Kathleen Markus v. Reo Diner
CourtNew Jersey Superior Court Appellate Division
Date FiledOctober 22, 2026
DocketA-2084-24
StatusUnpublished
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Full Opinion
NOT FOR PUBLICATION WITHOUT THE
APPROVAL OF THE APPELLATE DIVISION
This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the
internet, this opinion is binding only on the parties in the case and its use in other cases is limited . R. 1:36-3.
SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
DOCKET NO. A-2084-24
KATHLEEN MARKUS,
Plaintiff-Respondent/
Cross-Appellant,
v.
REO DINER and CHRISTINA
KONTOS,
Defendants-Appellants/
Cross-Respondents.
_____________________________
Argued September 23, 2026 β Decided October 22, 2026
Before Judges Mayer, Vinci, and Zazzali-Hogan.
On appeal from the Superior Court of New Jersey, Law
Division, Middlesex County, Docket No. L-0575-17.
Emery Z. Toth argued the cause for appellants/cross-
respondents.
Taylor Ruggieri argued the cause for respondent/cross-
appellant (Mark Lavigne, LLC, attorneys; Jamison M.
Mark, of counsel; Taylor Ruggieri, on the briefs).
PER CURIAM
Defendants Reo Diner and Christina Kontos appeal from a February 3,
2025 amended final judgment entered in favor of plaintiff Kathleen Markus after
a jury determined defendants failed to accommodate her disability in violation
of the New Jersey Law Against Discrimination (LAD), N.J.S.A. 10:5-1 to -50.
Plaintiff cross-appeals from the same judgment awarding her attorneys' fees in
the amount of $203,989.44. We affirm.
I.
Plaintiff was employed by Reo Diner in Woodbridge as a waitress from
July 4, 2015, until August 4, 2016, when she was terminated. On January 23,
2017, plaintiff filed a complaint against defendants alleging she suffered from a
disability, hyperthyroidism, and was "terminated due to her disability."
Plaintiff alleged causes of action against Reo Diner based on violations of
the LAD for: (1) disability discrimination; (2) failure to accommodate; (3)
discrimination based on a perceived disability; (4) hostile work environment;
and (5) retaliation. She also alleged Reo Diner violated the New Jersey Wage
and Hour Law, N.J.S.A. 34:11-56a to -56a41. Plaintiff alleged Kontos, her
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"supervisor and upper management with . . . Reo Diner," was individually liable
for aiding and abetting the LAD violations. 1
The case was tried before a jury for the first time in June 2023. On June
23, 2023, the jury returned a defense verdict on all counts. On June 28, 2024,
the court granted plaintiff's motion for a new trial.
A second trial was conducted on four days from December 2, through
December 9, 2024. Four claims were ultimately presented to the jury. They
were: (1) discrimination in violation of the LAD against Reo Diner; (2) failure
to accommodate in violation of the LAD against Reo Diner; and (3) two counts
of aiding and abetting the alleged LAD violations against Kontos.
On December 9, the court conducted a conference and reviewed the
proposed jury instructions and verdict sheet with counsel. The verdict sheet
stated:
1. Has the [p]laintiff . . . proven, by a preponderance
of the evidence that [d]efendant Reo Diner
discriminated against her due to her disability of a
thyroid disorder?
....
Please proceed to question [number two].
1
Plaintiff initially named the owner of Reo Diner, Manny Kontos, as a
defendant. Those claims were dismissed prior to trial.
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2. Has the [p]laintiff . . . proven, by a preponderance
of the evidence that [d]efendant Reo Diner failed to
reasonably accommodate her disability by denying her
a requested medical leave of absence?
....
If the answer to either [q]uestion [number one] or
[number two] [is] "[y]es," please proceed to question
[number three]. If the answer to both [q]uestions . . . is
"[n]o," please return your verdict.
3. Has the [p]laintiff . . . proven, by a preponderance
of the evidence that [d]efendant Christina Kontos
discriminated against her due to her disability of a
thyroid disorder?
