Perez v. Healthy Choice Gourmet, Inc.

Background

The case includes claims under the Fair Labor Standards Act, a federal law governing wages and working conditions. The parties reached a settlement during mediation. The parties had consented to have the magistrate judge decide the matter under 28 U.S.C. § 636(c).

Required Settlement Filing

The court relied on the requirements of Cheeks v. Freeport Pancake House, Inc. and directed the parties to file a joint letter or motion addressing whether their settlement is fair and reasonable. The filing was due by Wednesday, December 23, 2020.

The court required the filing to discuss the claims and defenses, the defendants’ potential monetary exposure and the basis for calculating it, the strengths and weaknesses of the plaintiff’s case, 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 information relevant to whether the settlement is reasonable, including whether a judgment would be collectible after trial.

The parties also had to explain the attorney-fee arrangement, attach the retainer agreement, provide information about the attorneys’ hours and experience, and attach the settlement agreement itself.

Disposition

The order directed the parties to submit the specified materials. It did not approve or reject the settlement. Judge Stewart D. Aaron signed the order on November 23, 2020.