Perdomo v. 113-117 Realty, LLC

Background

Julian Perdomo sued 113-117 Realty, LLC; Direct Property Management LLC; and Lawrence Marolda under the Fair Labor Standards Act. The caption identifies Perdomo as acting for himself, other collective plaintiffs, and the class. The parties filed a settlement agreement and a joint statement explaining its basis, as required for the court’s review.

Court’s analysis

The court considered the parties’ views about the value of the claims; the risks and costs of continued litigation; Perdomo’s representation by counsel; the fact that he no longer worked for the defendants; the assistance of a mediator; and the agreement’s confidentiality provision. The confidentiality provision covered only the settlement amount. The court also noted that the release was broad but limited to claims accrued before the agreement was executed and to claims arising from Perdomo’s employment and involving wages or benefits under the Fair Labor Standards Act and New York State Labor Law.

Ruling

The court found that the settlement was fair and reasonable and resulted from arm’s-length negotiations rather than fraud or collusion. It separately found that attorneys’ fees equal to one-third of the total recovery were fair and reasonable under the circumstances. Judge Vincent L. Briccetti approved the settlement agreement and instructed the Clerk to close the case.