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Garcia v. Tax Pros Ltd., 18-cv-3669. (2019)

Court: District Court, N.D. Illinois Number: infdco20190118862 Visitors: 11
Filed: Jan. 17, 2019
Latest Update: Jan. 17, 2019
Summary: PLAINTIFF'S MOTION TO ENTER CONSENT JUDGMENT AND FOR AN AWARD OF ATTORNEYS' FEES AND COSTS VIRGINIA KENDALL , District Judge . Plaintiff Elias Garcia, through his counsel, moves for an Order (i) entering a Consent Judgment consistent with the terms of the parties' settlement agreement, (ii) directing the Clerk to make entry of judgment pursuant to Fed. R. Civ. P. 79, (iii) approving Plaintiff's request for an award of reasonable attorneys' fees, and (iv) granting such further relief as it d
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PLAINTIFF'S MOTION TO ENTER CONSENT JUDGMENT AND FOR AN AWARD OF ATTORNEYS' FEES AND COSTS

Plaintiff Elias Garcia, through his counsel, moves for an Order (i) entering a Consent Judgment consistent with the terms of the parties' settlement agreement, (ii) directing the Clerk to make entry of judgment pursuant to Fed. R. Civ. P. 79, (iii) approving Plaintiff's request for an award of reasonable attorneys' fees, and (iv) granting such further relief as it deems just and proper. In support of this motion, Plaintiff states as follows:

1. This lawsuit arises under the Fair Labor Standards Act, 29 U.S.C. §201, et. seq. ("FLSA"), for Defendant's failure to pay Plaintiff and other similarly situated employees earned overtime wages. Plaintiff also brings an individual claim under the Illinois Minimum Wage Law, 820 ILCS § 105/1 et seq. ("IMWL") for Defendant's failure to pay him overtime wages.

2. On or about July 24, 2018, Plaintiff executed a copy of the parties' settlement agreement. With respect to payment of the settlement proceeds, the agreement provided that:

(i) Within seven (7) days of the Employee executing the agreement, Employer shall pay a total of Three Thousand Dollars and Zero Cents ($3,000.00), which shall be apportioned as follows: Payment to Elias Garcia: A lump-sum check made payable to Elias Garcia in the gross amount of Two Thousand Five Hundred Fifty-Six Dollars and Seventy-Five Cents ($2,556.75). An IRS form 1099 will be issued to Elias Garcia by Employer. Payment to Werman Salas P.C.: A lump-sum check payable to Werman Salas P.C. in the gross amount of Four Hundred Forty-Three Dollars and Twenty-Five Cents ($443.25). The amount paid to Werman Salas P.C., (EIN #20-3042887), is for Employee's attorneys' costs. An IRS form 1099 will be issued to Werman Salas P.C. by Employer for the attorneys' fees paid under this Agreement. (ii) On or about November 30, 2018, Employer shall pay a total of Five Thousand Dollars and Zero Cents ($5,000.00), which shall be apportioned as follows: Payment to Werman Salas P.C.: A lump-sum check payable to Werman Salas P.C. in the gross amount of Five Thousand Dollars and Zero Cents ($5,000.00). The amount paid to Werman Salas P.C., (EIN #20-3042887), is for Employee's attorneys' fees. An IRS form 1099 will be issued to Werman Salas P.C. by Employer for the attorneys' fees paid under this Agreement.

A copy of the settlement agreement is attached hereto as Exhibit A.

3. Pursuant to the terms of the settlement, the second installment of the settlement proceeds was due on November 30, 2018. Defendant failed to make this payment under the terms of the Agreement.

4. On December 3, 2018, Plaintiff's counsel contacted Defendant's counsel and provided Defendant notice of its breach of the Agreement. Despite that notice of default, and numerous communications with Defense counsel, as of today's date, Defendant has failed to cure its breach.

5. Defendant agreed that in the event that it defaulted on its obligation to make the payments as required by the Settlement Agreement, any unpaid settlement proceeds, plus attorney's fees incurred in enforcing the agreement, would be immediately reduced to a consent judgment in favor of Plaintiff and against Defendant. See Paragraph 7 of Exhibit A. A proposed consent judgment is attached hereto as Exhibit B.

