JTH TAX LLC d/b/a LIBERTY TAX SERVICE f/k/a JTH TAX, INC. v. EDWARD KUKLA,...
District Court, E.D. New York
JTH TAX LLC d/b/a LIBERTY TAX SERVICE f/k/a JTH TAX, INC. v. EDWARD KUKLA,...
Trial Court Opinion
UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORK
--------------------------------X
JTH TAX LLC d/b/a LIBERTY TAX
SERVICE f/k/a JTH TAX, INC.,
ORDER
Plaintiff, 22-CV-1542(JS)(JMW)
-against-
EDWARD KUKLA, KARLY JEANTY,
HARLINE JEANTY, and EXPERT TAX
CONSULTANTS LLC,
Defendants.
--------------------------------X
APPEARANCES
For Plaintiff: JoAnna Marie Doherty, Esq.
Peter G. Siachos, Esq.
James L. Messenger, Esq.
Gordon Rees Scully Mansukhani, LLP
One Battery Park Plaza, 28th Floor
New York, New York 10004
For Defendants: Vano I. Haroutunian, Esq.
Edward Michael Tobin, Esq.
Ballon Stoll Bader & Nadler, P.C.
1450 Broadway
New York, New York 10018
SEYBERT, District Judge:
Presently before the Court are two fee applications of
Plaintiff JTH Tax LLC d/b/a Liberty Tax Service f/k/a JTH Tax,
Inc. (“Liberty” or “Plaintiff”). The first is Liberty’s so-called
“Contempt Fee Application” (see ECF No. 73), and the second is its
so-called “TRO Fee Application” (see ECF No. 78) (collectively,
the “Fee Applications”), which were filed after the Court issued
1
orders holding (1) Defendants Edward Kukla, Karly Jeanty, Harline
Jeanty, and Expert Tax Consultants LLC (“Defendants”) in contempt
of the Court’s May 24, 2022 preliminary injunction order (see the
“Contempt Order” ECF No. 63), and (2) denying Defendants’ Motion
for Preliminary Injunction and Temporary Restraining Order (see
the “TRO Order” ECF No. 75), and entitled Plaintiff to recover
attorney’s fees incurred in connection with the issuance of said
orders. For the following reasons, the Fee Applications are GRANTED
in part, to the extent the Court awards Plaintiff $39,246.85 in
attorney’s fees.
BACKGROUND
The Court presumes the parties are familiar with the facts of
the case. For the reader’s convenience, it provides the following
summary: After the Court granted Plaintiff’s preliminary
injunction motion on May 24, 2022 (the “Preliminary Injunction
Order” ECF No. 29), Plaintiff subsequently moved for default
judgment and permanent injunction (see ECF No. 31); it also moved
to hold Defendants in contempt for their violations of the
Preliminary Injunction Order (the “Contempt Motion” ECF No. 48).
On December 15, 2022, the Court granted Plaintiff’s motions (see
Contempt Order and the “Permanent Injunction Order” ECF No. 64;
collectively the “Underlying Orders”). The Contempt Order held
2
“that Defendants, jointly and severally, shall be liable for the
attorneys’ fees and litigation costs Liberty incurred in
connection with the contempt motion.” (Contempt Order at 2.) On
January 13, 2023, Liberty filed its Contempt Fee Application,
seeking (1) $47,047.93 in attorney’s fees and (2) $3,930.99 in
purported costs, most of which are comprised of private
investigator’s fees. (Contempt Fee Application at 3-4).
After the Court issued the Underlying Orders, Defendants
moved for a “a temporary restraining order and preliminary
injunction preventing Plaintiff from enforcing” said Orders (the
“TRO Motion”) (ECF No. 68 at 9.) On January 25, 2023, the Court
denied the TRO Motion, observing it served as “indicia of
Defendants’ continued litigation of this action in bad faith.”1
(TRO Order at 6.) The Court’s denial order permitted Plaintiff to
seek reimbursement for the attorney’s fees and costs incurred in
responding to the TRO Motion, which Plaintiff subsequently sought
in its March 9, 2023 TRO Fee Application. The TRO Fee Application
1 The Court further observed the TRO Motion was virtually identical
to Defendants’ June 27, 2022 Motion for Temporary Restraining
Order, which Defendants withdrew following a status conference
with Magistrate Judge James M. Wicks. (ECF No. 46.) That prior
motion sought to block enforcement of the Court’s Preliminary
Injunction Order.
