Moreno Martinez v. Rockwood

Background

Roman Moreno Martinez and Felipe Vargas brought claims under the Fair Labor Standards Act and New York Labor Law concerning alleged unpaid wages and overtime from their employment as porters at Rockwood Music Hall. The parties later entered into a settlement agreement dated March 26, 2024, which the court approved as fair and reasonable.

Under the agreement, Kenneth Rockwood was required to pay the plaintiffs $70,000. The payment schedule called for an initial $21,000 payment by April 13, 2024, followed by seven monthly payments of $7,000 from May 15 through November 15, 2024. Rockwood also signed and notarized an affidavit confessing judgment for $120,000, less payments made, if he breached the payment obligations.

Rockwood did not make the initial payment as scheduled. The plaintiffs agreed to accept $8,000 during the week of April 15 and the remaining $13,000 the following week. Checks totaling $8,000 cleared, but of three later checks totaling $13,000, only a $400 check for reimbursement of the plaintiffs’ counsel’s costs cleared. Rockwood also failed to make the monthly installment payments. After receiving notice of the breach and an opportunity to cure, he did not cure the default. The plaintiffs stated that he had paid only $8,400 of the required $70,000. The motion to enforce was unopposed.

Court’s Analysis

The court concluded that it had jurisdiction to enforce the settlement because the agreement expressly provided for continuing jurisdiction, the court’s approval order retained jurisdiction until Rockwood completed his payments, and the action had not been dismissed.

The court treated the settlement agreement as a binding contract. It found that the agreement clearly required Rockwood to make payments in specified amounts and by specified dates. Based on the uncontested evidence, the court found that he breached his payment obligations under both the initial-payment provision and the monthly-installment provision. The court also found no evidence that the plaintiffs failed to perform their own obligations.

The court considered the plaintiffs’ request for judgment under the confession-of-judgment provision. It found no indication that Rockwood, who was represented by counsel, signed the confession of judgment unknowingly or involuntarily. The court also found that the confession complied with the requirements of New York Civil Practice Law and Rules § 3218(a). Although the requested judgment exceeded the unpaid settlement payments, the court held that this did not make the confession unenforceable because it was part of a settlement in which the plaintiffs agreed to accept less than their estimated potential trial damages and allowed payment over time.

Disposition

The court granted the plaintiffs’ motion to enforce the settlement agreement. It directed the Clerk of Court to enter judgment in favor of the plaintiffs for $111,600, calculated as the $120,000 confession-of-judgment amount minus the $8,400 paid by Rockwood.