Sanchez Guevara v. United Buffet & Grill, Inc.

CourtDistrict Court, D. Maryland
DecidedJanuary 10, 2024
Docket8:23-cv-01169
StatusUnknown

This text of Sanchez Guevara v. United Buffet & Grill, Inc. (Sanchez Guevara v. United Buffet & Grill, Inc.) 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
Sanchez Guevara v. United Buffet & Grill, Inc., (D. Md. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

JOSE SANCHEZ GUEVARA, *

* Plaintiff, * Civ. No. DLB-23-1169 v. * UNITED BUFFET & GRILL, INC. et al., * Defendants. *

MEMORANDUM OPINION AND ORDER On May 3, 2023, Jose Sanchez Guevara filed this lawsuit against his former employer United Buffet & Grill d/b/a Sushi Oishii and its owner Jun Wei Ni, alleging they failed to pay him minimum and overtime wages in violation of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq.; the Maryland Wage and Hour Law (“MWHL”), Md. Code Ann., Lab. & Empl. § 3- 401 et seq.; and the Maryland Wage Payment and Collection Law (“MWPCL”), Md. Code Ann., Lab. & Empl. § 3-501 et seq. See ECF 1. On June 28, 2023, the defendants made an offer of judgment for $12,000 pursuant to Fed. R. Civ. P. 68, and Sanchez Guevara accepted it on July 11. ECF 9 & 13. Sanchez Guevara filed an unopposed motion for court approval of the offer of judgment, ECF 16, and a motion for attorneys’ fees and costs, ECF 17, which the defendants opposed, ECF 18. The plaintiff filed a reply. ECF 19. Because the judgment is a fair and reasonable resolution of an FLSA claim for which the parties have a bona fide dispute, the motion for court approval is granted. Because Rule 68 provides for pre-offer (but not post-offer) costs, attorneys’ fees are considered costs for purposes of the MWHL and MWPCL, and the fees are reasonable, the motion for attorneys’ fees and costs is granted as to the pre-offer fees and costs and denied as to the fees incurred after the offer. I. Background Sanchez Guevara worked for the defendants at the restaurant Sushi Oishii as a kitchen

laborer at all relevant times. ECF 1, ¶¶ 8–10, 18. In his complaint, he alleges they failed to pay his straight-time and overtime wages in willful violation of state and federal law. Id. ¶¶ 2, 20–21, 44, 52, 60. He alleges damages of $12,500 in unpaid wages and seeks treble damages under the MWPCL or, alternatively, liquidated damages under the FLSA or MWHL. Id. ¶¶ 24, 45, 53, 61. Records obtained through informal discovery showed that Sanchez Guevara’s unpaid wages totaled $5,297.88. ECF 17-2, ¶ 18. The defendants made an offer for a $12,000 judgment to be entered against them, which would “include[e] all of Plaintiff’s claims for relief against Defendants.” ECF 9. He accepted the offer and moved for the Court to approve it and award attorneys’ fees and costs to him. ECF 13, 16, 17. II. Approval of Offer of Judgment

Rule 68 provides that “a party defending against a claim may serve on an opposing party an offer to allow judgment on specified terms, with the costs then accrued,” after which the opposing party may “serve[] written notice accepting the offer.” Fed. R. Civ. P. 68(a). If either party files the offer, notice of acceptance, and proof of service with the Court, “[t]he clerk must then enter judgment.” Id. When an offer of judgment is filed in an FLSA case, the Court adheres to the practice in this district of “evaluat[ing] accepted offers of judgment in FLSA cases as if they were proposed settlements.” Johnson v. Heartland Dental, LLC, No. PJM-16-2154, 2017 WL 2266768, at *1 n.1 (D. Md. May 23, 2017) (citations omitted). To protect workers from the dangers of unequal bargaining power, “[t]he FLSA does not permit settlement or compromise over alleged FLSA violations” unless there is “(1) supervision by the Secretary of Labor or (2) a judicial finding that the settlement reflects ‘a reasonable compromise of disputed issues’ rather than ‘a mere waiver of statutory rights brought about by an employer’s overreaching.’” Elejalde v. Perdomo Constr. & Mgmt. Serv., LLC, No. GJH-14-3278, 2016 WL 6304660, at *1 (D. Md. Oct.

