Dominguez v. AAA Discount Inc
- Subramanian
- 1:23-cv-01943
- U.S. District Court · Southern District of New York
- 3
In Dominguez v. AAA Discount Inc., Judge Subramanian approved the FLSA settlement and dismissed the case with prejudice.
Junior Antonio Dominguez, AAA Discount Inc., Nassar Alkutainy, and Dominguez’s counsel were affected. Dominguez received the settlement payment, and his counsel received the approved fees and costs; the case was dismissed with prejudice.
What happened
In Dominguez v. AAA Discount Inc., the parties agreed to settle Junior Antonio Dominguez’s claims under the Fair Labor Standards Act and New York labor law. The case was still in its early stages, before fact discovery was complete.
The settlement provided for a $42,000 payment. Dominguez would receive $25,996.15, while his lawyers would receive $16,003.85 for fees and costs. The agreement did not include confidentiality, general-release, or non-disparagement provisions.
Judge Arun Subramanian found the settlement and the requested fees and costs fair and reasonable. The court approved the settlement, dismissed the case with prejudice, directed the clerk to terminate the motion, and closed the case.
The detailed version
- Dominguez v. AAA Discount Inc · No. 1:23-cv-01943
- Subramanian
- Jan. 2, 2024
Background
Junior Antonio Dominguez brought claims under the Fair Labor Standards Act and New York State Labor Law. The parties notified the court that they had reached a settlement. Dominguez submitted the signed settlement agreement and a memorandum explaining why the court should approve it.
The agreement required a $42,000 payment in exchange for Dominguez’s release of wage claims against AAA Discount Inc. and Nassar Alkutainy. Of the total payment, $16,003.85 would go to Dominguez’s counsel for attorneys’ fees and costs, leaving Dominguez with $25,996.15. The agreement contained no confidentiality provision, general release, or non-disparagement clause.
Court’s analysis
The court applied the standard requiring district-court approval of private settlements of Fair Labor Standards Act claims. It evaluated the settlement’s fairness by considering the possible recovery, the litigation expenses and burdens avoided, the risks of continued litigation, the parties’ represented negotiations, and the possibility of fraud or collusion.
Dominguez estimated that his maximum recoverable amount was $61,479.67. His net settlement of $25,996.15 was approximately 42% of that estimate. The court found that amount fair and reasonable, particularly because the case was at an early stage and fact discovery was incomplete. The settlement would avoid additional discovery, motion practice, trial expenses, and litigation risks. The court also found no indication of fraud or collusion and noted that Dominguez no longer worked for the defendants.
The court separately reviewed the requested $16,003.85 in fees and costs. That amount included $2,003.85 in counsel’s out-of-pocket costs and a $14,000 fee award. The fee represented 35% of the $39,996.15 settlement amount after costs. The court found the percentage reasonable, noting that courts in the district had approved fees up to 35% of the recovery. Counsel’s billing records showed more than $18,000 in incurred legal fees and 64.7 hours of work, and the court found no excessive work or staffing. The $300 hourly rate was also found consistent with prevailing rates in the district.
Disposition
Judge Arun Subramanian approved the settlement and dismissed the case with prejudice. The court directed the clerk to terminate the motion at Docket 47 and close the case.
Read the full 3-page opinion on CourtListener, the free public archive maintained by the Free Law Project.