3
seeks $6,559.87 in attorney’s fees. (the “TRO Fee Application
Motion,” ECF No. 78-2 at 5.)
The Fee Applications are accompanied by invoices from
Plaintiff’s counsel, Gordon Rees Scully Mansukhani, LLP (“Gordon
Rees”), which show Gordon Rees charged $208.25 per hour for a
junior associate and $263.50 to $335.75 per hour for partners.
(the “Contempt Bill,” Ex. A, ECF No. 73-1, attached to the “Siachos
Contempt Declaration,” Decl. of Peter G. Siachos; the “TRO Bill,”
Ex. A, ECF No. 78-3, attached to the “Siachos TRO Declaration,”
Decl. of Peter G. Siachos.) Plaintiff cites several Eastern
District cases to support its contention that courts have approved
such rates. (See, e.g., Contempt Fee Application at 7 (citing PNC
Equip. Fin., LLC v. Montauk Transp. Serv. Inc., No. 18-CV-5883,
2019 WL 8685091, at *4 (E.D.N.Y. Dec. 16, 2019), report and
recommendation adopted, No. 18-CV-5883, 2020 WL 2219197 (E.D.N.Y.
May 7, 2020))).
Defendants’ separate oppositions to the Fee Applications are
mostly verbatim and levy threadbare arguments that Gordon Rees’s
rates “resulted directly from unnecessary and duplicative work
performed by Plaintiff” and “are not reasonable as a matter of
law.” (“Contempt Fee Opposition” and “TRO Fee Opposition”
collectively, the “Oppositions”) (see ECF No. 76 at 1, 3; ECF No.
4
80 at 1, 4.) The Oppositions cite sparsely to case law and do not
identify any specific entries Defendants deem unnecessary or
duplicative.
DISCUSSION
I. Applicable Law re: Attorney’s Fees and Costs
“District courts have broad discretion to determine the
amount of attorneys’ fees awarded, and the party requesting fees
must submit documentation to support its request.” Perry v. High
Level Dev. Contracting & Sec. LLC, No. 12-CV-2180, 2022 WL 1018791,
at *14 (E.D.N.Y. Mar. 16, 2022), report and recommendation adopted,
2022 WL 1017753 (E.D.N.Y. Apr. 5, 2022). “In calculating attorney’s
fees, the district court must first determine the ‘lodestar–the
product of a reasonable hourly rate and the reasonable number of
hours required by the case–[which] creates a presumptively
reasonable fee.’” Stanczyk v. City of N.Y., 752 F.3d 273, 284 (2d
Cir. 2014) (brackets in original) (quoting Millea v. Metro-N. R.R.
Co., 658 F.3d 154, 166 (2d Cir. 2011)); see also Hensley v.
Eckerhart, 461 U.S. 424, 433 (1983) (“The most useful starting
point for determining the amount of a reasonable [attorney’s] fee
is the number of hours reasonably expended on the litigation
multiplied by a reasonable hourly rate.”); McDonald ex rel.
Prendergast v. Pension Plan of the NYSA-ILA Pension Trust Fund,
5
450 F.3d 91, 97 (2d Cir. 2006) (“In calculating attorney’s fee
awards, district courts use the lodestar method—hours reasonably
expended multiplied by a reasonable hourly rate.”); Division 1181
Amalgamated Transit Union-N.Y. Employees Pension Fund and Its
Trustees v. D & B Bus Co., Inc., 270 F. Supp.3d 593, 617-20 (Part
IV(E) re: fees), 628 (Part IV(F) re: costs) (E.D.N.Y. 2017). The
burden is on the fee applicant to submit evidence to support the
number of hours expended and the rates claimed. See Hensley, 461
U.S. at 437; see also Cleanup N. Brooklyn by Chantrtanapichate v.
Brooklyn Transfer LLC, 373 F. Supp.3d 398, 403 (E.D.N.Y. 2019)
(“The fee applicant bears the burden of adequately documenting and
justifying the hours worked, rates sought, and costs expended.”
