Upon de novo review of Chief Magistrate Judge Paul W. Grimm’s May 8, 2010 Report and Recommendation, to which no objections have been filed, it is, this 25th day of May 2010, ORDERED that:
1. Judge Grimm’s Report and Recommendation (Paper No. 10) BE, and HEREBY IS, ADOPTED AS AN ORDER OF THE COURT;
2. Monge’s motions for default judgment (Paper Nos. 7 and 8) BE, and HEREBY ARE, GRANTED;
8. JUDGMENT BE ENTERED for Monge in the following amounts:
a. $2,400.00 in unpaid regular wages;
b. $94,080.00 in unpaid overtime wages;
c. $4,160.00 in attorney fees; and
d. $440.00 in costs.
4. The Clerk of the Court shall send copies of this Order to the parties.
REPORT AND RECOMMENDATION
This Report and Recommendation addresses Plaintiff Elsa Olimpia Monge’s Motions for Default Judgment as to Defendants Portofíno Ristorante and Atae Zamini. 1 Paper Nos. 7 & 8. On March 11, 2010, in accordance with 28 U.S.C. § 636 and Local Rules 301 and 302, Judge Quarles referred this case to me to review Plaintiffs Motions and to make recommendations regarding damages. Paper No. 9. I find that a hearing is unnecessary in this case. See Fed.R.Civ.P. 55(b)(2); Local Rule 105.6. For the reasons stated herein, I recommend that Plaintiffs Motions for Default Judgment be GRANTED and that damages be AWARDED, as set forth herein.
I. Factual and Procedural History
Defendant Zamini is the “sole proprietor or corporate officer and/or manager of Portofíno Ristorante with executive authority.” Compl. ¶ 6, Paper No. 1. Defendants hired Plaintiff on July 2, 2007 to perform cooking, cleaning, and other similar services at Defendants’ restaurant, Portofíno Ristorante. Compl. ¶¶ 8-9, Paper No. 1; Monge Aff. ¶¶ 2-3, Paper Nos. 7-3 & 8-3. 2
On November 23, 2009, Plaintiff
3
filed a complaint against Defendants, alleging that Defendants failed to pay Plaintiff overtime and other wages in violation of the Fair Labor Standards Act, 29 U.S.C. §§ 201-219 (1998 & Supp. 2007) (“FLSA”); the Maryland Wage and Hour Law, Md. Code Ann., Lab. & Empl. §§ 3-401-3-431 (2008) (“MWHL”); and/or the Maryland Wage Payment Collection Law, Lab. & Empl. §§ 3-501-3-509 (“MWPCL”). Compl. ¶¶ 17, 33, 40,
&
45. According to
The Clerk of Court issued a Summons to Defendants on November 24, 2009. Paper No. 2. The Summons and Complaint were served on Atae Zamini on December 16, 2009, by leaving copies with Karim Zamini, his father, at Defendant Zamini’s place of abode. Paper No. 3-1. Because Portofino Ristorante had “closed,” the Summons and Complaint were served on Portofino Ristorante on December 16, 2009, by leaving copies with Karim Zamini at Defendant Zamini’s place of abode. Paper No. 3-2. Defendants did not respond.
Plaintiff filed Motions for Entry of Default as to Defendants Portofino Ristorante and Zamini on January 20, 2010. Paper Nos. 4 & 5. The Clerk entered an Order of Default as to both Defendants on January 27, 2010. Paper No. 6.
Plaintiff filed Motions for Default Judgment as to both Defendants on March 10, 2010. Plaintiffs Motions do not state an amount of damages, and Plaintiff failed to file a supporting memorandum. Nonetheless, Plaintiffs affidavits and proposed Order for Default Judgment state that Plaintiff is “owed $101,460.00 ... for overtime wages and the work [she] did on behalf of Defendants and was not compensated for,” as well as attorney’s fees, Monge Aff. ¶¶ 10-11, or put another way, “the sum of $109,159.20 which is inclusive of full compensation to Plaintiff under the FLSA, MWHL, and MWPCL, including FLSA mandated liquidated damages and MWPCL treble damages, costs of these proceedings, and reasonable attorneys’ fees.” Pl.’s Aff. ¶ 5; see proposed Order, Paper Nos. 7-4 & 8-4 (same). Specifically, by Plaintiffs calculations, for unpaid overtime wages, Defendants owe her liquidated damages of $94,080.00, which represents a doubling of overtime payments at a rate of $15.00 per hour (that is, time and a half, with a base pay of $10.00 per hour) for 28 hours of overtime per week for the 112 weeks of her employment from July 2, 2007 through August 28, 2009. Monge Aff. ¶¶ 4-5 & 7. Further, she alleges that Defendants owe her treble damages under the MWPCL for the three weeks in August 2009 in which she received no pay, although she worked 120 regular hours at $10.00 per hour and 84 overtime hours at $15.00 per hour, and therefore should have received $2,460.00. Monge Aff. ¶¶ 8-9. Trebled, the damages for hours worked during those three weeks total $7,380.00. Monge Aff. ¶ 9. Of import, Plaintiff includes her unpaid overtime wages for the last three weeks in both of her calculations, doubling them in one instance and trebling them in the other. Monge Aff. ¶¶ 4-5, 7, & 9. Plaintiffs counsel identifies court costs and fees totaling $440, plus attorney’s fees in the amount of $7,259.20 for 20.8 hours at a rate of $349.00 per hour. Aff. of Counsel Fees ¶¶ 16-17.
