Saenz v. S.W. Management LLC
- Barbara Moses
- 1:19-cv-05717
- U.S. District Court · Southern District of New York
- 2
In Saenz v. S.W. Management LLC, Judge Moses vacated deadlines and required Fair Labor Standards Act settlement materials for review, while cautioning about confidentiality, releases, and fees.
The parties and their counsel must submit the required settlement documents and supporting information; the settlement agreement will be placed on the public docket.
What happened
In Saenz v. S.W. Management LLC, the parties told the court that they had settled claims under the Fair Labor Standards Act, a federal wage law.
The court vacated all previously set deadlines and ordered the parties to submit their signed settlement agreement, an explanation of why it was fair and reasonable, and attorney time and expense records if fees were requested, by January 20, 2020.
Judge Barbara Moses also cautioned about confidentiality provisions, broad releases, non-disparagement clauses, and unsupported attorney-fee requests, and explained that the settlement agreement would be placed on the public docket.
The detailed version
- Saenz v. S.W. Management LLC · No. 1:19-cv-05717
- Barbara Moses
- Jan. 13, 2020
Background
The parties reported that they had settled their dispute, including claims under the Fair Labor Standards Act (FLSA). They had also consented to Magistrate Judge Barbara Moses's authority over the remaining proceedings, including review of the settlement agreement under the standards applied by the U.S. Court of Appeals for the Second Circuit.
The court noted that the plaintiff's January 6, 2020 letter did not adequately explain why the settlement was fair and reasonable and did not include time and expense records supporting the attorney fees awarded under the agreement.
Order
The court vacated all previously set deadlines. It ordered the parties to submit by January 20, 2020: (1) a fully signed copy of the written settlement agreement, which would be placed on the public docket; (2) a joint letter explaining why the agreement was fair and reasonable under the relevant factors; and (3) counsel's time and expense records if the parties requested an award of attorney fees and costs.
Court's Cautions
The court cautioned that confidentiality provisions would be appropriate only in rare wage-and-hour cases because of the policy concerns underlying the FLSA. It also cautioned that a non-disparagement clause should not prevent the plaintiff from making truthful statements about his employment, the lawsuit, or the settlement.
The court further stated that courts in the Southern District of New York ordinarily refuse to approve FLSA settlements containing one-way or overly broad general releases. It expected any request for attorney fees and costs to include a detailed explanation supported by counsel's time and expense records. The court stated that fees exceeding one-third of the settlement fund are rarely approved absent special circumstances, and that the relevant calculation generally uses the total settlement amount after costs are deducted.
Disposition
The order vacated the existing deadlines and required additional settlement materials. It did not state that the settlement agreement was approved.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.