Martinez Casique v. Armendariz

Background

The plaintiffs brought this action under the Fair Labor Standards Act, New York Labor Law, and the New York City Human Rights Law. The parties advised the court that they had reached a settlement in principle. The court then directed them to submit the settlement agreement and a memorandum explaining why the settlement was fair, using factors identified in prior Southern District of New York decisions.

Settlement and Attorneys’ Fees

After reviewing the parties’ submission, the court found the settlement fair and reasonable, considering the nature and scope of the plaintiffs’ claims and the risks and expenses of further litigation. The settlement amount was $600,000. The plaintiffs requested $200,000 in attorneys’ fees and costs, which represented 33.33% of the settlement. The court concluded that this amount was appropriate in light of fees commonly approved in similar Fair Labor Standards Act settlements and the amount remaining for the plaintiffs.

Ruling

Judge Margaret M. Garnett approved the settlement agreement. The approval was conditioned on court approval of any modification to the agreement, even if the agreement stated that the parties could modify it without court approval. The court dismissed the case with prejudice, directed the clerk to terminate the settlement-approval motion, and ordered the case closed.