Fernandez v. New York Health Care, Inc.

Background

The plaintiff attempted to voluntarily dismiss her claims under the Fair Labor Standards Act (FLSA). The court stated that her notice of dismissal, discussed in an earlier March 19 order, was insufficient, and that her March 19 filing was also insufficient.

Dismissal with prejudice

The court explained that the FLSA falls within an exception to Federal Rule of Civil Procedure 41(a)(1)(A), which generally permits certain voluntary dismissals without a court order. Under the Second Circuit’s decision in Cheeks v. Freeport Pancake House, Inc., the parties cannot dismiss FLSA claims with prejudice under that rule. A dismissal with prejudice generally bars the claims from being brought again.

To dismiss the FLSA claims with prejudice, the parties must seek court approval under Rule 41(a)(2). They were first ordered to discuss whether they would consent to having all further proceedings conducted by the assigned magistrate judge. If both parties consented, they had one week from the order’s date to file the required consent and reference form. If either party did not consent, the parties had to file a joint letter within one week stating that they did not consent, without identifying the nonconsenting party or parties. The order stated that withholding consent would have no negative consequences.

If the parties did not consent to proceed before the magistrate judge, they were directed to submit, within two weeks, a joint motion explaining why their 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 also stated that it would not approve settlement agreements containing confidentiality provisions and would not allow related documents to be sealed absent a particularized showing overcoming the presumption of public access. If the settlement included attorney’s fees, the parties had to address the fees’ reasonableness and provide detailed attorney time records.

Dismissal without prejudice

The court noted that Cheeks had reserved the question of voluntary dismissal of FLSA claims without prejudice under Rule 41(a)(1)(A). The court therefore stated that it would accept a stipulation dismissing the FLSA claims without prejudice. The parties were directed to submit such a stipulation within two weeks if they chose that option. A dismissal without prejudice generally allows the claims to be brought again.

Disposition

The order found the plaintiff’s attempted dismissal insufficient and directed the parties to use one of the two specified procedures. It did not decide the merits of the FLSA claims. Judge Gregory H. Woods also directed the plaintiff to serve the order on the defendant and retain proof of service.