English v. Mastour Galleries, Inc.

Background

This was a wage-and-hour action under the Fair Labor Standards Act (FLSA). The parties consented to Magistrate Judge Sarah L. Cave’s jurisdiction to review the proposed settlement. The defendants filed a motion letter and proposed settlement agreement seeking approval under the Second Circuit’s requirements for reviewing FLSA settlements. The opinion states that the plaintiff’s counsel made no submission about the settlement and that the defendants reported counsel did not agree that the settlement was fair and reasonable.

Court’s analysis

The court noted that FLSA settlements generally receive a strong presumption of fairness because the parties are usually better positioned than the court to evaluate the settlement’s reasonableness. The court also considered that, if the settlement was not completed, certain defendants might face difficult financial circumstances worsened by the economic downturn resulting from the COVID-19 pandemic. After reviewing the defendants’ letter-motion, the settlement agreement, its exhibits, and the plaintiff’s time records, the court concluded that the proposed settlement’s terms appeared fair and reasonable under the totality of the circumstances and the factors identified in Wolinsky v. Scholastic Inc. The agreement did not provide an award of attorneys’ fees to the plaintiff’s counsel, and counsel had not requested one.

Ruling

Magistrate Judge Cave approved the settlement. The action was dismissed with prejudice and without costs except as stated in the settlement agreement. The court retained jurisdiction to enforce the settlement agreement, ruled that any pending motions were moot, and requested that the Clerk of Court close the case.