Chavez v. Morano Landscape Garden Designs, LTD.

Background

Elsa Chavez sued individually, and Carlo Escamilla sued individually and on behalf of others similarly situated, against Morano Landscape Garden Designs, LTD. and Rosina Morano Sagliocco. The order concerns the parties’ proposed settlement of wage-related claims under New York law and the Fair Labor Standards Act (FLSA).

The court held a fairness hearing on October 20, 2021, after previously granting preliminary approval of Escamilla’s consent motion. The court stated that adequate notice had been given to the proposed class members and that it reviewed the settlement papers and proceedings.

Settlement approval and classes

The court found the class settlement fair, reasonable, adequate, and in the best interests of the class members. It found that the notice process was the best notice practicable under the circumstances and complied with Federal Rule of Civil Procedure 23 and due process.

The court granted final certification to two settlement classes:

- Under Rule 23, individuals who worked as landscapers for the defendants in New York at any time from November 2, 2011, through February 28, 2018. - Under FLSA section 216(b), individuals who worked as landscapers for the defendants at any time during that period and who cashed their first settlement check, thereby opting into the action.

The court found that the parties had investigated the relevant facts and law, exchanged substantial discovery, and considered disputed factual and legal issues, litigation risks, possible motions and trials, appeals, and delay. It directed the parties to carry out the settlement. The order directs Rust to distribute payments to 97 class members according to the settlement terms.

Releases and awards

The settlement binds the named plaintiff, opt-in plaintiffs, and class members to its terms, including its releases. Class members release the defendants from New York Labor Law wage-and-hour claims asserted or that could have been asserted in the lawsuit. Class members who cash their first settlement checks also release the defendants from FLSA wage-and-hour claims asserted or that could have been asserted in the lawsuit.

The named plaintiff and opt-in plaintiffs Alejandro Vasquez, Augustin Jose De La Cruz, Amilcar Arriola, Fidel Orzuna, Pedro Lombert, Jose Perez, and Severiano Hernandez additionally release claims arising from their employment with the defendants in exchange for service awards. The court granted the service-award request and ordered Rust to pay the named plaintiff $10,000 and each of those seven opt-in plaintiffs $1,500.

The court also granted class counsel’s request for $144,855 in attorney fees and $10,271.46 in reimbursement of expenses. It ordered payment of $12,812 to Rust for settlement-administration fees and costs. Any unclaimed money remaining after a second distribution is to be given as a cy pres award to Lower Hudson Valley Legal Services under the settlement agreement.

Chavez’s claims and final judgment

The court approved the settlement of Chavez’s FLSA claims. It dismissed all claims asserted by Chavez in their entirety with prejudice under Rule 41(a)(2), without awarding costs or fees except as provided in the settlement agreement.

The court also dismissed the complaint and the claims against the defendants in their entirety with prejudice, directed the Clerk to close the case, and entered final judgment under Rules 54 and 58. The court retained exclusive and continuing jurisdiction over the settlement’s construction, interpretation, implementation, enforcement, and administration, including distribution of the settlement fund and Chavez’s individual settlement. Judge Vincent L. Briccetti signed the order.