Filed: Mar. 25, 2015
Latest Update: Mar. 25, 2015
Summary: REPORT AND RECOMMENDATION 1 CAROL MIRANDO , Magistrate Judge . Before the Court is the parties' Joint Motion for Approval of Settlement Agreement and Dismissal of the Action with Prejudice (Doc. 47), filed on March 20, 2015. The parties provided a copy of the Settlement Agreement and General Release for the Court's review. Doc. 47-1. For the reasons set forth herein, the Court recommends that the settlement be approved and the case be dismissed with prejudice. To approve the settlement
Summary: REPORT AND RECOMMENDATION 1 CAROL MIRANDO , Magistrate Judge . Before the Court is the parties' Joint Motion for Approval of Settlement Agreement and Dismissal of the Action with Prejudice (Doc. 47), filed on March 20, 2015. The parties provided a copy of the Settlement Agreement and General Release for the Court's review. Doc. 47-1. For the reasons set forth herein, the Court recommends that the settlement be approved and the case be dismissed with prejudice. To approve the settlement,..
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REPORT AND RECOMMENDATION1
CAROL MIRANDO, Magistrate Judge.
Before the Court is the parties' Joint Motion for Approval of Settlement Agreement and Dismissal of the Action with Prejudice (Doc. 47), filed on March 20, 2015. The parties provided a copy of the Settlement Agreement and General Release for the Court's review. Doc. 47-1. For the reasons set forth herein, the Court 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 FLSA. Lynn's Food Store, 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. Id. 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. Id. 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 Edward Smith brought this claim for failure to pay overtime wages pursuant to the Fair Labor Standards Act ("FLSA"), 29 U.S.C. § 201 et seq., seeking recovery of unpaid overtime compensation, liquidated damages and reasonable attorney's fees and costs arising out of his employment as a "baker" with Defendant.2 Doc. 1. Plaintiff claimed that he is owed approximately $5,984.75 in overtime wages, plus the same amount of liquidated damages, attorney's fees and costs. Doc. 26-1 at 4-6.
Defendant has agreed to pay Plaintiff $3,500.00 for unpaid overtime wages and the same amount for liquidated damages, for a total amount of $7,000.00.3 Doc. 47-1 at 1-2. Defendant also has agreed to pay $6,500.00 for Plaintiff's attorney's fees and costs, which the parties represent were negotiated separately. Doc. 47 at 4, 6; Doc. 47-1 at 2-3. Defendants therefore have agreed to pay and Plaintiff has agreed to accept a compromised amount of the disputed overtime claims. Although Defendants do not admit liability, the parties state that the settlement amount is fair and reasonable given the uncertainties of litigation, including that Plaintiff might recover nothing or far less than the settlement amount, or that Defendant may be required to pay a greater amount than the agreed upon settlement amount. Doc. 47 at 3. The parties also state that the amount was reached after the parties formulated their own proposed settlement figures, engaged in detailed settlement discussions and voluntarily agreed to the terms of the settlement memorialized in the Settlement Agreement after a mediation presided over by experienced wage and hour attorney and mediator James Nulman. Id. at 2-3.
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 attorney's 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.
Thus, the Court, having reviewed the terms of the settlement as set forth in the Settlement Agreement and General Release (Doc. 47-1), 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 Joint Motion for Approval of Settlement Agreement and Dismissal of the Action with Prejudice (Doc. 47) 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.
