USA Staffing Services, LLC v. YDC, Inc., d/b/a REZI

Background

USA Staffing Services, LLC brought claims against YDC, Inc., doing business as REZI, for breach of contract and account stated based on an unpaid balance for staffing services. On January 29, 2025, the court granted USA Staffing summary judgment on both claims. The case was then referred to Magistrate Judge Valerie Figueredo for an inquiry into damages, interest, attorney’s fees, and costs.

Report and Recommendation

Magistrate Judge Figueredo recommended damages and prejudgment interest on the breach-of-contract claim based on the contract’s terms and the evidence submitted by USA Staffing. The report did not recommend damages on the account stated claim because USA Staffing had already been awarded damages on the breach-of-contract claim arising from the same contract. The report also recommended reducing the requested attorney’s fees because of excessive hourly rates and overbilling, while awarding the requested costs.

The recommended amounts were $704,081.61 in damages; $266,968.77 in prejudgment interest, plus $10,561.22 per month beginning in September 2025 until judgment; $40,915.25 in attorney’s fees; $475 in costs; and post-judgment interest under the federal statutory formula in 28 U.S.C. § 1961.

Court’s Ruling

Neither party objected to the report. Judge Lorna G. Schofield therefore reviewed it for clear error and found none. The court adopted the report in full and awarded USA Staffing $704,081.61 in damages, $266,968.77 in prejudgment interest plus the additional monthly interest described above through the date the clerk enters judgment, $40,915.25 in attorney’s fees, and $475 in costs. The court also ordered YDC to pay post-judgment interest from the date judgment is entered until the judgment is satisfied, calculated under 28 U.S.C. § 1961. The clerk was directed to enter judgment, close the motion to compel at Dkt. No. 45, and close the case.