6. The Settlement also provides for an award of attorneys' fees in the event of a breach. Exhibit A, paragraph 7.

7. Plaintiff requests an award of reasonable attorneys' fees in the amount of $1,050.00 for 1.5 hours of time spent on appearing in court on January 3, 2019, drafting this motion, and appearing in court on this motion. Plaintiff's counsel's last hourly award for attorneys' fees is $700.00 per hour. On October 9, 2018, Magistrate Judge Valdez awarded me the hourly rate of $700.00 per hour in the case of Bainter v. Akram Investments, Inc., et al., Case No. 17 C 7064. ECF No. 106. I have been awarded $650/hr by courts for work I primarily performed before the 2018 calendar year. For example, in granting a petition for an award of attorney's fees, I was awarded the hourly rate of $650.00 per hour in Sanchez v. Roka Akor Chicago, LLC, No. 14 C 4645, 2017 WL 1425837, at *6 (N.D. Ill. April 20, 2017) (J. Kendall). See also Osman v. Grube, Inc., No. 16-cv-00802, 2018 WL 2095172, at *4 (N.D. Ohio May 4, 2018); Soto v. Wings `R Us Romeoville, Inc., No. 15 C 10127, 2018 WL 1875296, at *5 (N.D. Ill. April 16, 2018) (J. Dow); Knox v. Jones Grp., Case No. 15-cv-1738-SEB-TAB, 2017 WL 3834929, at *4 (S.D. Ind. Aug. 31, 2017).

WHEREFORE, Plaintiff requests that the Court (i) entering a Consent Judgment consistent with the terms of the parties' settlement agreement, (ii) directing the Clerk to make entry of judgment pursuant to Fed. R. Civ. P. 79, (iii) approving Plaintiff's request for an award of reasonable attorneys' fees, and (iv) granting such further relief as it deems just and proper.

EXHIBIT A

SETTLEMENT AGREEMENT AND COMPLETE WAIVER/RELEASE

This Settlement Agreement and Complete Waiver/Release ("Agreement") is entered into between Elias Garcia, on behalf of himself, his agents, representatives, assignees, heirs, executors, beneficiaries, trustees (collectively "Employee") and Tax Pros Ltd, d/b/a Jackson Hewitt Tax Service, on behalf of itself and its parents, subsidiaries, affiliates, partners, related entities, predecessors, successors, assigns, trustees, and all of its past and present owners, officers, directors, managers and agents, including Haitham Abuzir, in his individual capacity (collectively "Employer").

On May 24, 2018, Elias Garcia filed a Complaint against Tax Pros Ltd, d/b/a Jackson Hewitt Tax Service, in the Northern District of Illinois, Eastern Division, alleging violations of the Fair Labor Standards Act and Illinois Minimum Wage Law, Case No. 1:18-cv-3669 (the "Lawsuit").

Employee and Employer want to avoid further controversy, potential litigation, costs, legal fees and inconvenience and enter into this Agreement to resolve all potential claims, including claims for attorneys' fees, against each other as specified herein;

Therefore, in consideration of the mutual promises set out below, the Parties agree as follows:

1. Consideration

A. In consideration for the promises in this Agreement, Employer shall pay Employee the gross sum of Eight Thousand Dollars and Zero Cents ($8,000.00). The payments shall be made in two installments and apportioned and paid as follows:

(i) Within seven (7) days of the Employee executing the agreement, Employer shall pay a total of Three Thousand Dollars and Zero Cents ($3,000.00), which shall be apportioned as follows: Payment to Elias Garcia: A lump-sum check made payable to Elias Garcia in the gross amount of Two Thousand Five Hundred Fifty-Six Dollars and Seventy-Five Cents ($2,556.75). An IRS form 1099 will be issued to Elias Garcia by Employer. Payment to Werman Salas P.C.: A lump-sum check payable to Werman Salas P.C. in the gross amount of Four Hundred Forty-Three Dollars and Twenty-Five Cents ($443.25). The amount paid to Werman Salas P.C., (EIN #20-3042887), is for Employee's attorneys' costs. An IRS form 1099 will be issued to Werman Salas P.C. by Employer for the attorneys' fees paid under this Agreement. (ii) On or about November 30, 2018, Employer shall pay a total of Five Thousand Dollars and Zero Cents ($5,000.00), which shall be apportioned as follows: Payment to Werman Salas P.C.: A lump-sum check payable to Werman Salas P.C. in the gross amount of Five Thousand Dollars and Zero Cents ($5,000.00). The amount paid to Werman Salas P.C., (EIN #20-3042887), is for Employee's attorneys' fees. An IRS form 1099 will be issued to Werman Salas P.C. by Employer for the attorneys' fees paid under this Agreement.

B. Employer shall deliver the payments set forth in Section 1(A)(i-ii), above, to Werman Salas P.C., c/o Douglas M. Werman, 77 West Washington Street, Suite 1402, Chicago, Illinois 60602. Employer will issue the appropriate 1099-MISC tax forms at the appropriate time.

