Zhang v. Ken's Sushi Bistro Inc.

Background

The case includes one or more claims under the Fair Labor Standards Act. The parties reached a settlement during a settlement conference held before Judge Aaron on September 16, 2020.

Court’s Order

The court cited Cheeks v. Freeport Pancake House, Inc., a Second Circuit decision requiring judicial review of certain Fair Labor Standards Act settlements. The court required the parties to file a joint letter or motion addressing whether their settlement was fair and reasonable.

The filing had to 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; - the litigation and negotiation process; and - other issues relevant to whether the settlement was reasonable, including whether a judgment would be collectible if the case went to trial.

The court also required an explanation of the attorney-fee arrangement, a copy of the retainer agreement, information about the attorneys’ hours worked and relevant experience, and a copy of the settlement agreement. The joint letter or motion was due by September 30, 2020.

Disposition

The order required the parties to provide information for the court’s fairness review. It did not state that the court approved or rejected the settlement. Judge Stewart D. Aaron entered the order on September 16, 2020.