Abraham v. Promise Home Care Agency, Inc.

Background

The parties asked the court to give final approval to a class and collective action settlement. The case involved claims by registered nurses and licensed practical nurses under the Fair Labor Standards Act, a federal wage-and-hour law, and New York wage-and-hour law. The court held a fairness hearing on November 30, 2020, with the parties’ consent, after previously granting preliminary approval.

Settlement Classes and Notice

The court granted final certification to two settlement classes:

- The federal collective included nurses who worked for Promise Home Care Agency, Inc. at any time from January 1, 2015, through April 19, 2020, and who had either already opted into the case or later submitted a claim form to opt in. - The New York class included all individuals who worked as nurses for the defendant in New York during that period.

The court found that mailing, emailing, texting, and distributing the settlement notice was the best notice practicable under the circumstances and provided valid, sufficient notice consistent with the federal class-action rule and due process. Of 480 people who were mailed notices, three opted out and no class member objected. The order states that 116 class members would be mailed checks based on submitted claim forms or prior participation, and later directs payment to 117 participating class members as of the filing of the final-approval motion, plus any later accepted claims.

Court’s Findings

The court found that counsel had investigated the facts, law, and documents, exchanged sufficient discovery, and represented the parties’ interests vigorously. It found that continued litigation would involve disputed factual and legal issues, possible motions, trial, and appeal, with additional delay and risk for class members. Based on those considerations and counsel’s experience, the court found the settlement, as modified by the order, fair, reasonable, adequate, and in the class members’ best interests.

The settlement fund was $1,100,000, with $731,433.65 identified as the net settlement amount for class members. The court rejected the proposed $30,000 service award for each named plaintiff as too high because the plaintiffs were not deposed and the awards would have represented a relatively high percentage of the fund. It instead approved $8,000 for Helen Abraham and $8,000 for Natoya Kerdeane Sylvester, for a combined $16,000, and directed that the additional $14,000 be added to the amount distributed to the class.

The court approved $319,000 in attorneys’ fees and $1,855.11 in out-of-pocket expenses for class counsel. It also approved $18,626.25 in fees and costs for Rust Consulting, Inc., the settlement administrator.

Disposition

The court granted the motion for final approval of the class and collective action settlement, service awards, attorneys’ fees and expenses, and entry of final judgment. It directed the parties to comply with the settlement as modified and directed Rust Consulting to distribute the payments. The settlement released covered New York wage-and-hour claims and, for participating claimants, covered federal Fair Labor Standards Act wage-and-hour claims that were asserted or could have been asserted in the case. The order stated that the settlement was not an admission of liability, fault, wrongdoing, or the truth of any allegation.

All claims against Promise Home Care Agency, Inc. were dismissed with prejudice, the Clerk was directed to close the case, and final judgment was entered. The court retained exclusive and continuing jurisdiction over the settlement’s interpretation, implementation, enforcement, administration, and distribution. If class members did not cash checks within 120 days, the order required reasonable efforts to locate them and required plaintiffs’ counsel to file a sworn statement describing those efforts.