Saravia v. Hell's Kitchen Cream & Sugar Inc.

Background

The court was notified that the parties had reached a settlement in this Fair Labor Standards Act case. The opinion does not state the settlement amount or describe the underlying wage-and-hour claims in detail.

Court’s order

The court advised that the parties could not dismiss the action with prejudice based on the settlement unless the settlement was approved by either the court or the Department of Labor. A dismissal with prejudice would end the action and bar its refiling.

The parties were ordered to file a letter or stipulation, together with the settlement agreement, on the public docket by March 4, 2020. The filing had to explain why the proposed settlement was fair and reasonable. It also had to discuss:

- the plaintiff’s possible range of recovery; - the burdens and expenses the settlement could avoid in proving the claims and defenses; - the seriousness of the litigation risks; - whether experienced counsel negotiated the agreement at arm’s length; and - the possibility of fraud or collusion.

The filing also had to address whether there was a genuine dispute about the number of hours worked or the compensation owed, and how much the plaintiff’s attorney would seek in fees. The court stated that, absent special circumstances, it would not approve a settlement filed under seal or in redacted form.

Disposition and effect

Judge J. Paul Oetken did not approve or reject the settlement in this order. Instead, he set requirements for a future settlement filing and adjourned all other filing deadlines, conference dates, and the trial date without setting new dates.