INTRODUCTION
Plaintiffs filed this action asserting claims under the Fair Labor Standards Act ("FLSA"),
Presently before the Court is Plaintiffs' motion for attorneys' fees and costs in an amount totaling $ 414,720.36 (ECF Nos. 194-96), and Defendants' opposition to this motion. (Opp. Mem., ECF Nos. 197-98.) For the reasons set forth below, I hereby GRANT IN PART Plaintiffs' motion for fees and costs, albeit in a reduced amount.
LEGAL STANDARDS
Under the FLSA and NYLL, a prevailing party in an employment dispute is entitled to recover reasonable attorneys' fees and costs. See
While a district court retains discretion to determine what constitutes a reasonable fee, "this discretion is not unfettered." Millea v. Metro-North R.R. Co. ,
A reasonable rate is generally the "prevailing market rate[ ] for counsel of similar experience and skill to the fee applicant's counsel." Farbotko v. Clinton County ,
In calculating the reasonable number of hours expended "the court takes account of claimed hours that it viеws as 'excessive, redundant, or otherwise unnecessary.' " Bliven v. Hunt ,
"Hours spent on unsuccessful fee-shifting claims ... must be excluded from the reasonable hours spent on the case when calculating the lodestar." Millea ,
Courts in this Circuit have recognized a district court's authority to make across-the-board percentage cuts in hours,
A court should consider other case-specific variables when determining the amount of attorneys' fees to award, including:
(1) the time and labor required; (2) the novelty and difficulty of the questions; (3) the level of skill required to perform the legal service properly; (4) the preclusion of employment by the attorney due to acceptance of the case; (5) the аttorney's customary hourly rate; (6) whether the fee is fixed or contingent; (7) the time limitations imposed by the client or the circumstances; (8) the amount involved in the case and the results obtained; (9) the experience, reputation, and ability of the attorneys; (10) the 'undesirability' of the case; (11) the nature and length of the professional relationship with the client; and (12) awards in similar cases.
Arbor Hill Concerned Citizens Neighborhood Ass'n ,
APPLICATION
I. Reasonable Hourly Rates
Plaintiffs seek recovery of attorneys' fees based upon work done by Bruce E. Menken, Scott Simpson and Marielle Moore. Messrs. Menken and Simpson appeared as counsel of record in this case, and Ms. Moore did not.
Mr. Simpson was a criminal defense lawyer for 7 years before joining Beranbaum Menken LLP in October 2015. He was promoted to partner effective January 1, 2018. (Simpson Decl. ¶ 60.) He has litigated "several" class action and FLSA cases since joining the firm. (Id. ¶ 64.) He requests an hourly rate of $ 400, and attaches in support 3 retainer agreements with other clients from 2018, after the date he became a partner. (Id. ¶ 59; Simpson Decl., Ex. 2, ECF No. 195-2.)
Ms. Moore is a senior аssociate at Beranbaum Menken, where she has worked for nearly two years. (Simpson Decl. ¶ 71.) She requests an hourly rate of $ 300. (Id. ¶ 68.) She claims that she has "five years of civil rights experience" (id. ¶ 73), but does not appear to have litigated wage-and-hour cases prior to joining the firm. The Court takes judicial notice that, based upon the Court's review of records of the New York State Unified Court System and Florida bar, although Ms. Moore was admitted to practiсe law in the State of Florida on September 26, 2014, she was not admitted in New York until September 13, 2017, and was not admitted in the Southern District of New York until December 19, 2017.
Defendants object to the $ 600 hourly rate sought for Mr. Menken and argue that his hourly rate should be set at $ 450. (Opp. Mem. at 13.) However, given Mr. Menken's vast experience practicing law and in wage-and-hour cases, the Court finds that his $ 600 hourly rate is reasonable and is consistent with other cases in this district.
Defendants object to the $ 400 hourly rate for Mr. Simpson and suggest that he be awarded an hourly rate of $ 350. (Opp. Mem. at 13-14.) The Court agrees with Defendants' suggestion. Mr. Simpson was not a partner during most of the time this case has been pending. He joined Beranbaum Menken in October 2015, with no рrior experience in wage-and-hour cases, and started working on this case in January 2016. (Time records, ECF No. 195-3, at 12.) A $ 350 hourly rate for Mr. Simpson is consistent with the rate awarded in this district to attorneys of
Defendants object to the $ 300 hourly rate sought for Ms. Moore and suggest that her hourly rate be reduced to $ 225 per hour, based upon their presumption that "she was not admitted until late 2014 and has been practicing for four years." (Opp. Mem. at 14.) The Court finds that Ms. Moore's hourly rate of $ 300 is high, given the fact that she was not admitted to practice law in the State of New York until September 13, 2017, and her relative lack of experience in wage-and-hour cases. For the period prior to September 13, 2017, the Court in its discretion reduces her hourly rate to $ 150, which is consistent with thе hourly rate awarded by other courts in this district to law clerks or attorneys not yet admitted to the bar. See Elisama v. Ghzali Gourmet Deli Inc. , No. 14-CV-08333 (PGG) (DF),
II. Reasonable Hours
A. Hours Recorded
The hours upon which Plaintiffs' motion is based are as follows: (1) 162.45 hours for Mr. Menken; (2) 557.45 hours for Mr. Simpson; and (3) 244.75 hours for Ms. Moore (59.25 hours prior to September 13, 2017 and 185.5 thereafter).
