

This text of Tuck v. Shroyer (Tuck v. Shroyer) is published on Counsel Stack Legal Research, covering District Court, D. New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tuck v. Shroyer, (D.N.H. 2024).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW HAMPSHIRE

David Tuck

v. Civil No. 22-cv-152-LM Opinion No. 2024 DNH 061 P Gene Shroyer, et al.

O R D E R After a trial in this court, the jury awarded plaintiff David Tuck all of his unpaid wages, as well as liquidated damages, against defendant Gene Shroyer and three corporate defendants: US Construction Corporation, US Specialty Corporation, and US Shared Services Corporation (together, the “Corporations”). Tuck originally brought two claims under the Fair Labor Standards Act (“FLSA”), one claim under the New Hampshire wage law, one claim for breach of contract, and one claim for quantum meruit. The case proceeded to a jury trial on the state law claims only, and the jury returned a verdict in Tuck’s favor on the state wage law claim.1 Tuck now moves for an award of attorney fees and costs in the amount of $227,783.88, pursuant to Federal Rule of Civil Procedure 54(d) and RSA 275:53, III. Doc. no. 77. Defendants object, arguing that Tuck is not entitled to a fee award and disputing the amount of fees and costs Tuck requests. For the following reasons, the court grants Tuck’s motion for attorney fees and costs, but in a reduced amount.

1 Given the verdict in Tuck’s favor on this claim, the jury did not return verdicts on the breach of contract claim or the quantum meruit claim. JURISDICTION Although neither party raises the issue of subject-matter jurisdiction, the court has an independent obligation to address it. ST Eng’g Marine, Ltd. v. Thompson, Maccoll & Bass, LLC, P.A., 88 F.4th 27, 32 (1st Cir. 2023). The court had

federal question jurisdiction over Tuck’s FLSA claims, see 28 U.S.C. § 1331, and supplemental jurisdiction over his state law claims, see 28 U.S.C. § 1367(a). Tuck voluntarily dismissed the federal claims on the eve of trial. See doc. no. 57. Rather than dismiss the state law claims pursuant to 28 U.S.C. § 1367(c), after the parties had expended substantial resources in preparing for trial, the court elected to retain jurisdiction over Tuck’s state law claims. See 28 U.S.C. § 1367(c) (providing that the

court “may” decline to exercise supplemental jurisdiction when all claims over which it had original jurisdiction have been dismissed); Camelio v. Am. Fed’n, 137 F.3d 666, 672 (1st Cir. 1998) (explaining that, where all federal claims have been dismissed, a court must “engag[e] in a pragmatic and case-specific evaluation” to determine whether to retain supplemental jurisdiction, considering factors such as “the interests of fairness, judicial economy, [and] convenience”). The court likewise exercises supplemental or ancillary jurisdiction over this

post-trial fee dispute because the issues are so closely related to the underlying case that the dispute can be considered part of the same case or controversy. Cf. Law Offs. of David Efron v. Matthews & Fullmer L. Firm, 782 F.3d 46, 52 (1st Cir. 2015) (explaining, in a case involving only state law claims, that federal courts may exercise “authority under the doctrine of ancillary jurisdiction to resolve fee disputes between parties and their attorneys that arise out of the underlying litigation”); see also Knauss v. Atrium Med. Corp., --- F. Supp. 3d ---, No. 18-cv- 1187-LM, 2023 WL 6216608, at *2 (D.N.H. Sept. 25, 2023) (noting, in a case

involving only state law claims and non-diverse parties, that “[g]enerally, . . . the court only has ancillary jurisdiction to fix the amount of costs and attorney fees to be paid from one party in the case to another[]”); Wright & Miller, 13 Fed. Prac. & Proc. § 3523 (3d ed. Apr. 2023 update) (“Today, the terms ‘ancillary,’ ‘pendent,’ and ‘supplemental’ are all used, essentially interchangeably.”).

BACKGROUND Tuck filed this suit in May 2022, seeking damages for unpaid wages from the Corporations and from Shroyer, the Chief Executive Officer of the Corporations. Tuck alleged that defendants failed to pay him his salary as the Chief Financial Officer (“CFO”) of the Corporations. After the court granted partial summary judgment for defendants—limiting Tuck’s available damages under the FLSA to the

federal minimum wage—Tuck abandoned his FLSA claims on the eve of trial. Tuck’s three state law claims proceeded to a jury trial in January 2024. On January 26, 2024, the jury returned a verdict in Tuck’s favor. The jury indicated on a special verdict form that defendants owed Tuck $169,278.72 in unpaid wages for violating the New Hampshire wage law. The jury further found that the defendants willfully and without good cause violated the wage law, which

entitled Tuck to a liquidated damages award equal to his unpaid wages under RSA 275:44, IV. Additionally, because the parties stipulated that Shroyer acted on behalf of the Corporations and the jury found the violation was willful, Shroyer is personally liable for the judgment. See RSA 275:42, I, V. Attorneys Robert Berluti and Michael Bednarz, partners at the law firm

Berluti McLaughlin & Kutchin LLP, represented Tuck. Throughout the pendency of this case, a parallel lawsuit in Georgia state court regarding the parties’ ownership interest in the Corporations’ holding company has been ongoing. Berluti and Bednarz, working with local counsel in Georgia, also represent Tuck in that litigation. After the jury returned a verdict in Tuck’s favor in the instant case, Tuck moved for attorney fees. Defendants object on numerous grounds. The court

requested supplemental briefing from the parties explaining (1) the extent to which Tuck sought fees for the litigation in Georgia, and why such a request would be reasonable; and (2) the extent to which hours billed for work on the FLSA claim could be separated from hours worked on the New Hampshire wage law claim. Both parties filed supplemental briefs.

DISCUSSION I. Tuck’s Entitlement to Attorney Fees and Costs Having prevailed at trial, Tuck now seeks attorney fees. Under New Hampshire law, a request for attorney fees “must be grounded upon statutory authorization, a court rule, an agreement between the parties, or an established exception to the rule that each party is responsible for paying his or her own counsel

fees.” In the Matter of Hampers & Hampers, 154 N.H. 275, 289 (2006) (quotation omitted). Here, Tuck contends that attorney fees should be awarded pursuant to the New Hampshire wage law. See RSA 275:53, III. Under that statute, when a plaintiff obtains a judgment in his favor, a court may “allow costs of the action, and

reasonable attorney’s fees, to be paid by the defendant.” Id. The New Hampshire Supreme Court has held that, when a plaintiff succeeds on a wage law claim, the trial court “should exercise its statutory discretion by awarding reasonable counsel fees, unless the court further finds particular facts that would render such an award inequitable.” Ives v. Manchester Subaru, Inc., 126 N.H. 796, 804 (1985). New Hampshire courts interpret the wage law, “and the attorney’s fees provision in particular, to effectuate the [wage law’s] broad purpose of protecting employees.”

Demers Agency v. Widney, 155 N.H. 658, 664 (2007).

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Tuck v. Shroyer, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tuck-v-shroyer-nhd-2024.