Ortiz v. Chop't Creative Salad Co.

89 F. Supp. 3d 573, 2015 U.S. Dist. LEXIS 22772, 2015 WL 778072
CourtDistrict Court, S.D. New York
DecidedJanuary 16, 2015
DocketNo. 13-CV-2541 (KNF)
StatusPublished
Cited by26 cases

This text of 89 F. Supp. 3d 573 (Ortiz v. Chop't Creative Salad Co.) 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
Ortiz v. Chop't Creative Salad Co., 89 F. Supp. 3d 573, 2015 U.S. Dist. LEXIS 22772, 2015 WL 778072 (S.D.N.Y. 2015).

Opinion

MEMORANDUM AND ORDER

KEVIN NATHANIEL FOX, United States Magistrate Judge.

BACKGROUND

Angel Ortiz (“Ortiz”), Ored Trujillo (“Trujillo”), Antonio Fuentes. (“Fuentes”) and Isaac Barreto (“Barreto”) are delivery workers who commenced this action against Chop’t Creative Salad Company LLC (“Chop’t”), Colin McCabe, Tony [578]*578Shure and Nicholas Marsh, pursuant to the Fair Labor Standards Act (the “FLSA”), 29 U.S.C. §§ 201-219, and New York Labor Law (“NYLL”), Article 6, §§ 190-199a, and Article 19, §§ 650-665. The plaintiffs alleged that the defendants paid them “sub-minimum hourly wages, purporting to take a ‘tip credit’ under the FLSA or the NYLL,” required the plaintiffs to do other than delivery work, such as food preparation, dishwashing, maintenance and cleaning, for “more than twenty percent of their time at work,” failed to pay the plaintiffs “overtime pay, off the clock pay, call-in pay, and spread of hours pay,” failed to provide proper wage statements and notices and deducted money, unlawfully, from the plaintiffs’ wages, including the costs of purchasing and maintaining bicycles required to perform the plaintiffs’ jobs. The parties agreed to mediate the dispute. Thereafter, the parties consented to jurisdiction by a magistrate judge, pursuant to 28 U.S.C. § 636(c) and Rule 73 of the Federal Rules of Civil Procedure.

On August 21, 2013, the parties participated in mediation, resulting in a settlement agreement, subject to the Court’s approval. Without admitting liability, the defendants agreed to pay $800,000 to resolve all claims, including attorneys’ fees not to exceed one-third of the gross settlement amount and costs approved by the Court, and all amounts to be paid to class members, service awards to the named plaintiffs approved by the Court, fees and costs associated with managing the settlement fund and the settlement claims administrator’s fees.

On March 25, 2014, the Court approved, preliminarily, a class action pursuant to Rule 23 of the Federal Rules of Civil Procedure, the FLSA collective action and the parties’ settlement agreement. The Court also approved the plaintiffs’ proposed notice of the class action settlement agreement and appointed Outten & Golden LLP (“OG”) and Lee Litigation Group, PLC (“LLG”) as class counsel. On June 9, 2014, the plaintiffs made motions for the: (1) certification of the settlement class, final approval of the class action settlement and approval of the FLSA settlement; (2) approval of service awards; and (3) approval of the payment of attorneys’ fees and reimbursement of expenses.

On July 17, 2014, the Court held a fairness hearing, during which no objections were made to the proposed settlement. At the end of the hearing, the Court announced its findings, approving finally: (1) the class action; (2) the class settlement agreement; (3) the FLSA collective action; and (4) the settlement of the collective action. Class members totaling 350 are eligible to receive payment under the settlement agreement. However, the Court expressed certain concerns related to the plaintiffs’ motions for approval of the service awards and attorneys’ fees and expenses, and directed the plaintiffs to make additional submissions, which they did, on August 14, 2014.

SERVICE AWARDS

Plaintiffs’ Contentions

Initially, the plaintiffs sought approval of a service award of $5,000 for each named plaintiff, claiming that each “assumed significant risks,” without identifying any risk. The plaintiffs also asserted that the named plaintiffs “contributed significant time and effort to the case by, among other things, providing Class Counsel with detailed factual information regarding [the defendants’] policies and other information relevant to their claims, and regularly making themselves available to communicate with Class Counsel when necessary, including through mediation.” The named plaintiffs contended that they [579]*579“helped gather support for the case by informing other Class Members about the case and their right to participate in it,” and “they were involved in lengthy settlement negotiations, including discussing and approving appropriate terms.” The Court directed the named plaintiffs to supplement their request for service awards by providing details supporting their claims that they assumed significant risks and expended significant time and effort on this action. The plaintiffs submitted a supplemental memorandum of law and a supplemental declaration by their counsel, Justin M. Swartz (“Swartz”), in support of the motion for service awards. They contend the following:

Prior to sending a demand letter and drafting the complaint, counsel held two investigatory meetings with Ortiz, Trujillo and Fuentes. Barreto joined the case after these meetings. Barreto attended two meetings with counsel prior to the filing of the complaint. Each of the four meetings, during which these plaintiffs provided background information to counsel, lasted more than one hour. After the parties reached a memorandum of understanding at the mediation session, the named plaintiffs met with counsel for approximately 40 minutes to review the memorandum. They asked questions and assessed the document’s fairness and adequacy. Subsequently, each named plaintiff met with counsel for approximately 30 minutes, reviewed and approved the settlement agreement. The named plaintiffs answered questions from class members and put counsel in touch with class members who had questions regarding the settlement. On March 20, 2014, an additional meeting was held with Ortiz, Trujillo and Fuentes, regarding the status of the case, lasting approximately 40 minutes. The named plaintiffs approximate they spent the following time engaged in telephone conferences with counsel: (i) Ortiz, 3.5 hours; (ii) Trujillo, 1.9 hours; (iii) Fuentes, 0.8 hours; and (iv) Barreto, 2.2 hours. The named plaintiffs facilitated contacts between counsel and other current and former employees of the defendants. Each named plaintiff collected documents, including pay stubs, tip records and time entry receipts, which were provided to counsel. Prior to filing the complaint, each named plaintiff spent approximately 18 minutes reviewing and commenting on the complaint. The named plaintiffs contend that they encouraged former and current employees to provide additional information to counsel. According to the named plaintiffs, “[w]hen the Parties decided to pursue mediation, all of the Plaintiffs advised Class Counsel on which documents Class Counsel should request to assess damages.” On August 21, 2013, during the 13-hour mediation session, the plaintiffs’ counsel spoke on the telephone with Ortiz, Trujillo and Fuentes, individually, twice, for approximately six minutes each time, and with Barreto four times, for approximately six minutes each time.

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Cite This Page — Counsel Stack

Bluebook (online)
89 F. Supp. 3d 573, 2015 U.S. Dist. LEXIS 22772, 2015 WL 778072, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ortiz-v-chopt-creative-salad-co-nysd-2015.