Mendoza Cerezo v. HLF Enterprises, Inc.

Background

Julia Mendoza Cerezo brought claims against HLF Enterprises, Inc. and Howard Feigenbaum to recover allegedly unpaid minimum and overtime wages, plus liquidated and statutory damages, under the Fair Labor Standards Act and the New York Labor Law. The defendants denied the allegations.

The parties first submitted a Negotiated Settlement Agreement and Release for court review, with a joint letter and records concerning attorney’s time and costs. After a December 6, 2021 telephone conference, the court directed the parties to submit a revised agreement because the original referred to a separate agreement. The parties submitted the Revised Agreement on December 14, 2021.

Settlement Review

The court explained that it had to consider whether the proposed settlement was fair and reasonable under the circumstances. Relevant considerations included the plaintiff’s possible recovery, the litigation costs and burdens the settlement would avoid, the risks faced by both sides, whether experienced counsel negotiated the agreement at arm’s length, and whether fraud or collusion was possible. The court’s ultimate question was whether the agreement reasonably compromised disputed issues rather than improperly waiving wage-law rights.

Ruling

After reviewing the Revised Agreement, the parties’ joint letter, and the materials supporting the attorney’s fees and costs, the court found that the settlement resulted from arm’s-length negotiations between capable lawyers. It also found that the agreement’s terms, including approval of the plaintiff’s counsel’s fees, were a fair and reasonable resolution of the case. Judge Judith C. McCarthy therefore approved the settlement. The clerk was respectfully requested to close the case.

The opinion does not state the settlement amount or provide the agreement’s other specific financial terms.