Mendez v. Parkway Coffee Shop, Inc.

Background

Martimiano Santiago Mendez brought the action against Parkway Coffee Shop, Inc., doing business as The Parkway Cafe, and Nicolas Cucolo and Andrew Cucolo individually. He alleged violations of the Fair Labor Standards Act, a federal wage law, and the New York Labor Law. Jennifer Donoso and David Hernandez Garcia later consented to become additional party plaintiffs.

The parties submitted a settlement agreement and release of claims for court review. The court’s April 9, 2024 order found that the original agreement did not state the dollar amount each named plaintiff would receive, preventing the court from determining whether the settlement was fair and reasonable as to each plaintiff. The parties then submitted a revised agreement that stated the amount each of the three plaintiffs would receive.

Court’s Analysis

The court evaluated the revised agreement under factors concerning the plaintiffs’ possible recovery, the burdens and expenses of continued litigation, litigation risks, whether experienced counsel negotiated at arm’s length, and the possibility of fraud or collusion. The court noted that the parties had engaged in contentious negotiations, met with a mediator once, and attended two settlement conferences before the court.

Based on its review of the record, the court found that the revised agreement resulted from arm’s-length negotiations between capable counsel. It concluded that the agreement’s terms, including plaintiffs’ counsel’s fee of one-third of the total settlement amount, were a fair and reasonable resolution. The opinion’s footnote also states that plaintiffs’ counsel waived $1,584 in incurred costs.

Disposition

The court approved the revised settlement agreement and dismissed the matter with prejudice. It directed the Clerk to terminate the pending motion at Docket No. 59 and close the case. The court retained jurisdiction for the limited purpose of enforcing the settlement agreement.