Lopez v. Nelson Management Group LTD.

Background

The action was brought under the Fair Labor Standards Act, a federal law governing wages and working hours. The parties informed the court that they had reached a settlement. The court had previously ordered them to submit a joint letter explaining why the proposed settlement should be approved.

Settlement Approval

After reviewing the parties’ submission, the court found the settlement fair and reasonable based on the nature and scope of David Lopez’s individual claim and the risks and expenses of additional litigation. The court noted that Lopez no longer worked for the defendants, reducing concerns that job-related pressure led to an improper waiver of claims.

The agreement included a provision barring Lopez from returning to the residential apartment complex where he worked for the defendants. The court concluded that this “stay away” provision was not prohibited by the Fair Labor Standards Act. The agreement did not prevent Lopez from contacting the defendants’ employees or speaking about his case, and it did not include confidentiality or non-disparagement provisions.

Attorney’s Fees

Lopez also sought approval of $9,236 in attorney’s fees and costs. The court acknowledged that the proposed award was high compared with the size of the claim and recovery, but found no basis to reduce it because there were no other participating plaintiffs, the case was not a collective action, and the fee award was based on an agreement between Lopez and his attorney. The court concluded that fees equal to one-third of the recovery were appropriate.

Ruling

The court approved the settlement subject to the condition that any modification of the agreement must be approved by the court, even if the agreement purported to allow the parties to modify it without court approval. Judge Jesse M. Furman dismissed the case with prejudice, declared all pending motions moot, and directed the clerk to close the case.