Jimenez v. Cofaci Foods Inc.
- Barbara Moses
- 1:21-cv-08620
- U.S. District Court · Southern District of New York
- 3
Jimenez v. Cofaci Foods, Magistrate Judge Moses vacated two defaults after settlement and ordered materials for reviewing the Fair Labor Standards Act agreement.
Guadalupe Jimenez, Cofaci Foods Inc., Lillian Castillo, and the other parties and counsel involved in the proposed settlement.
What happened
In Guadalupe Jimenez v. Cofaci Foods Inc., et al., the parties told the court that they had agreed to proceed with their originally negotiated settlement terms. The settlement included claims under the Fair Labor Standards Act, a federal wage-and-hour law.
At Jimenez's request, the court vacated the entries of default against Cofaci Foods Inc. and Lillian Castillo and vacated all previously set deadlines. The parties must submit a joint explanation of why the settlement is fair and reasonable, the signed settlement agreement, and supporting records for any requested attorneys' fees and costs by October 10, 2025.
Magistrate Judge Barbara Moses cautioned that confidentiality provisions, overbroad one-way releases, and non-disparagement clauses restricting truthful statements may prevent approval of the settlement. The court also directed the Clerk to vacate the certificate of default at Docket 120; it did not approve the settlement in this order.
The detailed version
- Jimenez v. Cofaci Foods Inc. · No. 1:21-cv-08620
- Barbara Moses
- Sept. 11, 2025
Background
The court reviewed Guadalupe Jimenez's letter reporting that the parties had agreed to proceed with the originally negotiated settlement terms. The settlement resolved their dispute, including claims under the Fair Labor Standards Act (FLSA). The parties also consented to Magistrate Judge Moses's authority over the remaining proceedings under 28 U.S.C. § 636(c).
Orders
At Jimenez's request, the court vacated the entries of default against Cofaci Foods Inc. and Lillian Castillo. It also vacated all deadlines previously set in the case. The Clerk of Court was directed to vacate the certificate of default at Docket 120.
The court ordered the parties to submit, by October 10, 2025:
- A joint letter explaining why the proposed settlement is fair and reasonable under the factors identified in Wolinsky v. Scholastic Inc.; - A written settlement agreement executed by all parties, which the court stated would be placed on the public docket; and - Any contingency-fee agreement and time and expense records needed to support a request for attorneys' fees and costs.
Settlement-review cautions
The court cautioned that confidentiality provisions are rarely appropriate in resolving wage-and-hour lawsuits under the FLSA. It also cautioned that a non-disparagement provision may be unacceptable if it prevents Jimenez from making truthful statements about the employment, lawsuit, or settlement. The court stated that courts in the district ordinarily refuse to approve FLSA settlements containing one-way or overbroad general releases.
The court further explained that its fairness review includes the reasonableness of attorneys' fees and costs. Any requested fees and costs must be included in the written settlement agreement, personally signed by the parties, and supported by properly authenticated fee and expense records, along with a detailed explanation of the requested award.
Disposition
This order vacated the specified defaults and case deadlines and required materials for the court's review of the proposed FLSA settlement. The order did not approve the settlement itself.
Read the full 3-page opinion on CourtListener, the free public archive maintained by the Free Law Project.