Santos v. Nuve Miguel Corp.

Background

The parties entered into a $450,000 Class Settlement Agreement on May 12, 2022. The plaintiff sought approval of a settlement involving a Rule 23 class action and a Fair Labor Standards Act (FLSA) collective action. A Rule 23 class action allows one or more representatives to litigate claims for a group of people who meet defined requirements; an FLSA collective allows people who opt in to pursue covered wage-related claims together.

The court preliminarily approved the settlement on August 25, 2022. It conditionally certified the settlement class, appointed Lee Litigation Group, PLLC as class counsel, appointed Arden Claims Service LLC as settlement administrator, and authorized notice to class and collective members. On February 10, 2023, the plaintiff moved for final settlement approval, approval of the FLSA settlement and collective, attorneys’ fees and expenses, and a service award. The motions were unopposed. At the February 27, 2023 fairness hearing, no class member appeared or objected.

Court’s Rulings

The court confirmed final certification of the settlement class under Federal Rule of Civil Procedure 23 and certified the FLSA collective under 29 U.S.C. § 216(b). It also confirmed Margarito Hernandez Santos as the class and collective representative and C.K. Lee as class counsel. The court found that the class and collective notices were the best notice practicable under the circumstances and met the requirements of Rule 23, the FLSA, and due process.

The court granted the motion for final approval and finally approved the settlement. It found the settlement fair, reasonable, and adequate, both procedurally and substantively, based on factors including the risks, expense, complexity, and likely duration of further litigation; the stage of the case and discovery; the risks of proving liability and damages; the absence of objections; and the settlement’s relationship to the possible recovery. The court approved the allocation procedures and ordered payments under the Settlement Agreement to class members who did not timely opt out.

The court granted the motion for attorneys’ fees and awarded class counsel $150,000, equal to one-third of the settlement fund, plus $9,346.88 in costs and expenses. It approved a $10,000 service award to the named plaintiff and approved $25,000 in settlement-administrator fees for Arden Claims Service. The order states that the defendants did not admit any violation of law or liability. The court retained jurisdiction to enforce the Settlement Agreement and oversee distribution of the settlement funds, and directed the clerk to terminate the motions and close the cases.