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Jimenez v. KLB Foods, Inc.

United States District Court, S.D. New York

June 29, 2015

JOSE URBANO JIMENEZ and VICENTE CARRASCO, on behalf of themselves, FLSA Collective Plaintiffs, and the Class, Plaintiffs,
KLB FOODS, INC., d/b/a ANDAZ, and KUNWAR BIST, Defendants.


J. PAUL OETKEN, District Judge.

A jury trial was held in February 2015 in this wage and hour case. Plaintiffs Vicente Carrasco, Candido Merino, and Baltazar Sanchez (collectively, "Plaintiffs") largely prevailed against KLB Foods, Inc., and Kunwar Bist (together, "Defendants"). The parties subsequently submitted a joint proposed judgment in favor of Plaintiffs in the amount of $174, 959.43, exclusive of attorney's fees and costs, which judgment the Court entered on February 26, 2015. (Dkt. Nos. 78-79.) Plaintiffs now move for the award of attorney's fees and costs. (Dkt. No. 86.) For the reasons that follow, Plaintiffs' motion is granted.

I. Discussion

A. Attorney's Fees

Both the Fair Labor Standards Act ("FLSA") and the New York Labor Law ("NYLL") provide for the award of attorney's fees and costs to a prevailing plaintiff. See 29 U.S.C. § 216(b); N.Y. Labor Law §§ 198(1-a), 663(1). "District courts enjoy broad discretion when setting a fee award, but they must clearly and concisely state reasons supporting the award." Tackie v. Keff Enters. LLC, No. 14 Civ. 2074 (JPO), 2014 WL 4626229, at *6 (S.D.N.Y. Sept. 16, 2014). "A reasonable fee is calculated by determining the lodestar-the product of a reasonable hourly rate and the reasonable number of hours required by the case-which creates a presumptively reasonable fee.'" Bazignan v. Team Castle Hill Corp., No. 13 Civ. 8382 (PAC), 2015 WL 1000034, at *4 (S.D.N.Y. Mar. 5, 2015) (quoting Stanczyk v. City of New York, 752 F.3d 273, 284 (2d Cir. 2014)). "A district court may adjust the lodestar when it does not adequately take into account a factor that may properly be considered in determining a reasonable fee, '" but "such adjustments are appropriate only in rare circumstances, ' because the lodestar figure already includes most, if not all, of the relevant factors constituting a reasonable attorney's fee.'" Millea v. Metro-N. R.R. Co., 658 F.3d 154, 167 (2d Cir. 2011) (quoting Perdue v. Kenny A., 559 U.S. 542, 553-54 (2010)) (brackets omitted).

1. Reasonable Rate

"A reasonable hourly rate is based on the current prevailing market rate for lawyers in the district in which the ruling court sits." Liang Huo v. Go Sushi Go 9th Ave., No. 13 Civ. 6573 (KBF), 2014 WL 1413532, at *7 (S.D.N.Y. Apr. 10, 2014) (brackets and internal quotation marks omitted); see also Angamarca v. Pita Grill 7 Inc., No. 11 Civ. 7777 (JGK) (JLC), 2012 WL 3578781, at *11 (S.D.N.Y. Aug. 2, 2012) ("A reasonable hourly rate is the rate a paying client would be willing to pay, bearing in mind that a reasonable, paying client wishes to spend the minimum necessary to litigate the case effectively." (internal quotation marks omitted)), report & rec. adopted, No. 11 Civ. 7777, Dkt. No. 39 (S.D.N.Y. Dec. 14, 2012). The reasonable rate requires "a case-specific inquiry into the prevailing market rates for counsel of similar experience and skill to the fee applicant's counsel, which may include taking judicial notice of the rates awarded in prior cases, and consideration of the evidence proffered by the parties." Watkins v. Smith, No. 12 Civ. 4635 (DLC), 2015 WL 476867, at *3 (S.D.N.Y. Feb. 5, 2015) (internal quotation marks omitted).

Here, Plaintiffs request the following hourly rates: $550/hour for C.K. Lee, a partner with the Lee Litigation Group, PLLC (the "Lee Group"); $350/hour for Anne Seelig, a "counsel" with the Lee Group; and $125/hour each for Jasmin Perez and Luis Arnaud, both paralegals. (Dkt. No. 88 ("Lee Decl.") Ex. 1.)

Plaintiffs' papers do not set out the specifics of the attorneys' experience in great detail. Lee is said to have "substantial experience practicing law, and... recognized expertise in employment law." (Dkt. No. 87 ("Pl. Br.") at 6.) Seelig is said to have "over ten years['] experience practicing law" ( id. ), but is not described as an employment law specialist. The Court takes notice of the fact that, according to publicly available information, Lee was admitted to the bar in New York in 1998, and Seelig in 2004.

