Naraine v. Washdry Tech Inc

CourtDistrict Court, E.D. New York
DecidedAugust 15, 2024
Docket1:23-cv-07162
StatusUnknown

This text of Naraine v. Washdry Tech Inc (Naraine v. Washdry Tech Inc) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Naraine v. Washdry Tech Inc, (E.D.N.Y. 2024).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK -------------------------------------------------------------------X SHANKAR NARAINE,

Plaintiff, REPORT & RECOMMENDATION v. 23-CV-7162 WASHDRY TECH INC., OMRAJ RAM (Merle, J.) DOODNAUTH, (Marutollo, M.J.)

Defendants. -------------------------------------------------------------------X

JOSEPH A. MARUTOLLO, United States Magistrate Judge: On September 26, 2023, Plaintiff Shankar Naraine commenced this action against Defendants Washdry Tech Inc. (“Washdry”) and its owner, Omraj Ram Doodnauth (“Doodnauth”) (together, “Defendants”), alleging wage and hour claims under the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq., and the New York Labor Law (“NYLL”). Doodnauth, appearing pro se, filed an answer on October 18, 2023. Dkt. No. 6. On June 10, 2024, the Clerk of Court entered default against Washdry for its failure to respond to the complaint. Dkt. No. 21. The parties reached a settlement in this matter, and on July 10, 2024, Plaintiff filed a motion requesting that the Court approve the parties’ settlement agreement (“Settlement Agreement”) as fair and reasonable under Cheeks v. Freeport Pancake House, Inc., 796 F.3d 199 (2d Cir. 2015). See Dkt. No. 25. The Court held a fairness hearing on August 6, 2024. Dkt. No. 32. For the reasons set forth below, this Court respectfully recommends that the Settlement Agreement be approved as fair and reasonable. I. Relevant Background Plaintiff alleges that he was employed by Defendants as a manual worker within the meaning of NYLL § 191 from approximately June 2020 through August 27, 2023. Dkt. No. 1 ¶¶ 15-16, 22. Plaintiff alleges that he regularly worked more than forty hours a week and was paid $25.00 per hour for all hours worked. Id. ¶¶ 16-19. Plaintiff also alleges that Defendants made unlawful wage deductions in the amount of $2,500.00, in violation of the FLSA and NYLL. Id. ¶ 21. Plaintiff further alleges that Defendants did not provide him with wage notices or wage statements, in violation of NYLL § 195. Id. ¶¶ 23-24.

On September 26, 2023, Plaintiff filed a complaint against Defendants, in which he raises the following claims: (1) failure to pay overtime compensation under the FLSA and NYLL; (2) unlawful wage deductions under the FLSA and NYLL; and (3) failure to provide proper wage notices and wage statements in accordance with the NYLL. See Dkt. No. 1 ¶¶ 36-56. On October 18, 2023, Doodnauth filed an answer to the complaint. Dkt. No. 6. Doodnauth also submitted a letter to the Court describing the financial difficulties that he and Washdry were facing; Doodnauth also requested dismissal of the case. Id. at 2. On November 2, 2023, the Court referred the parties to mediation. Dkt. No. 8. On December 14, 2023, the Court held a status conference with the parties. Dec. 14, 2023

Minute Entry. The Court explained to Doodnauth that while he could appear pro se in this case, Washdry could not. Doodnauth requested pro bono counsel to represent Washdry at mediation and for the remainer of the case pursuant to 28 U.S.C. § 1915(e)(1). Id. The Court granted Doodnauth’s request but reminded him that “the Court cannot require an attorney to take a civil case under this statute. Rather, the Court may only request an attorney to volunteer to provide pro bono representation to defendant.” Id. (quoting Mallard v. United States District Court for the Southern District of Iowa, 490 U.S. 296, 310 (1989) (Court may only request, not appoint, pro bono counsel)). The Court ordered the parties to complete mediation by February 9, 2024 and extended the deadline for Washdry to respond to the complaint to February 29, 2024. Id. On January 28, 2024, pro bono counsel appeared in the case on behalf of Defendants for the limited purpose of representation at mediation. See Dkt. No. 14. The parties appeared at two mediation sessions before former Magistrate Judge Viktor Pohorelsky but were ultimately unable to reach a resolution. See Apr. 26, 2024 Dkt. Entry; May 24, 2024 Dkt. Entry. On May 18, 2024, Doodnauth filed a letter-motion to dismiss the case. See Dkt. No. 18.

