Carlo Manchame Lagos v. ANM Management, LLC

Background

The parties informed the court that they had reached a settlement in this Fair Labor Standards Act (FLSA) case. The opinion does not state the settlement amount or the specific claims at issue.

Settlement approval

The court ordered that the action not be dismissed with prejudice unless the settlement agreement was approved either by the court or by the Department of Labor. If the parties wanted dismissal with prejudice, they had to file a joint letter motion asking the court to approve the settlement or provide documentation showing Department of Labor approval. The deadline for filing the letter motion and settlement agreement on the public docket was April 19, 2021.

The court required the letter motion to explain why the proposed settlement was fair and reasonable. At a minimum, it had to address:

- the plaintiff’s possible recovery; - the burdens and expenses the settlement would avoid; - the litigation risks faced by the parties; - whether experienced counsel negotiated the settlement at arm’s length; and - the possibility of fraud or collusion.

The letter also had to address whether the parties genuinely disputed the number of hours worked or the compensation owed, and how much the plaintiff’s attorney intended to seek in fees.

Attorney’s fees and settlement terms

Any attorney-fee request had to include contemporaneous billing records showing, for each attorney, the date, hours worked, and nature of the work. The court stated that, absent special circumstances, it would not approve a settlement filed under seal or in redacted form. It also stated that, absent compelling circumstances, it would not approve a settlement containing sweeping nondisclosure provisions or broad releases of claims unrelated to FLSA issues.

Disposition

The court stated that any pending motions were moot and vacated all conferences. The opinion did not approve the settlement or dismiss the action with prejudice. The order was issued by Judge Analisa Torres.