II. Discussion
A. Default Judgment
Rule 55(b) of the Federal Rules of Civil Procedure governs default judgments. Rule 55(b)(1) provides that the clerk may enter a default judgment if the
If the sum is not certain or ascertainable through computation, Rule 55(b)(2) provides:
[T]he party must apply to the court for a default judgment.... The court may conduct hearings or make referrals— preserving any federal statutory right to a jury trial — -when, to enter or effectuate judgment, it needs to:
(A) conduct an accounting;
(B) determine the amount of damages;
(C) establish the truth of any allegation by evidence; or
(D) investigate any other matter.
As the Court noted in
Disney Enters. v. Delane,
The United States Court of Appeals for the Fourth Circuit has a “strong policy that cases be decided on the merits.” United States v. Shaffer Equip. Co.,11 F.3d 450 , 453 (4th Cir.1993). However, default judgment is available when the “adversary process has been halted because of an essentially unresponsive party.” SEC v. Lawbaugh,359 F.Supp.2d 418 , 421 (D.Md.2005).
As noted, Defendants received the Complaint on December 16, 2009, but did not respond.
4
Thus, all of Plaintiffs allegations — other than those pertaining to damages, as discussed
infra
—are deemed admitted. Fed.R.Civ.P. 8(b)(6). Plaintiff moved for an entry of default on January 27, 2010, and a default judgment on March 10, 2010, and Defendants still did not respond. It is within the court’s discretion to grant default judgment when a defendant does not respond or defend its case.
See Park Corp. v. Lexington Ins. Co.,
B. Damages
An allegation “relating to the amount of damages” is not deemed admitted based on a defendant’s failure to deny in a required responsive pleading. Fed.R.Civ.P. 8(b)(6);
see Trs. of the Elec. Welfare Trs. Fund v. MH Passa Elec. Contracting, Inc.,
No. DKC-08-2805,
Therefore, on default judgment, the Court may only award damages without a hearing if the record supports the damages requested.
See, e.g., Pentech,
Here, Plaintiff seeks compensation for hours she worked for which Defendants did not pay here. The FLSA provides that, for any hours worked in excess of forty hours per week, an employee shall “receive[] compensation for his employment ... at a rate not less than one and one-half times the regular rate at which he is employed.” 29 U.S.C. § 207. Similarly, Lab. & Empl. § 3-415(a) provides that “each employer shall pay an overtime wage of at least 1.5 times the usual hourly wage,” and § 3-420(a) provides that overtime wages shall be computed “on the basis of each hour over 40 hours that an employee works during 1 workweek.” Further, under the federal law,
Any employer who violates the provisions of ... section 207 of this title shall be liable to the employee ... affected in the amount of ... their unpaid overtime compensation, ... and in an additional equal amount as liquidated damages.... The court in such action shall, in addition to any judgment awarded to the plaintiff or plaintiffs, allow a reasonable attorney’s fee to be paid by the defendant, and costs of the action.
With regard to the payment of regular wages, the MWPCL provides than an employer “shall pay each employee at least once in every 2 weeks or twice in each month,” Lab. & Empl. § 3-502(a)(1)(ii), and that an employer shall notify an employee, at the time of hire, of his or her rate of pay; shall not decrease the wage without advance notification equivalent to the length of a pay period; and shall pay the employee all wages due upon termination, id. § 3-505(a). The employee has a cause of action against the employer under § 3-507.1(a), and § 3-507.1(b) provides that if “a court finds that an employer withheld the wage of an employee in violation of this subtitle and not as a result of a bona fide dispute, the court may award the employee an amount not exceeding 3 times the wage, and reasonable counsel fees and other costs.” Both Maryland and federal law require that employers keep records of employees’ wages and hours. 29 U.S.C. § 211(c); Lab. & Empl. § 3-424.
It is true that, pursuant to Fed. R.Civ.P. 54(c), “[a] default judgment must not differ in kind from, or exceed in amount, what is demanded in the pleadings.” Federal Practice and Procedure § 2663 explained the “theory of this provision”:
[T]he defending party should be able to decide on the basis of the relief requested in the original pleading whether to expend the time, effort, and money necessary to defend the action. It would be fundamentally unfair to have the complaint lead defendant to believe that only a certain type and dimension of relief was being sought and then, should defendant attempt to limit the scope and size of the potential judgment by not appearing or otherwise defaulting, allow the court to give a different type of relief or a larger damage award.
