Abreu v. ESB Kitchen and Bar Corp

Background

On June 12, 2024, the parties submitted a proposed settlement agreement and supporting materials for court approval under the federal wage statute known as the Fair Labor Standards Act. Federico Abreu estimated that he was owed approximately $22,405 in unpaid wages and that his claims, assuming full recovery, were worth approximately $72,778.52.

The proposed agreement provided for a total recovery of $15,000. From that amount, Abreu’s counsel intended to receive $5,466.57 in attorneys’ fees, described as one-third of the settlement amount after costs.

Court’s Analysis

The court found that a settlement of approximately two-thirds of the estimated actual damages was reasonable because it would allow the parties to avoid the anticipated burdens and expenses of proving their claims and defenses. The court also found the attorneys’ fee percentage reasonable.

As a cross-check, the court considered the lodestar method, which estimates fees by multiplying reasonable hours by a reasonable hourly rate. The court found counsel’s hourly rate of $375 reasonable and found the hours spent bringing and settling the case generally reasonable. The $5,466.57 fee represented approximately 1.4 times the lodestar, and the court found that multiplier reasonable. The court also found that the settlement’s release was appropriately limited and did not waive unrelated claims.

Ruling

Judge Valerie Caproni ordered that the proposed settlement agreement and attorneys’ fee award be approved as fair and reasonable. The court retained jurisdiction over enforcement of the settlement agreement. It further ordered that the matter be dismissed with prejudice, directed the Clerk of Court to terminate all motions and deadlines, and ordered the case closed.