Preldakaj v. The Monarch Condominium

Background

Emanuel Preldakaj brought the action for himself and other hourly paid, non-exempt employees of The Monarch Condominium. He alleged that The Monarch Condominium, The Monarch Condominium Board of Managers, and Lasala Management, Inc. failed to pay required straight-time and overtime wages. The alleged practices included requiring employees to work after their shifts without pay, configuring time clocks to disadvantage hourly employees, and automatically deducting meal-break time even when employees were working.

The claims arose under the Fair Labor Standards Act and New York Labor Law. Preldakaj also asserted the same allegations under Rule 23 of the Federal Rules of Civil Procedure and New York law. The complaint was filed on November 10, 2020. The parties later agreed to pause the case for mediation under their collective bargaining agreement.

Settlement and Motion

After three full-day mediation sessions, the parties agreed on the material terms of a settlement totaling $912,500, inclusive of attorney’s fees. The parties jointly moved for preliminary approval of the settlement, conditional certification of the proposed settlement class, appointment of class counsel, approval of the proposed settlement notice, and a fairness hearing for final approval.

Court’s Analysis

The court explained that preliminary approval requires a determination that there is sufficient basis to present the proposal to class members and hold a full fairness hearing. The court found that the settlement resulted from substantial investigation, arm’s-length negotiations, and the assistance of a neutral mediator. Although the court did not make a final determination about the settlement’s fairness, it found that the proposed $912,500 distribution, after attorney’s fees, appeared to fall within the appropriate range for settlement approval for approximately thirty class members.

The court provisionally certified the following settlement classes under Rule 23(e):

- The “FLSA Class,” consisting of current and former non-supervisory, non-exempt hourly building-service staff members who worked at The Monarch Condominium from November 10, 2017, through the date of the order. - The “Rule 23 Class,” consisting of individuals employed in New York State who worked as non-supervisory, non-exempt hourly paid building-service staff members at The Monarch Condominium from November 10, 2014, through the date of the order.

The court found that joinder would be impractical despite the proposed class having fewer than thirty members, given the size of the claims and the class members’ modest financial resources. It also found common issues, typical claims, adequate representation, and predominance of common questions under Rule 23(b)(3). The court appointed McLaughlin & Stern, LLP as class counsel based on its investigation, experience, legal knowledge, and resources.

The court approved the proposed notice as the best notice practicable under the circumstances and found that it satisfied the requirements of Rule 23(c)(2)(B) and due process. The notice was to explain the action, the class definition, the claims, the right to appear through counsel, the right to request exclusion, the procedure and deadline for exclusion, and the binding effect of a class judgment.

Disposition

Judge Vernon S. Broderick granted the parties’ joint motion. The order granted preliminary approval of the settlement, conditionally certified the settlement classes, appointed class counsel, approved the proposed notice, and scheduled a fairness hearing for February 3, 2022, at 4:00 p.m. The court reserved for that hearing the questions whether the settlement was fair, just, reasonable, adequate, and in the class’s best interests; whether to approve the settlement agreement; and whether to enter a final judgment of dismissal.