Gurung v. Malhotra
2012 U.S. Dist. LEXIS 41907
| S.D.N.Y. | 2012Background
- Gurung sued the Malhotras for federal and New York labor/human rights violations arising from employment as a domestic worker.
- Default judgment against the Malhotras was entered; the matter was referred to Magistrate Maas for an inquest on damages.
- Magistrate Maas recommended a total damages award of $1,458,335 plus costs for electronic research, no objections were filed by Malhotras.
- The district court adopted the Report’s factual and legal analyses and awarded Gurung damages.
- The order directed entry of judgment in Gurung’s favor for $1,458,335 and to close the case.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Damages under FLSA/NYLL for unpaid wages | Gurung seeks FLSA/NYLL damages including minimum wage, overtime, and spread of hours | Malhotras contest none (default) defenses; no objections filed | Gurung entitled to minimum wage, overtime, and spread of hours damages under FLSA/NYLL |
| Contract-based unpaid wages under NYLL §191 | Contract required wages at prevailing rates; seeks difference to prevailing wage | §191 does not provide unpaid wages remedy; at most timely payment | Damages recoverable under contract theory; prevailing wage calculations apply |
| Liquidated damages under FLSA and NYLL | Willful violations justify liquidated damages under both statutes | Not contested due to default; though complementary arguments exist | Entitled to liquidated damages under both FLSA and NYLL; different purposes permit dual recovery |
| Emotional distress and punitive damages | Fed. trafficking statutes support emotional distress; punitive damages warranted | Not disputed; no contrary evidence presented | Emotional distress award recommended at $500,000; punitive damages $300,000 |
| Prejudgment and attorneys’ fees | Fees and costs are recoverable as fee-shifting statutes; reasonableness required | No specific opposing argument due to default | Prejudgment interest $36,076; attorneys’ fees approved as $199,893 (Gibson Dunn) and $21,505 (Urban Justice Center); costs approved |
Key Cases Cited
- Cotton v. Slone, 4 F.3d 176 (2d Cir. 1993) (default judgment damages standard applied)
- Greyhound Exhibitgroup, Inc. v. E.L.U.L. Realty Corp., 973 F.2d 155 (2d Cir. 1992) (validation of damages methodology in default cases)
- Fisher v. Vassar Coll., 70 F.3d 1420 (2d Cir. 1995) (waiver of FLSA statute-of-limitations defense in default context)
- Reich v. S. New England Telecomm. Corp., 121 F.3d 58 (2d Cir. 1997) (liquidated damages under FLSA considered compensatory)