Carlos Alvarado v. New Rams Deli Plus Inc.
- Stewart Aaron
- 1:18-cv-08650
- U.S. District Court · Southern District of New York
- 2
In Juan Carlos Alvarado v. New Rams Deli Plus Inc., Judge Aaron ordered the parties to justify their Fair Labor Standards Act settlement.
The plaintiffs and defendants in the Fair Labor Standards Act case, whose settlement must be supported by a joint fairness submission before the court considers its approval.
What happened
Juan Carlos Alvarado and other plaintiffs sued New Rams Deli Plus Inc. and other defendants in a case involving claims under the Fair Labor Standards Act. The parties reached a settlement at a settlement conference before Judge Stewart D. Aaron on August 11, 2020, and later agreed that he would handle all proceedings.
The court did not approve the settlement at this stage. Instead, it required the parties to file a joint letter or motion explaining why the settlement is fair and reasonable. The filing must discuss the claims and defenses, the defendants’ possible financial exposure, the strengths and weaknesses of the case, the negotiation process, and other relevant issues.
Judge Stewart D. Aaron ordered the parties to file the letter or motion by September 22, 2020. They must also explain the attorney-fee arrangement, provide the fee agreement and information about the attorneys’ work and experience, and attach the settlement agreement.
The detailed version
- Carlos Alvarado v. New Rams Deli Plus Inc. · No. 1:18-cv-08650
- Stewart Aaron
- Sept. 1, 2020
Background
The opinion states that the case includes one or more claims under the Fair Labor Standards Act, a federal law governing matters such as minimum wages and overtime. The parties reached a settlement during a settlement conference held before Magistrate Judge Stewart D. Aaron on August 11, 2020. The parties later consented to have all proceedings handled by him.
Required settlement review
The court cited Cheeks v. Freeport Pancake House, Inc., which requires federal courts in the Second Circuit to review certain Fair Labor Standards Act settlements for fairness and reasonableness. The court therefore required the parties to submit a joint letter or motion addressing whether their settlement meets that standard.
The filing must address the claims and defenses, the defendants’ potential monetary exposure and the basis for calculating it, the strengths and weaknesses of the plaintiffs’ case and the defendants’ defenses, and any reasons the settlement amount differs from the potential value of the claims. It must also describe the litigation and negotiation process and any other relevant considerations, including whether a judgment would be collectible if the case proceeded to trial.
Order
Judge Stewart D. Aaron ordered the joint letter or motion to be filed by September 22, 2020. The parties must explain the attorney-fee arrangement, attach the retainer agreement, provide information about the attorneys’ actual hours and relevant experience, and include a copy of the settlement agreement. The opinion orders this submission; it does not state that the court approved or rejected the settlement.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.