Jeronimo Espinoza v. AKV Restaurant Corp.

Background The court was notified that the parties had reached a settlement in this Fair Labor Standards Act case. The opinion does not state the settlement amount or describe the underlying wage claims.

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 either the court or the Department of Labor. It directed the parties to file a letter motion, together with the settlement agreement, on the public docket within thirty days of the order.

The letter motion had to explain why the proposed settlement was fair and reasonable. It also had to address: (1) the plaintiff’s possible recovery range; (2) the burdens and expenses the settlement would avoid; (3) the seriousness of the litigation risks; (4) whether experienced counsel negotiated the settlement at arm’s length; and (5) the possibility of fraud or collusion. The letter also had to discuss whether a genuine dispute existed about the number of hours worked or the compensation owed, and how much the plaintiff’s attorney would seek in fees.

Disposition The court did not approve or reject the settlement in this order. It directed the parties to file a letter or stipulation meeting those requirements by October 16, 2020. Unless special circumstances existed, the court stated that it would not approve a settlement filed under seal or in redacted form. All other filing deadlines, conference dates, and the trial date were postponed indefinitely.