Hernandez v. Nelson Precast Products LLC

CourtDistrict Court, D. Maryland
DecidedOctober 26, 2023
Docket1:21-cv-02814
StatusUnknown

This text of Hernandez v. Nelson Precast Products LLC (Hernandez v. Nelson Precast Products LLC) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hernandez v. Nelson Precast Products LLC, (D. Md. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

) JOSE LUIS VELASQUEZ ) HERNANDEZ, et al., ) ) Civil Action No. 21-cv-02814-LKG Plaintiffs, ) ) Dated: October 26, 2023 v. ) ) NELSON PRECAST PRODUCTS, LLC, ) et al., ) ) Defendants. )

MEMORANDUM OPINION I. INTRODUCTION Plaintiffs, Jose Luis Velasquez Hernandez and Edwin Rodolfo Marquez, allege in this civil action that Defendants, Nelson Precast Products LLC (“NPP”) and Aaron Lichtman: (1) failed to pay them an overtime premium for certain overtime hours worked; (2) failed to pay them for certain work hours worked; (3) and made unauthorized deductions from their wages, in violation of the Fair Labor Standards Act of 1938 (“FLSA”), 29 U.S.C. § 201, et seq.; the Maryland Wage and Hour Law, Md. Code Ann. Lab. & Empl. §§ 3-415 and 3-427, et seq. (the “MWHL”); and the Maryland Wage Payment and Collection Law (the “MWPCL”), Md. Code Ann. Lab. & Empl. § 3-505 and 3-507.2. See generally, ECF No. 32. On June 1, 2023, the parties filed a joint motion for the approval of a settlement and for the Court to set a briefing schedule on Plaintiffs’ motion for attorney’s fees and costs. See generally, ECF No. 58; see also 29 U.S.C. § 216(b) (requiring Court approval to release FLSA claims brought by an employee in a private right of action). The Court held a hearing on the parties’ proposed settlement agreement (the “Settlement Agreement”) on October 24, 2023. For the reasons stated during the hearing, and set forth below, the Court: (1) APPROVES the Settlement Agreement; (2) GRANTS the parties’ joint motion for approval of settlement; and (3) AWARDS Plaintiffs’ counsel $63,657.75 in attorneys’ fees and $1,342.25 in costs. II. FACTUAL AND PROCEDURAL BACKGROUND1 A. Factual Background In this FLSA action, Plaintiffs allege that NPP and Aaron Lichtman violated the FLSA, MWHL and MWPCL by: (1) failing to pay them an overtime premium for certain overtime hours worked; (2) failing to pay them for certain work hours worked; and (3) making unauthorized deductions from their wages. See generally, ECF No. 32. Specifically, Plaintiffs allege that they worked five to six days per week, and for 40 to 70 or more hours, but the Defendants failed to compensate Plaintiffs at one-and-one-half times their regular pay for overtime hours worked. See id. at ¶¶ 15-16. In addition, Plaintiffs contend that Defendants made deductions of $8.00 each week from their gross weekly pay, which were not authorized. See id. at ¶ 18. As relief, Plaintiffs seek to recover, among other things, unpaid wages, liquidated damages, and attorneys’ fees and costs. Id. at Prayer for Relief. As background, NPP is a Maryland limited liability company that is a manufacturer of architectural cast stone masonry and architectural precast masonry products. Id. at ¶ 4; see www.nelsonprecast.com. Defendant Aaron Lichtman is the owner, officer, member and President of NPP. Id. at ¶ 5. Plaintiffs were previously employed as laborers by NPP. Id. at ¶¶ 1-2. In this regard, Plaintiff Jose Luis Velasquez Hernandez was employed by Defendants on and off since 2003, and consistently employed by Defendants from approximately September 2018 to September 2021. Id. at ¶ 1. Plaintiff Edwin Rodofo Marquez was employed by Defendants on and off since 2001, and consistently employed by Defendants from approximately August 2018 to August 2021. Id. at ¶ 2.

