Peralta v. PCS USA LLC

Background

Yafreici Peralta originally brought federal and state claims against PCS USA LLC and Louis Van Leeuwen for discrimination, harassment, and unpaid wages. She later added breach-of-contract and retaliation claims.

After a settlement conference, the parties entered a written settlement agreement that the court approved. The agreement required the defendants to pay Peralta $55,090.07. This included a $2,090.07 one-time payment, a $5,000 payment, and $48,000 in equal installments over 24 months. In exchange, Peralta released her claims against the defendants through August 15, 2024. The court retained jurisdiction, meaning it kept authority to enforce the agreement.

The defendants made the two one-time payments and the first two installment payments, totaling $11,090.07. They made no payments after August 31, 2024. The defendants later told the court that they had no funds available to pay Peralta. They did not file a response opposing her enforcement motion, so the court treated the motion as unopposed.

Court’s Analysis

The court held that the motion was properly before it because the settlement order expressly retained jurisdiction over disputes and breaches of the agreement.

Applying New York contract law, the court considered whether Peralta performed her obligations, whether the defendants breached the agreement, and whether the breach caused damages. The court found that Peralta performed by releasing her claims. It also found that the defendants breached the agreement by failing to make the required payments, causing Peralta damages equal to the unpaid amounts.

The court rejected the defendants’ failure to pay as a reason to deny enforcement and determined that the settlement agreement could be enforced through a money judgment. The unpaid principal balance was $44,000.

The agreement provided for interest on unpaid installments at “5% per diem” from the original due date until payment in full. The court calculated the interest for each overdue $2,000 installment by multiplying the payment by 5%, dividing by 365, and multiplying by the number of unpaid days. It awarded $140.82 in interest for the installments due from September 30, 2024 through February 28, 2025.

The court also awarded post-judgment interest under 28 U.S.C. § 1961, which provides for interest on civil money judgments beginning on the date judgment is entered.

Disposition

Judge Sarah L. Cave granted Peralta’s motion to enforce the settlement agreement. The court entered judgment in Peralta’s favor and against PCS USA LLC and Louis Van Leeuwen for $44,140.82, consisting of $44,000 in unpaid principal and $140.82 in interest on past-due installments, plus post-judgment interest under 28 U.S.C. § 1961. The Clerk was directed to close the motion and the case.