10 Wright & Miller, Fed. Prac. & Proc. Civ. § 2663 (3d ed. 1998) (footnote omitted).
Interpretation of Rule 54(c) has “led to a dizzying array of judicial decisions addressing the precise meaning of the requirement that a default judgment may not ‘exceed in amount that prayed for in the demand for judgment.’ ”
Lopez v. NTI, LLC,
No. DKC 2008-1579,
When a complaint demands a specific amount of damages, courts have generally held that a default judgment cannot award additional damages. See, e.g., Compton v. Alton Steamship Co.,608 F.2d 96 , 104 (4th Cir.1979); Producers Equip. Sales, Inc. v. Thomason,15 Kan. App.2d 393 ,808 P.2d 881 , 886 (Kan.Ct. App.1991). The rationale is that a default judgment cannot be greater than the specific amount sought because the defendant could not reasonably have expected that his damages would exceed that amount.
In re Genesys Data Techs., Inc.,
Graduate Management Admission Council v. Lei Shi,
No. 1:07cv605,
Here, Plaintiff did not indicate her hourly wage in her Complaint, and she did not specify the total amount of damages.
See
Compl. Thus, Plaintiff does not violate Rule 54(c) by seeking damages of $109,159.20, because her Complaint did not state a lesser amount.
See Graduate Mgmt. Admission Council,
Further, Plaintiff included an affidavit and proposed order with her Motions for Default Judgment, and those documents asserted the amount of damages as “the sum of $109,159.20 which is inclusive of full compensation to Plaintiff under the FLSA, MWHL, and MWPCL, including FLSA mandated liquidated damages and MWPCL treble damages, costs of these proceedings, and reasonable attorneys’ fees.” PL’s Aff. ¶ 5;
see
proposed Order. Additionally, in her affidavit, Plaintiff states her hourly wage, the number of hours for which she was not paid her regular salary, and the number of hours for which she was not paid overtime. Monge Aff. ¶¶ 5, 7, 9. Therefore, in keeping with the purpose of Rule 54(c), Defendants had notice of the damages through the documents supporting Plaintiffs motion, and they had the opportunity to defend by opposing the motion.
See In re Genesys Data Techs.,
Moreover, as Plaintiffs employers, Defendants were required under both federal and Maryland law to keep records of Plaintiffs hours and wages.
See
29 U.S.C. § 211(c); Lab.
&
Empl. § 3-424;
Lopez,
Although in
NTI,
The plaintiffs moved for a default judgment. Id. As noted, the court deferred the motion, reasoning that “[t]here may well be doubt about the nature and extent of any default judgment that may be entered under these circumstances.” Id. at *2, 6. But, the court directed the plaintiffs to “clarify ... which plaintiffs (or claimants) are included in the default sought (and if more than the seven named), the basis for such request.” Id. at *1. Thus, the uncertainty in the total damages sought apparently stemmed not from the amount of damages per plaintiff, but from the number of plaintiffs.
Here, although Plaintiff filed a “Collective and Class Action Complaint,” no other claimants filed Consent Forms to be Claimants. Also, Monge was the only Plaintiff to file an affidavit with the Motions for Default Judgment, and she only referred to herself individually in the affidavit. See Monge Aff. ¶ 1 (“I am the Plaintiff____”); ¶ 7 (“I am owed the following .... ”). Moreover, the supporting affidavits filed with Plaintiffs Motions for Default Judgment refer only to “the sum of $109,159.20 which is inclusive of full compensation to Plaintiff under the FLSA, MWHL, and MWPCL,” costs, and attorney’s fees. Pl.’s Aff. ¶ 5. Therefore, the number of plaintiffs seeking damages (one, i.e., Monge) is clear, as is the amount of damages she seeks ($109,159.20)
The amount Defendants owe Plaintiff is calculated based on Plaintiffs rate of compensation and the number of unpaid hours she worked. “In cases such as the present one in which wage and pay records, required to be kept by employers pursuant to 29 U.S.C. § 211(c), are not available, [the employee] must show the amount and extent of [her] improperly compensated work ‘as a matter of just and reasonable inference.’ ”
Lopez v. Lawns ‘R’ Us,
Civil No. DKC-07-2979,
The
Lopez
plaintiffs brought claims under the FLSA “for all unpaid wages for regular hours worked, and for overtime pay for hours worked in excess of forty (40) per week, in such amounts to be proved at trial”; under the MWPCL “for all unpaid wages and overtime due”; and “for all unpaid overtime wages under the MWHL in such amounts to be proven at trial,” as well as liquidated damages, interest, attorney’s fees and costs, and.
