Patrascu v. Frederic Fekkai New York LLC
- Valerie Caproni
- 1:19-cv-01376
- U.S. District Court · Southern District of New York
- 3
In Patrascu v. Frederic Fekkai New York LLC, Judge Caproni set settlement-filing requirements after the parties reported resolving their Fair Labor Standards Act case.
The order affected Doina Patrascu, Frederic Fekkai New York LLC, and their lawyers by setting the procedures and deadlines for handling the reported settlement of the Fair Labor Standards Act case.
What happened
In Patrascu v. Frederic Fekkai New York LLC, the parties told the court they had reached an agreement on all issues in a case involving claims under the Fair Labor Standards Act, a federal wage law.
The court explained that the parties could not dismiss the case with prejudice based on their settlement unless the court or the Department of Labor approved the agreement. The court also described an alternative procedure for dismissing the case without prejudice, including filing a stipulation and an affirmation from the plaintiff’s lawyer.
Judge Valerie Caproni ordered the parties to file either a settlement-approval request or the alternative stipulation by May 16, 2020; otherwise, the court would hold a telephone conference on May 22, 2020. The order did not itself approve the settlement or dismiss the case.
The detailed version
- Patrascu v. Frederic Fekkai New York LLC · No. 1:19-cv-01376
- Valerie Caproni
- Apr. 20, 2020
Background
Doina Patrascu brought claims individually and on behalf of similarly situated persons against Frederic Fekkai New York LLC under the Fair Labor Standards Act (FLSA). The parties notified the court that they had reached an agreement on all issues.
Settlement Approval and Dismissal Options
The court ordered that the parties could not dismiss the action with prejudice based on their settlement unless the court or the Department of Labor approved the settlement. A dismissal with prejudice would end the action in a manner that generally bars bringing the same claims again. If the parties wanted court approval, they had to file a joint letter motion and the settlement agreement on the public docket by May 16, 2020. The motion had to explain why the settlement was fair and reasonable, including the plaintiff’s possible recovery, anticipated litigation burdens and expenses, litigation risks, whether experienced counsel negotiated at arm’s length, and the possibility of fraud or collusion. It also had to address whether a genuine dispute existed about hours worked or compensation owed and the attorney’s requested fees. The court stated that, absent special circumstances, it would not approve a settlement filed under seal or in redacted form.
The court noted that the Second Circuit had not decided whether the parties could settle an FLSA case without court or Department of Labor approval and dismiss it without prejudice under Federal Rule of Civil Procedure 41(a)(1)(A). If the parties chose that route, they had to file a stipulation on the public docket within 30 days, accompanied by the plaintiff’s lawyer’s affirmation that the plaintiff or plaintiffs had been clearly advised that the settlement did not prevent another lawsuit against the same defendants and that the settlement contained no release of the defendants. The court warned that this option could allow the case to be reopened later.
Ruling and Effect
Judge Valerie Caproni issued procedural instructions rather than approving the settlement or dismissing the case. She ordered that, if no settlement-approval letter or alternative stipulation was filed by May 16, 2020, the parties would participate in a telephone conference on May 22, 2020, at 10:00 a.m.
Read the full 3-page opinion on CourtListener, the free public archive maintained by the Free Law Project.