The Court carefully has reviewed the time records submitted by Plaintiffs and finds that the entries are for time properly billed, with one exception. The Court finds that some hours billed by Mr. Menken at his $ 600 hourly rate during the pretrial phase of this case exceed what was "necessary to litigate the case effectively." See Bergerson ,
Because the number of "excessive" hours of Mr. Menken is difficult to quantify, the Court takes these hours into consideration when determining the across-the-board percentage reduction that is discussed below.
B. Degree Of Success
The Court also finds that adjustments need to be made to the hours spent by each of the three plaintiffs' attorneys based upon the outcome of the cаse, given that the "most critical factor" is "the degree of success obtained." Hensley ,
The docket in this case reflects a total of 38 Plaintiffs and opt-in Plaintiffs. Of those 38, 23 went to trial, and 17 of them (45% of the total group (i.e. , 17 out of 38) ) were prevailing parties. Pursuant to the FLSA and NYLL, recovery of attorneys' fees is available only to those 17. The Court finds it significant that, of the 17 prevailing parties, only 13 (34% of the total group (i.e. , 13 out of 38) ) recovered more than $ 300, inclusive of prejudgment interest.
In addition, the prevailing Plaintiffs did not win on every claim they asserted. The Court ruled against Plaintiffs on their liquidated damages claims, and on their claims against Defendant Falk. The Court alsо ruled, in part, against those prevailing Plaintiffs who worked at both RMP and non-RMP sites (e.g. , Adrian Brown, Roger David, Michael Hurst, Jonathan Reece, Israel Rivera, Jose Vicent and Samuel Wright), given that the Court only ruled in favor of those Plaintiffs to the extent they worked at RMP sites.
C. Across-The-Board Percentage Reduction
It is impossible to say with any prеcision how much of the time spent by Beranbaum Menken attorneys was devoted
In making its determination of the percentage reduction to be used, the Court is guided by the principle of rough justice. "[T]rial courts need not, and indeed should not, become green-eyeshade accountants. The essential goal in shifting fees (to either party) is to do rough justice, not to achieve auditing perfection. So trial courts may take into account their overall sense of a suit, and may use estimates in calculating and allocating an attorney's time." Errant Gene Therapeutic, LLC v. Sloan-Kettering Inst. for Cancer Research ,
Here, there are significant factors weighing in favor of a percentage reduction. When this case was commenced in July 2015, the only plaintiff in the case was David Williams, who did not prevail in this case.
Class Plaintiff's complaint alleges that he, and other similarly situated employees, were required by their job to report to company headquarters in Manhattan, and required to drive a company car to worksites in other boroughs. Defendant [EPIC] has presented competent proof that workers were not required so to report, but were offered the convenience of a company car in lieu of using the poorly functioning subway system in the aftermath of Hurricane Sandy.
(Text Only Order, ECF No. 20.) It was not until February 2017, after many hours already were billed by Plaintiffs' counsel, that any of the prevailing Plaintiffs formally became part of this lawsuit. (See, e.g. , 2/17/17 Consents to Join Class, ECF Nos. 41-73.) And, as discussed earlier, only 45% of the overall Plaintiffs and opt-in Plaintiffs who appeared in this case prevailed (with only 34% recovering more than $ 300), and even then, did not prevail on all their claims.
The Court recognizes, however, that some work done on behalf of the non-prevailing Plaintiffs was required for the prevailing Plaintiffs to win, including deposing Defendants' witnesses. And, the Court acknowledges Plaintiffs' point that certain of Defendants' conduct during discovery was less than exemplary. (See Pls.' Mem. at 8.) In May and June 2016, Defendant EPIC failed to timely comply with discovery demands, thereby increasing the hours required by Plaintiffs' counsel to pursue their claims.