....
Please proceed to question [number four].
4. Has the [p]laintiff . . . proven, by a preponderance
of the evidence that [d]efendant Christina Kontos failed
to reasonably accommodate her disability by denying
her a requested medical leave of absence?
....
If the answer to either [q]uestion [number one],
[number two], [number three] or [number four] is
"[y]es," please proceed to question [number five]. If
the answer to all [q]uestions [one through four] is
"[n]o," please return your verdict.
Question five asked the jury "[w]hat amount of money, if any, [would]
fairly and reasonably compensate [p]laintiff" for "[e]motional distress" and
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"[p]ast [l]ost [e]arnings[?]" Defendants did not object to the final versions of
the verdict sheet or the proposed jury instructions.
The court instructed the jury consistent with Model Jury Charge (Civil),
2.21 "[LAD]" (rev. Jan. 2025), with respect to plaintiff's discrimination claim
and Model Jury Charge (Civil), 2.26 "Failure to Accommodate Employee with
Disability Under the [LAD]" (rev. Jan. 2025). As to the failure-to-accommodate
claim, the court instructed the jury:
Our law requires an employer must make a reasonable
accommodation to the limitations of an employee with
a disability . . . . [P]laintiff argues [defendants] should
have allowed her to take four days of leave due to her
thyroid disorder. Defendants argue . . . plaintiff did not
have a disability and that she did not request an
accommodation. To win the case, plaintiff must prove
each of the following elements by preponderance of the
evidence: First, plaintiff must prove she had a
disability; second, plaintiff must prove that . . . she was
able to perform all the essential functions of the job
either with or without a reasonable accommodation;
third, plaintiff must prove that defendant was aware of
the plaintiff's need for a reasonable accommodation;
fourth, plaintiff must prove there was an
accommodation that would have allowed plaintiff to
perform the essential functions of her job; fifth,
plaintiff must prove the defendant denied plaintiff an
accommodation. Plaintiff does not have to prove an
adverse employment action separate and apart from
the . . . failure to accommodate claim.
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The court thereafter instructed the jury as to each of the elements of the
failure-to-accommodate claim consistent with Model Jury Charge (Civil), 2.26.
Defendants did not object to the court's jury instructions.
Later that afternoon, the jury returned their unanimous verdict. They
answered "no" to questions one and three, finding defendants did not
discriminate against plaintiff in violation of the LAD. The jury answered "yes"
to questions two and four, finding defendants failed to accommodate plaintiff's
disability. They awarded plaintiff $9,500 for emotional distress and $9,500 for
past lost earnings, for a total award of $19,000. 2 Defendants did not file any
post-trial motions.
On December 27, 2024, plaintiff filed an application for an award of
attorneys' fees and costs, supported by certifications of Jamison M. Mark, Esq.
of Mark Levigne, LLC (the firm). Mark certified that plaintiff retained the firm
in August 2016 on a contingency basis. Mark was lead trial counsel in the first
trial, but as a result of a scheduling conflict, he "transitioned the case" to his
colleagues Taylor M. Ruggieri, Esq. and Edward C. Monaghan, Esq. to represent
plaintiff at the second trial. As a result of a later adjournment, Mark was able
to attend and participate in the second trial with Ruggieri and Monaghan.
2
Plaintiff sought lost wages in the total amount of $9,800.
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Mark certified that firm attorneys devoted 674.45 hours to both trials and
the fee application. This included 321.75 hours of his time, 120.2 hours of
Ruggieri's time, 132 hours of Monaghan's time, and approximately ninety hours
devoted by three other firm attorneys: Sean Govlick, Esq, Kristofer Guldner,
Esq., and Jennifer Casazza-Carter, Esq. Mark certified that his hourly billing
rate was $600 per hour, Ruggieri's was $425 per hour, Monaghan's was $395 per
hour, Casazza-Carter's was $475, and Govlick's and Guldner's were $350.
