Lugo v. Bowery Residents' Committee, Inc.

Background

Jillian Lugo brought this action against Bowery Residents’ Committee, Inc. under the Fair Labor Standards Act, a federal law governing certain wages and working conditions. The parties advised the court that they had agreed to settle the case.

The court previously required the parties to submit a joint letter explaining the proposed settlement and addressing the factors used to evaluate whether a settlement is fair. After reviewing the parties’ March 31, 2025 letter, the court found the settlement fair and reasonable in light of the nature and scope of Lugo’s individual claim and the risks and expenses of further litigation.

Attorney’s Fees and Settlement Condition

Lugo sought approval of $19,853.50 in attorney’s fees and costs, equal to 31% of the $65,000 settlement amount. The court noted that courts in the district commonly approve attorney-fee awards ranging from 30% to 33%. It also found no basis to reduce the requested amount because there were no additional plaintiffs who had joined the case, the case was not a collective action, and the fee award was likely based on an agreement between Lugo and her attorney.

The court required that any modification of the settlement agreement receive court approval, even if the agreement contained a provision allowing the parties to modify it without court approval.

Ruling and Disposition

The court approved the settlement subject to that condition. It dismissed the case with prejudice, stated that all pending motions were moot, and directed the Clerk of Court to close the case.