Baten Rojas v. Pearl Diner, Inc.

Background

The court stated that it had been informed that the parties reached a settlement in a case involving claims under the Fair Labor Standards Act (FLSA). The order addressed how the parties could dismiss the FLSA claims.

Court’s directives

The court identified two alternatives:

1. Dismissal with prejudice under Rule 41(a)(2). A dismissal with prejudice permanently bars the dismissed claims from being brought again. Relying on the Second Circuit’s decision in Cheeks v. Freeport Pancake House, Inc., the court stated that FLSA claims cannot be dismissed with prejudice through the ordinary voluntary-dismissal procedure in Federal Rule of Civil Procedure 41(a)(1)(A). The parties instead must seek court approval under Rule 41(a)(2).

Before submitting the settlement for approval, the parties were ordered to discuss whether they would consent to having all further proceedings conducted by the assigned magistrate judge under 28 U.S.C. § 636(c). If both consented, they had to file the executed consent form by March 24, 2020. If either party declined, the parties had to file a joint letter by that date stating that they did not consent, without identifying the nonconsenting party or parties. The court stated that withholding consent would not have negative consequences.

If the parties did not consent to magistrate-judge proceedings, they had to file a joint motion by March 31, 2020, explaining why the settlement was fair and should be approved. The motion had to address the factors identified in Wolinsky v. Scholastic Inc. and include the settlement agreement. The court stated that it would not approve settlement agreements containing confidentiality provisions and would not allow settlement-related materials to be sealed without a particularized showing overcoming the presumption of public access. If the settlement included attorney’s fees, the parties also had to address whether the fees were reasonable and provide detailed attorney time records.

2. Dismissal without prejudice under Rule 41(a)(1)(A). A dismissal without prejudice does not bar the claims from being brought again. The court stated that it would accept a stipulation dismissing the FLSA claims without prejudice under Rule 41(a)(1)(A). The parties had to submit that stipulation by March 24, 2020.

Disposition

The order did not approve the settlement, dismiss the FLSA claims, or select one of the two alternatives. It directed the parties to follow one of the specified procedures and adjourned all deadlines indefinitely. The opinion is therefore a procedural order concerning settlement and dismissal procedures, rather than a decision on the merits of the underlying claims.

Classification

Procedural order.