De La Cruz v. Manhattan Parking Group LLC d/b/a Manhattan Parking Group

CourtDistrict Court, S.D. New York
DecidedJuly 12, 2022
Docket1:20-cv-00977
StatusUnknown

This text of De La Cruz v. Manhattan Parking Group LLC d/b/a Manhattan Parking Group (De La Cruz v. Manhattan Parking Group LLC d/b/a Manhattan Parking Group) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
De La Cruz v. Manhattan Parking Group LLC d/b/a Manhattan Parking Group, (S.D.N.Y. 2022).

Opinion

| USDC SDNY | DOCUMENT UNITED STATES DISTRICT COURT ELS FRONICALLY FILED SOUTHERN DISTRICT OF NEW YORK een DATE FILED: 7/12/22 CARLOS MARTIN DE LA CRUZ, et al., ae Plaintiff, 20-CV-977 (BCM) -against- OPINION AND ORDER GRANTING IN PART PLAINTIFF'S MOTION FOR MANHATTAN PARKING GROUP LLC, et al ATTORNEYS’ FEES Defendants.

BARBARA MOSES, United States Magistrate Judge. Plaintiff Carlos Martin de la Cruz, who brought this wage and hour action on behalf of himself and others similarly situated, now seeks judicial approval of a $1.2 million settlement that will benefit approximately 1600 parking attendants, cashiers, and other workers at parking garages throughout the New York City area. On March 16, 2022, plaintiff filed a Motion for Certification of the Settlement Class, Final Approval of the Class Action Settlement and Approval of the FLSA Settlement (the Motion for Final Approval) (Dkt. 93), a Motion for Approval of Service Award (Motion for Service Award) (Dkt. 96), and a Motion for Approval of Attorneys’ Fees, Costs and Expenses, and Administration Fees (Motion for Attorneys’ Fees and Administration Fees) (Dkt. 98), none of which were opposed. By separate order (Final Approval Order) (Dkt. 108), I have granted the Motion for Final Approval, granted the Motion for Service Award, and granted in part the Motion for Attorneys' Fees and Administration Fees, to the extent of approving the requested fees to be paid to the Settlement Administrator.' I now turn to the portion of the fee motion that seeks approval of $400,000 in attorneys’ fees and $6,360.74 in expenses, to be paid to Class

' Except as otherwise specified, capitalized terms used herein have the meanings assigned to them in the parties’ Settlement Agreement and Release (First Settlement Agreement) (Dkt. 71-1, at ECF pages 2-22), as modified by the Addendum to Settlement Agreement and Release (Addendum) (Dkt. 71-1, at ECF pages 23-26) (collectively with the First Settlement Agreement, the Settlement Agreement).

Counsel out of the Gross Settlement Fund. For the reasons that follow, the motion will be granted in part, and Class Counsel will be awarded $300,000 in attorneys' fees and $6,360.74 in expenses. I. BACKGROUND Named Plaintiff de la Cruz filed this action on February 5, 2020, alleging violations of the

Fair Labor Standards Act of 1938 (FLSA) and the New York Labor Law (NYLL). See Compl. (Dkt. 1) ¶ 1. Plaintiff sued twelve named entities and individuals, as well as "John Doe Entities 1- 100," alleging that defendants own and operate over 100 parking facilities throughout the New York City area, and that, due to their "timekeeping and payroll practices," they failed to pay their parking attendants, car washers, cashiers, and other laborers for all of the hours that they worked, or all of the overtime compensation due to them. Id. ¶¶ 2, 39, 43. Plaintiff principally alleged that he and others similarly situated were not paid for the first hour of their scheduled shift if they clocked in more than ten minutes late; were not paid for any late work unless they worked an entire hour past the end of their scheduled shift; were docked 30 minutes each day for their break, but were nonetheless required to be "on call" during their entire shift; and were not paid spread-of-