27, 2016) (quoting Lynn’s Food Stores, Inc. v. United States, 679 F.2d 1350, 1354 (11th Cir. 1982)); see also Brooklyn Sav. Bank v. O’Neil, 324 U.S. 697, 706 (1945) (noting the FLSA was enacted to protect workers from “substandard wages and excessive hours” that resulted from unequal bargaining power between employers and employees). The Fourth Circuit has not identified the factors that determine whether an FLSA settlement should be approved. However, this Court typically adopts the standard set forth in Lynn’s Food Stores, Inc. v. United States, 679 F.2d 1350 (11th Cir. 1982), in which the Eleventh Circuit stated that a settlement must be “a fair and reasonable resolution of a bona fide dispute over FLSA provisions.” See Elejalde, 2016 WL 6304660, at *1 (quoting Lynn’s Food Stores, Inc., 679 F.2d at 1355); see also Duprey v. Scotts Co. LLC, 30 F. Supp. 3d 404, 407 (D. Md. 2014);

Saman v. LBDP, Inc., No. DKC-12-1083, 2013 WL 2949047, at *3 (D. Md. June 13, 2013). Specifically, the Court considers: “(1) whether there are FLSA issues actually in dispute, (2) the fairness and reasonableness of the settlement in light of the relevant factors from Rule 23, and (3) the reasonableness of the attorneys’ fees, if included in the agreement.” Duprey, 30 F. Supp. 3d at 408; see Lynn’s Food Stores, 679 F.2d at 1355. In Duprey, this Court explained that “these factors are most likely to be satisfied where there is an ‘assurance of an adversarial context’ and the employee is ‘represented by an attorney who can protect [his] rights under the statute.’” 30 F. Supp. 3d at 408 (quoting Lynn’s Food Stores, 679 F.2d at 1354). 1. Bona Fide Dispute To determine whether a bona fide dispute under the FLSA exists, this Court reviews the pleadings and other court filings in the case. See Duprey, 30 F. Supp. 3d at 408. The parties dispute whether the defendants owe Sanchez Guevara any unpaid minimum or overtime wages

and the amount of any wages owed. ECF 1, ¶ 1; ECF 11, ¶¶ 1, 45; ECF 16, at 4; ECF 18, at 4. That suffices. 2. Fairness & Reasonableness To determine whether an FLSA settlement is fair and reasonable, the Court considers: (1) the extent of discovery that has taken place; (2) the stage of the proceedings, including the complexity, expense and likely duration of the litigation; (3) the absence of fraud or collusion in the settlement; (4) the experience of counsel who have represented the plaintiff[]; (5) the opinions of class counsel . . . ; and (6) the probability of plaintiff[’s] success on the merits and the amount of the settlement in relation to the potential recovery. Yanes v. ACCEL Heating & Cooling, LLC, No. PX-16-2573, 2017 WL 915006, at *2 (D. Md. Mar. 8, 2017) (quoting Lomascolo v. Parsons Brinckerhoff, Inc., No. 08-1310, 2009 WL 3094955, at *10 (E.D. Va. Sept. 28, 2009)). Applying those factors here indicates that the offer of judgment is fair and reasonable. First, the parties have engaged in informal discovery, in which the defendants produced complete time and pay records and the plaintiff produced information about his commute. See ECF 16, at 4; ECF 17-2, ¶ 17. Second, the offer was made and accepted after less than three months of litigation, following about a month of negotiations. ECF 17-2, ¶ 16. This timing avoids the significant investment of time, effort, and expense that formal discovery, motions practice, and trial would entail. Third, there is no evidence of fraud or collusion in the offer of judgment.

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Sanchez Guevara v. United Buffet & Grill, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/sanchez-guevara-v-united-buffet-grill-inc-mdd-2024.