Agramonte v. Gurum Corporation

Background

This was a wage-and-hour case under the Fair Labor Standards Act (FLSA). The parties consented to Judge Cott’s jurisdiction under 28 U.S.C. § 636(c). They submitted a joint fairness letter and a fully executed settlement agreement for court approval.

Settlement review

The court reviewed the parties’ submissions and participated in a lengthy conference that led to the settlement. It explained that courts generally apply a strong presumption that an FLSA settlement is fair because the parties are usually better positioned than the court to assess the settlement’s reasonableness. The court also considered the defendants’ financial situation resulting from the COVID-19 pandemic and the resulting potential difficulty of collecting damages.

The court found that all settlement terms appeared fair and reasonable under the totality of the circumstances. Those terms included mutual general releases, mutual non-disparagement provisions, and an allocation of attorneys’ fees and costs.

Ruling

Judge James L. Cott approved the proposed settlement. The court stated that its approval of the allocation of attorneys’ fees did not approve the hourly rate of the plaintiffs’ counsel. It agreed that the lengthy payment schedule justified, at least in part, the fees included in the settlement because additional work would be required. The court stated that it would sign the parties’ stipulation and order of dismissal, directed the clerk to mark the settlement-approval docket as “granted,” and ordered the case closed.