hours compensation when they worked more than ten hours in one day. Id. ¶¶ 38-42. As a result, plaintiff alleged, he and others similarly situated "routinely" worked five to ten hours per week for which they were not paid, id. ¶ 43, which not only deprived them of straight time pay for those hours but also deprived them of overtime pay in weeks when their total hours exceeded 40. Id. ¶ 44. After defendants answered, the parties served written discovery requests and "conferred about the possibility of settlement." (Dkt. 49.) After defendants produced "a sampling of time and pay records for certain putative class members" (id.), which plaintiff's counsel reviewed and analyzed, the parties engaged in settlement discussions, culminating in a formal mediation on December 1, 2020. See Declaration of C.K. Lee (Lee Decl.) (Dkt. 95) ¶¶ 7-8, 13. A. The First Settlement Agreement On January 4, 2021, the parties entered into the First Settlement Agreement, and on January 21, 2021, plaintiff sought preliminary approval of its terms. (Dkt. 61.) Under the First Settlement Agreement, defendants2 obligated themselves to create a Gross Settlement Fund of $1,200,000 to

settle the claims of up to 1,650 Class Members (to be increased proportionally if the total number of Class Members exceeded 1,650). First Sett. Ag. ¶¶ 1.5, 1.13, 3.1(A). After deducting any Court- approved service awards, attorneys' fees and expenses, and administration fees, the Net Settlement Amount would be allocated to Class Members in proportion to the amount of time that each of them worked for Defendants. Id. ¶ 3.5(A)-(B). However, in order to become an Authorized Claimant (and receive a check), a Class Member would be required to execute and return a "complete and valid tax form . . . as determined by the [Settlement] Administrator." Id. ¶¶ 1.24, 2.10, 3.1(C)-(D). Settlement funds allocated to Class Members who failed to return tax forms would revert to defendants. Id. ¶ 3.1(C).

By Order dated July 12, 2021 (Dkt. 64), I asked the parties to address certain issues arising from the settlement terms initially submitted, including the terms summarized above. I was concerned that requiring Class Members to complete and return tax forms, as a predicate to receiving relatively modest settlement checks,3 could significantly depress the number of Class

2 Although only 12 defendants are named in the Complaint, the First Settlement Agreement also lists as "defendants," and is executed on behalf of, more than 100 additional entities, each associated with a single parking location in Manhattan, the Bronx, Brooklyn, Queens, or Westchester County. See First Sett. Ag. Ex. A. 3 Assuming 1,650 Class Members, and further assuming Court approval of all requested fees, the average payment allocated to each Class Member would be approximately $439. Members who ultimately became Authorized Claimants, which in turn would result in a potentially significant portion of the Net Settlement Amount reverting to defendants. In response, the parties informed the Court that they intended to return to mediation and renegotiate. (Dkt. 67.) I then denied plaintiff's preliminary approval motion without prejudice to refiling after the mediation.

(Dkt. 68.) B. The Addendum On September 15, 2021, the parties entered into the Addendum, which – among other things – eliminated the requirement that Class Members submit new tax forms to become Authorized Claimants. Add. ¶ 1. Thus, after allocation, the entire Net Settlement Amount will be paid to the Class Members in proportion to the amount of time each of them worked for defendants. The only settlement funds that will revert to defendants are Settlement Checks not cashed or deposited within 180 days of mailing. Id. ¶ 8. On September 17, 2021, plaintiff filed a renewed motion for preliminary approval of the settlement contemplated by the Revised Settlement Agreement (the Settlement). (Dkt. 69.) On November 16, 2022, I granted the motion and entered an order (the Preliminary Approval Order)

(Dkt. 74) preliminarily approving the Settlement; provisionally certifying an opt-out Class pursuant to Fed. R. Civ. P. 23(e); appointing the Named Plaintiff as representative of Class; approving the sending of a Notice to Class Members pursuant to Fed. R. Civ. P. 23(e) and the FLSA, 29 U.S.C.

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Bluebook (online)
De La Cruz v. Manhattan Parking Group LLC d/b/a Manhattan Parking Group, Counsel Stack Legal Research, https://law.counselstack.com/opinion/de-la-cruz-v-manhattan-parking-group-llc-dba-manhattan-parking-group-nysd-2022.