Galvez Prudente v. Prosperity 89 Inc.

Background

Antolin Galvez Prudente brought claims under the Fair Labor Standards Act (FLSA) and New York Labor Law against Prosperity 89 Inc., Lucky Charm 6365 Corp., Adidsuda Chunton, Gift Rakowski, and Bipen Doe. The court reviewed the parties’ proposed settlement agreement, fairness letter, calculations of Prudente’s estimated recovery, and requested attorneys’ fees and costs.

Settlement Approval

The defendants agreed to pay $14,000 in exchange for the release of wage-and-hour claims. After attorneys’ fees and costs, Prudente would receive $8,881.33. The parties calculated his estimated “best chance” recovery at $42,172.15, so the settlement was lower than that estimate. The court nevertheless found the amount fair and reasonable in light of the risks of trial.

Fees, Costs, and Release

The court independently reviewed the requested attorneys’ fees and costs. It approved the proposed award under the percentage-of-the-settlement method because the fee was approximately one-third of the net settlement, an amount the court said was routinely approved in the district. The court also found the award reasonable when compared with the parties’ lodestar calculation of $14,252.50.

The court separately approved the release. It was limited to claims under the FLSA and New York Labor Law that related specifically to the claims in this litigation and arose by the agreement’s effective date. The court found that limitation sufficient.

Disposition

The court approved the settlement agreement, retained jurisdiction for the limited purpose of enforcing it, and dismissed the action with prejudice. The clerk was directed to close the case.