Luna v. Marquis Realty LLC

Background

Felix M. Luna, acting as administrator of the estate of Felix Luna, brought wage-and-hour claims against Marquis Realty LLC, Sam David, and Lazer Kviat. Felix Luna had worked as a superintendent for Marquis beginning in 2002 and continuing until the lawsuit began. The complaint alleged that he regularly worked seven days a week and more than 59 hours per week, was on call at all times, and was paid a flat $650 per week without additional pay for overtime or on-call time.

The complaint also alleged that part of Felix Luna’s weekly pay was regularly given to people who helped with his duties, that he had to pay for necessary work tools, and that the defendants did not keep accurate records of his hours or provide required wage notices and statements. Felix Luna died before discovery began. His son, Felix M. Luna, was appointed administrator of the estate and substituted as the plaintiff.

Settlement-Approval Standard

The parties asked the court to approve their settlement under Cheeks v. Freeport Pancake House, Inc. Under that rule, a court must approve a settlement that dismisses Fair Labor Standards Act claims with prejudice. The court evaluates whether the agreement is fair and reasonable, including the possible recovery, the burdens and risks of continued litigation, whether the negotiations were at arm’s length, and whether fraud or collusion may have occurred.

Court’s Analysis

The proposed settlement totaled $12,375. Felix M. Luna would receive $8,292, while his counsel would receive $4,083 in fees and costs. The complaint did not state a specific damages amount, so the court could not compare the settlement directly with a stated damages range. The court nevertheless found the amount reasonable because the case presented significant litigation risks. In particular, the plaintiff acknowledged difficulty proving Felix Luna’s hours and the alleged unlawful deductions without his testimony.

The parties represented that the settlement followed extensive negotiations, and the record contained no evidence of fraud or collusion. The court also found that the release was appropriately limited to employment-related wage-and-hour claims through the date the agreement was executed. The agreement contained neither a confidentiality provision nor a non-disparagement provision.

The court found the $4,083 fee and cost award reasonable. It represented approximately 33% of the total settlement, was below counsel’s stated lodestar—the fees calculated from counsel’s recorded time and rates—and was supported by billing records. The court also considered complications arising from Felix Luna’s death, including substituting the estate as plaintiff and obtaining necessary approvals in the Bronx Surrogate’s Court.

Disposition

Judge Ona T. Wang approved the proposed settlement as fair and reasonable. The court ordered that the action be dismissed with prejudice and directed the Clerk to close the case.