Muy Gomez v. New Precious Nail Inc.

Background

Silbia Dolores Muy Gomez sued New Precious Nail, Inc., doing business as Precious Nails, Pelino Yoon, also known as Yung Yoon, and Sophia Yoon. She brought the action individually and on behalf of other similarly situated persons. On July 24, 2020, she informed the court that she had reached a consensual resolution with all defendants.

The parties later submitted a letter and supporting documents concerning the settlement's fairness. The court also held a hearing on September 15, 2020.

Court’s Analysis

The court reviewed the settlement under the Fair Labor Standards Act, a federal law governing matters including certain wage and hour protections, and applicable Second Circuit law. The court found that the settlement terms as a whole were fair and reasonable. It specifically considered employment records produced by a defendant that called into question the strength of the plaintiff's claim, as well as the difficulty the plaintiff might face collecting a judgment because the business had closed and the individual defendants had relocated. The court also found that the agreement appeared to result from an arms-length negotiation.

The court separately reviewed the request for $4,166.66 in attorneys' fees. It found that amount fair and reasonable because it was less than both the lodestar amount—the fee calculated from reasonable hours multiplied by reasonable hourly rates—and the amount agreed to in the retainer agreement.

Ruling

Judge Mary Kay Vyskocil approved the settlement as fair and reasonable and approved the $4,166.66 attorneys' fee request. The settlement agreement required the parties to sign a stipulation dismissing the case with prejudice after executing the agreement. Accordingly, the court dismissed the case with prejudice and requested that the clerk close the case.