Calvario Adorno v. Evergreen Gourmet Deli Inc.
- Alison Nathan
- 1:18-cv-04008
- U.S. District Court · Southern District of New York
- 4
Calvario Adorno v. Evergreen Gourmet Deli Inc.: Judge Nathan approved an $8,000 wage-settlement agreement and awarded counsel $3,180.01 in fees and costs.
The plaintiff receives $4,819.99 from the approved settlement, plaintiff’s attorneys receive $3,180.01 in fees and costs, and the defendants are bound by the approved $8,000 settlement.
What happened
In Calvario Adorno v. Evergreen Gourmet Deli Inc., the plaintiff brought claims under the Fair Labor Standards Act and New York Labor Law. The parties later reached an $8,000 settlement, including attorneys’ fees and costs, and asked the court to approve it.
The court found the settlement reasonable because it reflected compromises over disputed facts and legal issues, including the number of hours worked, the defendants’ financial difficulties, and company ownership. The court also found the requested $3,180.01 in attorneys’ fees and costs reasonable.
Judge Alison J. Nathan approved the settlement, awarded counsel $3,180.01, directed that the plaintiff receive the remaining $4,819.99, and directed the Clerk to close the case.
The detailed version
- Calvario Adorno v. Evergreen Gourmet Deli Inc. · No. 1:18-cv-04008
- Alison Nathan
- Jan. 24, 2022
Background
The plaintiff filed the action alleging violations of the Fair Labor Standards Act (FLSA), a federal wage law, and the New York Labor Law. The parties reported that they had reached a settlement and submitted the proposed agreement for court approval.
The agreement provided for a total payment of $8,000, including attorneys’ fees and costs. The plaintiff estimated that the maximum possible recovery on the claims was approximately $26,291.09, excluding attorneys’ fees and costs. The proposed recovery, after attorneys’ fees, represented 18 percent of the estimated maximum damages.
Settlement Amount
The court explained that FLSA settlements must be approved by a court or the Department of Labor. The court may approve a settlement when it is a reasonable compromise of disputed issues rather than an employer’s improper waiver of statutory rights.
The court found the $8,000 settlement reasonable. The parties disputed factual and legal issues, including the number of hours the plaintiff worked. The defendants also asserted financial difficulties and raised arguments concerning company ownership. The plaintiff acknowledged these risks and characterized the settlement as an excellent result. The court noted that the information supporting the agreement was limited but concluded that the settlement amount was presumptively reasonable.
Attorneys’ Fees and Costs
Plaintiff’s counsel requested $2,374.02 in attorneys’ fees and $805.99 in costs, for a total of $3,180.01. The court found the request reasonable because the fees represented 29 percent of the settlement and the requested costs for filing and serving the complaint were reasonable.
The court also performed a lodestar cross-check, meaning it compared the requested amount with fees calculated from reasonable hourly rates and hours. It found the hourly rates used in the suggested lodestar calculation unreasonable and reduced the rates for two attorneys. That calculation produced recoverable fees of $4,000, but the court stated that the issue did not affect the award because counsel requested less than that amount.
Disposition
Judge Alison J. Nathan approved the settlement, awarded plaintiff’s attorneys $3,180.01 from the settlement, and directed that the remaining $4,819.99 go to the plaintiff. The Clerk of Court was directed to close the case.
Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.