Filed: Aug. 27, 2015
Latest Update: Aug. 27, 2015
Summary: REPORT AND RECOMMENDATION 1 CAROL MIRANDO , Magistrate Judge . Before the Court is the parties' Amended[ 2 ] Joint Motion to Approve Settlement Agreement and Stipulation for Dismissal with Prejudice (Doc. 30 3 ), filed on August 21, 2015. For the reasons set forth herein, the undersigned recommends that the settlement be approved and the case be dismissed with prejudice. To approve the settlement, the Court must determine whether the settlement is a "fair and reasonable resolution of a b
Summary: REPORT AND RECOMMENDATION 1 CAROL MIRANDO , Magistrate Judge . Before the Court is the parties' Amended[ 2 ] Joint Motion to Approve Settlement Agreement and Stipulation for Dismissal with Prejudice (Doc. 30 3 ), filed on August 21, 2015. For the reasons set forth herein, the undersigned recommends that the settlement be approved and the case be dismissed with prejudice. To approve the settlement, the Court must determine whether the settlement is a "fair and reasonable resolution of a bo..
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REPORT AND RECOMMENDATION1
CAROL MIRANDO, Magistrate Judge.
Before the Court is the parties' Amended[2] Joint Motion to Approve Settlement Agreement and Stipulation for Dismissal with Prejudice (Doc. 303), filed on August 21, 2015. For the reasons set forth herein, the undersigned recommends that the settlement be approved and the case be dismissed with prejudice.
To approve the settlement, the Court must determine whether the settlement is a "fair and reasonable resolution of a bona fide dispute" of the claims raised pursuant to the Fair Labor Standards Act ("FLSA"). Lynn's Food Stores, Inc. v. United States, 679 F.2d 1350, 1355 (11th Cir. 1982). There are two ways for a claim under the FLSA to be settled or compromised. Id. at 1352-53. The first is under 29 U.S.C. § 216(c), providing for the Secretary of Labor to supervise the payments of unpaid wages owed to employees. Lynn's Food Stores, Inc., 679 F.2d at 1353. The second is under 29 U.S.C. § 216(b), when an action is brought by employees against their employer to recover back wages. Lynn's Food Stores, Inc., 679 F.2d at 1353. When the employees file suit, the proposed settlement must be presented to the district court for review and determination that the settlement is fair and reasonable. Id. at 1353-54.
The Eleventh Circuit has found settlements permissible when the lawsuit is brought by employees under the FLSA for back wages because the lawsuit
provides some assurance of an adversarial context. The employees are likely to be represented by an attorney who can protect their rights under the statute. Thus, when the parties submit a settlement to the court for approval, the settlement is more likely to reflect a reasonable compromise of disputed issues than a mere waiver of statutory rights brought about by an employer's overreaching. If a settlement in an employee FLSA suit does reflect a reasonable compromise over issues, such as FLSA coverage or computation of back wages, that are actually in dispute; we allow the district court to approve the settlement in order to promote the policy of encouraging settlement of litigation.
Id. at 1354.
Plaintiff Anthony Penwell brought this claim for failure to pay overtime wages pursuant to the FLSA, 29 U.S.C. § 201 et seq., seeking recovery of unpaid overtime compensation, liquidated damages and attorneys' fees and costs arising out of his employment with Defendant as a property maintenance manager. Doc. 1. Plaintiff claimed that he is owed approximately $17,280.00 in overtime wages, plus an equal amount in liquidated damages, and attorney's fees and costs based on a rate of $10.00 per hour and overtime rate of $15.00; or, $15,125.76, plus an equal amount in liquidated damages, and attorney's fees and costs based on a rate of $8.75 per hour and overtime rate of $13.13. Doc. 20-1 at 2.
Defendant has agreed to pay Plaintiff a total of $3,000.00 for unpaid overtime wages and liquidated damages and $2,000.00 for attorney's fees and costs. Doc. 30 at 2, 5; Doc. 30-1 at 1; Doc. 30-2 at 1-2. Defendant therefore has agreed to pay and Plaintiff has agreed to accept a compromised amount of the disputed overtime claims. The parties agree that the settlement reflects a reasonable compromise given Plaintiff's likelihood of success on the merits and Defendant's costs of defending this matter. Doc. 30 at 2-3, 4-5; Doc. 30-1 at 2. Specifically, the parties state that they recognize the inherent risks of litigation, including the possibility that Plaintiff may recover nothing or less than the settlement amount and that Defendant may be required to pay an amount in excess of the settlement amount, and neither party was willing to accept those risks. Doc. 30 at 2-3, 4-5. The Amended Motion also states that Plaintiff's attorney's fees were negotiated separately from the amounts sought by Plaintiff for his underlying claims. Id. at 5.
Pursuant to Bonetti v. Embarq Management Company:
[T]he best way to insure that no conflict [of interest between an attorney's economic interests and those of his client] has tainted the settlement is for the parties to reach agreement as to the plaintiff's recovery before the fees of the plaintiff's counsel are considered. If these matters are addressed independently and seriatim, there is no reason to assume that the lawyer's fee has influenced the reasonableness of the plaintiff's settlement.
715 F.Supp.2d 1222, 1228 (M.D. Fla. 2009). Although the Court must consider the reasonableness of any award of attorneys' fees, it is not required to conduct an in-depth analysis of the award unless it is unreasonable on its face. Bodnar v. Gourmet Hut, Inc., No. 3:13-cv-709-J-34JRK, 2014 WL 757981, at *3 n.4 (M.D. Fla. Feb. 26, 2014) (order adopting report and recommendation). The fee in this case appears to be reasonable.4
Thus, the Court, having reviewed the terms of the settlement as set forth in the Settlement Agreement and General Release (Doc. 30-1) and Addendum thereto (Doc. 30-2), concludes that the settlement appears to be a fair and reasonable resolution of a bona fide dispute under the FLSA.
ACCORDINGLY, it is respectfully
RECOMMENDED:
1. That the Amended Joint Motion to Approve Settlement Agreement and
Stipulation for Dismissal with Prejudice (Doc. 30) be GRANTED and the settlement be APPROVED; and
2. That the Court enter an Order adopting the Report and Recommendation and dismissing the case with prejudice.
DONE and ENTERED.
