Kairos Credit Strategies Operating Partnership v. The Friars National…

Background

On January 31, 2024, Judge Arun Subramanian entered a judgment as to liability in favor of Kairos Credit Strategies Operating Partnership, LP and against Hotel Restaurant & Club Employees and Bartenders Union Local 6 (the “Union”) and Club Employees Pension Fund (the “Fund”). In the same order, Judge Subramanian entered default judgments as to liability against the City of New York Department of Environmental Control and the New York City Finance Administration Bureau of Compliance and Collection (the “Defaulting Defendants”).

Judge Subramanian referred the case to a magistrate judge to conduct an inquest and issue a report and recommendation concerning the amount of damages, if any, that should be awarded against the Union and the Fund. An inquest is a court process for determining damages after liability has been established.

Court’s Order

The court ordered Kairos to file proposed findings of fact and conclusions of law by February 23, 2024. The filing must state the exact dollar amount of damages or other monetary relief sought from each defendant and the precise terms of any requested non-monetary relief.

For actual damages, Kairos must provide admissible evidence sufficient to allow the court to determine the amount with reasonable certainty. Declarations or affidavits may authenticate supporting documents. Each proposed factual finding must cite the supporting declaration paragraph or documentary page, explain how the proposed amount was calculated, and connect the damages to the legal claims against the particular defendant.

Any request for attorney’s fees must include authenticated contemporaneous time records identifying the date of service, hours worked, hourly rate when applicable, and work performed by each timekeeper. Kairos must also provide admissible evidence describing each attorney’s or timekeeper’s background and qualifications and documenting costs and expenses.

Before filing, Kairos must mail the proposed findings, supporting materials, and a copy of the order to the Defaulting Defendants at their last known addresses. Kairos must file proof of mailing. Each defendant may respond by March 8, 2024.

Disposition and Effect

The court notified the parties that it may conduct the damages inquest solely on the written submissions. A party seeking an evidentiary hearing must explain why written submissions are insufficient and identify the witnesses and evidence it would present. Judge Robyn F. Tarnofsky’s order sets procedures and deadlines for deciding damages; it does not award a specific amount of damages or other relief.