As a result, plaintiff sought a "lodestar" award of $350,737.50 for
attorneys' fees. Plaintiff also requested a fifty percent "lodestar enhancement"
of the fee award in the amount of $175,368.75, for a total fee award of
$526,106.25. Plaintiff additionally sought an award of costs in the amount of
$14,288.27, for a total award of $540,394.52.
The court heard oral argument on January 31, 2025, and granted plaintiff's
application in part supported by a comprehensive fifty-four-page oral decision.
The court found "plaintiff [was], in fact the prevailing party." It rejected
defendants' argument that any fees "associated [with the first trial] should not
be awarded." The court reasoned that "although there was a verdict in the first
[trial], that verdict was set aside, essentially meaning the case was not disposed
of" and "[t]he work . . . leading up to the first trial certainly [was] part and parcel
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of what went into the second trial." In addition, the work done in connection
with the first trial was "part of the reason [the] case was streamlined the second
time." The court "agree[d] . . . that if there was [any] duplication of efforts or
fees or costs" reductions would be appropriate.
The court also found plaintiff's "complaint initially had various claims,
but all relating to the same underlying issues and considerations, and they were
interrelated. The discovery was interrelated." It determined "[p]laintiff alleged
she had a disability . . . [and] requested reasonable
accommodations . . . thereto" and "[a]dditionally, [that] she was discriminated
against due to her [disability], and suffered a hostile work environment [,] and
had wage losses related thereto." The court found "all of [plaintiff's] claims
[were] intertwined and [could ]not be separated or parsed out, and . . . the
discovery [was] pertinent to even the claims" that were not successful.
The court "acknowledge[d] that [the] verdict . . . was for $19,000
and . . . consistent with the case law . . . that is a consideration . . . in calculating
the lodestar." It also found plaintiff was entitled to attorneys' fees and costs
incurred in connection with the fee application.
The court concluded it would not be "reasonable to award a lodestar
enhancement." It "acknowledge[d]" defense counsel faced "some risk of non-
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payment, especially after a no-cause verdict" in the first trial. The court,
however, "weigh[ed] that [risk] against the amount that was awarded" and
determined a lodestar enhancement was not warranted. After disallowing
certain duplicative costs, the court awarded plaintiff costs in the amount of
$13,805.27.3
The court then carefully reviewed every invoice and "made reductions" to
the fees billed based on the "balance of [the court's] experience and having
reviewed other attorneys' fees applications." The court found it would not be
"fair and reasonable . . . to require defendants to pay for three attorneys" at the
second trial because "where there [are] redundancies . . . those can be
eliminated." The court made dozens of reductions in the amounts billed on every
invoice to comport with what it believed to be a reasonable amount of time for
each specific task.
The court also "reduced redundancies" in other areas and "made
reductions to account" for any duplication of effort. The court made reductions
to the invoices to assure the same tasks were not billed by more than one
attorney. It also made reductions to account for any duplication of work in the
second trial that was also included in the first trial. For example, it deducted
3
The court's award of costs is not challenged on appeal.
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"invoices for drafting in limine motions [for the second trial] that appear[ed] to
be duplicates of previous trial motions."
The court deducted all entries for travel time because it did not "think [it
was] reasonable and fair to pass [that] on to . . . defendant[s]," particularly
because Ruggieri "live[d] some distance away" from the courthouse. It also
deducted billings for "internal emails," "communications," and "internal
meetings" because it was not "reasonable and fair to pass those on
to . . . defendant[s]."
Finally, the court determined the appropriate hourly billing rates to
calculate the lodestar. It accepted Mark's requested rate of $600 per hour finding
it was "absolutely more than reasonable given his training and experience." The
court reduced Monaghan's rate to $300, and Ruggieri's to $350. The court had
questions about the other attorneys and asked for supplemental information
regarding their billing rates.