(citing Monette v. County of Nassau, No. 11-CV-0539, 2016 WL
4145798, at *3, *10 (E.D.N.Y. Aug. 4, 2015); Pennacchio v. Powers,
No. 05-CV-0985, 2011 WL 2945825, at *2 (E.D.N.Y. July 21, 2011)));
Hugee v. Kimso Apartments, LLC, 852 F. Supp.2d 281, 298 (E.D.N.Y.
2012) (“The burden is on the party seeking attorney’s fees to
submit sufficient evidence to support the hours worked and the
rates claimed.” (citing Hensley, 461 U.S. at 433)). Where time
entries are vague, duplicative, or otherwise inadequate, a court
may make an across-the-board reduction in the amount of hours
awarded. Monge v. Glen Cove Mansion Hosp., LLC, No. 18-CV-7229,
2020 WL 1666460, at *8 (E.D.N.Y. Apr. 2, 2020); see also Scharff
6
v. County of Nassau, No. 10-CV-4208, 2016 WL 3166848, at *7-8
(E.D.N.Y. May 20, 2016), report and recommendation adopted sub
nom., Scharff v.County of Nassau & Shila Shah-Gavnoudias, No.
10-CV-4208, 2016 WL 3172798 (E.D.N.Y. June 6, 2016) (stating courts
may apply an across-the-board percentage reduction in hours
“rather than engage in an entry by entry critique of the time
billed”).
II. Application
A. Attorney’s Fees
1. Reasonable Hourly Rate
“In setting a reasonable hourly rate, the Second Circuit has
stated that the ‘district court should consider, among others, the
Johnson factors; it should also bear in mind that a reasonable,
paying client wishes to spend the minimum necessary to litigate
the case effectively.’” Valvo v. City of N.Y., No. 13-CV-6562,
2018 WL 3999011, at *2 (E.D.N.Y. Jan. 23, 2018)2 (quoting Arbor
2 The Valvo Court noted the Johnson factors, to wit:
(1) the time and labor required; (2) the novelty and difficulty
of the questions; (3) the level of skill required to perform the
legal service properly; (4) the preclusion of employment by the
attorney due to acceptance of the case; (5) the customary fee for
similar work in the community; (6) whether the fee is fixed or
contingent; (7) time limitations imposed by the client or the
circumstances; (8) the amount involved and the results obtained;
(9) the experience, reputation, and ability of the attorneys;
(10) the “undesirability” of the case; (11) the nature and length
7
Hill Concerned Citizens Neighborhood Ass’n v. County of Albany and
Albany County Bd. of Election, 522 F.3d 182, 190 (2d Cir. 2008));
see also Lilly v. City of N.Y., 934 F.3d 222, 229-30 (2d Cir. 2019)
(explaining a district court’s determination of a reasonable
hourly rate “tak[es] account of all case-specific variables” and
is set “by considering all pertinent factors, including the Johnson
factors” (internal quotation marks and citation omitted)). “This
Court follows the Second Circuit’s ‘forum rule,’ which ‘generally
requires use of the hourly rates employed in the district in which
the reviewing court sits in calculating the presumptively
reasonable fee.’” Trustees of NE Carpenters Health Pension,
Annuity, Apprenticeship, and Labor Mgmt. Coop. Funds v. Cali
Enters., Inc., No. 18-CV-3556, 2019 WL 2076784, at *5 (E.D.N.Y.
May 10, 2019) (quoting Bergerson v. N.Y.S. Office of Mental Health,
Cent. N.Y. Psychiatric Ctr., 652 F.3d 277, 290 (2d Cir. 2011)
(further citation omitted); see also Townsend v. Benjamin Enters.,
Inc., 679 F.3d 41, 59 (2d Cir. 2012) (a reasonable hourly rate
of the professional relationship with the client; and (12) awards
in similar cases.
Id. at *2, n.3 (citing Johnson v. Georgia Highway Exp., Inc., 488
F.2d 714, 717-18 (5th Cir. 1974)); see also, e.g., J.S. ex rel.
Z.S. v. Carmel Cent. Sch. Dist., 501 F. App’x 95, 99 (2d Cir. 2012)
(finding no abuse of discretion in a district court’s “conclusion
that the complexity and novelty of the case would be reflected in
the number of billable hours rather than in a lodestar
adjustment”).