C. Employee and Employer agree that the gross sum constitutes good, valid and sufficient consideration for this Agreement and Employee agrees that, upon receipt of these payments, he has been properly paid for all alleged hours worked, including alleged overtime compensation, for all alleged hours worked in excess of 40 per week, and any alleged liquidated damages stemming from any claims, as well as any other penalties or interest pursuant to Illinois wage and hour laws. Employee acknowledges and agrees that the consideration described above is consideration to which he would not otherwise be entitled and is being paid in exchange for signing and not revoking this Agreement.

D. In the event Employer fails to pay the consideration identified in subpart A, above, Employee may elect to sue to enforce this Agreement or file his underlying claim for alleged owed overtime pay under federal and Illinois law, with Employer waiving any Statute of Limitations defenses to such an Action, and with Employee having no obligation to tender back to Employer any partial payments made under this Agreement.

2. Stipulation of Dismissal

Employee shall execute and file a stipulation of dismissal without prejudice of the lawsuit within fourteen (14) days of Employer paying the consideration to Employee and its counsel in full as set forth in Section 1(A)(i), above. The stipulation will provide that the dismissal without prejudice will covert to a dismissal with prejudice on December 14, 2018.

3. Waiver of Costs and Attorneys' Fees

In consideration of the promises made by Employer and Employee in this Agreement, Employer and Employee agree to waive any claim they may have to an award of costs and attorneys' fees, other than as set forth in this Agreement. However, in the event of a breach of this agreement, the prevailing party in an enforcement action shall be entitled to their attorney's fees and costs.

4. Release and Covenant Not to Sue

In further consideration of the promises made by the Parties, the Parties release and forever discharge the other, as broadly defined in the preamble to this Agreement, from:

(a) all claims and counterclaims raised or which could have been raised related to the payment of overtime wages; (b) all claims, actions, causes of action, class allegations and actions, demands, damages, costs, attorneys' fees, loss of wages and benefits, loss of earning capacity, mental anguish, pain and suffering, or other relief permitted to be recovered or related to, or in any way growing out of Employee's claimed employment with, treatment at, wages from, or separation of employment from Employer; (c) all claims based on occurrences through the date of the Parties' execution of this Agreement arising under the Title VII of the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment Act of 1967, as amended, the National Labor Relations Act, as amended, the Equal Pay Act, the Fair Labor Standards Act, as amended, the Americans with Disabilities Act of 1990, the Rehabilitation Act of 1973, as amended, the Family and Medical Leave Act, 42 U.S.C. § 1981, the Employee Retirement Income Security Act, as amended, the Illinois Minimum Wage Law, the Illinois Wage Payment and Collection Act, and Attorneys' Fees and Wage Actions Act, Illinois Human Rights Act, Chicago Human Rights Ordinances and any other Federal, State, or municipal statute, order, regulation, or ordinance; and (d) all claims arising under common law, including but not limited to tort claims or breach of contract claims (express or implied), intentional interference with contract, intentional infliction of emotional distress, negligence, defamation, violation of public policy, wrongful or retaliatory discharge, tortious interference with contract, and promissory estoppel, on account of, or any injury related to or in any way growing out of Employee's employment with, treatment at, wages from, or separation of employment from Employer.

Employer and Employee intend that this Agreement bar each and every claim, demand, and cause of action described in this section. Excepted from this release is any claim or right which cannot be waived by law, including any claims Employee may have under the Illinois Workers' Compensation Act, 820 ILCS 305, et seq. ("WCA"). However, as of the Effective Date, Employee is unaware of any facts that would give rise to a claim against Employer under the WCA. In consideration of the promises made by the parties in this Agreement, Employer and Employee further agree never to institute any lawsuit, complaint, proceeding, grievance or action of any kind at law, in equity, or otherwise in any court of the United States, state, or municipality against each other arising from or relating to Employee's employment with Employer, treatment at, wages from, or separation of employment from Employer and/or any other occurrence prior to date of the Parties' execution of this Agreement.

5. Non-Admission

Employee and Employer agree that this Agreement does not constitute, is not intended to be, and shall not be construed, interpreted, or treated in any respect as an admission of any liability or wrongdoing by Employer. Employee and Employer further agree that this Agreement shall not be admissible in any proceeding (without the written consent of the parties or unless ordered by a court of competent jurisdiction), except (i) one instituted by either party alleging a breach of this Agreement; or (ii) one brought by Employee or Employer alleging a violation of the release and covenant not to sue contained in Section 4.

6. Confidentiality

All parties and their attorneys further agree that they will keep all terms of this Agreement confidential, including but not limited to the fact and amount of the payment discussed herein, except that the parties may make necessary disclosures to their immediate family members, attorney(s), or tax advisor(s). If Employee makes a disclosure to his immediate family members, he will advise them of the confidentiality obligation.

