Winning Streak Continues for Exotic Dancers Represented by Nichols Kaster, PLLP

Judge Paul A. Engelmayer reiterated his earlier liability finding, stating that "evidence of a mandatory tip-out policy is conclusive" and that the policy is unlawful.

NEW YORK, NY, December 19, 2014 /24-7PressRelease/ -- On December 17, 2014, the United States District Court for the Southern District of New York ruled in favor of the nearly 2,300-person Class of exotic dancers at Rick's Cabaret in New York, holding that the issue of damages associated with Rick's Cabaret's mandatory "tip-out" policy can proceed to trial on a class-wide basis. Rick's Cabaret requires its dancers to pay (i.e., "tip out") management, as well as the disc jockeys and dressing room attendants ("house moms") at the club in violation of New York Labor Law's prohibition on unlawful deductions. In holding that damages associated with these deductions can be tried on a class-wide basis, Judge Paul A. Engelmayer reiterated his earlier liability finding, stating that "evidence of a mandatory tip-out policy is conclusive" and that the policy is unlawful. He went on to hold that, because Rick's Cabaret failed to keep records of the amount of deductions taken, Plaintiffs need only prove their damages as a matter of "just and reasonable inference" and that common proof can support a jury's award of aggregate class damages even if the amount is only approximate. The Court also denied Rick's Cabaret's request for interlocutory appeal of these issues and confirmed that trial on damages associated with "tip-outs" and remaining issues would begin as scheduled on April 27, 2015.

The ruling comes on the heels of the Court's November 2014 decision granting Plaintiffs' motion for partial summary judgment on damages in the amount of $10.8 million. That same November order denied Rick's Cabaret's request to decertify the remaining claims in this case, denied Rick's Cabaret's request to strike Plaintiffs' expert, and granted Plaintiffs' motion for summary judgment on liability issues under New York Labor Law.

"The Court's decision is an important victory for the Plaintiffs in this case, as well as for all victims of unlawful practices who might not be willing to pursue claims individually or might believe they do not have enough proof," said Plaintiffs' Counsel Anna P. Prakash. "The decision affirms that the class action mechanism is alive and well, that those who have been hurt by unlawful actions can pursue damages as a group, and that employees should not be punished as a result of their employer's failure to keep records but, rather, should be allowed to prove their damages based on their recollections and common proof."

Plaintiffs are represented by Steven Andrew Smith, E. Michelle Drake, and Anna P. Prakash from Nichols Kaster, PLLP, which has offices in Minneapolis, Minnesota and San Francisco, California. The case is entitled Hart, et al. v. Rick's Cabaret International, Inc., et al., No. 09 Civ. 3043 (PAE) (S.D.N.Y.). Additional information can be found at www.nka.com.

Nichols Kaster is a nationally recognized plaintiffs firm that focuses on representing employees and consumers whose rights have been violated. The firm was selected as a member of the National Law Journal's Litigation Boutiques Hot List, ranked as a Best Law Firm by U.S. News & World Report, and selected as a top plaintiffs' employment law firm by Law360.

The firm is led by its partners, who are regularly selected by their peers as Super Lawyers, and sit on the boards of numerous professional organizations, including the National Association of Employment Lawyers, the ABA Fair Labor Standards Legislation Committee and the Council for the Minnesota State Bar Association's Consumer Litigation Section.

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