Cartagena v. Sixth Avenue West Associates LLC

Background

Gabriel Cartagena brought an action for damages against Sixth Avenue West Associates LLC under the Fair Labor Standards Act, a federal wage-and-hour law, and the New York Labor Law. The case settled after a mediation held on October 24, 2023. The parties jointly asked the court to approve their settlement agreement and submitted a fully executed copy on January 25, 2024.

Settlement Review

The court explained that a federal court must determine whether an agreement settling a Fair Labor Standards Act case is fair, reasonable, and reached through arm’s-length negotiations rather than employer overreaching. The court reviewed the settlement agreement and the parties’ letter, considering the prior proceedings, the risks, burdens, and costs of continuing the case, the possible recovery, the bargaining process, attorney’s fees, and the possibility of fraud or collusion.

The court noted that the agreement contained no confidentiality restrictions or non-disparagement provisions. It also found that the release was narrowly limited to wage-and-hour claims and that the attorney’s fees fell within a fair, reasonable, and acceptable range.

Ruling

Judge Robert W. Lehrburger found the settlement agreement fair and reasonable and approved it. Because the case had been resolved by settlement, the court dismissed and discontinued it in its entirety, with prejudice, without costs or fees to any party except as provided in the settlement agreement. The court also directed the Clerk of Court to terminate all motions and deadlines and close the case.