Lopez v. DQPChacha Furniture Inc.

Background

Martin Lopez brought this Fair Labor Standards Act case on behalf of himself and others similarly situated against DQPCHACHA Furniture Inc. and Christian Chacha. The parties informed the court that they had reached a settlement in principle.

Under Second Circuit law, the court must review a settlement in a Fair Labor Standards Act case, including any proposed award of attorneys’ fees, to determine whether it is fair.

Required Settlement Submission

The court ordered the parties to submit a joint letter by February 20, 2025. The letter must explain the basis for the proposed settlement and why the settlement should be approved as fair and reasonable, using the factors identified in Wolinsky v. Scholastic, Inc.

The letter must address any confidentiality provisions, non-disparagement provisions, or releases in the proposed settlement agreement. If the settlement includes an attorneys’ fee award to plaintiff’s counsel, the parties must address that award and provide supporting documentation when appropriate. The court stated that merely identifying the percentage of the settlement sought as attorneys’ fees is insufficient. Adequate documentation should normally include time records showing, for each attorney, the date, hours spent, and nature of the work. Insufficient documentation could lead the court to reject the proposed fee award.

Court’s Orders

The court directed the parties to appear by telephone for a settlement fairness hearing on February 27, 2025, at 3:00 p.m. Martin Lopez was requested to appear and, if necessary, to use an interpreter.

The court dismissed any pending motions as moot and canceled all conferences and deadlines, including trial and pretrial deadlines. The opinion did not approve or reject the settlement; it required additional information and set a fairness hearing.