Banko v. Rotor X Aircraft Manufacturing Company et al

Filing 28

ORDER that Plaintiff's Motion for Attorneys' Fees 27 is GRANTED. Plaintiff is awarded attorneys' fees in the amount of $11,570.00. Signed by Senior Judge James A Teilborg on 3/10/2025. (REK)

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IN THE UNITED STATES DISTRICT COURT

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FOR THE DISTRICT OF ARIZONA

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Matthew Banko,
Plaintiff,

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v.

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Rotor X Aircraft Manufacturing Company,
et al.,

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No. CV-23-02265-PHX-JAT
ORDER

Defendants.

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Pending before the Court is Plaintiff Matthew Banko’s (“Plaintiff”) Motion for

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Attorneys’ Fees and Costs against Defendants Rotor X Aircraft Manufacturing Company,

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Donald Orval Shaw and Jane Doe Shaw, and Benjamin Donald Shaw and Jane Doe Shaw

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II (collectively “Defendants”). (Doc. 27). Defendants did not file a response. The Court

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now rules on the motion.

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I.

BACKGROUND

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On October 31, 2023, Plaintiff filed an amended complaint against Defendants,

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alleging Defendants violated the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §§ 206(a),

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207(a)(1), the Arizona Minimum Wage Act (“AMWA”), A.R.S. § 23-363(A), and the

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Arizona Wage Act (“AWA”), A.R.S. § 23-351(C). (Doc. 1). Defendants filed an answer

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on January 4, 2024, (Doc. 12), and an amended answer on January 12, 2024, (Doc. 16).

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On January 24, 2025, Plaintiff filed an unopposed motion for entry of stipulated

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judgment, asking the Court to enter a judgment to which the parties previously stipulated.

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(Doc. 24). In Plaintiff’s motion, Plaintiff explained that the parties entered into a settlement

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agreement for $13,000.00 but Defendants still owed $6,000.00. (Doc. 24-1 at 1-2). The

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settlement agreement also included that Plaintiff had the right to seek all attorneys’ fees

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and costs incurred by Plaintiff in litigating the lawsuit and “in attempting to collect any

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unpaid amounts pursuant to the Stipulated Judgment.” (Doc. 24 at 2). The Court granted

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the motion and entered judgment in favor of Plaintiff in the amount of $6,000.00. (Doc.

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25). On February 24, 2025, Plaintiff filed the instant motion for attorney’s fees. (Doc. 27).

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Plaintiff requests $11,570.00 in attorneys’ fees. (Doc. 27 at 6).

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II.

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ATTORNEY’S FEES
a. Eligibility and Entitlement to Fees

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Under this district’s local rules, a party seeking attorneys’ fees must first show that

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they are both eligible for and entitled to a fee award. L.R. Civ. 54.2(c)(1)-(2). Here, Plaintiff

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argues that he is eligible for a fee award under the FLSA and the AMWA. See 29 U.S.C. §

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216(b) (a district court “shall, in addition to any judgment awarded to the plaintiff or

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plaintiffs, allow a reasonable attorney’s fee to be paid by the defendant.”); A.R.S. § 23-

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364(G) (“A prevailing plaintiff shall be entitled to reasonable attorney’s fees and costs of

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suit.”).

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“[P]laintiffs may be considered ‘prevailing parties’ for attorney’s fees purposes if

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they succeed on any significant issue in litigation which achieves some of the benefit the

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parties sought in bringing suit.” Hensley v. Eckerhart, 461 U.S. 424, 433 (1983). In Farrar

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v. Hobby, the Supreme Court clarified that “a plaintiff ‘prevails’ when actual relief on the

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merits of his claim materially alters the legal relationship between the parties by modifying

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the defendant’s behavior in a way that directly benefits the plaintiff.” Farrar v. Hobby, 506

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U.S. 103, 111-12 (1992). Notably, “[a] judgment for damages in any amount, whether

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compensatory or nominal, modifies the defendant’s behavior for the plaintiff’s benefit by

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forcing the defendant to pay an amount of money he otherwise would not pay.” Id. at 113.

