Sanchez v. R.Q. Realty Mgt. LTD.

Background

The court was informed that the parties had reached a settlement in this Fair Labor Standards Act (FLSA) case. The opinion states that private settlement of FLSA claims with prejudice requires approval by the district court or the Department of Labor. The court therefore had to determine whether the proposed settlement was fair and reasonable.

Required Settlement Information

The court stated that it would consider the total circumstances, including:

- the plaintiff’s possible recovery; - the burdens and expenses the settlement would avoid in proving the claims and defenses; - the seriousness of the litigation risks; - whether experienced counsel reached the agreement through arm’s-length bargaining; and - the possibility of fraud or collusion.

The court also stated that any attorney’s-fee provision had to be reviewed separately. The parties were required to provide a factual basis for any fee award, including contemporaneous billing records showing each attorney’s date of work, hours spent, and the nature of the work.

Order

Judge Vernon S. Broderick ordered the parties to provide the settlement terms within 30 days. He also ordered them to submit a joint letter of no more than five pages explaining why the settlement was a fair and reasonable compromise of disputed issues, including information about the listed factors. If the agreement included attorney’s fees, the parties had to provide supporting evidence. The court adjourned the status conference scheduled for April 1, 2021. The opinion does not state that the court approved or rejected the settlement.