United States District Court, S.D. New York
CHANGXING LI, GUOMIN LI, JIAN LI, YUXIANG WANG, and MIN ZHANG, Plaintiffs,
KAI XIANG DONG, LING LIN, IRON SUSHI THIRD AVENUE, INC. d/b/a IRON SUSHI, IRON SUSHI LOVE, INC. d/b/a IRON SUSHI, IRON SUSHI FUSION, INC. d/b/a IRON SUSHI, Defendants.
MEMORANDUM DECISION AND ORDER
DANIELS UNITED STATES DISTRICT JUDGE.
former employees of the Iron Sushi restaurant, brought this
action against their former employers alleging, inter
alia, violations of the Fair Labor Standards Act
("FLSA"), 29 U.S.C. § 201 et seq.,
and the New York Labor Law ("NYLL"). (Am. Compl.,
ECF No. 29, at 1-2.) On December 16, 2016, Plaintiffs moved for
default judgment in the amount of $669, 922.75. (Pls.'
Mot. Default J., ECF No. 51); (Decl. of David Yan, ECF No.
53, Ex. O.)
this Court is Magistrate Judge Andrew J. Peck's March 7,
2017 Report and Recommendation ("Report, " ECF No.
54), recommending that a default judgment be entered against
all Defendants, holding them jointly and severally liable in
the amount of $379, 677.71, plus continuing prejudgment
interest. (Id. at 47.) This Court adopts
Court "may accept, reject, or modify, in whole or in
part, the findings or recommendations" set forth within
a magistrate judge's report. 28 U.S.C. § 636(b)(1).
The Court must review de novo the portions of a
magistrate judge's report to which a party properly
objects. Id. Portions of a magistrate judge's
report to which no or merely perfunctory objections have been
made are reviewed for clear error. See Edwards v.
Fischer, 414 F.Supp.2d 342, 346-47 (S.D.N.Y. 2006).
Clear error is present only when "upon review of the
entire record, [the court is] left with the definite and firm
conviction that a mistake has been committed." Brown
v. Cunningham, No. 14-CV-3515, 2015 WL 3536615, at *4
(S.D.N.Y. June 4, 2015) (internal citations omitted).
Judge Peck advised the parties that failure to file timely
objections to the Report would constitute a waiver of those
objections on appeal. (Report at 47-48.) No objection to the
Report has been filed.
occurs "[w]hen a party against whom a judgment for
affirmative relief is sought has failed to plead or otherwise
defend." Fed.R.Civ.P. 55(a). Where a defendant has
defaulted, the district court must accept as true the
well-pleaded allegations of the complaint. Finkel v.
Romanowicz, 577 F.3d 79, 84 (2d Cir. 2009). To determine
the amount of damages that should be awarded on a default
judgment, Rule 55(b)(2) "leaves the decision of whether
a hearing is necessary to the discretion of the district
court." Fustok v. ContiCommodily Servs., Inc.,
873 F.2d 38, 40 (2d Cir. 1989); see also Lenardv. Design
Studio, 889 F.Supp.2d 518, 527 (S.D.N.Y. 2012).
have never appeared in this action, responded to
Plaintiffs' Complaint or to the motion for a default
judgment, or otherwise contacted this Court to request an
extension to submit any responses. Nor have Defendants filed
any objections to the Report. Accordingly, this Court finds
that a default judgment is appropriate in this action. The
Report also properly determined that a hearing on damages is
not required because Plaintiffs' submissions establish
their damages to a reasonable degree of certainty. (Report at
JOINT AND SEVERAL LIABILITY
Report correctly found that Plaintiffs have sufficiently
alleged that Kai Xiang Dong and Ling Lin are employers under
the FLSA and NYLL. (Id. at 45-46.) In light of their
default, Defendants are jointly and severally liable along
with Iron Sushi. (Id. at 46.)
DAMAGES UNDER THE FLSA AND NYLL
Statute of Limitations
Report properly found that a six-year statute of limitations
applies to Plaintiffs' NYLL claims and a three-year
statute of limitations applies to their FLSA claims.
(Id. at 8-9.) Accordingly, Plaintiffs are entitled
to FLSA damages from September 24, 2012 (three years before