7. Enforcement

Employee and Employer have negotiated payment of the Settlement Payments over a period of time. In the event that there is any default of the obligation to make the Settlement Payments, as defined in Paragraph 1 of this Agreement, Employer agrees to the entry of a consent judgment in the entire balance due and owing under this Agreement at the time of the default, with the balance of any unpaid settlement proceeds being accelerated in full.

Prior to entry of the consent judgment and commencement of citation proceedings, Employee must first afford Employer a reasonable opportunity to cure the default through the following procedures: if Employee believes a default has occurred through non-payment of any individual installment payments as set forth in Paragraph 1 of this Agreement, Employee's counsel must give written notice via electronic mail to Arthur Rosenson at arosenson@crzlegal.com. Employer shall have seven (7) days from the date of receipt of such notice of default to cure by making payment in accordance with terms of this Settlement Agreement.

In the event of a default that is not timely cured, Employer shall pay all of Employee's attorneys' fees incurred in enforcing this Agreement, including, but not limited to, fees incurred during citation proceedings.

8. Full Knowledge, Consent, and Voluntary Signing

Employee also agrees that he is entering into this agreement knowingly, voluntarily, and with full knowledge of its significance; he has not been coerced, threatened, or intimidated into signing this agreement; and he has been advised to consult with an attorney, and in fact has consulted with an attorney.

9. Entire Agreement

Employee and Employer agree that this Agreement shall be construed and enforced in accordance with the laws of the State of Illinois. Employee and Employer further agree that the court shall retain jurisdiction to enforce the terms of this agreement. Employee and Employer further agree that this Agreement sets forth the entire agreement between the parties and supersedes any written or oral understanding, promise, or agreement directly or indirectly related to, which is not referred to and incorporated in this Agreement. No other promises or agreements shall be binding unless made in writing and signed by Employee and Employer.

10. Severability

To the extent that a court of competent jurisdiction holds that any portion of this Agreement is invalid or legally unenforceable, Employee and Employer agree that the remaining portions shall not be affected and shall be given full force and effect. This Agreement may be executed in counterparts. Faxed and .pdf copies shall be treated as originals.

Elias Garcia Tax Pros Ltd, d/b/a Jackson Hewitt Tax Service _____________________________ By: _________________________________ Date: July 24, 2018 Date: 07/25/18 By: _________________________________ Haitham Abuzir, individually Date: 07/25/18

EXHIBIT B

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION ELIAS GARCIA on behalf of himself, and all others similarly situated, Plaintiff, Civil Action No. 18-cv-3669 vs. Judge Kendall TAX PROS LTD. d/b/a JACKSON HEWITT TAX SERVICE, Defendant.

CONSENT JUDGMENT

Plaintiff, Elias Garcia, having commenced this action by filing his Complaint for alleged violations of the Fair Labor Standards Act, 29 U.S.C §201, et seq. (FLSA), and the Illinois Minimum Wage Law, 820 ILCS 105, et seq. (IMWL), and Defendant, Tax Pros Ltd. d/b/a Jackson Hewitt Tax Service having agreed to the entry of this Consent Judgment in resolution of disputed claims without trial or adjudication of any issue of fact or law herein:

NOW, THEREFORE, without trial and pursuant to the settlement agreement of the parties ("Settlement Agreement"), and upon the consent of the parties hereto, it is hereby ORDERED, ADJUDGED, AND DECREED as follows:

1. This Court has jurisdiction of the subject matter herein and of each of the parties consenting hereto. Plaintiff's Complaint (ECF No. 1) states a claim upon which relief can be granted against Defendant under the FLSA and IMWL.

2. On July 25, 2018 the parties entered into a Settlement Agreement. Defendant agreed that in the event that it defaulted on its obligation to make the payments as required by the Settlement Agreement, any unpaid settlement proceeds, plus attorneys' fees incurred in enforcing the agreement, would be immediately reduced to a consent judgment in favor of Plaintiff and against Defendant.

3. To date, Defendant has failed to make the second installment payment due November 30, 2018 as set forth in the Settlement Agreement.

4. Defendant shall comply with the provisions of this Consent Judgment. Defendant shall pay to Plaintiff the gross amount of Five Thousand Dollars and Zero Cents ($5,000.00), as allocated in the parties' Settlement Agreement.

5. Defendant shall also pay Plaintiff's counsel the reasonable sum of $1,050.00 for attorneys' fees incurred in preparing and having this Consent Judgment entered.

6. Upon Defendant's payment of the judgment amount, Plaintiff shall file a satisfaction of judgment with the Court.

IT IS SO ORDERED AND ADJUDGED THIS ___ DAY OF JANUARY, 2019.

_____________________________ Honorable Judge Virginia Kendall United States District Court
Source:  Leagle

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