Dalewitz v. JusLaw LLC

Background

Michael Dalewitz filed the action on January 22, 2024. The parties later reached a settlement in principle. The court adopted a report recommending that the settlement agreement was valid and enforceable, dismissed the action without costs, and allowed the matter to be reopened within 60 days if the settlement was not completed. The court also stated that it would not retain authority to enforce the settlement unless the agreement was submitted to the court and made part of the public record during that period.

The court later reopened the matter and formally approved the settlement agreement after Dalewitz reported that JusLaw LLC, JusGlobal, LLC, and Beatrice O’Brien had failed to make timely payment. The agreement required the defendants to pay Dalewitz $150,000 in two installments, with the final installment due on or before January 31, 2025.

Motion to Enforce the Settlement

Dalewitz moved to enforce the court-approved settlement. The defendants acknowledged the breaches and did not dispute that Dalewitz was entitled to judgment. The settlement agreement also required the defendants to pay reasonable attorney’s fees that Dalewitz paid to recover settlement funds that were not timely paid.

Dalewitz requested the full $150,000 settlement amount, $7,507.50 in attorney’s fees, and prejudgment interest at nine percent per year. The defendants did not oppose the $150,000 damages request. Their attorney argued that attorney’s fees should be calculated only from December 31, 2024, and that fees for work performed by a recent law graduate should not be recovered. Dalewitz agreed that the fee calculation should begin on December 31, 2024, but argued that the law graduate’s work was compensable.

Ruling

Judge Analisa Torres found that the defendants had conceded their breach and were jointly and severally liable to Dalewitz for $150,000 in damages. Joint and several liability means each defendant is responsible for the full amount, subject to the defendants’ rights among themselves.

The court also awarded $7,507.50 in attorney’s fees. It found that 42.90 hours at a discounted rate of $175 per hour were reasonable, including the hours billed by the recent law graduate and the limited hours billed by the firm’s founding partner. The court found no unreasonable overbilling or other questionable billing practices.

The court further approved Dalewitz’s unopposed request for prejudgment interest at nine percent per year. The interest was to be calculated on $50,000 due December 31, 2024, and $100,000 due January 31, 2025, through the date of judgment. The Clerk of Court was directed to enter judgment for $150,000 in damages, the prejudgment interest, and $7,507.50 in attorney’s fees.