1 The facts recited in this memorandum opinion are taken from the third amended complaint; the parties’ joint motion for approval of settlement; and the memoranda in support thereof. ECF Nos. 32, 58 and 66. 2 Relevant to the pending joint motion, the Settlement Agreement provides that Defendant NPP shall pay a total sum of $88,000 to Plaintiffs to resolve Plaintiffs’ claims in this case, upon the Court’s approval of the Settlement Agreement. See ECF No. 58-2 (the Settlement Agreement) at ¶ 1. The Settlement Agreement further provides that this payment is to be apportioned among Plaintiffs as follows: (1) $36,960 to Plaintiff Hernandez, to be comprised of a payment of $13,269 for unpaid wages and a payment of $23,691 for liquidated damages or penalties that may have been awarded; and (2) $51,040 to Plaintiff Marquez, to be comprised of a payment of $18,363 for unpaid wages and a payment of $32,677 for liquidated damages or penalties that may have been awarded. See id.; ECF No. 58 at 4. In addition, the Settlement Agreement contains a mutual release of claims provision that provides that “each Party fully releases, acquits and forever discharges the other Party . . . from any and all claims, actions, causes of action, charges, judgments, grievances, obligations, rights, demands, debts, damages, sums of money, attorneys’ fees, costs, losses, and all other liability[.]” ECF No. 58-2 at ¶ 8. This release excludes certain rights on claims regarding the Equal Employment Opportunity Commission, or other similar federal or state administrative agencies, claims that cannot be waived by law, any right to file an unfair labor practice charge under the National Labor Relations Act and any rights to vested benefits. See id. Lastly, the Addendum to the Settlement Agreement provides for the payment of reasonable attorneys’ fees and costs in the amount of $65,000 to Plaintiffs’ counsel, Suvita Melehy, Omar Vincent Melehy and Andrew Balashov of Melehy & Associates LLC. ECF No. 66-1 at ¶ 2. The parties state in their joint motion that the Settlement Agreement was reached after substantial negotiations. See ECF No. 58 at 5, 9. The parties also state that the proposed settlement amount is equal to approximately three times the Plaintiffs’ alleged respective estimated unpaid wages and exceeds the regular and/or overtime wages Plaintiffs claim is owed in this case. Id. at 4. 3 In addition, the parties state in the supplemental memorandum to their joint motion that counsel for Plaintiffs have collectively expended more than 256 hours on this matter since the filing of this case in November 2021. ECF No. 66 at 4; see also ECF No. 66-2. Plaintiffs’ counsel represents that this work includes: (1) the exchange of written discovery requests; (2) conferring with Plaintiffs; (3) damages calculations; (4) preparing the opposition to Defendant Lichtman’s motion to dismiss; (5) preparing the motion to amend the complaint; (6) preparation of the joint motion seeking Court approval of the Settlement Agreement; and (7) settlement negotiations. See ECF No. 66 at 4-5. The parties request that the Court approve the Settlement Agreement. ECF No. 58 at 9. B. Procedural Background Plaintiff Hernandez commenced this lawsuit on November 2, 2021. ECF No. 1. On November 8, 2021, Plaintiff Marquez joined the case. ECF No. 5. Plaintiffs filed a second amended the complaint on November 15, 2021 (ECF No. 8), and a third amended complaint on March 3, 2022 (ECF No. 32). Defendants filed an answer to the third amended complaint on March 25, 2022. ECF No. 34. On June 1, 2023, the parties filed a joint motion for Court approval of the Settlement Agreement. ECF No. 58. On September 19, 2023, the parties filed a supplemental memorandum to their joint motion for approval of FLSA settlement for approval of attorneys’ fees and costs. ECF No. 66. On October 18, 2023, Plaintiffs filed a status report providing additional information about the breakdown of hours worked for each attorney and paralegal in this case on behalf of the Plaintiffs. ECF No. 68. III. LEGAL STANDARDS A.

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Hernandez v. Nelson Precast Products LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hernandez-v-nelson-precast-products-llc-mdd-2023.