Charicando v. Tribesmen General Contracting Inc.
1:22-cv-05920
| E.D.N.Y | Feb 12, 2025Background
- Plaintiffs, four employees of Tribesmen General Contracting, Inc. and Tribesmen Group Inc., sued for unpaid wages, overtime, and related violations under the Fair Labor Standards Act (FLSA) and New York Labor Law (NYLL).
- Plaintiffs alleged they were paid flat weekly rates without overtime premiums, were not paid for their final weeks of work, and did not receive required wage notices or statements.
- Defendants failed to promptly respond, leading to an initial default; however, Defendant Lally later appeared pro se, citing financial hardship and previously offering partial payment to plaintiffs.
- Litigation progressed through several procedural stages including default motions, status reports, referred mediation, and ultimately, settlement discussions.
- The parties reached a settlement agreement whereby Defendant Lally would pay $70,000, allocating $45,742.67 to plaintiffs and $24,257.33 to plaintiffs’ counsel for fees and costs.
- The court reviewed the settlement for fairness under Cheeks v. Freeport Pancake House, Inc., raising concerns about the plaintiffs’ damages calculations and the appropriate methodology under FLSA/NYLL.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Proper calculation of unpaid wages and overtime | Plaintiffs owed based on agreed hourly rate times all hours worked, including overtime premium | Lally: Operations ceased, financial hardship, offered partial pre-suit payments; disputes calculation method | Court: Plaintiffs’ method may overstate damages; must use total weekly pay divided by hours actually worked per FLSA/NYLL guidelines |
| Adequacy and fairness of settlement | Settlement for $70,000 is fair given unpaid wages estimates; avoids further litigation risks | Settlement reflects financial reality, addresses litigation risk for both parties | Settlement is fair and reasonable, considering risk of nonrecovery, litigation costs, and disputed damages |
| Attorneys’ fees reasonableness | Fees at one-third (net of costs) is standard and appropriate, supported by lodestar cross-check | No substantial challenge, as fees result from arm’s-length negotiation | Court: Fee ($22,871.33) and costs ($1,386) are reasonable, well supported, and proportionate |
| Claims against corporate vs. individual defendants | Plaintiffs seek voluntary dismissal of claims against corporate defendants (now non-operational, unrepresented) | Lally as only settling party; corporate entities did not participate or sign settlement | Dismissal of corporate defendants approved without prejudice; settlement binds only Lally |
Key Cases Cited
- Cheeks v. Freeport Pancake House, Inc., 796 F.3d 199 (2d Cir. 2015) (court approval required for FLSA settlements to ensure fairness)
- Fisher v. SD Prot. Inc., 948 F.3d 593 (2d Cir. 2020) (court must approve or reject entire FLSA settlement, not rewrite terms)
- Wolinsky v. Scholastic Inc., 900 F. Supp. 2d 332 (S.D.N.Y. 2012) (lists factors for evaluating fairness of FLSA settlements)