Perlman v. Alfa Development Management LLC

Background

Mary Louise Perlman filed claims under the Fair Labor Standards Act (FLSA), state law, and common law. The parties submitted a proposed settlement and asked the court to approve it without filing it publicly. The court denied approval of that sealed submission and explained that any agreement resolving the FLSA claim had to be filed on the public record. The court also explained that the parties could resolve the non-FLSA claims without court approval and without the court retaining jurisdiction over those claims.

Settlement and fees

The parties filed a settlement agreement resolving Perlman’s FLSA claim and a letter asking the court to approve it as fair and reasonable. They stated that they were resolving the non-FLSA claims through a separate confidential settlement and would not seek court approval of those claims. The dispute concerned an executive-level compensation arrangement that applied to no other employees of the defendants. Perlman did not assert FLSA minimum-wage or overtime claims.

The settlement totaled $12,000. Plaintiff’s counsel requested $4,000 in attorney fees and expenses, equal to one-third of the settlement amount.

Ruling

Judge Lorna G. Schofield ordered that the FLSA settlement agreement be approved as fair and reasonable, considering the nature and scope of the claims and the risks and expenses of further litigation. The court also approved the request for $4,000 in attorney fees and expenses, finding the amount fair and reasonable based on counsel’s quality, the risks of litigation, and the case’s magnitude and complexity. The remainder of the settlement was to be distributed to Perlman. The clerk was directed to close the case.