8
should be determined through a “‘case-specific inquiry into the
prevailing market rates for counsel of similar experience and skill
to the fee applicant’s counsel,’ an inquiry that may ‘include
judicial notice of the rates awarded in prior cases and the court’s
own familiarity with the rates prevailing in the district’”
(quoting Farbotko v. Clinton County, 433 F.3d 204, 209 (2d Cir.
2005))). “[T]he prevailing rates for attorneys in the E.D.N.Y. .
. . are approximately $300-$450 per hour for partners, $200-$300
per hour for senior associates, and $100-$200 per hour for junior
associates.” Cleanup N. Brooklyn, 373 F. Supp.3d at 404 (citing
Valvo, 2018 WL 3999011, at *2; Pocius v. Sec. Auto Sales Inc., No.
16-CV-0400, 2018 WL 3999649, at *4 (E.D.N.Y. July 6, 2018), report
& recommendation adopted, 2018 WL 3998965 (E.D.N.Y. Aug. 20,
2018)); see also PNC Equip. Fin., LLC, 2019 WL 8685091, at *4
(same).
Gordon Rees’s hourly rates—$208.25 per hour for an associate
and $263.50 to $335.75 per hour for partners—sit firmly within
what Eastern District courts have found to be reasonable. (Contempt
Fee Application at 6; TRO Fee Application Motion at 5.) The
attorneys’ experience and subject matter expertise further
supports a finding of reasonableness: each of the four billing
partners has at least nine years’ experience practicing law,
9
including on franchise-related disputes. (Siachos Contempt
Declaration at 4-5; “Gordon Rees Biographies,” Ex. B, attached to
Siachos Contempt Declaration.) Moreover, Gordon Rees’s 15%
discount demonstrates sound billing judgment and mindfulness “that
a reasonable, paying client wishes to spend the minimum necessary
to litigate the case effectively.’” Valvo, 2018 WL 3999011, at *2
(quoting Arbor Hill, 522 F.3d at 190).
The Oppositions do not distinguish the cases stating that
$300 to $450 per hour are reasonable rates for partners in the
Eastern District. (Contempt Fee Opposition at 3-4; TRO Fee
Opposition at 4.) Instead, Defendants generally state that Gordon
Rees’s rates “are not reasonable as a matter of law” and cite to
two cases involving third-party discovery costs to support this
assertion. (Id. (citing Sands Harbor Marina Corp. v. Wells Fargo
Ins. Servs. of Or., Inc., No. 09-CV-3855, 2018 WL 1701944 at *7
(E.D.N.Y. Mar. 31, 2018); Nike, Inc. v. Wu, No. 13-CV-8012, 2020
WL 257475 at *14 (S.D.N.Y. Jan. 17, 2020), aff’d sub nom., Next
Invs., LLC v. Bank of China, 12 F.4th 119 (2d Cir. 2021))).
Defendants offer no rationale explaining how third-party discovery
cases are applicable, and this Court finds none. Moreover, Sands
Harbor Marina actually undercuts Defendants’ argument, as it found
$350 per hour to be a reasonable partner rate. Sands Harbor Marina
10
Corp., 2018 WL 1701944, at *7. The Court accordingly finds Gordon
Rees’s hourly rates (inclusive of the 15% discount) to be
reasonable.
2. Reasonable Hours
“The party seeking attorney’s fees also bears the burden of
establishing that the number of hours for which compensation is
sought is reasonable.” Custodio v. Am. Chain Link & Constr., Inc.,
No. 06-CV-7148, 2014 WL 116147, at *9 (S.D.N.Y. Jan. 13, 2014)
(citing Cruz v. Local Union No. 3 of Int’l Bhd. of Elec. Workers,
34 F.3d 1148, 1160 (2d Cir. 1994)). Courts examine time records to
exclude what appear to be excessive or unnecessary hours “with a
view to the value of the work product of the specific expenditures
to the client’s case.” Martinez v. New 168 Supermarket LLC, No.
