Garcia v. 3662 Broadway Restaurant Corp.

Background

This action included claims under the Fair Labor Standards Act. Alfredo Garcia sued individually and on behalf of all other persons similarly situated. The parties appeared before Magistrate Judge Stewart D. Aaron for a settlement conference on August 18, 2022, and reached a settlement in principle. The parties had consented to the referral of the case to Judge Aaron for disposition.

The court directed the parties to submit the settlement agreement and explain why the settlement, including any attorney’s fees and costs, was fair, reasonable, and adequate under the required review standard. The parties submitted the proposed agreement and related papers on August 19 and 20, 2022.

Court’s Analysis

After reviewing the proposed settlement, the court found it fair and reasonable in light of the nature and scope of Garcia’s individual claims and the risks and expenses of further litigation.

Garcia requested $10,766.18 in attorney’s fees and costs, described as one-third of the total settlement amount plus costs. The court noted that courts in the district typically approve attorney’s fees equal to one-third of the total recovery and regularly award multipliers of two to six times the lodestar, which was calculated here as $7,050. The court found the requested fees fair and reasonable but expressly made no finding about the reasonableness of counsel’s hourly rates.

Disposition

The court approved the settlement. It dismissed the action with prejudice and without costs except as provided in the settlement agreement. The court retained jurisdiction to enforce the settlement agreement and directed the Clerk of Court to close the case.