Garcia v. Suds By The Park, Inc.
- Ho
- 1:23-cv-06034
- U.S. District Court · Southern District of New York
- 3
Garcia v. Suds By The Park: Judge Ho approved a wage-and-overtime settlement, granted counsel’s fee request, and ordered a dismissal filing after payment.
Cristina Garcia, her counsel, and the defendants are affected: the settlement was approved, counsel’s fees and costs were granted, Garcia is to receive $6,398.66 after fees and costs, and Garcia must file the dismissal document after payment.
What happened
In Garcia v. Suds By The Park, Inc., the parties jointly asked the court to approve their settlement of Cristina Garcia’s wage-and-overtime claims. The agreement provided that Garcia’s counsel would receive fees and costs from the settlement.
The court approved the settlement as fair and reasonable. After fees and costs, Garcia will receive $6,398.66. The court also granted counsel’s request for $3,601.34 in fees and costs.
Judge Dale E. Ho required Garcia to file a signed dismissal agreement after payment is made, and no later than April 11, 2024.
The detailed version
- Garcia v. Suds By The Park, Inc. · No. 1:23-cv-06034
- Ho
- Jan. 12, 2024
Background
On January 3, 2024, Cristina Garcia and the defendants filed a joint request for approval of their settlement. The agreement concerned Garcia’s claims under the Fair Labor Standards Act, a federal law governing minimum wages and overtime pay. The agreement provided that Garcia’s counsel would receive one-third of the settlement in fees and costs. The parties submitted the signed agreement, an estimate of Garcia’s potential damages at trial, and documents supporting the fee request.
Settlement Approval
The court approved the settlement as fair and reasonable, considering the nature and scope of the claims and the risks and expenses of further litigation. The court noted that, in the Second Circuit, parties generally cannot privately settle Fair Labor Standards Act claims through a dismissal with prejudice unless the district court or the Department of Labor approves the settlement. The court found that the settlement resulted from arms-length negotiations by experienced counsel and found no indication of fraud or collusion.
After fees and costs, Garcia will receive $6,398.66. The court stated that this amount was approximately 19.5% of the maximum total damages Garcia estimated she could recover at trial and approximately 56.2% of her alleged unpaid minimum and overtime wages.
Fees and Costs
The court granted counsel’s request for $3,601.34 in attorneys’ fees and costs. This included $3,199.34 in fees and $402 in costs for the filing fee associated with the complaint. Counsel calculated a lodestar—the fee estimate based on documented time multiplied by hourly rates—of $1,772.50. The court found the requested fee, slightly more than twice the lodestar, presumptively reasonable and found that counsel had provided sufficient supporting documentation.
Required Filing
Under the settlement agreement, the court ordered Garcia to file the fully executed stipulation of dismissal with prejudice within five days after payment is tendered and no later than April 11, 2024. The opinion orders that future filing; it does not state that the dismissal had already been filed.
Judge Dale E. Ho issued the order on January 12, 2024.
Read the full 3-page opinion on CourtListener, the free public archive maintained by the Free Law Project.