On February 3, 2025, after receiving a supplemental certification in
response to the court's questions during the January 31 argument, the court
entered an amended judgment awarding attorneys' fees, costs, and interest,
supported by a supplemental written decision. The court set Casazza-Carter's
reasonable billing rate at $450 and Guldner's at $325 and made reductions to
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their time entries consistent with the reductions it previously made to the other
invoices. Based on the amount of time it determined was reasonable for the
work performed and the reasonable hourly rates, the court awarded plaintiff
$203,989.44 in attorneys' fees and $13,805.27 in costs.
II.
On appeal, defendants argue "the jury . . . sheet should have directed the
jury to stop deliberations after they found there was no discrimination." They
claim that "[i]f there is no discrimination there can be no failure to accommodate
because 'failure to accommodate' is a form of discrimination under the" LAD
and "[i]t is impossible to find that [d]efendants did not discriminate against
[p]laintiff, but that they failed to accommodate [p]laintiff's disability."
Defendants also argue the court "erred by awarding [attorneys'] fees for
the first action which plaintiff did not prevail in." Defendants further contend
plaintiff was not a prevailing party in the second trial because she "only
prevailed on one count of her complaint" and the court erred by awarding her
"attorney[s'] fees for all the trials and all the counts, even the ones she did not
prevail on." Defendants assert the "amount of the attorney[s'] fees awarded [is]
simply not justified given [p]laintiff's limited success in only the second trial"
and "interests of fairness and justice demand" the award be vacated.
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In support of her cross-appeal, plaintiff argues the court "erred and
improperly reduced . . . counsels' hours spent by attorneys." Specifically, the
court "declined to award any travel-related fees without reference to any law or
case in New Jersey" or providing a "detailed explanation or specific reasons" for
its decision. Plaintiff also contends the court did not provide an adequate
explanation for the reductions. Finally, plaintiff claims the court "improperly
denied" a lodestar fee enhancement.
III.
We are unpersuaded by defendants' argument that the jury should not have
been permitted to consider plaintiff's failure-to-accommodate claim because
they returned a defense verdict on her disability discrimination claim.
Defendants raise this argument for the first time on appeal.
Generally, we "will decline to consider questions or issues not properly
presented to the trial court when an opportunity for such a presentation is
available 'unless the questions so raised on appeal go to the jurisdiction of the
trial court or concern matters of great public interest.'" Nieder v. Royal Indem.
Ins. Co., 62 N.J. 229, 234 (1973) (quoting Reynolds Offset Co. v. Summer, 58
N.J. Super. 542, 548 (App. Div. 1959)). Because defendants failed to raise this
argument in the trial court, it is waived.
A-2084-24
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Even if we considered defendants' argument, we are convinced it is
without merit. "Although the LAD does not explicitly address a reasonable
accommodation requirement or claim, 'our courts have uniformly held that the
[LAD] nevertheless requires an employer to reasonably accommodate an
employee's' disability." Richter v. Oakland Bd. of Educ., 246 N.J. 507, 524
(2021) (alteration in original) (quoting Royster v. N.J. State Police, 227 N.J.
482, 499 (2017)).
To establish a failure-to-accommodate claim under the LAD, an employee
must prove they
(1) qualif[y] as an individual with a disability, or [are]
perceived as having a disability, as that has been
defined by statute; (2) [are] qualified to perform the
essential functions of the job, or [were] performing
those essential functions, either with or without
reasonable accommodations; and (3) that [the
employer] failed to reasonably accommodate [their]
disabilities.
[Richter, 246 N.J. at 526 (internal quotation marks
omitted).]
Importantly, the employee need not prove an adverse employment action
or other discriminatory conduct by the employer as an element of a failure-to-
accommodate claim. Id. at 529. This is so because the mandate to
accommodate,
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focuses on "compelling behavior" rather than "policing
an employer's actions," it would make little sense to
require the showing of an adverse employment action
as part of a failure-to-accommodate claim. In other
words, it would verge on the illogical to require failure-
to-accommodate plaintiffs to establish that their
employer acted adversely toward them β when the
fundamental nature of the claim is that the employer
failed to act.
