Hurtado v. 183 Food Market Corp.
- Katherine Failla
- 1:20-cv-07988
- U.S. District Court · Southern District of New York
- 8
In Hurtado v. 183 Food Market Corp., Judge Failla approved a wage-and-hour class settlement, awarded fees and service payments, and dismissed all claims with prejudice.
The order affected the covered non-managerial employees who worked at the two specified Food Universe supermarkets during the settlement period, including the 19 participating class members and any additional claimants whose forms were accepted. It also affected Felipe Hurtado, Leonardo Pena Adames, class counsel, Arden Claims Service LLC, and the defendants, who were released from the covered claims.
What happened
Felipe Hurtado brought this case for himself and other similarly situated workers against 183 Food Market Corp. and the other named defendants. The court held a hearing on June 24, 2022, to decide whether to give final approval to the parties’ settlement.
The settlement covered certain non-managerial employees who worked at two Food Universe supermarkets in the Bronx between September 25, 2017, and January 20, 2021. The court approved payments to participating class members, $10,000 for Hurtado, $5,000 for opt-in plaintiff Leonardo Pena Adames, $247,500 in attorneys’ fees, $6,471.41 in expenses, and $13,500 for settlement administration.
Judge Failla found that the notice and settlement were fair, reasonable, and adequate, approved the settlement and the two settlement classes, and ordered the parties to carry it out. The order released covered New York wage-and-hour claims, dismissed all claims against the defendants with prejudice, entered final judgment, and closed the case while retaining jurisdiction to oversee the settlement.
The detailed version
- Hurtado v. 183 Food Market Corp. · No. 1:20-cv-07988
- Katherine Failla
- June 24, 2022
Background
The court considered the parties’ consent motion for final approval of a class action settlement. The court had previously granted preliminary approval and directed that notice be given to the affected class members. After a fairness hearing on June 24, 2022, the court reviewed the settlement and related submissions.
The order concerned claims under the Fair Labor Standards Act, a federal wage-and-hour law, and New York wage-and-hour law. The court did not decide whether the defendants had violated those laws. Instead, it evaluated whether the proposed settlement met the requirements for approval.
Settlement Classes
The court granted final certification to two settlement classes:
1. Non-managerial employees employed by the Espinal Defendants who worked at the Food Universe supermarkets at 60 West 183rd Street or 2358 University Avenue in the Bronx at any time from September 25, 2017, through January 20, 2021. 2. Members of that group who timely submitted a claim form and thereby opted into the settlement and released their Fair Labor Standards Act claims.
The court found that the settlement notice was the best notice practicable under the circumstances and complied with the Federal Rules of Civil Procedure and due process. It also found that counsel had investigated the facts and law, exchanged sufficient discovery, and adequately evaluated the claims, defenses, risks, and likely duration of continued litigation.
Settlement Terms and Payments
The court found that the settlement distribution was fair, reasonable, and equitable. A combined total of 19 class members were to receive checks for individual settlement amounts calculated under the parties’ amended settlement agreement, along with any additional claims accepted under the order.
The settlement provided service awards of $10,000 to named plaintiff Felipe Hurtado and $5,000 to opt-in plaintiff Leonardo Pena Adames. It also provided $247,500 in attorneys’ fees, described as 30% of the total settlement amount, and $6,471.41 for class counsel’s out-of-pocket expenses. Arden Claims Service LLC was to receive $13,500 for settlement-administration fees and costs.
Ruling
The court granted the motion for final approval of the class action settlement. It approved the settlement as fair, reasonable, adequate, and in the best interests of the settlement classes, and directed the parties to comply with its terms. The court also granted the requests for the service awards, attorneys’ fees, and expense reimbursement.
The order bound the named plaintiff, the opt-in plaintiff, and the Rule 23 class plaintiffs to the settlement’s terms and releases. Covered class members released the defendants from New York wage-and-hour claims that were asserted or could have been asserted in the lawsuit. The settlement and its approval were not admissions by any party of liability, fault, wrongdoing, or the truth of the allegations.
All claims against the defendants were dismissed with prejudice. The court entered final judgment, directed the Clerk to close the case, and retained exclusive and continuing jurisdiction over interpreting, implementing, enforcing, and administering the settlement and settlement fund. Judge Katherine Polk Failla signed the order.
Read the full 8-page opinion on CourtListener, the free public archive maintained by the Free Law Project.