Ayala v. Quinns 1776, LLC
1:19-cv-00888
E.D. Va.Mar 3, 2020Background:
- Plaintiff Elias Alaya worked at Quinn’s on the Corner in Arlington from early 2017 to January 13, 2019 as a waiters’ assistant/busboy/janitor.
- Defendant Quinn’s 1776, LLC owns the restaurant; Reese Gardner (owner/manager) and Jody Hessler (operations manager/supervisor) exercised supervisory and hiring/firing control.
- Plaintiff alleged FLSA overtime and Virginia/federal minimum wage violations; minimum wage claims were later abandoned for lack of records.
- Defendants were served but failed to file answers; the clerk entered defaults as to all defendants and plaintiff moved for default judgment.
- After litigation contact, a consultant produced 2018 timesheets (no paystubs and no 2017 records); plaintiff extrapolated 2017 hours from 2018 data to calculate unpaid overtime.
- Magistrate Judge recommended granting default judgment, awarding $5,724 in FLSA unpaid overtime plus liquidated damages and $21,336.86 in attorney’s fees (plus $672.46 in costs), for a total award of $22,009.32.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Employer liability under the FLSA | Quinn’s, Gardner, and Hessler each qualify as "employers" because they exercised operational and economic control over Alaya | No timely defense; no substantive dispute pleaded | Court found all three defendants were employers and liable for unpaid overtime |
| Proper damages calculation for overtime | Use 2018 timesheets, extrapolate 2017 hours, apply one‑half overtime premium to unpaid overtime; unpaid overtime $2,862; liquidated damages double to $5,724 | Failed to produce full payroll/records and made no good‑faith showing to rebut liquidated damages | Court accepted plaintiff’s method as the best evidence available and awarded $5,724 |
| Minimum wage claims | Initially pleaded but abandoned due to lack of records | N/A (no response) | Plaintiff abandoned minimum‑wage claims; no award on those claims |
| Attorney’s fees and costs | Lodestar ~$26,671 reduced 20% to $21,336.86; plus costs $672.46 | No timely objection | Court found the reduced lodestar reasonable under Hensley/Barber factors and awarded fees and costs totaling $22,009.32; recommended default judgment be entered |
Key Cases Cited
- Ryan v. Homecomings Fin. Network, 253 F.3d 778 (4th Cir. 2001) (default admits well‑pleaded factual allegations)
- Nishimatsu Constr. Co. v. Houston Nat'l Bank, 515 F.2d 1200 (5th Cir. 1975) (foundational default‑judgment principle)
- Brinkley‑Obu v. Hughes Training, Inc., 36 F.3d 336 (4th Cir. 1994) (employer burden to show good faith; recordkeeping obligations under FLSA)
- Mayhew v. Wells, 125 F.3d 216 (4th Cir. 1997) (liquidated damages are presumptive in FLSA cases)
- Hensley v. Eckerhart, 461 U.S. 424 (U.S. 1983) (lodestar method for attorney’s fees)
- Barber v. Kimbrell's, Inc., 577 F.2d 216 (4th Cir. 1978) (factors for reasonableness of fee awards)
- Cowan v. Prudential Ins. Co. of Am., 935 F.2d 522 (2d Cir. 1991) (fees should not be reduced solely because damages are small)
- Quaratino v. Tiffany & Co., 166 F.3d 422 (2d Cir. 1999) (rationale for fee‑shifting where monetary recovery is modest)