Cortes v. Diamante Poblano Restaurant Corp.

Background

The parties notified the court on March 18, 2020, that they had reached a settlement in this Fair Labor Standards Act case. The opinion does not provide the settlement amount or other settlement terms.

Court’s directions

The court advised that the parties could not dismiss the action with prejudice based on the settlement unless the settlement was approved by the court or the Department of Labor. It directed the parties to file a letter or stipulation, together with the settlement agreement, on the public docket by June 19, 2020.

The filing had to explain why the proposed settlement was fair and reasonable. It also had to address: (1) the plaintiff’s possible recovery; (2) the burdens and expenses the settlement would avoid; (3) the seriousness of the litigation risks; (4) whether experienced counsel negotiated the agreement at arm’s length; and (5) the possibility of fraud or collusion. The filing also had to discuss whether a genuine dispute existed about the number of hours worked or the compensation due, 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. It adjourned all other filing deadlines, conference dates, and the trial date indefinitely.

Disposition

Judge J. Paul Oetken ordered the parties to submit the required settlement materials by June 19, 2020 and adjourned the other case dates indefinitely. The order did not approve or reject the settlement.