Alvarez Chicas v. Kelco Construction, Inc.

Background

On May 29, 2024, Defendants reached a consensual resolution with pro se Plaintiff Carlos Alvarez Chicas and a separate consensual resolution with pro se Plaintiff Alonso Villatoro. On July 2, 2024, the parties filed a document titled “Stipulation of Voluntary Discontinuance With Prejudice,” signed by defense counsel, Alvarez Chicas, and Villatoro.

The opinion states that the case includes one or more claims under the Fair Labor Standards Act (FLSA), a federal law governing certain wage and hour matters. Because FLSA claims are involved, the court applied the requirement described in Cheeks v. Freeport Pancake House, Inc. that parties seeking to resolve such claims submit information allowing the court to evaluate whether the settlement is fair and reasonable.

Court’s Order

The court required the parties to file a joint letter or motion addressing the fairness and reasonableness of the settlement by Friday, August 9, 2024. The submission must discuss the claims and defenses, Defendants’ potential monetary exposure and the basis for calculating it, the strengths and weaknesses of the parties’ positions, reasons for any difference between the potential value of the claims and the settlement amount, the litigation and negotiation process, and other relevant issues, including whether a judgment would be collectible. The parties must also attach the settlement agreement.

Judge Stewart D. Aaron reminded the parties that they could consent to his jurisdiction under 28 U.S.C. § 636(c) to address the required settlement submission. The order did not approve the settlement and did not itself rule on the filed stipulation of voluntary discontinuance.