Kim v. Choi
- Ona Wang
- 1:19-cv-08911
- U.S. District Court · Southern District of New York
- 4
In Kim v. Choi, Judge Wang approved a wage-settlement, dismissed those claims with prejudice, and dismissed remaining claims without prejudice.
The settlement affects the plaintiffs, including Duva and Kim, and the defendants in the case. The Fair Labor Standards Act claims are barred from being brought again, while the remaining claims were dismissed without prejudice.
What happened
In Kim v. Choi, the plaintiffs asked the court to approve a settlement resolving their claims under the Fair Labor Standards Act, a federal wage law. The court had previously declined to approve the agreement because it lacked information about attorney’s fees.
After the plaintiffs’ lawyer provided more information, the court found the settlement reasonable. The agreement provided for a confession of judgment for $11,000, with $1,225.30 in costs and a possible attorney’s fee of $3,225.65, or 33% of any recovery after costs.
Judge Ona T. Wang approved the settlement. The plaintiffs’ Fair Labor Standards Act claims were dismissed with prejudice, while their remaining claims were dismissed without prejudice, and the case was closed.
The detailed version
- Kim v. Choi · No. 1:19-cv-08911
- Ona Wang
- May 4, 2021
Background
The court had previously declined to approve the parties’ proposed settlement under the required review for Fair Labor Standards Act settlements. The court needed more information about whether the plaintiffs’ lawyer would claim a percentage of the settlement as attorney’s fees. The plaintiffs were allowed to renew their request and submitted a letter addressing fees.
The plaintiffs alleged damages of at least $6,500 for Plaintiff Duva and $4,100 for Plaintiff Kim, with total estimated damages of at least $31,000 after liquidated and statutory damages. The proposed settlement resolved the plaintiffs’ Fair Labor Standards Act claims through a confession of judgment for $11,000. A confession of judgment is an agreement allowing a creditor to obtain a judgment under specified circumstances.
Settlement Amount and Attorney’s Fees
The court found the settlement’s potential recovery reasonable in light of the risks and burdens of continued litigation and the non-monetary benefit of the confession of judgment. The plaintiffs’ lawyer would receive $3,225.65, or 33% of any recovery after $1,225.30 in costs. The court noted that one-third fees are regularly approved in Fair Labor Standards Act cases in the district. It also considered that counsel had spent 139 hours investigating and researching the claims, participating in a court conference and mediation, and preparing the settlement and approval applications.
The court concluded that the contemplated attorney’s fees were fair and reasonable without requiring billing records. It then approved the settlement.
Disposition
The court approved the settlement. The plaintiffs’ Fair Labor Standards Act claims were dismissed with prejudice. Their remaining claims, including claims not subject to the settlement-approval requirement, were dismissed without prejudice. The clerk was directed to close all open motions and the case.
Judge Ona T. Wang signed the order on May 4, 2021.
Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.