Medina v. Raykell Food Corp.

Background

The court stated that the parties had notified it that they reached a settlement in this Fair Labor Standards Act case. The opinion does not describe the settlement's terms or state that the court approved it.

Settlement-approval requirements

The court advised that the parties could not dismiss the action with prejudice based on the settlement unless either the court or the Department of Labor approved the settlement. The parties were told to file a letter motion and the settlement agreement on the public docket. The letter motion had to explain why the proposed settlement was fair and reasonable and address:

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

The filing also had to address whether there was a genuine dispute about the number of hours worked or the compensation owed, and how much the plaintiff's attorney would seek in fees. The court stated that, absent special circumstances, it would not approve a settlement filed under seal or in redacted form.

Deadlines and disposition

The court directed the parties to file the required letter or stipulation by April 23, 2021. The order also stated that the filing had to be made within sixty days of the order. All other filing deadlines, conference dates, and the trial date were adjourned indefinitely. Judge J. Paul Oetken did not approve or reject the settlement in this order; he set requirements for seeking approval and postponed the case's other scheduled events.