19-CV-4526, 2020 WL 5260579, at *9 (E.D.N.Y. Aug. 19, 2020)
(quoting Luciano v. Olsten Corp., 109 F.3d 111, 116 (2d Cir. 1997),
report and recommendation adopted, 2020 WL 5259056 (Sept. 30,
2020). “Hours that are ‘excessive, redundant, or otherwise
unnecessary,’ are to be excluded, and in dealing with such
surplusage, the court has discretion simply to deduct a reasonable
percentage of the number of hours claimed ‘as a practical means of
trimming fat from a fee application.’” Kirsch v. Fleet St., Ltd.,
148 F.3d 149, 173 (2d Cir. 1998) (quoting Hensley, 461 U.S. at
11
434; then quoting N.Y. Ass’n for Retarded Children, Inc. v. Carey,
711 F.2d 1136, 1146 (2d Cir. 1983)); see also Lunday v. City of
Albany, 42 F.3d 131, 134 (2d Cir. 1994) (“We do not require that
the court set forth item-by-item findings concerning what may be
countless objections to individual billing items.”) Indeed, “in
reviewing a fee application, ‘trial courts need not, and . . .
should not, become green-eyeshade accountants,’ and ‘may take into
account their overall sense of a suit, and may use estimates in
calculating and allocating an attorney’s time.’” Cleanup N.
Brooklyn, 373 F. Supp.3d at 407 (quoting Fox v. Vice, 563 U.S.
826, 838 (2011)) (emphasis added). “[G]eneral partner-heavy
staffing of [a] case” can “warran[t] a reduction in the hours
awarded.” Resnik v. Coulson, No. 17-CV-0676, 2020 WL 5802362, at
*9 (E.D.N.Y. Sept. 28, 2020). Courts have the discretion to address
recurring inadequacies in a plaintiff’s time entries or motion
with an across-the-board reduction in hours awarded, “rather than
engage in an entry by entry critique of the time billed.” Scharff,
2016 WL 3166848, at *7.
Gordon Rees purports to have billed 175.3 total hours in
connection with the Contempt Motion litigation (Contempt Fee
Application at 4) and 23.3 hours in connection with the TRO Motion
litigation (TRO Fee Application Motion at 5). Defendants argue—
12
without identifying any objectionable tasks or billed entries—that
“the costs and fees expended by Plaintiff resulted directly from
unnecessary and duplicative work.” (Contempt Fee Opposition at 1;
TRO Fee Opposition at 1.)
While refraining from a fulsome audit more suited for a
“green-eyeshade accountant,” Cleanup N. Brooklyn, 373 F. Supp.3d
at 407 (quoting Fox, 563 U.S. at 838), the Court’s review of the
bills finds that most of Gordon Rees’s entries document reasonable
hours to relevant tasks. For example, smaller tasks (such as
correspondence with opposing counsel and Plaintiff) are completed
in less than one hour of time; more substantive tasks (such as
drafting and hearing preparation) generally take up no more than
a few hours. Most entries document tasks that are directly related
to the Contempt Motion and Second TRO Motion litigation; however,
some “block billing” entries associated with the Contempt Fee
Application include work for the default judgment motion, for which
Plaintiff is not entitled to attorney’s fees. (Contempt Bill)
Further, other entries are ambiguous as to whether work was billed
for the Contempt Motion litigation alone. While this is
understandable given the Court simultaneously heard and decided
both motions, the Court declines to award attorney’s fees for the
13
default judgment motion. Accordingly, the Court deducts 50% of the
hours sought from these entries, as follows.
Name Date Task Hrs. | Rate Total 50%
mens fPere en cee [Reduce
James L. 6/21/22 Revise 1.4 $263.50 | $368.90 $184.45
Messenger contempt
papers and
reply to
default
Brian J. 6/22/22 Correspondence | 0.2 $263.50 | $52.70 §26.35
Wall with client
regarding
Contempt
Motion and
Default
Reply
James L. 6/23/22 Review 1.6 $263.50 | $421.60 $210.80
Messenger contempt and
default papers
James L. 6/24/22 File reply to 2.5 $263.50 | $658.75 $329.38
Messenger opposition to
motion for
default and
negotiations
on contempt
Brian J. B/11T/22 Draft and 0.9 $263.50 | $237.15 $118.58
Wall revise letter
to the Court
regarding
hearing on
Motion for
Default
Judgment and
Motion for
Contempt
Brian J. 9/22/22 Correspondence | 0.5 $263.50: | 54:34..775 $65.88
Wall with client
regarding
Motion for
Default
Judgment and
Motion for
Contempt
14
Name Date Task Hrs. | Rate Total 50%
Kets Reduc.
