Vargas v. Pier 59 Studios L.P.
- Vernon Broderick
- 1:18-cv-10357-VSB
- U.S. District Court · Southern District of New York
- 2
In Vargas v. Pier 59 Studios L.P., Judge Broderick ordered the parties to submit their FLSA settlement for fairness review and supporting fee evidence.
The parties to the FLSA case, including Trinidad Vargas, the FLSA collective plaintiffs and class, and Pier 59 Studios L.P. and the other defendants, were required to submit settlement materials and any supporting attorney-fee evidence.
What happened
In Vargas v. Pier 59 Studios L.P., the parties told the court they had reached a settlement in a case under the Fair Labor Standards Act, a federal wage law. The opinion does not state that the court approved the settlement.
The court explained that these wage claims cannot be privately settled with prejudice without approval from the court or the Department of Labor. It must review whether the agreement is fair and reasonable, including the possible recovery, litigation burdens and risks, the parties’ negotiations, and any possibility of fraud or collusion. Attorney’s fees must be reviewed separately.
Judge Vernon S. Broderick ordered the parties, within 30 days, to provide the settlement terms and a joint letter of no more than five pages explaining why the agreement is fair and reasonable. If the agreement includes attorney’s fees, they must also provide evidence supporting the fees, including detailed billing records.
The detailed version
- Vargas v. Pier 59 Studios L.P. · No. 1:18-cv-10357-VSB
- Vernon Broderick
- Nov. 14, 2019
Background
The court stated that it had been advised that the parties reached a settlement in this Fair Labor Standards Act (FLSA) case. The opinion does not describe the underlying wage claims or state the settlement’s terms. It also does not approve or reject the settlement in this order.
Legal standard
The court explained that parties may not privately settle FLSA claims with prejudice unless the district court or the Department of Labor approves the settlement. The court therefore must determine whether the settlement is fair and reasonable by considering the totality of the circumstances. The listed considerations include the plaintiff’s possible recovery, the burdens and expenses the settlement would avoid, the seriousness of the parties’ litigation risks, whether experienced counsel negotiated the agreement at arm’s length, and the possibility of fraud or collusion.
When a settlement includes attorney’s fees, the court must separately assess whether those fees are reasonable. Counsel must provide a factual basis for the award, including contemporaneous billing records showing, for each attorney, the date, hours spent, and nature of the work.
Order
The court ordered the parties to provide the settlement terms within 30 days so it could determine whether they comply with the FLSA and reflect a reasonable compromise of disputed issues. The parties must also submit a joint letter of no more than five pages explaining why they believe the settlement is fair and reasonable, including information about the five listed factors. If the agreement includes attorney’s fees, the parties must submit evidence supporting the fee award, including the specified billing records. The order did not state that the settlement was approved, denied, or dismissed. Judge Vernon S. Broderick issued the order.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.