Bello Herrera v. Manna 2nd Avenue LLC

Background

The court was informed that Plaintiff Angelo Bello Silva had reached a settlement with the defendants. The settlement includes claims under the Fair Labor Standards Act (FLSA). The order addresses how the settling parties may seek to resolve or dismiss those claims; it does not describe the settlement's financial or other terms.

Options for Resolving the FLSA Claims

The court described three alternatives:

1. Dismissal with prejudice after court approval. Under Federal Rule of Civil Procedure 41(a)(2), the parties must seek court approval before dismissing FLSA claims with prejudice. The court directed the parties first to discuss whether they would consent to having the assigned magistrate judge handle the motion for settlement approval. If both sides consent, they must file the required consent form by September 23, 2024. If either side does not consent, the parties must file a joint letter by that date stating that they do not consent, without identifying the party that withheld consent. The order states that withholding consent will not have negative consequences.

If the parties do not consent to magistrate-judge proceedings, they must file a joint motion by September 30, 2024 explaining why the settlement is fair and should be approved. The motion must include the settlement agreement and address the factors identified in Wolinsky v. Scholastic Inc. The court also stated that it will not approve settlement agreements containing confidentiality provisions and will not allow settlement-related documents to be filed under seal without a particularized showing overcoming the presumption of public access. If the settlement includes attorney's fees, the parties must address whether those fees are reasonable and plaintiffs' attorneys must provide detailed time records.

2. Dismissal without prejudice without an FLSA settlement. The court stated that it will accept a voluntary dismissal under Rule 41(a)(1)(A) if the dismissal is without prejudice as to the FLSA claims and the parties certify that no FLSA claims were settled. If they cannot make that certification, they must seek court review of the settlement. Any such stipulation and certification was due September 23, 2024.

3. Offer of judgment. The parties may instead use an offer of judgment under Federal Rule of Civil Procedure 68. The order explains that, under Second Circuit precedent cited by the court, judicial approval is not required for a Rule 68 offer of judgment involving FLSA claims. The parties were directed to submit an executed offer and acceptance, along with a proposed judgment, by September 23, 2024 if they chose this option.

Ruling

Judge Gregory H. Woods directed the settling parties to proceed under one of the three described alternatives. The order did not approve the settlement, dismiss the claims, or enter judgment.