Condo v. Vidhan Bhatt Inc.
- Laura Swain
- 1:20-cv-07793
- U.S. District Court · Southern District of New York
- 2
In Condo v. Vidhan Bhatt Inc., Judge Swain ordered a joint filing supporting review of the parties’ Fair Labor Standards Act settlement.
The plaintiff and defendants in the Fair Labor Standards Act case, whose settlement agreement must be submitted for court review.
What happened
Condo v. Vidhan Bhatt Inc. is a Fair Labor Standards Act case in which the court was told that the parties had reached a settlement agreement.
The court explained that it must review an Fair Labor Standards Act settlement before entering judgment and decide whether the agreement is fair and reasonable. The review considers factors such as possible recovery, litigation costs and risks, bargaining circumstances, and potential fraud or collusion.
Judge Swain directed the parties to file a joint submission with the settlement agreement and information addressing those factors by January 22, 2021. The order did not approve or reject the settlement.
The detailed version
- Condo v. Vidhan Bhatt Inc. · No. 1:20-cv-07793
- Laura Swain
- Dec. 21, 2020
Background
The court was informed that the parties had reached a settlement agreement in this Fair Labor Standards Act case. The opinion does not describe the underlying wage claims or the settlement’s terms.
Settlement-review standard
Before entering judgment on a Fair Labor Standards Act settlement, the court must scrutinize the agreement to determine whether it is fair and reasonable. The court described the relevant totality-of-the-circumstances factors as including the plaintiff’s possible recovery, the parties’ ability to avoid the burdens and expenses of litigation, the seriousness of litigation risks, whether the agreement resulted from arm’s-length bargaining between experienced counsel, and the possibility of fraud or collusion. The court also noted that parties generally may not privately settle Fair Labor Standards Act claims without approval from either the district court or the Department of Labor.
Order
The court directed the parties to file a joint submission by January 22, 2021. The submission must address the fairness factors and include the settlement agreement. The memorandum order did not approve or reject the settlement agreement and did not enter judgment.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.