Heras v. CT Custom Home Builders LLC

Background

Fabian Heras brought the action against CT Custom Home Builders LLC and Carlos A. Tenezaca. He alleged violations of the Fair Labor Standards Act, a federal wage law, and the New York Labor Law. The parties consented to the jurisdiction of Judith C. McCarthy, a United States Magistrate Judge, for all purposes.

On March 5, 2024, the parties submitted a Settlement Agreement and General Release, a motion asking the court to approve it, and an affidavit describing attorney’s fees, hourly rates, tasks, and costs. During a March 22 telephone conference, the court asked whether Heras understood how the settlement proceeds would be distributed because the agreement was unclear on that point. His counsel confirmed that Heras understood the distribution amounts. The court then directed Heras to submit an affidavit, which he filed on March 25 and which stated his understanding and approval of the distribution.

Settlement Review

The court considered whether the proposed settlement was fair and reasonable under the circumstances. It noted that the parties had engaged in early settlement discussions and sought to resolve the case before extensive discovery. The court determined that this approach conserved attorney time and judicial resources. Based on its review of the record, the court found that the agreement—including approval of Heras’s counsel’s fees in the amount of 33%—was a fair and reasonable resolution of the case.

Disposition

The court approved the Settlement Agreement and dismissed the matter with prejudice. It also directed the Clerk to terminate the pending motion at Docket No. 35 and close the case.