The requested hourly rates are high for employment cases in this district, particularly in light of the nature of the documentation supplied in support of the fee application. The attorneys here have provided "no attestation that [they] in fact seek[] and obtain[] such... rate[s]-or any other rate-from [their] paying clients." Dajbabic v. Rick's Cafe, 995 F.Supp.2d 210, 213 (E.D.N.Y. 2014). And, as a general matter, "[i]n labor and employment cases, courts in this district have approved hourly rates of $300-400 for partners." Castellanos v. Mid Bronx Cmty. Hous. Mgmt. Corp., No. 13 Civ. 3061 (JGK), 2014 WL 2624759, at *7 (S.D.N.Y. June 10, 2014); see also Watkins, 2015 WL 476867, at *3 ("In the Southern District of New York, fee rates for experienced attorneys in small firms generally range from $250 to $450 in civil cases." (collecting cases)).

Plaintiffs' briefing attempts to support Lee's requested rate of $550/hour by citing several cases in which Lee purportedly earned judicial approval of this rate. However, Magistrate Judge Dolinger recently considered an application for attorney's fees from the Lee Group and undertook a detailed review of the same cases that Plaintiffs cite in support of the fee application here, and ultimately found that "not one" of the cases cited actually validated Lee's requested rate of $550/hour. See Gonzalez v. Scalinatella, Inc., No. 13 Civ. 3629 (PKC) (MHD), 2015 WL 3757069, at *16 (S.D.N.Y. June 12, 2015); see also id. at *18-19 (criticizing Lee's characterization of these decisions as approvals of a $550/hour rate as, "at best, a woefully inartful articulation of the state of th[e] case law and, at worst, a blatantly self-interested misrepresentation to the court, " and noting previous decisions that have found fault with Lee's representations in attorney's fee submissions). For the reasons set out in Gonzalez, the Court declines to rely on the cases cited in Plaintiffs' submission.

As Judge Dolinger also noted in Gonzalez, "a number of fairly recent decisions in this district have specifically reduced Mr. Lee's requested hourly rate of $550.00 per hour for purposes of lodestar." Id. at *20 (citing cases reducing Lee's rate to $350 or $400 per hour). Based on Lee's and Seelig's experience, and upon consideration of the skill they displayed in conducting this litigation, the Court finds that a rate of $350/hour is reasonable for Lee and a rate of $250/hour is reasonable for Seelig. See Aguilera v. Cookie Panache by Between the Bread, Ltd., No. 13 Civ. 6071 (KBF), 2014 WL 2115143, at *3 (S.D.N.Y. May 20, 2014) (reducing Lee's rate to $300/hour and Seelig's to $200/hour); Agudelo v. E&D LLC, No. 12 Civ. 960 (HB), 2013 WL 1401887, at *2 (S.D.N.Y. Apr. 4, 2013) (reducing Lee's rate to $350/hour and Seelig's rate to $250/hour); see also, e.g., Liang Huo, 2014 WL 1413532, at *7-8 (approving rate of $350/hour for attorney with about ten years of experience who specializes in employment law); Yuquilema v. Manhattan's Hero Corp., No. 13 Civ. 461 (WHP) (JLC), 2014 WL 4207106, at *14 (S.D.N.Y. Aug. 20, 2014) (reducing rate of attorney with over thirty years of experience who specializes in employment matters to $425/hour, and reducing rate of associate with about ten years of experience to $300/hour), report & rec. adopted, 2014 WL 5039428 (S.D.N.Y. Sept. 30, 2014).

As for paralegals Perez and Arnaud, the rates once again are somewhat high as compared to employment cases in this district, particularly given that no information was provided about the paralegals' background or experience. See Black v. Nunwood, Inc., No. 13 Civ. 7207 (GHW), 2015 WL 1958917, at *6 (S.D.N.Y. Apr. 30, 2015) (reducing paralegal rate from $150/hour to $75/hour "based upon previous paralegal awards in this district where counsel provided no information on the paralegal's background or experience"); see also Gonzalez, 2015 WL 3757069, at *21-22 (reducing Lee Group paralegals' rate from $125/hour to $100/hour where no documentation was provided); Merino v. Beverage Plus Am. Corp., No. 10 Civ. 706 (ALC) (RLE), 2012 WL 4468182, at *3 (S.D.N.Y. Sept. 25, ...

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