Ruiz Rivera v. Polaris Cleaners 99, Inc.

Background

The plaintiffs asked the court to approve the parties’ settlement agreement under Cheeks v. Freeport Pancake House, Inc., which requires court review of certain settlements of claims under the Fair Labor Standards Act (FLSA). The agreement resolved the plaintiffs’ FLSA and New York Labor Law claims against Polaris Cleaners 99, Inc., doing business as Polaris Organic Cleaners, and Richard J. An.

Settlement Terms

The defendants agreed to pay $40,000. The agreement allocated $25,024.78 to Wuilzon Zacarias Ruiz Rivera, $1,000 to Rodolfo Hidalgo Albino, and $13,975.22 to the plaintiffs’ attorneys for fees and costs. Payment was to be made in eleven installments: an initial payment of $5,000 followed by ten equal payments of $3,500. The installment payments were backed by affidavits of confession of judgment signed by Polaris and An.

The agreement contained a limited, one-sided release covering claims related to or arising from matters alleged in the action, including claims under the FLSA and New York Labor Law. It did not contain a confidentiality clause or other contractual restriction on the parties’ ability to speak about the case or settlement.

Court’s Analysis

The court stated that it had presided over portions of the settlement process and reviewed the agreement, including the attorneys’ fees and costs. It found the agreement fair and reasonable as required by Cheeks. The court noted that Albino no longer wished to pursue his claims and was prepared to dismiss them without compensation. Although Albino’s relatively small payment would otherwise require scrutiny, the court found the allocation fair and reasonable under the circumstances described.

Disposition

The proposed settlement was approved. The court ordered that the action be dismissed with prejudice and without costs, and directed the Clerk of Court to close the case.