Sanchez v. 2050 Valentine Avenue LLC

Background

Raphy Sanchez brought claims under the Fair Labor Standards Act against 2050 Valentine Avenue LLC and other defendants. On March 7, 2022, the parties informed the court that they had reached a settlement in principle covering all issues. The court then directed them to submit the settlement agreement and explain why it was fair, reasonable, and adequate.

The parties submitted the signed settlement agreement and a motion seeking approval. The case had been referred to Judge Stewart D. Aaron for disposition with the parties’ consent under 28 U.S.C. § 636(c).

Court’s analysis

The court reviewed the proposed settlement and found it fair and reasonable in light of the nature and scope of Sanchez’s individual claims, along with the risks and expenses of additional litigation.

Sanchez also requested approval of $12,819 in attorney’s fees—described as one-third of the settlement amount after costs—and $542 in costs. The court stated that courts in the district typically approve attorney’s fees equal to one-third of the total recovery and found the requested fees fair and reasonable. The court expressly made no finding about whether counsel’s hourly rates were reasonable.

Disposition

The court approved the settlement. It dismissed the action with prejudice and without costs except as provided in the settlement agreement, and requested that the Clerk of Court close the case.