Calderon v. 919 Prospect Avenue LLC

Background

The court was notified that the parties had reached a settlement in principle in this Fair Labor Standards Act case. The order did not state the settlement’s terms and did not approve the settlement.

Settlement-Approval Requirements

The court stated that the action could not be dismissed with prejudice based on the settlement unless the settlement agreement was approved by the court or by the Department of Labor. The parties were required to file a letter motion and the settlement agreement on the public docket within 30 days of the order, and in any event on or before July 31, 2024.

The letter motion must explain why the proposed settlement is fair and reasonable. It must address, at a minimum, the plaintiff’s possible recovery; the burdens and expenses the settlement would avoid; the parties’ litigation risks; whether experienced counsel negotiated the agreement at arm’s length; and the possibility of fraud or collusion. It must also address whether there is a genuine dispute about the number of hours worked or the compensation owed, and how much the plaintiffs’ attorneys will seek in fees. The court stated that, absent special circumstances, it would not approve a settlement filed under seal or in redacted form.

Ruling

The court granted the parties’ request for an adjournment, meaning a postponement. It directed the parties to file the required letter or stipulation by July 31, 2024. All other filing deadlines, conference dates, and the trial date were adjourned without a new date being set. The Clerk of Court was directed to terminate the motion at ECF No. 136. The order did not decide the underlying Fair Labor Standards Act claims or approve or reject the settlement.