Lopez Catzin v. Thank You & Good Luck Corp.

Background

The plaintiffs sued a group of laundromats and their owners under the New York Labor Law for allegedly unpaid minimum and overtime wages, unpaid spread-of-hours payments, and missing wage notices and wage statements. The plaintiffs had abandoned their claims under the federal Fair Labor Standards Act in opposition to the defendants’ summary-judgment motions. The plaintiffs settled with Thank You Good Luck Corp. and Zeng Lan Wang.

A jury trial took place from May 13 through May 20, 2019, concerning Dimitri Berezovsky, Igor Birzh, Exclusive Management Solution Group, Inc. (EMSG), Off-Broadway Laundromat, Inc., 2167 3rd Ave Laundromat, LLC, and 115th and Frist Ave Laundromat, LLC. The jury found only EMSG liable. The plaintiffs then moved for judgment against Berezovsky and for attorney’s fees and costs.

Judgment Against Berezovsky

The court granted the plaintiffs’ motion to set aside the jury’s finding and enter judgment against Berezovsky. Before trial, the court had granted summary judgment to the plaintiffs on the issue of Berezovsky’s status as an employer because the defendants had not addressed that issue. The court stated that, as an employer, Berezovsky was jointly and severally liable—that is, liable together with EMSG for the plaintiffs’ recoveries under the New York Labor Law.

The court concluded that the jury’s finding that Berezovsky was not liable was inconsistent with the earlier summary-judgment ruling. It therefore ordered judgment for the plaintiffs against Berezovsky and EMSG.

Damages

The judgment awarded the following amounts:

- Lucia Lopez Catzin: $233.88 for unpaid minimum wages; $1,777.51 for unpaid overtime wages; $1,961.38 in liquidated damages; $10,000 in damages under New York Labor Law § 195; and $1,302.58 in prejudgment interest. - Silvia Villano Clemente: $450 for unpaid minimum wages; $2,476.94 for unpaid overtime wages; $2,926.94 in liquidated damages; $10,000 in damages under New York Labor Law § 195; and $1,857.68 in prejudgment interest. - Yadira Aguilar-Cano: $8,112.90 for unpaid overtime wages; $5,819.03 in liquidated damages; $5,000 in damages under New York Labor Law § 195; and $7,081.56 in prejudgment interest.

The court explained that New York law requires overtime pay at one and one-half times the regular rate for work beyond 40 hours in a week. It also applied statutory damages for missing wage notices and wage statements, and calculated prejudgment interest at nine percent using a reasonable midpoint date for each plaintiff’s employment.

Attorney’s Fees and Costs

The court granted the plaintiffs’ request for attorney’s fees and costs. It declined to make further reductions for unsuccessful motions or work concerning defendants who settled, noting that the plaintiffs had pursued claims against all defendants and that counsel had voluntarily reduced the requested fees by ten percent.

The court reduced compensation for certain travel time by one-half and lowered Michael Taubenfeld’s hourly rate from the requested $450 to $325. It approved rates of $450 for Alan Serrins, $175 for Corey Stein, $120 for Ann Marie Effingham, and $100 each for Raquel Heras and Cybill Echgoyen. The court awarded $140,250.36 in attorney’s fees and $4,064.86 in costs.

Disposition

The court granted the plaintiffs’ motions for attorney’s fees and to set aside the jury’s finding and enter judgment against Berezovsky. It directed the clerk to enter judgment for the plaintiffs against Berezovsky and EMSG for the listed damages, fees, and costs. The judgment also provides that the total unpaid New York Labor Law judgment will automatically increase by 15 percent if qualifying amounts remain unpaid after the specified 90-day period.

The opinion’s discussion contains amounts that differ from the amounts in its concluding judgment: it lists Lopez Catzin’s unpaid overtime as $1,775.51 rather than $1,777.51, liquidated damages as $1,931.38 rather than $1,961.38, and Villano Clemente’s prejudgment interest as $1,857.69 rather than $1,857.68. The summary above reports the amounts stated in the judgment.