Tian v. New Ooki Sushi, Inc.

Background

Judge Moses informed the court that the parties had reached a settlement in this action, which included claims under the Fair Labor Standards Act (FLSA). The order addressed how the parties could seek dismissal of the FLSA claims.

Dismissal with prejudice

The court explained that, under the Second Circuit’s decision in Cheeks v. Freeport Pancake House, Inc., FLSA claims cannot be dismissed with prejudice through a private stipulation under Federal Rule of Civil Procedure 41(a)(1)(A). A dismissal with prejudice would instead require court approval under Rule 41(a)(2).

The parties were first ordered to discuss whether they would consent to having all further proceedings conducted by the assigned magistrate judge under 28 U.S.C. § 636(c). If both parties consented, they had to file a completed consent form by December 22, 2020. If either party withheld consent, the parties had to file a joint letter by that date stating that they did not consent, without identifying the party or parties who withheld consent. The order stated that withholding consent would not have negative consequences.

If the parties did not consent to proceed before the magistrate judge, they were directed to submit a joint motion by December 29, 2020 explaining why the settlement was fair and should be approved. The motion had to address the factors identified in Wolinsky v. Scholastic Inc. and include the settlement agreement as an exhibit.

The court also stated that it would not approve settlement agreements containing confidentiality provisions. It further stated that documents related to the settlement review 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 in Goldberger v. Integrated Resources, Inc. and attach detailed attorney time records.

Dismissal without prejudice

The court stated that Cheeks had reserved the question of voluntary dismissal of FLSA claims without prejudice under Rule 41(a)(1)(A). The court therefore said it would accept a stipulation dismissing the FLSA claims without prejudice. If the parties chose that route, they were directed to submit the stipulation by December 22, 2020.

Ruling and effect

Judge Gregory H. Woods ordered the parties to follow one of these procedures. The order did not approve the proposed settlement and did not dismiss the action or the FLSA claims.