Ortega v. 230 A&M Deli-Grocery Inc.

Background

Tomas Ortega brought a wage-and-hour action under the Fair Labor Standards Act against 230 A&M Deli-Grocery Inc. and other defendants. The parties consented to Magistrate Judge Sarah L. Cave’s authority to review their proposed settlement. They reached the settlement after a February 23, 2021 settlement conference before Judge Cave and submitted a joint motion, settlement agreement, and supporting exhibits for court approval.

Settlement Review

The court reviewed the parties’ submissions and considered the settlement under the standards governing approval of Fair Labor Standards Act settlements. The court noted a strong general presumption that such settlements are fair, while recognizing that the parties are usually better positioned than the court to assess the settlement’s reasonableness. The court also considered Ortega’s serious concerns about collectability—the risk that he might not be able to collect a judgment—and his agreement to a payment schedule. The court found that all proposed settlement terms, including the allocation of attorneys’ fees and costs, appeared fair and reasonable under the circumstances.

Disposition

The court approved the settlement. The action was dismissed with prejudice and without costs except as stated in the settlement agreement. The court retained jurisdiction to enforce the settlement agreement, ruled that any pending motions were moot, and requested that the clerk close the case.

Effect of the Order

The order ended the action and approved the parties’ settlement. The opinion does not state the settlement amount or describe the individual payment terms. Its dismissal with prejudice bars the action from being brought again on the same claims, while the court’s retained jurisdiction allows it to enforce the settlement agreement.