Aquino v. Joseph's Auto Center, Inc.

Background

The court reviewed a joint request by the parties to approve their settlement agreement under the Second Circuit’s requirements for reviewing settlements of Fair Labor Standards Act cases. The agreement required defendants Joseph's Auto Center, Inc. and Carl Bucalo to pay $52,500 to settle Eddy Aquino’s claims under the Fair Labor Standards Act and New York Labor Law.

The agreement allocated $34,277.28 to Aquino as a full settlement of his claims and $18,222.72 to his attorneys for fees and costs. The agreement included a unilateral but limited release covering wage-related claims and claims arising from Aquino’s separation from employment. The court noted that the agreement contained no confidentiality provision or other restriction on the parties’ ability to discuss the case or settlement.

Court’s Analysis

The court found that the settlement terms were fair and reasonable. It also found the proposed fee award reasonable. Of the $18,222.72 allocated to counsel, $1,084.08 would reimburse filing fees and other out-of-pocket costs, leaving $17,138.64 as the attorneys’ fee. The court stated that this amount was approximately one-third of the $51,415.92 net settlement payment after costs, a percentage within the range ordinarily approved in the district. The court also reviewed counsel’s time records, which showed $24,414.00 in billed time, and concluded that those records did not undermine the reasonableness of the fee.

Disposition

The court approved the proposed settlement. Judge Barbara Moses ordered that the action be dismissed with prejudice and without costs. The court retained jurisdiction for the limited purpose of enforcing the agreement if necessary and directed the Clerk of Court to close the case.