Lopez
Compl. 5-7. After the Clerk made an entry of default against the defendants/employers, a damages hearing ensued.
Lopez,
Here, Plaintiff similarly, credibly established her rate of pay and the number of regular and overtime hours for which she did not receive compensation, albeit by affidavit instead of testimony. Monge Aff. ¶¶ 4-5, 7, & 8-9. I find that Defendants failed to compensate Plaintiff for 120 hours of regular pay, for which she should have received $10.00 per hour, or a total of $1,200.
See
Lab. & Empl. § 3-502(a)(1)(ii) (requiring payment of wages). Pursuant to Lab.
&
Empl. § 3-507.1(b), Defendants are liable to Plaintiff for up to $3,600 in treble damages for unpaid regular wages, at the Court’s discretion. In
Lopez,
Plaintiff erroneously included her overtime hours for three weeks in August 2009 twice in her calculations. Therefore, in keeping with Plaintiffs affidavit but recalculating for her error, I find that Defendants failed to compensate Plaintiff for 28 hours of overtime pay per week for 112 weeks, for which she should have received $15.00 per hour, or a total of $47,040. See 29 U.S.C. § 207 (requiring overtime pay); Lab. & Empl. §§ 3-415(a) & 3-420(a) (same). Additionally, pursuant to 29 U.S.C. § 216(b), Defendants are liable to Plaintiff for an additional $47,040 in mandatory liquidated damages for unpaid overtime wages. Therefore, I recommend that the Court award Plaintiff two times $47,040 for unpaid overtime wages, or $94,080.
C. Attorney’s Fees
29 U.S.C. § 216(b) and Lab.
&
Empl. §§ 3-507.1 & 3^127(d) provide for the payment of the employee’s costs and attorney’s fees by the employer. In calculating an award of attorney’s fees, the Court must determine the lodestar amount, defined as a “reasonable hourly rate multiplied by hours reasonably expended.”
Grissom v. The Mills Corp.,
Here, Plaintiff asks for $7,259.20 in attorney’s fees and offers an affidavit in support of the amount requested. Aff. of Counsel Fees ¶ 17. Allan E. Feldman, Esquire, an attorney admitted to the bar for approximately four and a half years, billed Plaintiffs for 20.8 hours of work at $349.00 per hour.
Id.
The filings in this case include a Complaint, drafted as a class action although no steps were taken towards certification; two Motions for Entry of Default; and two Motions for Default Judgment. Paper Nos. 1, 45-, 7-8. I find that 20.8 hours is a reasonable amount of time, but $349.00 per hour is not a reasonable hourly rate under the Local Rules Guidelines. Although the Guidelines are “solely to provide practical guidance to lawyers and judges when request
D. Costs
Plaintiff also requests costs be awarded, namely $350.00 for the court filing fee and $90.00 for the service of process fee, for a total of $440.00. Aff. of Counsel Fees ¶ 16. In an FLSA action, the “[p]ayment of costs to a prevailing plaintiff is mandatory .... ”
Lopez,
III. Conclusion
In sum, I recommend that:
(1) the Court grant Plaintiffs Motions for Default Judgment;
(2) the Court award Plaintiff $2,400 for unpaid regular wages; $94,080 for unpaid overtime wages; $4,160.00 in attorneys’ fees; and $440.00 in costs.
The parties have fourteen (14) days in which to file objections to this Report and Recommendation pursuant to Fed. R. Civ. P. 72(b) and Local Rule 301.5.b.
Notes
. Although Local Rule 105.1 requires a memorandum to be filed with every motion, Plaintiff failed to file a supporting memorandum. Nonetheless, Fed. R. Civ. P. 1 instructs the Court to construe the rules "to secure the just, speedy, and inexpensive determination of every action and proceeding.” Therefore, the Court will not exalt form over substance, and it will address the Motion despite the absence of a memorandum.
. Plaintiff attached the same three affidavits to both of her Motions as exhibits: Plaintiffs Affidavit, Paper Nos. 7-1 & 8-1; Affidavit of Counsel Fees, Paper Nos. 7-2 & 8-2; and Affidavit of Elsa Olimpia Monge, Paper Nos. 7-3 and 8-3.
.Plaintiff filed her Complaint "[f]or herself and on behalf of all similarly situated individuals,” Compl. 1, but the action was never certified as a class action. Therefore, the recommendations contained herein only pertain to the relief that should be granted to Plaintiff Monge individually.
. Service on a corporation is proper if made on an officer of the corporation, Rule 4(h)(1)(B), and Defendant Zamini is an officer of Defendant Portofino Ristorante, Compl. ¶ 6. Defendants had twenty-one days after service to respond. Fed. R. Civ. P. 12(a)(1).
. In
Lopez,