[Ibid. (quoting Exby-Stolley v. Bd. of Cnty. Comm'rs,
979 F.3d 784, 797 (10th Cir. 2020)).]
Defendants' contention, therefore, that the jury should not have been
permitted to consider plaintiff's failure-to-accommodate claim because they did
not find that defendants otherwise discriminated against her based on her
disability is incorrect. Failure to accommodate is a separate, independent claim
from disability discrimination. The court properly instructed the jury on the
elements of plaintiff's failure-to-accommodate claim and permitted them to
consider that claim separately from plaintiff's claim that defendants otherwise
discriminated against her based on her disability.
IV.
We are unconvinced by the parties' competing claims that the court's
award of attorneys' fees was improper. "We review [a] trial court's award of
[attorneys'] fees and costs in accordance with a deferential standard. Such an
award 'will be disturbed only on the rarest occasions, and then only because of
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a clear abuse of discretion.'" Hansen v. Rite Aid Corp., 253 N.J. 191, 211-12
(2023) (quoting Rendine v. Pantzer, 141 N.J. 292, 317 (1995)). "An appellate
court may reverse a trial court's award of fees and costs for abuse of discretion
when the court's decision 'was based on irrelevant or inappropriate factors, or
amounts to a clear error in judgment.'" Id. at 212 (quoting Garmeaux v. DNV
Concepts, Inc., 448 N.J. Super. 148, 155-56 (App. Div. 2016)).
Rule 4:42-9(b) provides that "all applications for the allowance of fees
shall be supported by an affidavit of services addressing the factors enumerated
by RPC 1.5(a)." A party seeking counsel fees must establish reasonableness
under these factors. Seigelstein v. Shrewsbury Motors, Inc., 464 N.J. Super.
393, 405 (App. Div. 2020).
RPC 1.5(a) mandates, "A lawyer's fee shall be reasonable" and provides,
"[t]he factors to be considered in determining the reasonableness of a fee include
the following":
1) the time and labor required, the novelty and
difficulty of the questions involved, and the skill
requisite to perform the legal service properly;
2) the likelihood, if apparent to the client, that the
acceptance of the particular employment will preclude
other employment by the lawyer;
3) the fee customarily charged in the locality for similar
legal services;
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4) the amount involved and the results obtained;
5) the time limitations imposed by the client or by the
circumstances;
6) the nature and length of the professional relationship
with the client;
7) the experience, reputation, and ability of the lawyer
or lawyers performing the services; [and]
8) whether the fee is fixed or contingent.
Under the LAD, counsel fees may be granted to the prevailing party.
N.J.S.A. 10:5-27.1. Our Supreme Court has held that "a plaintiff who is awarded
some affirmative relief by way of an enforceable judgment against defendant or
other comparable relief through a settlement or consent decree is a prevailing
party under . . . the LAD." Tarr v. Ciasulli, 181 N.J. 70, 86-87 (2004) (citing
N.J.S.A. 10:5-27.1). We have recognized that "a prevailing party need only be
nominally successful." Warrington v. Vill. Supermarket, Inc., 328 N.J. Super.
410, 421 (App. Div. 2000).
The first step "in [the] fee award [process] 'is to determine the lodestar:
the number of hours reasonably expended multiplied by a reasonable hourly
rate.'" Hansen, 253 N.J. at 215 (quoting Rendine, 141 N.J. at 334-35). Courts
should not "accept passively the submissions of counsel to support the lodestar
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amount," but rather evaluate them "carefully and critically." Ibid. (quoting
Rendine, 141 N.J. at 335).
"'It does not follow that the amount of time actually expended is the
amount of time reasonably expended,'" and "'no compensation is due for
nonproductive time.'" Rendine, 141 N.J. at 335 (quoting Copeland v. Marshall,
641 F.2d 880, 891 (D.C. Cir. 1980)). "'For example, where three attorneys are
present at a hearing when one would suffice, compensation should be denied for
the excess time.'" Ibid. (quoting Copeland, 641 F.2d at 891). Moreover, a trial
court has discretion to exclude excessive hours "if the specific circumstances
incidental to a counsel-fee application demonstrate that the hours expended,
taking into account the damages prospectively recoverable, the interests to be
vindicated, and the underlying statutory objectives, exceed those that competent
counsel reasonably would have expended to achieve a comparable result." Id.
at 336.
