Basurto v. Lighthouse Fishmarket Inc.

Background

Gonzalo Cornelio Basurto sued Lighthouse Fishmarket Inc., doing business as Lighthouse Fish Market & Restaurant, and Michael Clopton. The action sought damages under the Fair Labor Standards Act, a federal wage law, and the New York Labor Law. Basurto sued individually and on behalf of others similarly situated. The parties consented to the magistrate judge’s jurisdiction for all purposes.

Settlement Review

The parties submitted a joint letter asking the court to approve their settlement agreement. The court explained that federal courts must review Fair Labor Standards Act settlements to determine whether they are fair and reasonable and resulted from arm’s-length negotiations rather than employer overreaching. The court had assisted in mediating the case and reviewed the settlement agreement and the parties’ letter.

In evaluating the agreement, the court considered prior proceedings, the risks, burdens, and costs of continuing the case, the possible range of recovery, whether the agreement resulted from arm’s-length bargaining between experienced counsel or parties, attorney’s fees, and the possibility of fraud or collusion. The court noted that the agreement contained no confidentiality restrictions, that its non-disparagement provision was mutual and limited, that its releases were limited to wage-and-hour and other labor-related claims, and that the attorney’s fees were within a fair, reasonable, and acceptable range.

Ruling

Judge Robert W. Lehrburger found the settlement agreement fair and reasonable and approved it. The Clerk of Court was directed to terminate all motions and deadlines and close the case. The opinion does not state the settlement amount or describe any separate distribution process.