Parmar v. Fulton Family Pharmacy Inc.

Background

The parties submitted their first application for settlement approval on July 1, 2022. On July 29, 2022, the Court declined to approve that application without prejudice because the parties had not submitted documentation supporting the attorney’s-fee calculations. The Court found all other provisions fair and reasonable. The parties then filed a revised motion for settlement approval.

Attorney’s Fees and Costs

The Court found the proposed attorney’s fees and costs reasonable. Plaintiff’s counsel would receive $45,000 in attorney’s fees, approximately one-third of the settlement, and $477.74 in costs. The Court noted that courts in the Southern District of New York routinely award one-third of a settlement fund as a reasonable fee in Fair Labor Standards Act cases.

The Court also used the lodestar method as a cross-check. The lodestar—reasonable hourly rates multiplied by the reasonable hours required—was approximately $53,000. Compared with the requested $45,000 fee, this produced a multiplier of approximately 0.85. The Court accepted that multiplier and determined that the requested attorney’s fees and costs were reasonable.

Ruling

The Court found that the revised settlement agreement complied with the requirements discussed in Cheeks v. Freeport Pancake House, Inc., and approved the agreement. The Court granted the motion for settlement approval, directed the Clerk to terminate the motion, and directed the Clerk to close the case.