Mendoza v. Hakim
- Edgardo Ramos
- 1:22-cv-01035
- U.S. District Court · Southern District of New York
- 7
In Mendoza v. Hakim, Judge Ramos approved a $69,000 settlement of Onofre Mendoza and Sergio Martinez’s wage claims.
Onofre Mendoza and Sergio Martinez, Kamran Hakim, S.C. Management Realty, LLC, and plaintiffs’ counsel. The approved agreement provides $45,411.20 to the plaintiffs and $23,588.80 for attorneys’ fees and costs.
What happened
In Mendoza v. Hakim, Onofre Mendoza and Sergio Martinez accused Kamran Hakim and S.C. Management Realty, LLC of violating federal and New York wage laws by failing to pay minimum wages, overtime, and other compensation and by providing improper wage notices and statements.
The court found the proposed $69,000 settlement fair and reasonable. Mendoza and Martinez would receive $45,411.20 after $23,588.80 for attorneys’ fees and costs, resolving disputed claims while avoiding the risks and expense of continued litigation. The court also found the fees, costs, release, and other settlement terms reasonable.
Judge Edgardo Ramos granted the parties’ motion for settlement approval and directed the Clerk of Court to terminate the motion and close the case.
The detailed version
- Mendoza v. Hakim · No. 1:22-cv-01035
- Edgardo Ramos
- June 3, 2022
Background
Onofre Mendoza and Sergio Martinez brought a collective action under the Fair Labor Standards Act (FLSA), New York Labor Law, and related New York Department of Labor regulations. They alleged that Kamran Hakim and S.C. Management Realty, LLC failed to pay lawful minimum wages, overtime compensation, and spread-of-hours compensation. They also alleged that the defendants failed to provide proper wage notices and wage statements. The parties asked the court to approve their proposed settlement.
Settlement Amount
The agreement provided for a total payment of $69,000. Plaintiffs’ counsel would receive $23,588.80 for attorneys’ fees and costs, leaving $45,411.20 for the plaintiffs. The plaintiffs estimated their potential recovery at $133,661.20, consisting of unpaid overtime, matching liquidated damages, damages for allegedly invalid wage notices and statements, and additional amounts that Sergio Martinez asserted could be available for retaliation claims that were not alleged in the complaint. The settlement therefore represented approximately 33.97% of the estimated total recovery.
The court concluded that the settlement amount was fair and reasonable. It cited the plaintiffs’ desire to receive payment without the risks and delays of litigation, disputed factual and legal issues, records produced by the defendants concerning hours and wages, and the result of arm’s-length negotiations at a court-ordered mediation. The court found that the agreement reasonably compromised bona fide disputes.
Attorneys’ Fees and Costs
The court approved the requested attorneys’ fees and costs. It found hourly rates of $300 for Jessica Massimi, Robert Ottinger, Finn Dusenbery, and Brian Walker reasonable, and found hourly rates of $125 for Tim Hansen and Jolen Medwid reasonable. The billing records produced a lodestar of $14,152.50, meaning the reasonable hourly rates multiplied by the reasonable hours worked. The requested fees, excluding $883.20 in costs, were $22,705.60, or approximately 1.6 times the lodestar. The court accepted that multiplier and found the $883.20 in costs reasonable.
Other Settlement Terms and Ruling
The court found the remaining provisions fair and reasonable. The release was limited to FLSA and New York wage-related claims involving unpaid wages, record-keeping violations, and improper wage notices and statements. The agreement did not contain objectionable releases, and its mutual non-disparagement provision included an exception allowing truthful statements about the parties’ experience litigating the case.
Judge Edgardo Ramos granted the motion for settlement approval. The court approved the agreement, directed the Clerk of Court to terminate the motion, and directed the Clerk to close the case.
Read the full 7-page opinion on CourtListener, the free public archive maintained by the Free Law Project.