Pedro Gomez v. BB Management of New York Corp., and Aaron Bauer

Filing 36

MEMORANDUM ORDER: granting 35 Motion for Settlement. The Court has carefully considered the parties' joint submission, which includes a sworn declaration by Plaintiff's attorney, Abdul Karim Hassan, and the parties' fully executed s ettlement agreement. (See Docket Entry No. 35.) In light of the factors articulated above, as well as the Court's review of the agreement and the parties' representations as set forth in their motion for settlement approval, the Court finds that the proposed settlement agreement, including the attorneys' fees and expense award component, is fair and reasonable and that it satisfies the requirements of Cheeks. The parties are directed to file their Stipulation of Dismissal by January 4, 2019. And as set forth herein. SO ORDERED. (Signed by Judge Laura Taylor Swain on 12/11/2018) (ama)

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
------------------------------------------------------------X
PEDRO GOMEZ,
Plaintiff,
-v-

No. 18-CV-850-LTS-BCM

BB MANAGEMENT OF NEW YORK CORP.
and AARON BAUER,
Defendants.
------------------------------------------------------------X
MEMORANDUM ORDER
The Court has received and reviewed the parties’ joint request for approval of the
proposed settlement agreement in this Fair Labor Standards Act (“FLSA”) case. (See Docket
Entry No. 35.) “[B]efore a district court enters judgment [on an FLSA settlement agreement], it
must scrutinize the settlement agreement to determine that the settlement is fair and reasonable.”
Wolinsky v. Scholastic Inc., 900 F. Supp. 2d 332, 335 (S.D.N.Y. 2012). “The ultimate question is
whether the proposed settlement reflects a fair and reasonable compromise of disputed issues
rather than a mere waiver of statutory rights brought about by an employer’s overreaching.” Id.
(internal quotation marks and citation omitted). In determining whether a settlement is fair and
reasonable, a court considers the totality of the circumstances, encompassing a range of factors
including: “(1) the plaintiff’s range of possible recovery; (2) the extent to which the settlement
will enable the parties to avoid anticipated burdens and expenses in establishing their respective
claims and defenses; (3) the seriousness of the litigation risks faced by the parties; (4) whether the
settlement agreement is the product of arm’s-length bargaining between experienced counsel; and
(5) the possibility of fraud or collusion.” Id. (internal quotation marks and citation omitted).
GOMEZ FLSA SETTLEMENT APPROVAL.DOCX

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“Generally, there is a strong presumption in favor of finding a settlement fair, as the Court is
generally not in as good a position as the parties to determine the reasonableness of an FLSA
settlement.” Lliguichuzhca v. Cinema 60, LLC, 948 F. Supp. 2d 362, 365 (S.D.N.Y. 2013)
(internal quotation marks and citation omitted). Moreover, following the Second Circuit’s
decision in Cheeks v. Freeport Pancake House, Inc., 796 F.3d 199, 206 (2d Cir. 2015), parties
may not privately settle FLSA claims without approval of either the district court or the
Department of Labor. In dicta in Cheeks, the Second Circuit expressed hesitation with respect to
the validity of settlement agreements containing confidentiality provisions, general releases or
excessive attorneys’ fees. See generally id.
The Court has carefully considered the parties’ joint submission, which includes a
sworn declaration by Plaintiff’s attorney, Abdul Karim Hassan, and the parties’ fully executed
settlement agreement. (See Docket Entry No. 35.) In light of the factors articulated above, as
well as the Court’s review of the agreement and the parties’ representations as set forth in their
motion for settlement approval, the Court finds that the proposed settlement agreement, including
the attorneys’ fees and expense award component, is fair and reasonable and that it satisfies the
requirements of Cheeks. The parties are directed to file their Stipulation of Dismissal by January
4, 2019.
SO ORDERED.
Dated: New York, New York
December 11, 2018
/s/ Laura Taylor Swain .
LAURA TAYLOR SWAIN
United States District Judge

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