While proportionality between damages recovered and attorney fee
awards is not required, "'[t]he trial court's responsibility to review carefully the
lodestar fee request is heightened in cases in which the fee requested is
disproportionate to the damages recovered.'" Hansen, 253 N.J. at 217 (quoting
Szczepanski v. Newcomb Med. Ctr. Inc., 141 N.J. 346, 366 (1995)). In such
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cases, "'the trial court should evaluate . . . the interest to be vindicated in the
context of the statutory objectives, as well as any circumstances incidental to
the litigation that directly or indirectly affected the amount of counsel's efforts,'
and may accordingly exclude excessive hours." Ibid. (quoting Szczepanski, 141
N.J. at 366-67).
After establishing the lodestar fee, courts "should consider whether to
increase that fee to reflect the risk of nonpayment in all cases in which the
attorney's compensation . . . is contingent on a successful outcome." Rendine,
141 N.J. at 337. This is because "as a matter of economic reality and simple
fairness . . . a counsel fee awarded under a fee-shifting statute cannot be
'reasonable' unless the lodestar . . . is adjusted to reflect the actual risk that the
attorney will not receive payment if the suit does not succeed." Id. at 338. In
determining whether to award a lodestar enhancement a court must "'determine
whether a case was taken on a contingent basis, whether the attorney was able
to mitigate the risk of nonpayment in any way, and whether other economic risks
were aggravated by the contingency of payment.'" Id. at 339 (quoting
Pennsylvania. v. Delaware Valley Citizens' Council for Clean Air, 483 U.S. 711,
747 (1987) (Blackmun, J., dissenting)).
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Having carefully reviewed the record and the parties' arguments, we
affirm the court's award of attorneys' fees and costs for the reasons set forth in
its comprehensive oral and written decisions. We add the following brief
comments.
Defendants' claim that the court improperly awarded plaintiff fees and
costs in connection with the first trial lacks merit. As the court recognized, a
considerable amount of the work done prior to and during the first trial was used
for the second trial and did not need to be duplicated. This included, for
example, client and witness interviews, preparation of the complaint, pretrial
discovery, preparation of trial exhibits, and in limine motions. There is no
reason why plaintiff should not have been permitted to recover fees and costs
incurred for that work.
What is more, the court painstakingly reviewed all of the invoices and
eliminated, as much as possible, any redundant or duplicative work. In other
words, defendants were only charged once for the work necessary for the second
trial, some of which was done prior to and during the first trial.
Defendants' contention that the court awarded fees for claims on which
plaintiff did not prevail is also unpersuasive. As the court determined, all of
plaintiff's claims were premised on the same core contention β that defendants
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discriminated against her and failed to accommodate her disability. They were,
therefore, "intertwined and [could ]not be separated or parsed out." Because
"plaintiff's unsuccessful claims [were] related to the successful claims, . . . by a
'common core of facts' or 'related legal theories'" it was not improper for the
court to award fees based on all the work performed by counsel on all of the
claims asserted in both the first and second trials. Singer v. State, 95 N.J. 487,
500 (1984).
We likewise reject plaintiff's arguments in support of her cross-appeal.
Contrary to plaintiff's claim, the court provided a thorough and detailed
explanation of the reductions it made to the fees requested. The court was not
required to "reference . . . any law or case in New Jersey" to support its decision.
The court reviewed every billing entry, made reductions based on its substantial
experience, and provided a detailed explanation for each of the reductions. We
are satisfied the court did not abuse its substantial discretion in establishing the
lodestar and denying plaintiff's request for a lodestar enhancement based on the
facts and circumstances of this case.
Any remaining claims lack sufficient merit to warrant discussion in a
written opinion. R. 2:11-3(e)(1)(E).
Affirmed.
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