Cruz v. Steven Madden Ltd.

Background

The case included one or more claims under the Fair Labor Standards Act. The parties informed the court that they reached a settlement during mediation on January 22, 2025, and later agreed that all proceedings could be held before Judge Stewart D. Aaron.

On March 6, 2025, the court directed the parties to submit the settlement agreement and a letter explaining why the settlement—including attorney fees and costs—was fair, reasonable, and adequate. This review was required under Cheeks v. Freeport Pancake House, Inc. On March 20, 2025, the parties submitted a motion for settlement approval, the proposed agreement, and related materials.

Court’s Analysis

The court found the proposed settlement fair and reasonable based on the nature and scope of the plaintiff’s claims, as well as the risks and expenses of additional litigation. The court also found that the settlement did not raise other concerns identified in Cheeks, including overbroad releases or restrictive confidentiality provisions.

The settlement requested approval of $11,506 in attorney fees and $482 in costs. The requested fee represented one-third of the settlement amount after costs and was authorized by a retainer agreement. The court found the contingency-fee agreement reasonable and the requested fees consistent with that agreement. The court also found the requested costs reasonable, including $405 in filing fees and $77 for service of process.

The court noted a discrepancy in the motion concerning the lodestar calculation, which was listed as $8,115 based on 16.23 hours at $500 per hour, but stated that this discrepancy did not change the court’s conclusion that the one-third contingency fee was fair and reasonable.

Disposition

The court approved the settlement, attorney fees, and costs. It dismissed the action with prejudice and without costs except as stated in the settlement agreement. The Clerk of Court was asked to close the case.