Morales v. Three Diamond Diner Corp.

Background

The plaintiffs brought this Fair Labor Standards Act case against Three Diamond Diner Corp., doing business as Mount Kisco Diner, and Photios Georgiou, Charalambos Georgiou, and Yiota Georgiou. The caption identifies the plaintiffs as proceeding individually and on behalf of others similarly situated as class representatives.

On January 7, 2020, the parties filed a settlement agreement and a joint statement explaining its basis. The filing was made in response to the requirement for court review of Fair Labor Standards Act settlements under Cheeks v. Freeport Pancake House, Inc.

Court’s Review

The court considered the parties’ positions about the proper value of the plaintiffs’ claims; the risks and costs of continued litigation; the fact that the plaintiffs were represented by counsel; the fact that the plaintiffs no longer worked for the defendants; and the parties’ use of an experienced mediator.

The court also considered the agreement’s neutral-reference provision, the absence of a confidentiality provision, and the discounted wage recovery, which was estimated based on the plaintiffs’ recollections. The parties wanted to resolve the case early and avoid the costs and uncertainty of extended litigation. Although the release was broad, it preserved Julissa Morales’s claims against the defendants that were included in an Equal Employment Opportunity Commission charge dated on or about September 4, 2019.

Ruling

Judge Vincent L. Briccetti found that the settlement agreement was fair and reasonable and resulted from arm’s-length negotiations rather than fraud or collusion. The court also found that the attorneys’ fees, equal to one-ninth of the total recovery, were fair and reasonable under the circumstances.

The court approved the parties’ settlement agreement. The Clerk was instructed to close the case.