Espaillat v. W. 205 Realty Co., LLC

Background

The case includes one or more claims under the Fair Labor Standards Act. Alejandro Espaillat and 172 Audubon Corp. reached a settlement at a settlement conference held before Magistrate Judge Stewart D. Aaron on July 25, 2025. The parties later consented to have all proceedings conducted before Judge Aaron.

The order’s footnote states that Espaillat had previously accepted a Rule 68 offer of judgment from W. 205 Realty Co., LLC, and that a judgment was entered. The settlement addressed in this order is between Espaillat and 172 Audubon Corp.

Order

Because federal appellate precedent requires judicial review of certain Fair Labor Standards Act settlements, Judge Aaron required the parties to file a joint letter or motion addressing whether their settlement was fair and reasonable. The filing was due September 4, 2025.

The required submission must discuss the claims and defenses, 172 Audubon Corp.’s potential monetary exposure and the calculations supporting it, the strengths and weaknesses of Espaillat’s case and the defenses, any reasons for a difference between the potential value of the claims and the settlement amount, the litigation and negotiation process, and other relevant considerations, including whether a judgment would be collectible.

The parties also must explain their attorney-fee arrangement, attach the retainer agreement, provide information about the actual attorney fees incurred and the attorneys’ relevant experience, and attach the settlement agreement. The order did not approve or reject the settlement and did not decide the underlying wage-and-hour claims.