Xing v. Aji Sushi Inc.
- Ona Wang
- 1:19-cv-06357
- U.S. District Court · Southern District of New York
- 5
In Xing v. Aji Sushi, Judge Wang approved the $80,000 wage settlement and dismissed the action with prejudice.
Zhengjie Xing, Aji Sushi Inc. d/b/a Yo Sushi, Wang Zhou, and Xing’s counsel are affected by the approved settlement. Xing receives $51,454.25; counsel receives $28,545.75 in fees and costs; and the action is dismissed with prejudice.
What happened
In Xing v. Aji Sushi Inc., Zhengjie Xing claimed that Aji Sushi Inc. and Wang Zhou failed to pay required minimum wages and overtime under federal and New York law. He also alleged record-keeping violations and sought additional damages, attorney’s fees, and costs.
The parties agreed to settle. The agreement provides Xing $51,454.25 and his counsel $28,545.75, including $26,640 in attorney’s fees and $1,905.75 in costs. The court found the settlement reasonable after considering the possible recovery, litigation risks and costs, negotiations, and the absence of fraud, collusion, confidentiality, or overly broad release terms.
Judge Ona T. Wang approved the settlement as fair and reasonable. The court ordered that the action be dismissed with prejudice and directed the Clerk of Court to close the case.
The detailed version
- Xing v. Aji Sushi Inc. · No. 1:19-cv-06357
- Ona Wang
- Nov. 28, 2022
Background
Zhengjie Xing sued Aji Sushi Inc. doing business as Yo Sushi and Wang Zhou under the Fair Labor Standards Act (FLSA) and New York Labor Law. Xing alleged unpaid minimum wages, unpaid overtime, record-keeping violations, liquidated damages, attorney’s fees, and costs. According to the allegations described in the opinion, Xing worked for the defendants for approximately one year, from June 14, 2018, through June 8, 2019, typically working seven days per week and more than 60 hours per week.
The parties reached a settlement and asked the court to approve it. Court approval was required because settlements resolving FLSA claims with a dismissal with prejudice must be approved by the court or the Department of Labor.
Settlement Terms and Court’s Analysis
Xing estimated a maximum possible recovery of $90,939.80. He allocated $40,469.90 to unpaid minimum wages and overtime, $40,469.90 to liquidated damages, and $10,000 to alleged violations of New York Labor Law §§ 193 and 195. The proposed settlement totaled $80,000. Xing would receive $51,454.25, which the court described as 127% of his best-case owed back wages. His counsel would receive $28,545.75, consisting of $26,640 in attorney’s fees and $1,905.75 in costs.
The court applied factors concerning the possible recovery, the burden and expense of continued litigation, litigation risks, arm’s-length negotiations by experienced counsel, and possible fraud or collusion. The court noted disputes and risks concerning proof of damages, possible appeal costs, translation services, and trial exhibits. It also found that the release was limited to employment-based claims through the date of the agreement and did not exceed wage-and-hour issues. The agreement contained no confidentiality or non-disparagement provision.
The court found the attorney’s fee award reasonable. Counsel had spent more than 49 hours litigating the case, producing a lodestar of $19,870, and the fee award was approximately one-third of the total settlement.
Disposition
Judge Ona T. Wang approved the parties’ proposed settlement agreement as fair and reasonable. The court ordered that the action be dismissed with prejudice and directed the Clerk of Court to close the case.
Read the full 5-page opinion on CourtListener, the free public archive maintained by the Free Law Project.