Cortes v. Grace 365 Group LLC

Background

Armando Cortes and other plaintiffs brought this action under the Fair Labor Standards Act (FLSA), a federal statute addressing wage and hour rights. The parties advised the court that they had agreed to settle. In an earlier order, the court directed them to submit a joint letter explaining the proposed settlement and addressing the factors identified in Wolinsky v. Scholastic, Inc. The parties submitted that letter on August 9, 2021.

The opinion does not provide details about the plaintiffs’ individual claims. It states that the plaintiffs no longer worked for the defendant, which reduced concerns that the settlement’s release of claims resulted from improper job-related pressure.

Settlement and Fees

The settlement amount was $20,000. The plaintiffs sought approval of $6,666.67 in attorney’s fees, representing 33.3% of the settlement, and $545.32 in costs. The court stated that courts in the relevant federal district typically approve attorney’s fees between 30% and 33% of the recovery. It also considered counsel’s billing records, which reflected approximately 35 hours of work and an effective hourly rate of about $190. The court concluded that a fee equal to one-third of the recovery was appropriate.

Ruling

The court found the settlement fair and reasonable in light of the nature and scope of the plaintiffs’ individual claims and the risks and expenses of additional litigation. It approved the settlement subject to a condition requiring court approval for any modification of the settlement agreement, even if the agreement stated that the parties could modify it without court approval.

The court dismissed the case with prejudice. It ruled that all pending motions were moot and directed the Clerk of Court to close the case.

Classification

This is a procedural order because the court approved a settlement and resolved related attorney’s-fee issues rather than deciding the underlying wage-and-hour claims on their merits.