Escoto v. Allerton Realty Group LLC

Background

Placido Escoto brought the action against Allerton Realty Group LLC, Kamran Abrishamian, and Ben Dash. He alleged violations of the federal Fair Labor Standards Act (FLSA) and various provisions of the New York Labor Law (NYLL), including claims that the defendants failed to pay the lawful minimum wage and overtime compensation and failed to provide proper wage and notice statements.

The parties jointly moved for approval of their settlement agreement. The court explained that FLSA claims cannot be privately settled with prejudice without approval from the court or the Department of Labor. The court therefore evaluated whether the agreement was fair and reasonable.

Settlement Amount

The agreement provided for a total recovery of $135,000. Escoto’s counsel would receive $46,894.67 in attorneys’ fees and costs, leaving Escoto with $88,105.33. Escoto estimated that his maximum possible recovery was approximately $405,269.49, including wages and liquidated damages, interest, amounts based on his NYLL claims, and costs.

The court found the settlement amount fair and reasonable. It considered the disputed issues, including the defendants’ challenges to the number of hours Escoto worked and the wages he received, as well as the risks and delays of continued litigation. The court concluded that the agreement resolved genuine disputes through a reasonable compromise and resulted from arm’s-length negotiations involving experienced labor and employment attorneys.

Attorneys’ Fees and Other Terms

The court also found the requested attorneys’ fees and costs reasonable. The fee request was approximately one-third of the settlement. The court approved Fausto E. Zapata, Jr.’s $500 hourly rate and noted that the lodestar—the reasonable hourly rate multiplied by the reasonable hours worked—was $41,050. The requested attorneys’ fees, excluding costs, were $44,052.67, producing a lodestar multiplier of approximately 1.07. The court accepted that multiplier and approved the total $46,894.67 request for fees and costs.

The court found that the agreement contained no objectionable release, confidentiality, or non-disparagement provisions. Escoto’s release applied only to claims connected to his wage-and-hour allegations, including his FLSA and NYLL claims.

Ruling

Judge Edgardo Ramos granted the motion for settlement approval. The court directed the Clerk of Court to terminate the motions identified as Documents 66 and 67 and close the case.