Luis Pastor v. Battery Park Cleaners Inc.
- Vernon Broderick
- 1:21-cv-02720
- U.S. District Court · Southern District of New York
- 4
In Luis Pastor v. Battery Park Cleaners, Judge Broderick approved the parties’ FLSA settlement after finding its terms fair and reasonable.
Jose Luis Pastor and Moises Aguila Ramirez received the settlement approved by the court; Battery Park Cleaners Inc. and Dong S. Song were parties to the agreement. The action was terminated, and the opinion did not determine the underlying wage claims.
What happened
In Luis Pastor v. Battery Park Cleaners, Jose Luis Pastor and Moises Aguila Ramirez asked the court to approve their settlement with Battery Park Cleaners Inc. and Dong S. Song. They had alleged unpaid minimum wages and overtime, along with violations of New York wage-notice and wage-statement requirements.
The court compared the settlement with the plaintiffs’ estimated full recoveries. Pastor was estimated to recover $37,224.00 and Ramirez $74,380.01, while the agreement provided them $8,400.00 and $19,600.00, respectively, after fees and costs. The court found these amounts fair and reasonable. It also approved $14,000.00 in attorneys’ fees and costs, which was one-third of the $42,000.00 settlement and about twice counsel’s recorded lodestar.
Judge Vernon S. Broderick approved the parties’ agreement, directed the Clerk of Court to close all open motions, and terminated the action.
The detailed version
- Luis Pastor v. Battery Park Cleaners Inc. · No. 1:21-cv-02720
- Vernon Broderick
- Apr. 13, 2023
Background
Jose Luis Pastor and Moises Aguila Ramirez asked the court to approve a settlement with Battery Park Cleaners Inc. and Dong S. Song. The plaintiffs’ complaint alleged that the defendants failed to pay minimum wages and overtime and violated New York’s wage-notice and wage-statement requirements.
Under the Fair Labor Standards Act, or FLSA, parties generally may not privately settle FLSA claims without approval from the court or the Department of Labor. Because there was no Department of Labor approval, the court reviewed whether the agreement was fair and reasonable.
Settlement Amount
The plaintiffs’ damages chart estimated total recovery on their claims, including actual damages, liquidated damages, penalties, and interest, at $37,224.00 for Pastor and $74,380.01 for Ramirez, for a combined $111,604.01, excluding attorneys’ fees and costs.
The agreement provided $8,400.00 to Pastor and $19,600.00 to Ramirez after attorneys’ fees and costs, for a combined payment to the plaintiffs of $28,000.00. The court stated that these amounts represented roughly 23 percent of Pastor’s estimated possible recovery and 26 percent of Ramirez’s. Considering the circumstances, the court found the settlement amounts fair and reasonable.
Attorneys’ Fees and Costs
The agreement provided for a total settlement of $42,000.00. Of that amount, $28,000.00 would go to the plaintiffs, leaving $14,000.00 for attorneys’ fees and costs. The billing records showed a lodestar—the amount based on counsel’s recorded time and rates—of $7,081.50. The court found that the requested fees and costs, approximately twice the lodestar and one-third of the total settlement, were fair and reasonable.
Ruling
Judge Vernon S. Broderick approved the parties’ agreement. The court directed the Clerk of Court to close all open motions on the docket and terminate the action. The opinion did not decide whether the defendants actually violated wage laws; it decided whether the proposed settlement should be approved.
Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.