Paulino v. Veritas Property Management L.L.C.

Background

Louis Paulino brought this action under the Fair Labor Standards Act, a federal law governing employee wages and working time, against Veritas Property Management, LLC, and other defendants. The parties notified the court that they had reached a settlement. The court had previously required them to submit a joint letter explaining why the proposed settlement should be approved.

Settlement Approval

After reviewing the parties’ letter, the court found that the settlement was fair and reasonable in light of the nature and scope of Paulino’s individual claim, as well as the risks and expenses of further litigation. The court noted that concerns about employees being pressured to waive wage claims were less significant because Paulino no longer worked for the defendant.

The court approved the settlement on the condition that any modification to the settlement agreement receive court approval, even if the agreement stated that the parties could modify it without court approval.

Attorney’s Fees

Paulino also sought approval of $25,388 in attorney’s fees and costs. The court acknowledged that the requested award was high compared with the size of Paulino’s claim and recovery, but found no basis to reduce it because there were no additional participating plaintiffs and the case was not a collective action. The court stated that attorney’s fees equal to one-third of the recovery were appropriate under decisions from the district courts in the circuit.

Disposition

The court approved the settlement subject to the modification-approval condition. It dismissed the case with prejudice, meaning the case could not be brought again, ruled that all pending motions were moot, and directed the clerk to close the case.