Horrabin v. Walt Disney Company

Background

The court stated that the parties had reached a settlement in principle. The settlement included claims under the Fair Labor Standards Act (FLSA), a federal law governing certain wage and hour matters. The court adjourned the conference scheduled for November 2, 2020, and extended the defendants’ deadline to file and serve a motion for summary judgment to November 23, 2020. The plaintiff’s opposition would be due within 30 days after service of that motion, and any reply by the defendants would be due within 14 days after service of the opposition.

Procedures for dismissing the FLSA claims

The court directed the parties to choose between two procedures:

1. Dismissal with prejudice after court approval. A dismissal with prejudice permanently bars the dismissed claims from being brought again. Relying on the Second Circuit’s decision in Cheeks v. Freeport Pancake House, Inc., the court explained that the parties could not use Federal Rule of Civil Procedure 41(a)(1)(A) to dismiss the FLSA claims with prejudice without court approval. Instead, they had to seek approval under Rule 41(a)(2).

The parties first had to discuss whether they would consent under 28 U.S.C. § 636(c) to having all further proceedings conducted by the assigned magistrate judge. If both consented, they had two weeks from the date of the order to file a completed consent and reference form. If either party declined, the parties had to file a joint letter within two weeks stating that they did not consent, without identifying the party or parties who declined. The court stated that withholding consent would have no negative consequences.

If the parties did not consent to proceed before the magistrate judge, they had three weeks to file a joint motion explaining why the settlement was fair and should be approved. The motion had to address the factors identified in Wolinsky v. Scholastic and include the settlement agreement. The court stated that it would not approve settlement agreements containing confidentiality provisions. It also stated that settlement-related documents could not be filed under seal unless the parties made a particularized showing overcoming the presumption of public access to judicial documents.

If the settlement included attorney’s fees, the parties had to address whether the fees were reasonable under the framework identified in Goldberger v. Integrated Resources, Inc. The plaintiff’s attorneys also had to provide detailed time records for the court’s review.

2. Dismissal without prejudice under Rule 41(a)(1)(A). A dismissal without prejudice does not permanently bar the claims from being brought again. The court explained that Cheeks had reserved the question of voluntary dismissals of FLSA claims without prejudice. The court therefore stated that it would accept a stipulation dismissing the FLSA claims without prejudice under Rule 41(a)(1)(A), if the parties submitted it within two weeks of the order.

Disposition and effect

The order established procedures for handling the proposed settlement; it did not decide the underlying claims or approve the settlement. The court directed the Clerk of Court to terminate the motion pending at Docket No. 74. The opinion does not identify that motion’s subject in the text provided.