Galeana v. Mahasan Inc.

Background

Adelaido Galeana and Nicolas Galeana filed this action against Mahasan Inc., doing business as Enthaice, and Juntima Netprachak. They alleged violations of the Fair Labor Standards Act, including its minimum-wage and overtime provisions, and violations of the New York Labor Law concerning minimum wages, overtime, notices, records, wage statements, and spread-of-hours pay.

In December 2014, Subongkot Longwilai and five other plaintiffs consented to join the action. The court compelled arbitration for six plaintiffs but denied arbitration as to Galeana and Longwilai. Galeana and Longwilai moved for default judgment against Mahasan. The court entered default judgment against Mahasan and sent the damages issue to Magistrate Judge Fox for an inquest, meaning a proceeding to determine the amount owed. On September 20, 2021, the court dismissed Netprachak from the action.

Report and Recommendation

On December 21, 2021, Magistrate Judge Fox recommended that Galeana receive $13,759.50 in damages, stated to consist of $7,423.50 in unpaid wages and overtime, $1,218 in unpaid spread-of-hours compensation, $8,641.50 in liquidated damages, and $3,900 in statutory damages. The recommendation also included $7,598.36 in prejudgment interest through July 28, 2021, plus additional interest at 9% per year on a principal amount of $8,641.50 from July 28, 2021, through entry of final judgment.

For Longwilai, Magistrate Judge Fox recommended $36,688.62 in damages, consisting of $14,016.31 in unpaid wages and overtime, $1,828 in unpaid spread-of-hours compensation, $15,844.31 in liquidated damages, and $5,000 in statutory damages. The recommendation included $10,503.16 in prejudgment interest through July 28, 2021, plus additional interest at 9% per year on a principal amount of $15,844.31 from that date through entry of final judgment.

The recommendation further provided that, under New York Labor Law § 198(4), any amount remaining unpaid after the statutory period would automatically increase the total judgment by 15%. It also recommended $13,818 in attorneys’ fees and $581 in costs for Galeana and Longwilai.

Court’s Review and Ruling

Neither the plaintiffs nor Mahasan objected to the Report and Recommendation or requested additional time to respond. Judge Vernon S. Broderick therefore reviewed it for clear error, meaning an obvious mistake, and found none. The court adopted the Report and Recommendation in its entirety and confirmed the damages, prejudgment interest, attorneys’ fees, and costs.

The order directed the Clerk of Court to calculate the additional interest, enter judgment, terminate open motions, and close the case. It also required Galeana and Longwilai to serve a copy of the order on Mahasan by mail at its last known address and file proof of service.