Sanchez v. Park Ave. Apartments LLC

Background

Diana Sanchez and Natalia Sanchez brought this action under the Fair Labor Standards Act (FLSA) and New York Labor Law (NYLL). The parties consented to the court’s authority to decide the case. After reaching an agreement, they submitted a proposed amended settlement for court approval.

Settlement terms

The proposed agreement created a $57,000 settlement fund. Consistent with the plaintiffs’ retainer agreement, plaintiffs’ counsel requested $19,249.13 in attorneys’ fees and costs, an amount not greater than one-third of the settlement fund.

The agreement also included a $3,000 offset borne between Diana Sanchez and counsel. That provision was intended to secure a complete release of claims the defendants might have had arising from Diana Sanchez’s tenancy. The agreement released claims concerning the plaintiffs’ occupancy in buildings owned by the defendants and required the defendants to cancel and use their best efforts to terminate enforcement efforts related to a separate Housing Court action.

Court’s analysis

The court reviewed the agreement, the parties’ supporting letter, and other supporting materials. Applying the review required for FLSA settlements, the court considered whether the agreement was a reasonable compromise of the claims. The court found that the totality of the circumstances and the agreement’s terms showed that the settlement was fair, reasonable, and adequate both to address the plaintiffs’ claims and to compensate their counsel.

Ruling and disposition

The court approved the settlement agreement. It retained jurisdiction to enforce the agreement if necessary. As a result of the approval, the action was discontinued with prejudice and without costs. The order allowed the plaintiffs, within 30 days of the order’s date, to apply by letter to restore the action to the active calendar if any part of the written settlement documentation was not completed. The Clerk of Court was directed to close the case.