Cruz Morel v. Green Castle A Mgmt Corp.

Background

The case included claims under the Fair Labor Standards Act. The parties appeared before Judge Aaron for a settlement conference on December 20, 2021, and reached a settlement in principle. On the parties’ consent, the case was referred to Judge Aaron to decide the matter under 28 U.S.C. § 636(c).

The court required the parties to submit the settlement agreement and explain why the agreement, including attorneys’ fees and costs, was fair, reasonable, and adequate. After reviewing the initial submissions, the court ordered the plaintiffs to provide additional documentation showing that the opt-in plaintiffs had consented to the settlement. The parties then submitted an agreement with additional signatures and related papers.

Settlement and Attorneys’ Fees

The court found the proposed settlement fair and reasonable, considering the nature and scope of the plaintiffs’ claims and the risks and expenses of further litigation. The plaintiffs requested $72,954.79 in attorneys’ fees and costs, equal to one-third of the net settlement amount. The submitted materials showed a lodestar—the lawyers’ billed time multiplied by their claimed hourly rates—of $31,880.

The court stated that courts in the circuit typically approve attorneys’ fees equal to one-third of the total recovery and regularly approve lodestar multipliers between two and six times the lodestar. It therefore found the requested fees fair and reasonable. The court expressly made no finding about whether counsel’s hourly rates were reasonable.

Ruling

Judge Stewart D. Aaron approved the settlement. The action was dismissed with prejudice and without costs except as provided in the settlement agreement. The court retained jurisdiction to enforce the settlement agreement and directed the Clerk of Court to close the case.