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Here, Plaintiff argues, and the Court agrees, that Plaintiff was awarded judgment,

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and is the “prevailing plaintiff,” by virtue of the Stipulated Judgment. (Doc. 27 at 3).

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Plaintiff is thereby entitled to his attorneys’ fees in this action. Additionally, the Court is

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persuaded that Plaintiff is entitled to reasonable attorneys’ fees for the time counsel spent

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preparing the instant motion. See Gary v. Carbon Cycle Ariz. LLC, 39 F. Supp. 3d 468,

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479-80 (D. Ariz. 2019). As such, the Court turns to the reasonableness of the requested

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fees.

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b. Reasonableness of Requested Fees

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The second requirement in the Court’s analysis of Plaintiff’s motion for attorneys’

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fees is that the amount of fees granted must be reasonable. To determine a reasonable

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attorneys’ fee, the Court begins with the “lodestar figure,” meaning “the number of hours

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reasonably expended on the litigation multiplied by a reasonable hourly rate.” Hensley, 461

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U.S. at 433. The Local Rules provide a list of factors to be considered in assessing the

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reasonableness of a requested attorneys’ fee award:
(A) The time and labor required of counsel;
(B) The novelty and difficulty of the questions presented;
(C) The skill requisite to perform the legal service properly;
(D) The preclusion of other employment by counsel because of the acceptance of
the action;
(E) The customary fee charged in matters of the type involved;
(F) Whether the fee contracted between the attorney and the client is fixed or
contingent;
(G) Any time limitations imposed by the client or the circumstances;
(H) The amount of money, or the value of the rights, involved, and the results
obtained;
(I) The experience, reputation and ability of counsel;
(J) The “undesirability” of the case;
(K) The nature and length of the professional relationship between the attorney and
the client;
(L) Awards in similar actions; and
(M) Any other matters deemed appropriate under the circumstances.

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L.R. Civ. 54.2(c)(3); see also Kerr v. Screen Extras Guild, Inc., 526 F.2d 67, 70 (9th Cir.

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1975). Reasonable attorneys’ rates are not simply what an attorney charged a client; they

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are determined “by the rate prevailing in the community for similar work performed by

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attorneys of comparable skill, experience, and reputation.” Schwarz v. Sec’y of Health &

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Human Servs., 73 F.3d 895, 908 (9th Cir. 1995).

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Plaintiff first argues that an hourly rate of $445 is a reasonable rate. (Doc. 27 at 5).

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In support, Plaintiff cites to other cases in which courts in this district have found the same

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rate to be reasonable, arguing that the rate is “commensurate with [Plaintiff’s counsel’s]

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expertise and experience and would align with the rate he has been awarded time and again

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in the District of Arizona.” (Doc. 27 at 5-6). Plaintiff next conducts a lodestar analysis to

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request $11,570.00 in fees for 26 hours worked. (Doc. 27 at 6). The Court addresses the

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various factors, and Plaintiff’s arguments as to each, below.

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i. Time and Labor Required

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Plaintiff argues that although this case “did not require significant labor relative to

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analyzing legal or factual issues,” the case nonetheless took longer than it should have

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because Defendants decided “not to participate in the litigation of this matter, despite their

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continued participation both with and without counsel.” (Doc. 27 at 7). As such, Plaintiff

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argues that 26 hours worked is reasonable. Upon examining Plaintiff’s itemization of time

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spent, (Doc. 27-4 at 2-4), the Court agrees that the time expended is reasonable given the

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issues and the time Plaintiff spent negotiating a settlement. See Thompson v. Arizona

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Movers & Storage Inc., No. CV-17-03819-PHX-DGC, 2018 WL 2416187, at *3 (D. Ariz.

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May 29, 2018) (finding reasonable 35.3 hours worked on FLSA case resolved by settlement

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agreement). Accordingly, the Court makes no adjustments to the 26 hours of work for

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which Plaintiff’s counsel seeks compensation.

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ii. Novelty and Difficulty of the Question Presented
Plaintiff acknowledges that the issues in the present case were not novel or
particularly difficult. (Doc. 29 at 7-8). The Court agrees.

