Chen v. L & H Wine & Liquor, Inc.

Background

Jinxu Chen sued L & H Wine and Liquor, Inc., Longhua Lin, and Jianhao Ren over wage and overtime claims under the Fair Labor Standards Act and the New York Labor Law. Chen worked at L & H from December 4, 2018, through June 18, 2019.

After a bench trial, the court ruled for Chen against L & H and Lin on unpaid wages and overtime compensation under both statutes, as well as New York wage-notice and wage-statement claims. The court ruled for Ren on all of Chen’s claims and ruled for L & H and Lin on Chen’s minimum-wage and spread-of-hours claims. The court also determined that Chen was entitled to attorney fees, costs, and prejudgment interest.

Chen moved for those awards. The court referred the motion to Magistrate Judge Valerie Figueredo, who issued a report and recommendation. The defendants did not oppose Chen’s motion, and no party objected to the report and recommendation.

Attorney Fees

The magistrate judge recommended $51,475.25 in attorney fees. The recommendation applied reduced hourly rates for the attorneys and managing clerk who worked on Chen’s case and reduced the requested hours by 20%. The reduction reflected billing entries involving work that could have been delegated to less senior personnel, excessive time for simple tasks, and repetitive or vague descriptions.

Because no party objected, the court reviewed the recommendation for clear error on the record. The court found no clear error in the recommended hourly rates, 20% reduction in hours, or calculation of the fee award. It adopted the recommendation and awarded Chen $51,475.25 in attorney fees.

Costs

Chen requested $2,131.90 in costs. The magistrate judge recommended $1,835.23, approving documented expenses such as the filing fee, a motor-vehicle-record search, translation services, the trial transcript, and travel costs.

The court observed that the approved expenses actually totaled $1,789.19, not $1,835.23. It therefore awarded Chen $1,789.19 in costs. The court did not award several expenses that lacked receipts, invoices, or other supporting documentation.

Prejudgment Interest

The court awarded prejudgment interest on Chen’s unpaid-wages award of $20,422.02, at New York’s 9% annual rate. It rejected the recommended start date of March 10, 2019 and used March 12, 2019 instead, because March 12 was the midpoint between Chen’s first and last days of employment at L & H.

Interest is to run from March 12, 2019, through the date judgment is entered. The award applies to the unpaid wages, not to liquidated damages or the wage-notice and wage-statement damages.

Joint Responsibility and Disposition

The court concluded that Lin was an employer under both the federal and New York wage laws. It held that Lin and L & H are jointly and severally liable, meaning Chen may enforce the fees, costs, and prejudgment-interest award against either one for the full amount, subject to their rights between themselves.

Judge Gardephe adopted Magistrate Judge Figueredo’s report and recommendation in part and granted Chen’s motion for attorney fees, costs, and prejudgment interest as follows: $51,475.25 in attorney fees; $1,789.19 in costs; and 9% annual prejudgment interest on $20,422.02 from March 12, 2019, until judgment is entered. The clerk was directed to enter judgment and close the case.