Rosa v. Park Avenue South Management, LLC

Background

The court stated that the parties had reached a settlement in the case, including claims under the Fair Labor Standards Act (FLSA), a federal law governing minimum wages, overtime, and related wage practices. The order addressed how the parties could seek dismissal or judgment after that settlement. It did not itself approve the proposed settlement or enter judgment.

Court-Approved Dismissal With Prejudice

The court explained that, under the Second Circuit’s decision in Cheeks v. Freeport Pancake House, Inc., the parties could not dismiss FLSA claims with prejudice under Rule 41(a)(1)(A), the federal rule allowing certain voluntary dismissals without a court order. A dismissal with prejudice bars the dismissed claims from being brought again. Instead, the parties must seek court approval under Rule 41(a)(2).

Before that review, the parties were ordered to discuss whether they would consent under 28 U.S.C. § 636(c) to having all further proceedings conducted by the assigned magistrate judge. If both consented, they had to file the required consent form by July 15, 2024. If either party declined, the parties had to file a joint letter by that date stating that they did not consent without identifying the nonconsenting party.

If the parties did not consent to proceed before the magistrate judge, they also had to submit a joint motion explaining why the settlement was fair, addressing the factors identified in Wolinsky v. Scholastic Inc., and attaching the settlement agreement. The court stated that it would not approve settlement agreements containing confidentiality provisions. It also stated that settlement-related materials could not be filed under seal unless the parties made a particularized showing overcoming the presumption that judicial documents are publicly accessible. If the settlement included attorney’s fees, the motion had to address fee reasonableness and include detailed attorney time records.

Dismissal Without Prejudice

The court stated that it would accept a Rule 41(a)(1)(A) stipulation dismissing the FLSA claims without prejudice if the parties certified that there had been no settlement of FLSA claims. A dismissal without prejudice does not bar refiling the claims. If the parties could not make that certification, they had to seek court review of the settlement. Any proposed stipulation and certification had to be submitted by July 15, 2024.

Offer of Judgment

The court also reminded the parties that they could resolve the case through an offer of judgment under Rule 68(a). Under that rule, a defending party may offer to allow judgment on specified terms, and the clerk must enter judgment if the opposing party timely accepts. The court cited Second Circuit authority stating that court approval is not required for a Rule 68(a) offer of judgment in an action involving FLSA claims. The parties had to submit an executed offer and acceptance, along with a proposed judgment order, by July 15, 2024 if they chose that procedure.

Disposition

The court ordered the parties to proceed through one of the three described methods and entered the order on July 1, 2024. The opinion does not state that the settlement was approved, that the case was dismissed, or that judgment was entered.