Goudarzi v. Seasons A Floral Design Studio

Background

Hamed Goudarzi brought an action against Seasons A Floral Design Studio and Luis Daniel Munoz under the Fair Labor Standards Act, the federal wage-and-hour law, and the New York Labor Law. On December 8, 2022, the parties submitted a proposed settlement. The Court declined to approve that proposal and requested additional information.

The parties then submitted a revised proposed settlement agreement and a supporting letter. Under the revised agreement, defendants would pay Goudarzi $20,000 and pay $10,000 in attorney fees to Alan Ripka & Associates, LLP. The agreement therefore allocated one-third of the $30,000 settlement amount, net of costs, to plaintiff’s counsel.

Court’s Analysis

The Court stated that the agreement was legally satisfactory and that it would be prepared to approve the $30,000 settlement as substantively reasonable and reached through a fair process under the requirements for reviewing Fair Labor Standards Act settlements. The Court identified one deficiency: the agreement contained spaces for defendants’ signatures but did not include those signatures.

Disposition

The Court declined to approve the agreement at that time. It gave the parties three options by January 25, 2023: file a revised agreement containing the required signatures; submit a joint letter stating that they intended to abandon the settlement and continue litigating; or stipulate to dismissal of the case without prejudice. The Court stated that, under the case law it cited, a settlement followed by dismissal without prejudice would not require court approval. If the parties continued litigating, the Court would schedule a conference to address possible summary-judgment motions or set a trial date.