Perez v. Estate of Errol M. Rudman

Background

Rogerio Perez brought an action for damages under the Fair Labor Standards Act (FLSA), a federal wage-and-hour law, and the New York Labor Law against the Estate of Errol M. Rudman and other defendants. The parties jointly asked the court to approve their settlement agreement. A fully executed copy was submitted on July 25, 2022.

Settlement review

The court explained that a federal court must determine whether an FLSA settlement is fair and reasonable, was reached through arm’s-length negotiation, and did not result from employer overreaching. The parties reached their agreement through mutual acceptance of a neutral mediator’s recommendation.

The court reviewed the parties’ submission and the settlement agreement. It considered, among other things, prior proceedings, the risks, burdens, and costs of continuing the case, the possible range of recovery, whether the agreement resulted from arm’s-length bargaining, the attorney-fee amount, and the possibility of fraud or collusion. The court noted that the agreement contained no confidentiality or non-disparagement restrictions and that the attorney fees were within a fair and reasonable range. Although Perez gave a general release, the court found that the release was supported by the settlement amount and the mediator’s recommendation.

Ruling

The court found the settlement agreement fair and reasonable and approved it. Because the case was resolved by settlement, the court dismissed and discontinued the case in its entirety, with prejudice, without costs or fees to any party except as provided in the settlement agreement. The Clerk of Court was directed to terminate all motions and deadlines and close the case.