Defendants argue in favor of a 90% reduction of Plaintiffs' legal fees on the premise, in part, that Plaintiffs' settlement position throughout the case had been "excessive." (See Opp. Mem. at 9-11.) In support of this argument, Defendants submit to the Court evidence of settlement discussions between the parties. (Catina Decl., ECF No. 197, ¶¶ 3-6, 11-19 ;
Taking all the foregoing into account, and considering other case-specific variables,
The chart below reflects a calculation of the attorneys' fees awarded, by attorney:
Name Hourly rate Hours Amount awarded Menken $600 49 (162.45 less 70%) $29,400 Simpson $350 190 (557.45 less 66%) $66,500 Moore (pre-9/13/17) $150 20 (59.25 less 66%) $3,000 Moore (post-9/13/17) $275 63 (185.5 less 66%) $17,325 TOTAL $116,225
III. Costs
Plaintiffs also seek reimbursement of costs in the amount of $ 17,095.36. Prevailing parties under the FLSA and NYLL are entitled to "reasonable out-of-pocket expenses incurred by the attorney[s] and which are normally charged fee-paying clients." Reichman v. Bonsignore, Brignati & Mazzotta P.C. ,
Defendants generally object to Plaintiffs' request for costs (except for mediation expenses) based upon the lack of "backup documentation," and Defendants specifically object to a $ 5,933.71 charge for duplication, assembly and mailing of
CONCLUSION
For the foregoing reasons, Plaintiffs are awarded $ 116,225 in attorneys' fees and $ 10,715.65 in costs, for a total award of $ 126,940.65. The Clerk of the Court is directed to enter judgment against Defendant EPIC Security Corp. in favor of the Plaintiffs Adrian Brown, Sharon Carr, Roger David, James Foster, Michael Howie, Michael Hurst, Taquesha Lawyer, Princess Logan-Williams, Deneice Martin, Michael Moulton, Jonathan Reece, Israel Rivera, Winton Synaker, III, Saul Veliz, Jose Vicent, Hilburn Walker and Samuel Wright in the amounts set forth in the Court's February 22, 2019 Opinion and Order. (2/22/19 Op. & Order, ECF No. 189, at 50.) The Clerk shall include in the Judgment the award of fees and costs set forth above. The Clerk also is directed to close this case.
SO ORDERED.
Notes
This percentage reduction approach is consistent with Supreme Court authority. See Hensley ,
Courts in other Circuits have taken the same approach. See, e.g. , Rowett v. Wish Wash 2 LLC , No. 16-CV-81904 (WM),
In ruling on hourly rates that are reasonable, the Court hаs considered rates awarded in prior cases and the Court's own familiarity with the rates prevailing in this district.
Defendants themselves acknowledge an FLSA case decided in this district in 2015 in which a $ 600 hourly rate was found to be reasonable. (See Opp. Mem. at 13 (citing Kim v. Kum Gang, Inc. , Case No. 12-CV-6344 (MHD),
Plaintiffs also seek fees in the amount of $ 3,750 for work done by Beranbaum Menken's Office Manager. (Simpson Decl. ¶¶ 78-79.) The Court will not award such fees, which are part of the overhead of Beranbaum Menken and not properly chargeаble to clients.
Ms. Moore's pre- and post- September 13, 2017 hours were calculated by examining her time entries and separately adding up the hours before and after that date. (Time records at 8-9.)
Four prevailing parties were awarded less than $ 300: Michael Howie was awarded $ 53, Deneice Martin was awarded $ 45, Michael Moulton was awarded $ 261 and Winston Synaker was awarded $ 200. (Id. ) The other 13 prevailing plaintiffs each were awarded more than $ 1300. (Id. )
Another measure of the "degree of success" achieved (Hensley ,
See 2/22/2019 Op. & Order at 50. The only worksite Williams was assigned to did not require an RMP.
Some discovery disputes resulted in the issuance of court orders by Judge Hellerstein. (See ECF Nos. 25 & 28.)
See Arbor Hill Concerned Citizens Neighborhood Ass'n ,
This reduction is reflective of the fact that only 34% of the Plaintiffs were prevailing parties who recovered more than $ 300, and reflects that the Court is awarding to Plaintiffs' counsel fees which are almost twice the 19% recovery rate achieved by Plaintiffs (see supra n.8). The hours spent by Beranbaum Menken аttorneys that were for the benefit of all the Plaintiffs (both prevailing and non-prevailing), as well as the excess hours spent due to Defendants' discovery conduct, are offset by the limited success achieved by the prevailing Plaintiffs.
Mr. Menken's hours are reduced an additional 4% to take into account the "excessive" hours noted above.
The Court finds this is an excess cost, given the $ 727.50 charged for the actual transcript. (Expense List at 1.)
The Court finds that the meal expenses and taxi fares (Expense List at 1-2) are not reasonable as counsel does not show that these expenses were necessarily incurred. See Gutierrez v. Taxi Club Mgmt., Inc. , Case No. 17-CV-532 (AMD) (VMS),
