Morais v. DRG Hospitality Group, INC

Background

Innacio Dos Santos Morais brought this action on behalf of himself and others similarly situated against DRG Hospitality Group, Inc., doing business as Delmonico’s, and Dennis Turcinovic. The claims sought damages under the Fair Labor Standards Act (FLSA), 29 U.S.C. § 201 et seq., and the New York Labor Law.

Settlement Review

The parties submitted a joint request for approval of their fully executed settlement agreement. The court explained that it had to determine whether the FLSA settlement was fair and reasonable, resulted from arm’s-length negotiations, and did not reflect employer overreaching. The parties reached the agreement after working with a neutral mediator.

The court reviewed the settlement agreement and the parties’ letter, considering the prior proceedings, the risks, burdens, and costs of continuing the case, the possible recovery, the involvement of experienced counsel or the parties, attorney fees, and the possibility of fraud or collusion. The court found that the amount secured for the plaintiff reasonably accounted for his potential recovery and the risks of continued litigation. It also found that the attorney fees were fair and reasonable, and that the mutual non-disparagement clause was acceptable because it allowed truthful statements. Although the plaintiff’s release extended beyond wage-and-hour claims, the defendants’ release was at least equally broad.

Ruling

The court found the settlement agreement fair and reasonable and approved it. Because the case had been resolved by settlement, Judge Robert W. Lehrburger dismissed and discontinued the case in its entirety, with prejudice, without costs or fees to any party except as provided in the settlement agreement. The Clerk was requested to terminate all motions and deadlines and close the case.