Opinion
6:21-cv-1758-CEM-DCI
06-16-2022
DAYAIMA DIAZ, Plaintiff, v. ORLANDO MED TRANSPORTATION LLC, FEDERICO MARTINEZ and MAYLEN VELAZQUEZ, Defendants.
REPORT AND RECOMMENDATION
DANIEL C. HUCK, UNITED STATES MAGISTRATE JUDGE
This cause comes before the Court for consideration without oral argument on the following motion:
MOTION: Joint Motion for Order Approving Settlement and Dismissing Case with Prejudice (Doc. 31)
FILED: April 27, 2022
THEREON it is ORDERED that the motion is GRANTED.
I. Background
Plaintiff brought this action against Defendant for failure to pay minimum and overtime wages in violation of the Fair Labor Standards Act (FLSA). Doc. 1. The parties subsequently filed a joint motion to approve their settlement, to which they attached their settlement agreement. Docs. 31 (the Motion); 31-1 (the Agreement). Under the Agreement, Plaintiff will receive $2,500.00 in unpaid wages and $2,500.00 in liquidated damages, and counsel will receive $7,000.00 in attorney fees and $500.00 in costs. Doc. 31 at 3. The parties argue that the Agreement represents a reasonable resolution of Plaintiff's FLSA claims, and the parties request that the Court grant the Motion and dismiss the case with prejudice. Doc. 31.
II. Law
The settlement of a claim for unpaid minimum or overtime wages under the FLSA may become enforceable by obtaining the Court's approval of the settlement agreement. Lynn's Food Stores, Inc. v. U.S. Dep't of Labor, 679 F.2d 1350, 1352-53 (11th Cir. 1982). Before approving an FLSA settlement, the Court must scrutinize the settlement agreement to determine whether it is a fair and reasonable resolution of a bona fide dispute of plaintiff's FLSA claims. See id. at 135355. In doing so, the Court should consider the following nonexclusive factors:
The settlement of a claim for unpaid minimum or overtime wages under the FLSA may also become enforceable by having the Secretary of Labor supervise the payment of unpaid wages. Lynn's Food Stores, Inc. v. U.S. Dep't of Labor, 679 F.2d 1350, 1353 (11th Cir. 1982).
• The existence of collusion behind the settlement.
• The complexity, expense, and likely duration of the litigation.
• The state of the proceedings and the amount of discovery completed.
• The probability of plaintiff's success on the merits.
• The range of possible recovery.
• The opinions of counsel.See Leverso v. SouthTrust Bank of Ala., Nat'l Assoc., 18 F.3d 1527, 1531 n.6 (11th Cir. 1994). The Court may approve the settlement if it reflects a reasonable compromise of the FLSA claims that are actually in dispute. See Lynn's Food Stores, 679 F.2d at 1354. There is a strong presumption in favor of settlement. See Cotton v. Hinton, 559 F.2d 1326, 1331 (5th Cir. 1977).
The Eleventh Circuit adopted as binding precedent all decisions of the former Fifth Circuit handed down prior to the close of business on September 30, 1981. Bonner v. City of Prichard, 661 F.2d 1206, 1209 (11th Cir. 1981) (en banc).
In addition to the foregoing factors, the Court must also consider the reasonableness of the attorney fees to be paid pursuant to the settlement agreement “to assure both that counsel is compensated adequately and that no conflict of interest taints the amount the wronged employee recovers under a settlement agreement.” Silva v. Miller, 307 Fed.Appx. 349, 351-52 (11th Cir. 2009). The parties may demonstrate the reasonableness of the attorney fees by either: 1) demonstrating the reasonableness of the proposed attorney fees using the lodestar method; or 2) representing that the parties agreed to plaintiff's attorney fees separately and without regard to the amount paid to settle plaintiff's FLSA claim. See Bonetti v. Embarq Mgmt. Co., 715 F.Supp.2d 1222, 1228 (M.D. Fla. 2009).
In the Eleventh Circuit, unpublished decisions are not binding, but are persuasive authority. See 11th Cir. R. 36-2.
III. Discussion
A. The Settlement
“The parties agree that upon careful review of Plaintiff's dates of alleged employment; hours and weeks which Plaintiff worked; time and pay records; and all available evidence pertaining to Plaintiff's employment, this amount represents a fair and reasonable compromise of the disputed claims.” Doc. 31 at 6. Indeed, the parties assert “that there are genuine disputes as to whether or not Plaintiff worked the alleged number of hours on a weekly basis; whether or not Plaintiff was in fact paid properly for all hours Plaintiff allegedly worked, including overtime; whether or not Plaintiff was in fact at all times paid the required minimum wage under the law; whether or not Plaintiff was retaliated against; and whether or not any alleged violations of the FLSA, if any, were willful.” Id. at 6-7. The parties further state that, given these disputes, the resolution here is fair and reasonable considering the substance of those disputes and the necessary time and resources necessary to further litigate this case. Id. at 7. Plaintiff will receive damages as part of the settlement of $2,500.00 in unpaid wages and $2,500.00 in liquidated damages. Id. The undersigned finds that this is a fair and reasonable compromise based on the parties' representation in the Motion. Therefore, it is RECOMMENDED that the Court find that the settlement is a fair and reasonable resolution of Plaintiff's FLSA claims.
B. The Other Terms of the Agreement
Upon review of the Agreement, the undersigned finds that the Agreement does not contain a general release, confidentiality provision, non-disparagement clause, an allowance for written modifications without court approval, or other potentially problematic contractual provision sometimes found in proposed FLSA settlement agreements. See Doc. 31-1. Accordingly, it is RECOMMENDED that the find that the terms of the Agreement do not affect the reasonableness of the settlement.
C. Attorney Fees and Costs
Plaintiff's counsel will receive $7,000.00 for representing Plaintiff in this case, as well as $500.00 in costs. Doc. 31. The parties state that the attorney fees were negotiated separately and without regard to the settlement sums paid to Plaintiff. Doc. 31 at 7-9. The settlement is reasonable to the extent previously discussed, and the parties' foregoing statement adequately establishes that the issue of attorney fees and costs was agreed upon separately and without regard to the amount paid to Plaintiff. See Bonetti, 715 F.Supp.2d at 1228. Therefore, it is RECOMMENDED that the Court find the agreement concerning attorney fees and costs does not affect the fairness and reasonableness of the settlement.
IV. Conclusion
Accordingly, it is respectfully RECOMMENDED that:
1. The Motion (Doc. 31) be GRANTED;
2. The Court find the Agreement (Doc. 31-1) to be a fair and reasonable settlement of Plaintiff's claims under the FLSA;
3. The case be DISMISSED with prejudice; and
4. The Clerk be directed to close the case.
NOTICE TO PARTIES
The party has fourteen days from the date the party is served a copy of this report to file written objections to this report's proposed findings and recommendations or to seek an extension of the fourteen-day deadline to file written objections. 28 U.S.C. § 636(b)(1)(C). A party's failure to serve and file written objections waives that party's right to challenge on appeal any unobjected-to factual finding or legal conclusion the district judge adopts from the Report and Recommendation. See 11th Cir. R. 3-1; 28 U.S.C. § 636(b)(1).