Budrow v. McCarey Landscaping, Inc.

Background

John T. Budrow brought this Fair Labor Standards Act case, a federal wage-and-hour lawsuit, on behalf of himself and others similarly situated against McCarey Landscaping, Inc., Donna McCarey, Timothy McCarey, and John Does identified as the top 10 shareholders of McCarey Landscaping, Inc. The opinion addresses the parties’ proposed settlement agreement and the statement explaining its basis.

Court’s Review

The court reviewed the settlement under the factors required by Cheeks v. Freeport Pancake House, Inc. It noted that the $63,030 settlement amount to be paid to Budrow, excluding attorneys’ fees, exceeded the amount he sought for unpaid travel and lunch time and related fringe benefits, which his counsel described as the main focus of the lawsuit. The court also considered the risks and costs of continued litigation, Budrow’s representation by counsel, the assistance of a neutral mediator, the fact that Budrow no longer worked for the defendants, the absence of a nondisparagement clause, and the release’s limitation to claims arising from his employment or separation from employment that accrued before the agreement was signed.

The court found that the settlement was fair and reasonable and resulted from arm’s-length negotiations rather than fraud or collusion. It also found the attorneys’ fees, approximately 31% of Budrow’s net recovery, fair and reasonable under the circumstances.

Disposition

The court approved the parties’ settlement agreement. The Clerk was instructed to close the case and terminate the pending motion identified as Doc. #11. The opinion does not resolve the underlying wage claims on their merits.