Goudarzi v. Seasons A Floral Design Studio

Background

Hamed Goudarzi brought an action under the Fair Labor Standards Act and New York Labor Law against Seasons A Floral Design Studio and Luis Daniel Munoz. The parties submitted a proposed settlement agreement to the court for approval.

On December 9, 2022, the court refused to approve the first proposed agreement and directed the parties to provide additional information. The parties then submitted a revised agreement and a supporting letter.

Settlement Terms

Under the revised agreement, the defendants agreed to pay Goudarzi $20,000. The agreement also provided for $10,000 in attorneys’ fees to Goudarzi’s attorney, Alan Ripka & Associates, LLP. The opinion states that the attorneys’ fees represented one-third of the settlement amount, net of costs.

The court informed the parties on January 19, 2023, that the agreement was legally satisfactory and that it was prepared to approve the $30,000 settlement as substantively reasonable and reached through fair procedures. However, the court could not approve the agreement in its then-current form because it lacked the parties’ signatures.

Ruling

The parties refiled the agreement with the required signatures on January 30, 2023. After reviewing the signed agreement, Judge Paul A. Engelmayer found that it was reached through fair procedures and was fair and reasonable under the standard identified in Cheeks v. Freeport Pancake House, Inc. The court approved the signed agreement.