Brian J. 9/27/22 Calls with the | 0.3 $263.50 | $79.05 $39.53
Wall Court
regarding
Motion for
Default
Judgment and
Motion for
Contempt
Brian J. 10/27/22 | Draft and 0.9 $263.50 | $237.15 $118.58
Wall revise letter
to the Court
requesting
conference on
pending
Motions
Brian J. 11/10/22 | Draft report $263.50 | $105.40 $52.70
Wall to client
regarding case
status
James L. 12/5/29 Prep for 3.4 $263.50 | $895.90 $447.95
Messenger hearing on
default and
contempt
Brian J. 12/5/22 Review and 0.3 $263.50 | $79.05 $39.53
Wall analyze Court
Orders
regarding
hearings on
Motions
for Default
and Contempt
James L. 12/6/22 Prepare for 15 $263.50 | $395.25 $197.63
movsenges | [neatigg ||
James L. (22 Prepare 3.1 $263.50 | $816.85 $408.43
Messenger witness
outlines,
binders, and
prepare for
hearing
James L. fo 2 Prepare Se 1 $263.50 | $816.85 $408.43
Messenger witness
outlines,
opening and
closing
LS
Name Date Task Hrs. | Rate Total 50%
Kes Reduc.
James L. 12/9/22 Prepare for Se $263.50 | $843.20 $421.60
Messenger default
hearing and
prepare Roman
Khaykin
James L. 12/10/22 | Review fees, 2.7 $263.50 | $711.45 5355:../3
Messenger statutory
authority to
collect fees
and revise
outlines
James L. 12/11/22 | Final prep for | 3.6 $263.50 | $948.60 $474.30
Messenger hearing
(revise
outlines, put
binders
together, etc)
James L. 12/12/22 | Prepare for 20 $263.50 | 5527200 §263.50
Messenger hearing
James L. 12/13/22 | Attend hearing $263.50 | $1,581.00 | $790.50
Messenger on Motion for
Contempt and
Motion for
Default;
Travel home
from hearing
Peter G. 12/13/22 | Prepare for 10.9 | $390.00 | $4,251.00 | $2,125.
Siachos hearing on 50
contempt,
disgorgement,
Sanctions,
Pie. (58) >
travel to
Central Islip
for hearing
(2.1); attend
hearing (2.5);
travel from
Central Islip
2.5)"
3 In addition to reducing by half the time attorney Siachos billed
for legal work in this entry, the Court reduces in half the time
billed for travel. See, e.g., Monge, 2020 WL 1666460, at *8
(reducing in half attorney’s billed travel time) (citing Hugee,
652 &. Supp. 2d at. 802 fecolleéting cases) ) .
16
Name Date Task Hrs. | Rate Total 50%
Kes Reduc.
James L. 12/14/22 | Review and $263.50 | $105.40 $52.70
Messenger revise
proposed
orders
Brian: J. 12/14/22 | Correspondence 0.2 $263.50 | $52.70 $26.35
Wall with client
regarding
draft proposed
orders
James L. 12/15/22 | Review court ds 7 $263.50 | $447.95 $223.98
Messenger orders and
issue notices
required,
client email
James L. 12/16/22 | Review orders $263.50 | $105.40 $52.70
Messenger and prepare
certificates
of service
Total Amount Deducted: $7,435.03
Following the $7,435.03 deduction, two additional factors
warrant a further 15% across-the-board deduction in the net amount
Claimed. First, “partner-heavy staffing” is a factor courts have
held “warrants a reduction in the hours awarded.” Resnik, 2020 WL
5802362, at *9. With the exception of a single half-hour entry
from a junior associate (Contempt Bill at P. 13), all work for
both motions was completed by partners.* Second, Plaintiff's
4 Some of the relevant tasks could have been completed with
associate assistance including the initial legal research and
drafting for the Contempt and TRO Motions, as well as preparation
of Contempt hearing materials. (Siachos Contempt Declaration;
Siachos TRO Declaration.) The preparation of exhibits for the
Contempt hearing seems better suited for a junior associate or
even a paralegal. (See Contempt Bill at 46, 49, 53); Rudler v.
