Pena Abreu v. White Star NYC Inc.

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’s amount or other terms.

Settlement-Approval Requirements

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. The parties were required to file any letter motion and the settlement agreement on the public docket within 30 days of the order. The court stated that it generally would not approve a settlement filed under seal or in redacted form unless special circumstances existed.

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

Order

The court did not approve or reject the settlement in this order. Instead, Judge J. Paul Oetken directed the parties to file a letter or stipulation meeting these requirements by November 30, 2020. The court postponed all other filing deadlines, conference dates, and the trial date without setting new dates.