Harding v. NYC Crane Hoist & Rigging, LLC

Background

Marvil Harding and Alton Powis settled their claims under the Fair Labor Standards Act (FLSA) and New York Labor Law against NYC Crane Hoist & Rigging, LLC and Thomas Auringer. Through two joint letters dated October 27, 2020, the parties asked the court to approve the settlements under the requirement for judicial review of FLSA settlements established in Cheeks v. Freeport Pancake House, Inc. The court also directed the plaintiffs to submit a supplemental letter with their retainer agreements and their lawyer’s time and expense records.

Settlement Terms

The Harding Agreement required defendants to pay $13,181.66. Harding would receive $8,589.11, while his attorney, Abdul K. Hassan, would receive $4,592.55 as a fee award and reimbursement of expenses, including filing and service costs. The fee was calculated as one-third of Harding’s gross settlement payment.

The Powis Agreement required defendants to pay $12,272.58. Powis would receive $7,983.00, while his counsel would receive $4,289.53 as a fee award and expense reimbursement. That fee also was calculated as one-third of the gross settlement payment. The agreements provided for installment payments to the plaintiffs and counsel, with portions reported on Internal Revenue Service Forms W-2 and 1099-MISC.

Each agreement contained mutual releases. The defendants released the respective plaintiff from claims they had or might have against him, while each plaintiff released the defendants from claims connected with his employment. The court found that the releases favored the plaintiffs because the plaintiffs’ releases were narrower than the releases they received. The agreements had no confidentiality clause or other restriction on any party’s ability to discuss the case or settlement.

Attorney Fees

The proposed fees were consistent with the plaintiffs’ contingency-fee agreements and were lower than counsel’s lodestar. A lodestar is a cross-check that multiplies reasonable hours by a reasonable hourly rate. Counsel calculated an aggregate lodestar of $14,604 using a $600 hourly rate and $10,953 using a reduced $450 fee-shifting rate. The court stated that this analysis further supported the fairness of the proposed fees.

Ruling

Judge Barbara Moses found both settlement agreements, including the attorney-fee awards and expense reimbursements, fair and reasonable. The court therefore approved the proposed settlements. It ordered that the action be dismissed with prejudice and without costs and directed the Clerk of Court to close the case.