Guzman Iturbide v. Huntingwood, Inc.
- Alison Nathan
- 1:18-cv-09036
- U.S. District Court · Southern District of New York
- 4
In Guzman Iturbide v. Huntingwood, Judge Nathan approved a $22,000 settlement of wage claims, including $7,642 in fees and costs.
Alvaro Guzman Iturbide, Huntingwood, Inc., the other defendants, and plaintiff’s counsel were affected by the approved settlement and fee determination.
What happened
Guzman Iturbide v. Huntingwood, Inc. involved Alvaro Guzman Iturbide’s claims under the Fair Labor Standards Act and New York Labor Law. After discovery began, the parties reached a settlement through mediation and asked the court to approve it.
The agreement provided $22,000 total, including attorneys’ fees and costs. The plaintiff would receive $14,358 after deducting the requested $7,642 in fees and costs, or about 37% of the maximum potential damages calculated by the plaintiff.
Judge Alison J. Nathan approved the settlement, finding both the total amount and the fees reasonable. She directed the Clerk to enter judgment and close the case.
The detailed version
- Guzman Iturbide v. Huntingwood, Inc. · No. 1:18-cv-09036
- Alison Nathan
- Aug. 7, 2020
Background
Alvaro Guzman Iturbide sued Huntingwood, Inc. and other defendants under the Fair Labor Standards Act (FLSA) and New York Labor Law. After the parties entered discovery, they reached a settlement through mediation and submitted the proposed agreement for court approval.
Settlement Amount
The settlement provided for a total payment of $22,000, including attorneys’ fees and costs. The plaintiff’s submitted damages calculation identified a maximum potential award of $38,991.08. After deducting fees and costs, the plaintiff would recover $14,358, which was approximately 37% of the maximum potential damages. The court found the settlement amount reasonable, noting both the risks and delay of litigation and the fact that mediation produced the agreement.
Attorneys’ Fees and Costs
Plaintiff’s counsel requested $7,642 in attorneys’ fees and costs, roughly one-third of the total settlement. The court explained that it uses the lodestar method as a cross-check. The lodestar is calculated by multiplying a reasonable hourly rate by the reasonable number of hours worked.
The court found the submitted hourly rates excessive and reduced them from $450 to $400 for managing partner Michael Faillace, from $400 to $350 for senior attorney Joshua Androphy, and from $350 to $250 for former associate Sara Isaacson. Using those rates, the court calculated a lodestar of $4,855. Because the resulting multiplier was under two, the court found the requested fees and costs reasonable.
Ruling
Judge Alison J. Nathan approved the settlement agreement. The court directed the Clerk of Court to enter judgment and close the case.
Disposition
The settlement approval was granted, and the case was closed.
Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.