Haddoumi v. Ambiance Wine LLC

Background

On June 6, 2020, the parties submitted their second request for approval of a settlement. On June 9, the court declined to approve that request because plaintiffs’ counsel had not submitted billing documentation at the same time to support the reasonableness of the proposed attorney-fee award.

On June 23, plaintiffs’ counsel responded that billing records had been submitted with the first proposed settlement agreement in June 2019. Counsel also submitted additional records showing 22.8 hours worked during the following year. The court stated that counsel had now provided the documentation needed to evaluate the current fee request.

Attorney Fees and Settlement Approval

Plaintiffs’ attorneys proposed retaining $15,000, equal to one-third of the total settlement amount. The court noted that courts in the district routinely approve fees of one-third of a settlement but also compare that amount with the lodestar—the fee calculated from the attorneys’ documented work—to assess reasonableness. Based on counsel’s submissions, the court calculated the lodestar at $23,760. Because the requested fee was less than that amount, the court found the request presumptively reasonable. The court also stated that the presumption was not rebutted because the fee had been agreed to by the plaintiffs.

A footnote states that plaintiffs’ calculation of the lodestar at $23,744 inaccurately reflected the paralegal’s fees by $16.

Ruling

The court found that the revised settlement agreement complied with the requirements identified in Cheeks v. Freeport Pancake House, Inc., and approved the agreement. Judge Edgardo Ramos dismissed the case with prejudice. The clerk was directed to terminate the motion at Doc. 55 and close the case.