BRIAN M. COGAN, District Judge.
Having obtained a judgment following trial for $4,130.75 in unpaid wages under the Fair Labor Standards Act, 29 U.S.C. § 201 et seq., and New York Labor Law §650 et seq., plaintiff moves for an award of attorneys' fees of $84,362.50 and costs of $4830.67. The motion is granted in part and denied in part.
Both the FLSA and New York Labor Law allow for an award of "reasonable" attorneys' fees.
Plaintiff had six attorneys plus paralegals working on this case. The following chart states their claimed rates and the amount of time put into this case.
It should be noted that all of the associates were admitted to the bar in 2014 except Ms. Dano, who is not admitted in New York but was admitted in California in 2013. Mr. Troy has been in practice since 1989 but has only been litigating wage cases since 2009.
It takes little effort to ascertain the prevailing rates in FLSA cases in this district. The explosion of FLSA case filings in this district since 2008,
Looking at the prevailing rates, most of the rates claimed by plaintiff in this case are too high. Applying the
First, I cannot justify a rate in excess of $300 per hour for Mr. Troy. The trial was very rough in terms of demonstrating Mr. Troy's ability to formulate questions according to the rules of evidence, and the theories advanced, for the most part, were not the basis on which I decided the case. There also were a number of pretrial matters that he undertook that could easily have been undertaken by Mr. Federici at a much lower rate.
Second, I cannot award a rate of $250 per hour for associates who were admitted to the bar the same year the case was tried. Mr. Federici seemed competent enough, but he had no experience. I will allow his rate to be $175 per hour, as the highest rate recoverable for a junior associate in this district.
I need not determine the appropriate hourly rate for the remaining associates since, for the reasons stated below, I am disallowing half of each of their time and moving the remainder to Mr. Federici's adjusted rate. The paralegal rate is reduced to $80 per hour.
There were a number of inefficiencies in the time spent on this case. First, the case in no way required five associates. There is necessarily a learning curve anytime a new associate is introduced into a case, and the client should not have to pay for that. The total time charged for attorneys other than Mr. Federici is approximately 60 hours. I will reduce that by half to reflect this learning curve on the theory that Mr. Federici could have done that work in much less time, but I will allow the remaining half (30 hours) at Mr. Federici's adjusted rate of $175 per hour, which is in some instances higher than the rate claimed by the disallowed associates. To the extent that Mr. Troy did work that could have been performed as efficiently by an associate, I have already discounted for that by reducing his claimed hourly rate.
Most of defendants' objections to the fee application are addressed in the discussion above. The remaining objections are addressed as follows.
First, I reject defendants' contention that plaintiff's attorneys failed to submit contemporaneous time records. Mr. Troy's affidavit explains that he uses a familiar software system where the attorneys enter their time into a database daily, and then the entries are compiled when it is time to send a bill or make a fee application. Those are contemporaneous records. I also do not find that the entries are, for the most part, too general. I can understand virtually all of the abbreviations, and I do not want to force attorneys to spend their time making such detailed entries that they end up spending a greater proportion of time keeping records as opposed to working on the case.
Second, I do not think a discount of fees is appropriate because of the gap between plaintiff's recovery and the attorneys' fees award sought. Most FLSA cases involve recoveries that may seem de minimis, so legal fees will very often greatly exceed the amount of plaintiff's recovery. For better or worse, Congress has determined that private, fee-driven litigation is the best way to induce employers to meet their wage obligations. Arguments can be made to the contrary, particularly pointing out the burden that these attorneys' fees force upon small businesses, but those arguments should be addressed to Congress. It is not the problem of plaintiff's counsel that Congress has created an opportunity for him. Plaintiff was in fact owed wages, she obtained judgment for the amount she is owed, and there is no reason to disallow a reasonable attorneys' fee when Congress has expressly directed it. To the extent plaintiff advanced theories that were not successful, as defendants point out, that has been addressed through a reduction in the hourly rates and the time charged.
Third, defendants complain that plaintiff has applied for "administrative and secretarial fees" as part of her costs, but I do not see any such charges. The costs appear to be out of pocket expenditures attributable solely to this case.
Finally, defendants complain that plaintiffs made unreasonable settlement demands. I commented on a similar argument in
More fundamentally, experienced employers' counsel have a procedure at their disposal for potentially reducing the employers' exposure for attorneys' fees as a result of a plaintiff's unreasonable settlement posture. Recognizing that a plaintiff's claim for attorneys' fees can exceed the amount of her wage recovery exponentially, many employers will make an early offer of judgment pursuant to Federal Rule of Civil Procedure 68 for the maximum amount the employer believes that the employee might recover, including liquidating damages, plus "reasonable attorneys' fees and costs." Some courts have held that this renders the plaintiff's FLSA claims moot, and thus cuts off the continuing exposure for attorneys' fees.
Here, as noted above, I have nothing before me to support the argument that plaintiff was unreasonable in refusing to settle except argument in defendants' brief. There was, apparently, no Rule 68 offer, so there is no objective evidence before me on the issue of reasonableness. I thus have no basis for accepting defendants' claim.
Based on the factors set forth above, plaintiff's motion is granted to the following extent. Mr. Troy's 145.55 hours at $300 per hour equals $43,665.00. Mr. Federici's 81.8 hours, plus 30 hours (half of the other, disallowed associates' 60 hours), at $175 per hour equals $19,565.00. The paralegals' 10.1 hours at $80 per hour equals $808.00. Plaintiff is therefore awarded attorneys' fees of $64,038.00, plus $4830.67 in costs.
The Clerk is directed to enter an amended judgment, awarding plaintiff damages in the amounts previously awarded, plus $64,038.00 in attorneys' fees and $4830.67 in costs.