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iii. Skill Requisite to Perform the Legal Service Properly

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Plaintiff argues that despite the otherwise straightforward nature of the suit, the

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issues raised were “sophisticated and required extensive knowledge of the law,” such that

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“Plaintiff very likely would not have obtained such results without the assistance of

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Plaintiff’s counsel.” (Doc. 27 at 8). The Court finds that it takes a moderate amount of skill

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to litigate the instant case. See Verduzco v. Value Dental Centers Mesa W. AZ LLC, No.

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CV-20-02380-PHX-DJH, 2022 WL 2718163, at *2 (D. Ariz. July 12, 2022) (finding it

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“takes a moderate amount of skill to litigate FLSA cases.”).
iv. Preclusion of Other Employment

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Plaintiff acknowledges that Plaintiff did not experience a significant preclusion

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from conducting other work over and above “the time constraints place[d] on an attorney

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by the fact of accepting and litigating a case.” (Doc. 27 at 8).

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v. Customary Fee

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Plaintiff references arguments regarding the reasonableness of Plaintiff’s rate,

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which the Court recited above. (Doc. 27 at 8). The cases to which Plaintiff cites indicate

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that $445 per hour constitutes a customary fee awarded by Courts in this district for

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comparable work.

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vi. Whether the Fee is Fixed or Contingent

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Plaintiff notes that the representation in this case was based on a contingency fee

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and argues that the fee recovery should not depend upon the amount recovered in the case.

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(Doc. 27 at 8-9). Plaintiff further argues that because of the contingency fee agreement,

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“this Court may adjust upward Plaintiff’s [c]ounsel’s hourly rate.” (Doc. 27 at 9). The

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Court acknowledges that agreeing to a contingency fee basis of representation supports the

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potential for a larger award of attorneys’ fees. See Moreno v. City of Sacramento, 534 F.3d

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1106, 1112 (9th Cir. 2007).

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vii. Time Limitations

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Plaintiff acknowledges that no time limitations were imposed by either the client or

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by circumstances. (Doc. 27 at 10). As such, this factor is of minimal weight in the

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reasonableness inquiry.

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viii. Amount in Controversy and Results Obtained

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Plaintiff argues that the amount in controversy is significant to Plaintiff and,

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moreover, that Plaintiff’s counsel “has obtained excellent results and has assisted Plaintiff

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in recovering well in excess of the total amount in unpaid wages that Defendants owed

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her.” (Doc. 29 at 11). The Court acknowledges the recovery that Plaintiff’s counsel

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successfully obtained for Plaintiff.

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ix. Experience, Reputation, and Ability of Attorney

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Plaintiff points out that Plaintiff’s counsel “focuses exclusively on plaintiffs’ state

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and federal employment wage and hour litigation, primarily under the FLSA,” has been

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lead counsel on more than 50 FLSA collective matters, and has obtained several reversals

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in three different Circuits at the Court of Appeals level. (Doc. 27 at 11-12). The Court

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acknowledges Plaintiff’s counsel’s experience level in FLSA matters.

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x. “Undesirability” of the Case

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Plaintiff argues that given the low damages and speculative amount of available

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fees, along with the usual undesirableness of contingency-fee litigation, the instant case

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was risky and therefore undesirable. (Doc. 27 at 12). The Court agrees.

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xi. Nature and Length of Relationship Between Attorney and Client

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Plaintiff states that this is the only matter on which Plaintiff’s counsel has

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represented Plaintiff. (Doc. 27 at 12). As such, this factor bears minimal weight in the

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determination of reasonable fees.

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xii. Awards in Similar Actions

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Plaintiff reiterates previous arguments regarding the reasonableness of the rate,

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which this Court recited above. Based on comparison to previous similar cases in the

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District of Arizona, this Court finds a rate of $445 per hour to be reasonable.

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III.

CONCLUSION

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For the foregoing reasons,

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IT IS ORDERED that Plaintiff’s Motion for Attorneys’ Fees, (Doc. 27), is

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GRANTED, Plaintiff is awarded attorneys’ fees in the amount of $11,570.00.
Dated this 10th day of March, 2025.

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