Houslanger & Assocs., PLLC, No. 18-CV-7068, 2020 WL 473619, at *9
Ty
failure to itemize how many cumulative hours each respective
attorney billed stymied the Court’s “reasonable hours” analysis.
Courts often assess reasonable hours by reviewing (1) an attorney’s
experience, (2) the amount of hours the attorney spent on a task,
and (3) the attorney’s hourly rate. See Rudler, 2020 WL 473619, at
*14. (See, e.g., table indicating the hours and rate awarded to
each attorney who worked on the matter). Plaintiff fails to include
such a breakdown in the Fee Applications.5 In light of these two
issues and its discretion, the Court applies a 15% across-the-
board award reduction in the remaining hours billed.
Regarding Contempt Regarding TRO Motion
Motion
Claimed Fees $47,047.93 $6,559.87
Default Judgment <$7,435.03> <$0.00>
Motion-related 50%
reduction
First Subtotal $39,612.90 $6,559.87
15% Discretionary <$5,941.94> <$983.98>
“Surplusage”
Reduction
Second Subtotal: $33,670.96 $5,575.89
GRAND TOTAL of Attorney’s Fees Awarded: $39,246.85
(E.D.N.Y. Jan. 29, 2020) (certain tasks are “more appropriately
assigned to a paralegal.”).
5 The Contempt Fee Application includes a chart documenting the
aggregate number of hours Gordon Rees incurred each month in
connection with the Contempt Motion Litigation. (Siachos Contempt
Declaration at 4.) However, because some attorneys billed at
different rates, this chart was not helpful to the Court’s review.
18
After applying the 15% across-the-board discount to both
claims for fees, the Court awards Plaintiff $33,670.96 pursuant to
the Contempt Fee Application and $5,575.89 pursuant to the TRO Fee
Application.
B. Determination of Costs
Plaintiff also seeks reimbursement for $3,930.99 in purported
costs associated with the Contempt Motion litigation, most of which
are for private investigation services. The Contempt Fee
Application does not include any service provider invoices, but
instead documents the costs as charges on the Gordon Rees invoice.
As multiple courts in this District have held, a party seeking
reimbursement for litigation costs cannot satisfy its “burden of
adequately documenting and itemizing” costs by merely relying upon
its own counsel’s billing records. Volpe v. Nassau County, No.
12-CV-2416, 2016 WL 6238525, at *10 (E.D.N.Y. Oct. 24, 2016)
(quoting First Keystone Consultants, Inc. v. Schlesinger Elec.
Contractors, Inc., No. 10-CV-0696, 2013 WL 950573, at *10 (E.D.N.Y.
Mar. 12, 2013)); see also Doe v. Gonzalez, No. 21-CV-4580, 2024 WL
2795216, at *4 (E.D.N.Y. May 21, 2024) (“Plaintiff has not provided
invoices or receipts to substantiate the claimed amounts but relies
instead upon [counsel’s] billing records . . . . Plaintiff’s
unsubstantiated costs . . . must be denied for lack of
19
substantiation.”); Yanes v. Juan & Jon Inc., No. 19-CV-0201, 2024
WL 1639932, at *2 (E.D.N.Y. Apr. 16, 2024) (same). Accordingly,
the Court declines to grant reimbursement for these costs.
***
To the extent not explicitly addressed herein, the Court has
considered Defendants’ remaining arguments in the Oppositions and
finds them to be without merit.
Conclusion
Accordingly, IT IS HEREBY ORDERED that Plaintiff’s Fee
Applications (ECF Nos. 73 and 78) are GRANTED in part, such that
the Court awards Plaintiff $33,670.96 pursuant to the Contempt Fee
Application and $5,575.89 pursuant to the TRO Fee Application, for
a total of $39,246.85.
SO ORDERED.
/s/ JOANNA SEYBERT
Joanna Seybert, U.S.D.J.
Dated: October 28, 2025
Central Islip, New York
20
Reference
- Full Case Name
- JTH TAX LLC d/b/a LIBERTY TAX SERVICE f/k/a JTH TAX, INC. v. EDWARD KUKLA, KARLY JEANTY, HARLINE JEANTY, and EXPERT TAX CONSULTANTS LLC
- Status
- Unknown