Rodriguez Diaz v. Presto Fresh Cafe Corp.

Background

The plaintiffs notified the court that the case had settled and submitted a letter and supporting documents concerning the settlement’s fairness. The parties later submitted an amended Settlement Agreement.

Although the case was initially filed as a putative collective action, the settlement resolved only the claims of the named plaintiffs—Katherine Rodriguez Diaz, Salin Solis, and Eleazar Gonzalez Morales. The agreement did not purport to affect claims that other employees of the defendants might hold.

Settlement Review

The court reviewed the settlement under the Fair Labor Standards Act (FLSA) and applicable Second Circuit law. The court concluded that the settlement terms were fair and reasonable. It found the settlement amount reasonable in part because, before attorney’s fees, it compensated the plaintiffs for approximately half of the damages claimed in the complaint. The court also noted that plaintiffs’ counsel would receive less than the amount counsel would have been entitled to receive using a standard hourly rate.

The court specifically stated that its approval did not constitute an opinion on the reasonableness of the rates charged by the attorney representing the plaintiff.

Disposition

The court approved the settlement memorialized in the amended Settlement Agreement at ECF No. 27. Judge Mary Kay Vyskocil ordered that the case be dismissed with prejudice. The Clerk of Court was requested to terminate all pending motions, adjourn any remaining dates, and close the case.