Hernandez Paz v. 572 W. 173rd Street Realty, Corp.

Background

The court stated that the parties had reached a settlement in this Fair Labor Standards Act case. The order does not provide the settlement amount, the settlement terms, or the underlying claims’ factual details.

Settlement-approval requirements

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

The court directed the parties to file any letter motion, together with the settlement agreement, on the public docket within thirty days. The letter motion had to explain why the proposed settlement was fair and reasonable. It also had to address:

- the plaintiff’s possible range of recovery; - the burdens and expenses the settlement would avoid in proving the parties’ claims and defenses; - the seriousness of the litigation risks; - whether experienced counsel negotiated the agreement at arm’s length; - the possibility of fraud or collusion; - whether a genuine dispute existed about the number of hours worked or the compensation owed; and - the amount of attorney’s fees the plaintiff’s lawyer would seek.

The court also stated that, absent special circumstances, it would not approve a settlement filed under seal or in redacted form.

Disposition

Judge J. Paul Oetken directed the parties to file a letter or stipulation complying with these instructions on or before March 15, 2020. The order did not approve or reject the settlement. It adjourned all other filing deadlines, conference dates, and the trial date indefinitely.