Gabal v. Scoutsee Inc.
- Vernon Broderick
- 1:18-cv-02236
- U.S. District Court · Southern District of New York
- 2
In Gabal v. Scoutsee, Judge Broderick awarded $48,689.64 plus interest after adopting a damages recommendation following defendants’ default.
Shady Gabal received a $48,689.64 judgment plus prejudgment interest against Scoutsee Inc. and Tom Kwon, who were held jointly and severally liable. Dennis Kwon was not covered by this order because he had separately settled with Gabal.
What happened
In Gabal v. Scoutsee Inc., Shady Gabal sued Scoutsee Inc., Dennis Kwon, and Tom Kwon, seeking damages under the Fair Labor Standards Act, New York Labor Law, and a contract. Scoutsee and Tom Kwon defaulted on liability, while Dennis Kwon separately settled with Gabal.
A magistrate judge recommended awarding Gabal unpaid wages, liquidated damages, contract damages, prejudgment interest, and attorney’s fees and costs. No party objected to that recommendation, and the district court found no clear error in it.
Judge Vernon S. Broderick adopted the recommendation in full and entered judgment against Scoutsee and Tom Kwon for $48,689.64, plus prejudgment interest calculated at $5.06 per day from June 22, 2019, through the date of judgment. The two defendants were held jointly and separately responsible, and the case was closed.
The detailed version
- Gabal v. Scoutsee Inc. · No. 1:18-cv-02236
- Vernon Broderick
- Nov. 21, 2019
Background
Shady Gabal brought claims against Scoutsee Inc., Dennis Kwon, and Tom Kwon under the Fair Labor Standards Act, the New York Labor Law, and a breach-of-contract claim. Gabal sought compensatory damages, liquidated damages, prejudgment interest, attorney’s fees, and costs.
Scoutsee Inc. and Tom Kwon defaulted on liability, meaning they did not defend the liability issue and the court treated that issue as established against them. Dennis Kwon separately settled with Gabal, and the court had approved that settlement as fair and reasonable. The order therefore addressed only Scoutsee Inc. and Tom Kwon.
Report and Recommendation
After liability was established, the district court referred the case to Magistrate Judge Ona T. Wang for an inquest, or a proceeding to determine damages and attorney’s fees. Judge Wang recommended:
- $18,589.04 in unpaid wages; - $18,589.04 in liquidated damages; - $1,952.28 in breach-of-contract damages; - $3,607.78 in prejudgment interest, plus $5.06 per day from June 22, 2019, through the date of judgment; and - $5,951.50 in attorney’s fees and costs.
The parties had 14 days to object to the recommendation. Neither party objected, requested more time, or appeared. The district court therefore reviewed the recommendation for clear error, meaning an obvious mistake in the record, and found none.
Ruling
Judge Vernon S. Broderick adopted the Report and Recommendation in its entirety. The court awarded Gabal $42,738.14 in unpaid wages, liquidated damages, and breach-of-contract damages, plus $5,951.50 in attorney’s fees and costs, for a total of $48,689.64. The court also awarded prejudgment interest at $5.06 per day from June 22, 2019, through the date of judgment, with the Clerk of Court directed to calculate the total amount.
Scoutsee Inc. and Tom Kwon were held jointly and severally liable, meaning each was responsible for the full award, subject to the usual rules governing payment of a shared obligation. The Clerk was directed to enter judgment for Gabal and close the case.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.