Perez Garcia v. Hirakegoma Inc.

Background

Luis Perez Garcia sued Hirakegoma Inc. doing business as Nagomi, and three individuals under the Fair Labor Standards Act (FLSA) and New York Labor Law (NYLL). He alleged that he worked at the restaurant during periods from 2006 through September 27, 2017, including as a food preparer, cook, dishwasher, and delivery worker. He alleged that he regularly worked more than 40 hours per week but was not paid overtime, and that the defendants did not provide required wage notices or wage statements.

Judge Henry B. Pitman previously ordered default judgment against Hirakegoma, stayed the case against Sangwook Kim and Suyeon Kim because they had filed bankruptcy petitions, and ordered Perez Garcia to submit evidence supporting his damages. The opinion states that Jong Bok Kim was deceased and that no executor or estate had been substituted. Hirakegoma did not obtain new counsel after its former counsel withdrew, failed to appear at a scheduled conference, and did not respond to the damages inquest.

Liability and damages

The court conducted the damages inquest based only on Perez Garcia’s written submissions because no party requested a hearing and Hirakegoma submitted no materials. The court treated the well-pleaded allegations establishing liability as admitted by Hirakegoma’s default, but separately required evidence supporting the amount of damages.

The court found that Perez Garcia adequately alleged that Hirakegoma was his employer under both the FLSA and the NYLL. It also found that he adequately alleged the FLSA’s interstate-commerce requirement, worked 69 hours per week during the periods used for the damages calculation, and was not paid the required overtime premium. The court found that his workdays exceeded ten hours, supporting a claim for New York spread-of-hours pay. It further found that Hirakegoma’s conduct was willful for purposes of applying the FLSA’s three-year limitations period.

The court used the NYLL for the overtime damages calculation because its six-year limitations period allowed recovery for a longer period and provided the greater relief. It awarded:

- $151,009.38 in unpaid overtime wages; - $7,997.75 in unpaid spread-of-hours wages; - $159,007.13 in liquidated damages, equal to the unpaid overtime and spread-of-hours wages; - $5,000 for failure to provide required wage notices; - $5,000 for failure to provide required wage statements; and - $60,534.01 in prejudgment interest.

The court stated that Perez Garcia could not recover duplicate overtime damages under both statutes and that the NYLL provided the greater relief. It also stated that Hirakegoma had not shown a good-faith basis for its wage violations, supporting the liquidated-damages award.

Attorneys’ fees and costs

Perez Garcia requested $12,699 in attorneys’ fees and costs. The court reduced the requested hourly rates for the attorneys and paralegal and excluded 1.95 hours spent on work in a New Jersey bankruptcy proceeding because the court could not identify a connection to this case. It awarded $9,112.50 in attorneys’ fees and $564 in costs, including the filing fee and due-diligence expenses.

Disposition

Judge Sarah L. Cave awarded damages against Hirakegoma totaling $388,548.27, consisting of the unpaid wages, liquidated damages, state-law statutory damages, and prejudgment interest. Including attorneys’ fees and costs, the court stated that the total judgment was $398,224.77. The ruling addressed the damages owed by the defaulting corporate defendant; the opinion states that the case remained stayed as to Sangwook Kim and Suyeon Kim.