Li v. Kai Xiang Dong
1:15-cv-07554
S.D.N.Y.Mar 31, 2017Background
- Plaintiffs are former employees of Iron Sushi who sued defendants (restaurant entities and two individuals, Kai Xiang Dong and Ling Lin) for wage-and-hour violations under the FLSA and New York Labor Law (NYLL).
- Plaintiffs filed an amended complaint and moved for default judgment after defendants failed to answer or appear; the Clerk entered default and defendants did not object to the magistrate judge’s Report and Recommendation.
- Magistrate Judge Peck recommended default judgment and detailed calculations for unpaid minimum wages, overtime, spread-of-hours pay, reimbursement for trade tools, statutory WTPA damages, liquidated damages, prejudgment interest, and attorneys’ fees and costs.
- The district court adopted the Report in full, holding defendants jointly and severally liable and awarding specific amounts to each plaintiff plus continuing prejudgment interest and attorneys’ fees and costs.
- The court declined to award double liquidated damages under both FLSA and NYLL and applied single (100%) liquidated damages for wage claims; it also denied any tip credit because statutory notice requirements were not met.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether default judgment is appropriate | Default judgment warranted because defendants failed to respond | No response / no defense raised | Default judgment granted; allegations accepted as true under Rule 55 |
| Whether individuals are joint employers | Individual owners exercised control and are liable | Not argued (no appearance) | Individuals (Dong, Lin) found to be employers and jointly/severally liable |
| Proper measure and period of wage damages (FLSA/NYLL) | Seek unpaid minimum, overtime, spread pay covering statutory periods (3 yrs FLSA; 6 yrs NYLL) | No opposition presented | Court adopted magistrate’s calculations; FLSA limited to 3 years, NYLL to full employment period |
| Whether liquidated damages may be awarded under both FLSA and NYLL | Seek double recovery under both statutes | No opposition presented | Single liquidated damages awarded equal to 100% of wage claims (no double recovery) |
| Whether plaintiffs are entitled to WTPA statutory damages | Plaintiffs received no wage statements/notice; seek maximum statutory damages | No opposition presented | Four plaintiffs awarded $10,000 each; one plaintiff $5,000 (employment ended earlier) |
| Whether attorneys’ fees and costs are reasonable | Requested fees; counsel’s rates and hours submitted | No opposition presented | Fees awarded $23,972.55 after reducing hourly rate and trimming hours; $400 costs awarded |
Key Cases Cited
- Finkel v. Romanowicz, 577 F.3d 79 (2d Cir. 2009) (well-pleaded allegations in complaint are taken as true on default)
- Fustok v. ContiCommodity Servs., Inc., 873 F.2d 38 (2d Cir. 1989) (district court discretion whether to hold a damages hearing under Rule 55)
- Lenard v. Design Studio, 889 F. Supp. 2d 518 (S.D.N.Y. 2012) (procedural guidance on default judgment and damages assessment)
- Edwards v. Fischer, 414 F. Supp. 2d 342 (S.D.N.Y. 2006) (standard of review for magistrate judge reports where objections are not properly raised)