Mendoza v. Kidz Korner of New Rochelle Inc.

Background

Erica Mendoza sued Kidz Korner of New Rochelle Inc. and other defendants individually and on behalf of others similarly situated. The parties appeared before Judge James L. Cott for a settlement conference and reported that they had reached a settlement in principle.

The parties also advised the court that they consented to Judge Cott’s jurisdiction under 28 U.S.C. § 636(c) so that he could review the proposed settlement based on his familiarity with the case.

Order

The court directed the parties to file a joint letter motion, their settlement agreement, and a notice consenting to Judge Cott’s jurisdiction by February 8, 2021. The motion must explain why the proposed settlement is fair and reasonable and otherwise complies with the Second Circuit’s requirements for reviewing settlements of certain claims.

The court cited prior decisions addressing settlement terms such as reemployment provisions, restrictions on communications with the media, the scope of releases, truthfulness exceptions to mutual non-disparagement clauses, confidentiality provisions, and mutual general releases. It also identified several previously approved settlement papers as examples.

Disposition and effect

The order did not approve or reject the settlement, decide the underlying claims, or enter judgment. It directed the parties to submit materials requesting court approval. The order therefore affected the parties’ settlement process, including Mendoza’s claims brought individually and on behalf of others similarly situated.