Candelario v. ABC Corp.
- Stewart Aaron
- 1:19-cv-07732
- U.S. District Court · Southern District of New York
- 2
In Candelario v. ABC Corp., Judge Aaron required a fairness filing before reviewing the parties’ Fair Labor Standards Act settlement.
Plaintiff Teofilo Humberto Candelario, defendants ABC Corp., d/b/a La Caridad, et al., and their attorneys were required to provide information for the court’s review of the proposed settlement.
What happened
In Teofilo Humberto Candelario v. ABC Corp., d/b/a La Caridad, et al., the parties reached a settlement at a settlement conference on August 31, 2020. They then agreed that Magistrate Judge Stewart D. Aaron would handle all proceedings.
Because the case includes claims under the Fair Labor Standards Act, the court required the parties to submit a joint letter or motion addressing whether the settlement is fair and reasonable. The filing must discuss the claims and defenses, possible damages, the strengths and weaknesses of the case, the negotiation process, the attorney-fee arrangement, counsel’s time and experience, and the settlement agreement itself.
Judge Stewart D. Aaron ordered the joint letter or motion to be filed by September 24, 2020. The order directed the parties to provide information for settlement review; it did not state that the court approved or rejected the settlement.
The detailed version
- Candelario v. ABC Corp. · No. 1:19-cv-07732
- Stewart Aaron
- Sept. 3, 2020
Background
The case includes one or more claims under the Fair Labor Standards Act. The parties reached a settlement at a settlement conference before Judge Aaron on August 31, 2020. They later consented to have all proceedings conducted before him.
Court’s Analysis and Order
The court cited the requirements of Cheeks v. Freeport Pancake House, Inc., a Second Circuit decision concerning review of Fair Labor Standards Act settlements. The court ordered the parties to file a joint letter or motion addressing whether their settlement is fair and reasonable.
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 plaintiff’s case and the defendants’ defenses, reasons for any difference between the potential value of the claims and the settlement amount, and the litigation and negotiation process. It also may address other relevant issues, including whether a judgment would be collectible if the case went to trial.
The parties must also explain the attorney-fee arrangement, attach the retainer agreement, provide information about the attorneys’ actual hours and relevant experience, and attach the settlement agreement. Judge Stewart D. Aaron ordered that the joint letter or motion be filed by September 24, 2020. The opinion does not state the settlement amount or whether the court ultimately approved the settlement.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.