Wang v. CGY & J Corp.
- Stewart Aaron
- 1:19-cv-01772
- U.S. District Court · Southern District of New York
- 2
In Wang v. CGY & J Corp., Judge Aaron required settlement materials addressing fairness, claims, defenses, and attorney fees in this Fair Labor Standards Act case.
The order affects Guo Hua Wang, the people he seeks to represent, CGY & J Corp. and the other defendants, and the attorneys involved in the settlement.
What happened
Guo Hua Wang brought this Fair Labor Standards Act case individually and on behalf of others similarly situated against CGY & J Corp. and other defendants. The parties reached a settlement at a February 2, 2021 settlement conference and later agreed that all proceedings could be held before the court.
The court required the parties to file a joint letter or motion explaining whether the settlement is fair and reasonable. The submission must discuss the claims and defenses, the defendants’ possible financial exposure, the strengths and weaknesses of the case, the settlement amount, and the litigation and negotiation process. It must also include the settlement agreement and information about the attorneys’ fee arrangement, the attorneys’ time, and their experience.
The court did not approve the settlement in this order. Instead, it ordered the parties to file the required materials by February 26, 2021. Judge Stewart D. Aaron issued the order.
The detailed version
- Wang v. CGY & J Corp. · No. 1:19-cv-01772
- Stewart Aaron
- Feb. 10, 2021
Background
The plaintiff, Guo Hua Wang, sued CGY & J Corp., doing business as Kitaro, and other defendants individually and on behalf of all others similarly situated. The case includes claims under the Fair Labor Standards Act. The parties reached a settlement during a settlement conference before the court on February 2, 2021. They later consented to have all proceedings held before the court.
Required Settlement Submission
The court cited the requirement that settlements of Fair Labor Standards Act claims be reviewed for fairness and reasonableness. It directed the parties to file a joint letter or motion by February 26, 2021. 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, and any reasons for a difference between the potential value of the claims and the settlement amount. It also must explain the litigation and negotiation process and any other relevant considerations, including whether a judgment would be collectible if the case went to trial.
The filing must further explain the attorneys’ fee arrangement, attach the retainer agreement, and provide information about the attorneys’ hours worked and relevant experience. The parties must attach the settlement agreement itself.
Disposition
The court ordered the parties to submit the joint letter or motion and supporting materials. The order did not approve or reject the settlement. Judge Stewart D. Aaron signed the order on February 10, 2021.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.