Cruz v. La Nueva Sabrosura Restaurant, Inc.
- Stewart Aaron
- 1:20-cv-00302
- U.S. District Court · Southern District of New York
- 2
In Cruz v. La Nueva Sabrosura Restaurant, Magistrate Judge Aaron ordered the parties to explain why their Fair Labor Standards Act settlement is fair.
The plaintiff, Jose Israel Cruz, and the defendants, La Nueva Sabrosura Restaurant, Inc., and the other defendants named in the case, because they must submit information about their settlement and attorney fees.
What happened
In Cruz v. La Nueva Sabrosura Restaurant, the parties told the court they had reached a settlement in a case involving claims under the Fair Labor Standards Act. They then agreed that all proceedings could be handled by the magistrate judge.
The court required the parties to file a joint letter or motion addressing whether the settlement was fair and reasonable. The filing must discuss the claims and defenses, possible damages, the strengths and weaknesses of the case, the settlement negotiations, the reason for any difference between the claims’ possible value and the settlement amount, and other relevant issues. It must also explain the attorney-fee arrangement, include the retainer agreement and information about fees and attorney experience, and attach the settlement agreement.
Judge Stewart D. Aaron ordered the joint letter or motion to be filed by December 31, 2020. The order did not approve or reject the settlement.
The detailed version
- Cruz v. La Nueva Sabrosura Restaurant, Inc. · No. 1:20-cv-00302
- Stewart Aaron
- Dec. 18, 2020
Background
The case includes one or more claims under the Fair Labor Standards Act. The parties informed the court that they had reached a settlement and consented to have all proceedings held before Stewart D. Aaron, a United States magistrate judge.
Court’s Analysis and Requirements
The court cited the requirements of Cheeks v. Freeport Pancake House, Inc., which require court review of a settlement in a Fair Labor Standards Act case. The court directed the parties to file a joint letter or motion addressing whether the settlement was fair and reasonable.
The filing must address the claims and defenses; the defendants’ potential monetary exposure and the basis for calculating it; the strengths and weaknesses of the plaintiff’s case and the defendants’ defenses; any reasons for a difference between the potential value of the claims and the settlement amount; the litigation and negotiation process; and other relevant matters, including whether a judgment would be collectible if the case proceeded to trial.
The filing must also explain the attorney-fee arrangement, attach the retainer agreement, provide information about the actual attorney’s fees incurred and the attorneys’ relevant experience, and include a copy of the settlement agreement.
Disposition
Judge Stewart D. Aaron ordered the joint letter or motion to be filed by Thursday, December 31, 2020. The opinion is a procedural order directing the parties to provide information for settlement review; it does not state that the court approved or rejected the settlement.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.