Martinez Aguilar v. VBFS Inc.

Background

The plaintiffs are Lorena Martinez Aguilar and Manuel Carranza Cayetano, suing individually and on behalf of others similarly situated. The defendants are VBFS Inc., doing business as M&M Market Deli, Virgilia Branco, and Fernando Pinho Sanches. The opinion does not identify the underlying claims or provide the terms of the proposed settlement.

The parties appeared before Judge Cott for a settlement conference and reached a settlement in principle. They signed a consent allowing Judge Cott to exercise authority over the case under 28 U.S.C. § 636(c), so that he could review their settlement agreement based on his familiarity with its terms.

Order

Judge Cott ordered the parties to file a joint letter motion and their settlement agreement no later than January 20, 2020, requesting court approval. The letter motion must explain why the proposed settlement is fair and reasonable and otherwise complies with the Second Circuit's requirements in Cheeks v. Freeport Pancake House, Inc.

The order also directed the parties to several other Southern District of New York decisions for guidance about settlement terms, including reemployment provisions, restrictions on communications with the media, releases, mutual non-disparagement provisions, confidentiality provisions, and general releases. It identified several recently approved settlement papers as examples.

Disposition and effect

The order directed the parties to submit materials seeking approval of the settlement. It did not state that the settlement was approved, and it did not enter judgment or otherwise resolve the underlying claims.