Cho v. Chu

Background

The case included one or more claims under the Fair Labor Standards Act. After a settlement conference with the court, the parties reached a settlement and later consented to have all proceedings conducted before Magistrate Judge Stewart D. Aaron.

On September 6, 2023, the court directed the parties to submit the settlement terms and a joint letter explaining why the settlement was fair, reasonable, and adequate. The court also required a factual basis for any attorney-fee provision. The parties submitted the proposed settlement and related papers on September 21, 2023.

Court’s Analysis

The court found the settlement fair and reasonable, considering the nature and scope of the plaintiff’s individual claims and the risks and expenses of additional litigation. The plaintiff requested $2,000 in attorney’s fees and costs, equal to one-third of the total settlement amount. The submission included time records showing a lodestar—the value of the recorded legal work before any multiplier—of $55,950 for 112.20 hours.

The court determined that the requested fees were fair and reasonable, noting that contingency fees of one-third or less in Fair Labor Standards Act cases are routinely approved in the circuit and that courts regularly approve lodestar multipliers from two to six times the lodestar. The court expressly made no finding about counsel’s requested hourly rate because the fee award was a fraction of the lodestar even using a much lower hourly rate.

Disposition

The court approved the settlement. It dismissed the action with prejudice and without costs except as provided in the settlement agreement. The Clerk of Court was respectfully requested to close the case.