Preldakaj v. The Monarch Condominium

Background

Emanuel Preldakaj brought the action on behalf of current and former hourly paid, non-exempt building service staff members who worked at The Monarch Condominium. He alleged that The Monarch Condominium, The Monarch Condominium Board of Managers, and Lasala Management, Inc. violated the Fair Labor Standards Act and New York Labor Law by paying workers based on scheduled shifts rather than the actual time they spent working, failing to pay straight-time and overtime compensation, and requiring work on days off or outside regular shifts.

The parties stayed the action while they participated in mandatory mediation under their collective bargaining agreement. During that period, class counsel reviewed documents including collective bargaining agreements and time and payroll records, spoke with class members, obtained six class-member declarations, and consulted a damages expert. After three full-day mediation sessions and additional negotiations, the parties reached an agreement on material settlement terms on April 30, 2021, for a gross settlement amount of $912,500.

Settlement Approval Process

The court had previously granted preliminary approval, authorized notice to the classes, and scheduled a hearing on final approval. Notice explaining the lawsuit, the proposed settlement, the calculation of individual settlement amounts, attorneys’ fees and expenses, the service award, and the procedures for exclusion or objection was disseminated to class members on December 8, 2021. The court found that the parties complied with the notice requirements of the Class Action Fairness Act. No class member opted out or objected, and no notified government official indicated an intention to participate in the hearing or object to the settlement.

Rulings

The court granted final certification of the class under Federal Rule of Civil Procedure 23(a) and (b)(3). It granted final approval of the settlement under Rule 23(e), finding that the settlement was fair, reasonable, and adequate. The court relied on the risks, expense, complexity, and likely duration of further litigation; the amount of discovery completed; the risks of proving liability and damages and maintaining the class through trial; the lack of objections or opt-outs; and the settlement’s relationship to the possible recovery. The court also approved the plan for allocating and paying settlement amounts and found the releases enforceable under the Fair Labor Standards Act, Rule 23, and applicable law.

Judge Vernon S. Broderick granted class counsel $304,166.66 in attorneys’ fees, equal to one-third of the gross settlement amount. He also approved $2,806.61 in litigation-expense reimbursement and $9,206.00 for claims-administration services, totaling $12,012.61 to be paid from the settlement fund. The court awarded Preldakaj a $10,000 service award based on his time, effort, and commitment to prosecuting the case for the class.

The court dismissed the complaint and all claims in their entirety with prejudice and without costs as to all class members. The released claims were discharged under the settlement’s release provisions as to class members other than those who opted out. The defendants did not admit violating the law or incurring liability. The court entered final judgment, retained jurisdiction to address settlement administration, implementation, and enforcement, and found no reason to delay entry of judgment.