After Washdry failed to timely respond to the complaint, Plaintiff requested a certificate of default, which the Clerk of Court granted on June 10, 2024. See Dkt. Nos. 20-21. On June 20, 2024, the parties appeared for a status conference and discussed a potential resolution of the case. June 20, 2024 Minute Entry. At the same conference, Doodnauth agreed to voluntarily withdrew his letter-motion to dismiss without prejudice. See id. On June 26, 2024, the parties reported that they had reached a settlement in principle. Dkt. No. 23. On July 10, 2024, Plaintiff filed a motion for approval of the Settlement Agreement. Dkt. No. 25. The parties propose to settle the case for a total of $15,000.00 paid in seven installments.

Dkt. No. 25-1, at 1. Of that amount, Plaintiff will receive $9,528.00, and his attorneys, Abdul Hassan Law Group, PLLC, will receive $5,472.00, which consists of $4,763.00 in attorneys’ fees and $709.00 in costs. Id.; see also Dkt. No. 25, at 2. The Court held a fairness hearing on Plaintiff’s motion on August 6, 2024. Dkt. No. 32. II. Legal Standard In Cheeks v. Freeport Pancake House, Inc., the Second Circuit “held that parties cannot privately settle FLSA claims with a stipulated dismissal with prejudice under Federal Rule of Civil Procedure 41 absent the approval of the district court or the [United States] Department of Labor.” Fisher v. SD Prot. Inc., 948 F.3d 593, 599 (2d Cir. 2020). In deciding whether to approve an FLSA settlement, “[a] reviewing court must ensure that the proposed agreement between the plaintiff and the defendant reflects a reasonable compromise of disputed issues rather than a mere waiver of statutory rights brought about by an employer’s overreaching.” Yunganaula v. D.P. Grp. Gen. Contractors/Devs. Inc., No. 21-CV-2015 (CBA) (MMH), 2023 WL 2707024, at *2 (E.D.N.Y. Mar. 30, 2023) (quoting Li v. HLY Chinese Cuisine

Inc., 596 F. Supp. 3d 439, 445 (E.D.N.Y. 2022)); see also Intal v. Erie Agustin, M.D. Primary Care, P.C., No. 18-CV-03196 (SJ) (JRC), 2022 WL 892084, at *2 (E.D.N.Y. Jan. 27, 2022), report and recommendation adopted, 2022 WL 889041 (E.D.N.Y. Mar. 25, 2022) (“In considering whether to approve an FLSA settlement, courts consider whether the agreement reflects a reasonable compromise of disputed issues rather than a mere waiver of statutory rights brought about by an employer’s overreaching.” (quotations and citation omitted)). Courts generally consider the following non-exclusive list of factors to determine whether a settlement is fair and reasonable: (1) the plaintiff’s range of possible recovery; (2) the extent to which the settlement will enable the parties to avoid anticipated burdens and expenses in establishing their respective claims and defenses; (3) the seriousness of the litigation risks faced by the parties; (4) whether the settlement agreement is the product of arm’s-length bargaining between experienced counsel; and (5) the possibility of fraud or collusion.

Fisher, 948 F.3d at 600 (2d Cir. 2020) (quoting Wolinsky v. Scholastic, Inc., 900 F. Supp. 2d 332, 335 (S.D.N.Y. 2012)); see also Jun Cui v. O2 Korean BBQ, No. 19-CV-2794 (DLI) (SJB), 2020 WL 7034369, at *4 (E.D.N.Y. Feb. 11, 2020).

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