Court Affirms Attorneys' Fees Award That Outweighs Overtime Damages
In a Fair Labor Standards Act (FLSA) case, the Fifth Circuit affirmed an attorneys’ fees award of $129,805.50 although the plaintiff was awarded $23,357.30 in overtime damages. Howe v. Hoffman-Curtis Partners Ltd., LLP, No. 05-21091, slip op. at 1 (5th Cir. Jan. 30, 2007). After the jury determined that the plaintiff had worked a total of 207 hours of unpaid overtime, the U.S. District Court for the Southern District of Texas (Houston Division) awarded the plaintiff $11,678.70 in unpaid overtime wages and an additional $11,678.70 in liquidated damages (pursuant to Section 216(b) of the FLSA) based on the district court’s ruling that the defendant failed to show that it acted in “good faith” and had “reasonable grounds” to believe that its actions complied with the FLSA. The plaintiff sought $134,884 in attorneys’ fees, but the district court reduced the amount of attorneys’ fees awarded to $129,805.50 – still more than five times the amount of the plaintiff’s damages award. A successful FLSA claims carries with it the mandatory recovery of reasonable attorneys’ fees to be paid by the defendant, which is decision made by the court. 29 U.S.C.A. § 216(b).
The Fifth Circuit affirmed the attorneys’ fees award finding that the district court did not abuse its discretion. The Fifth Circuit noted the length of time it took to bring the case to trial, which the plaintiff argued was in large part due to the defendants fighting every single issue the case. The court affirmed the award even after considering the degree of success obtained for the plaintiff related to the time spent in the unsuccessful attempt to pursue the case as a collective action, which was considered by the district court in its reduction of the plaintiff’s requested fees. Finally, the court stated that given the nature of claims under the FLSA, it is not uncommon that attorney fee requests can exceed the amount of judgment in the case by many multiples, citing a Sixth Circuit case affirming an award of $7,680 in overtime damages and $40,000 in attorneys’ fees (Fegley v. Higgins, 19 F.3d 1126, 1134-35 (6th Cir. 1994), a Fifth Circuit case affirming an award of $1,181 in overtime damages and $9,250 in attorneys’ fees (Cox v. Brookshire Grocery Co., 919 F.2d 354, 358 (5th Cir. 1990), and a Ninth Circuit case affirming an award of $18,455 in overtime damages and $100,000 in attorneys’ fees (Bonnette V. Cal. Heath & Welfare, 704 F.2d 1465, 1473 (9th Cir. 1983).
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