Monroy-Gill v. Fresco News Incorporated

Background

The plaintiffs moved for preliminary approval of a proposed settlement, provisional certification of a settlement class, appointment of AndersonDodson, P.C. as class counsel, approval of the proposed settlement notice and class-action procedure, and approval of the Fair Labor Standards Act settlement under the standards described in Cheeks v. Freeport Pancake House, Inc.

The proposed settlement class consisted of all individuals who worked at Fresco at any time from May 1, 2017, through July 1, 2017, except the defendants and company executives. The opinion identifies a common issue as whether the defendants paid Fresco employees all wages owed to them.

Rulings

The court granted preliminary approval of the settlement agreement. It found that the agreement was within the possible range for settlement approval, resulted from extensive arm’s-length negotiations by experienced counsel, and was fair and reasonable under the standards applicable to Fair Labor Standards Act claims.

The court provisionally certified the proposed Rule 23 settlement class. It found that the requirements for class certification were met, including that the class was large enough to make individual lawsuits impractical, shared factual and legal issues, had claims arising from the same circumstances, and had no conflicting interests. The court also found that common issues predominated and that resolving the matter as a class action was more efficient than individual lawsuits.

The court appointed AndersonDodson, P.C. as class counsel under Rule 23(g), based on the firm’s work in identifying, investigating, litigating, and settling the claims and its experience with employment, wage-and-hour, and class-action matters.

The court approved the proposed notice and claim form and directed that they be distributed to the class. It found that the notice complied with due-process requirements and Rule 23, described the settlement generally, explained the proposed attorneys’ fees, and provided information about the final approval hearing.

The court approved the settlement procedure and scheduled a final fairness hearing for Monday, April 27, 2020, at 2:00 p.m., at the United States District Court for the Southern District of New York, 40 Foley Square, New York, New York, Courtroom 219. The parties were directed to follow the other terms of the settlement agreement.

Disposition

Judge Sarah Netburn granted the plaintiffs’ motion for preliminary approval of the settlement, provisional certification of the settlement class, appointment of class counsel, approval of the proposed notice and class-action procedure, and approval of the Fair Labor Standards Act settlement. The order did not state that final settlement approval had been entered.