Alejandro Narcizo v. NY Strawberry Deli Corp.

Background

This was a wage-and-hour case brought under the Fair Labor Standards Act by Arquimidez Alejandro Narcizo, on behalf of himself and others similarly situated, against NY Strawberry Deli Corp. and other defendants. The parties consented to Magistrate Judge James L. Cott’s jurisdiction under 28 U.S.C. § 636(c). They jointly submitted a letter explaining their proposed settlement and a proposed settlement agreement for court approval.

Settlement review

The court explained that settlements in Fair Labor Standards Act cases generally receive a strong presumption of fairness, while courts must still review them for reasonableness. The court also considered the defendants’ financial situation during the COVID-19 pandemic and the possible difficulty of collecting damages through a judgment. After reviewing the parties’ submissions, the court found that all settlement terms, including the allocation of attorney’s fees and costs, appeared fair and reasonable under the circumstances and the factors identified in the cited precedent.

The court noted that its approval of the allocation of attorney’s fees did not approve the hourly rate of the plaintiff’s counsel. It also identified several errors in the parties’ submissions, including an incorrect docket number, an incorrect fee amount in the settlement letter, inconsistent references to the plaintiff, and references to the wrong federal district court. These observations did not prevent approval of the proposed settlement.

Ruling

Judge James L. Cott approved the proposed settlement. Because the parties requested dismissal after the final signature of individual defendant Adel Hadi, the court dismissed the case with prejudice, subject to submission of a fully executed settlement agreement within 30 days of the order. The court directed the Clerk to close the settlement-approval docket entry, mark it as granted, and close the case.