Barrera v. 1611 Food Mart Inc.

Background

The case includes one or more claims under the Fair Labor Standards Act. The court explained that, under the appellate decision in Cheeks v. Freeport Pancake House, Inc., the parties must submit a joint filing addressing whether their settlement is fair and reasonable.

Judge Jesse M. Furman had previously ordered the parties to file settlement materials by January 17, 2020. They did not meet that deadline. Judge Furman then ordered them to file the materials by January 24, 2020, and warned that failing to do so could lead to sanctions.

The parties later consented to Magistrate Judge Sarah L. Cave’s jurisdiction. The order states that this consent did not eliminate their obligation to comply with the court’s earlier orders.

Order

Judge Cave ordered the parties to file a joint letter-motion by Friday, January 31, 2020. The filing must discuss the claims and defenses, the defendants’ potential financial exposure and the basis for calculating it, the strengths and weaknesses of the plaintiffs’ case, the defendants’ defenses, and any reasons for a difference between the possible value of the claims and the settlement amount. It must also explain the litigation and negotiation process and address other matters relevant to whether the settlement is reasonable, including whether a judgment would be collectible if the case proceeded to trial.

The parties must also explain their attorney-fee arrangement, attach the retainer agreement, provide information about the attorney fees actually incurred, and attach the settlement agreement. The order required submission of these materials; it did not state that the court approved or rejected the settlement.