Bolivar Guzman v. Toys Outlet Inc.

Background

Jorge Bolivar Guzman brought this wage-and-hour action under the Fair Labor Standards Act against Toys Outlet Inc., doing business as Furniture Express; Izzy Furniture Inc., doing business as Izzy Furniture; and Israel Aboutboul. Guzman sued individually and on behalf of others similarly situated. The parties consented to Magistrate Judge Sarah L. Cave’s jurisdiction for review of the proposed settlement.

Settlement review

The parties submitted a joint motion and proposed settlement agreement for approval. Under the court’s review of Fair Labor Standards Act settlements, the court considered whether the agreement was fair and reasonable. The court reviewed the parties’ submissions, the settlement agreement and exhibits, and the lengthy conference that led to the settlement. The court also considered Guzman’s serious concerns about whether a judgment could be collected and the agreement’s payment schedule.

The approved settlement has a total value of $12,000. It allocates $4,618.40 for attorneys’ fees and costs. The first payment is $2,000, divided into $1,230.27 for Guzman and $769.73 for his counsel. The agreement then provides for 16 remaining installment payments of $625 each, with $384.46 going to Guzman and $240.54 going to his counsel for each payment.

Ruling and disposition

Judge Sarah L. Cave found that all settlement terms appeared fair and reasonable under the circumstances and approved the settlement. The court dismissed the action with prejudice and without costs except as stated in the settlement agreement. It retained jurisdiction to enforce the settlement agreement, ruled that any pending motions were moot, directed the Clerk to mark the settlement motion as granted, and directed the Clerk to close the case.