Chavaloc Choror v. Abitino's Pizza 49th Street Corp.

Background

The court stated that the parties had reached a settlement in this Fair Labor Standards Act case. The opinion does not describe the settlement amount or its other terms.

Court’s instructions

The court ordered that the action could not be dismissed with prejudice based on the settlement unless either the court approved the settlement agreement or the Department of Labor provided approval. If the parties sought dismissal with prejudice, they were required to file a joint letter motion asking for court approval or documentation of Department of Labor approval. Any filing with the settlement agreement was due on the public docket by May 30, 2021.

The court said a request for approval had to explain why the proposed settlement was fair and reasonable. It identified the following topics for discussion: the plaintiffs’ possible recovery; the burdens and expenses the settlement would avoid; the litigation risks; whether experienced counsel negotiated the agreement at arm’s length; and the possibility of fraud or collusion. The request also had to address whether a genuine dispute existed about the hours worked or compensation due, and how much the plaintiffs’ attorney would seek in fees.

Attorney fees and confidentiality terms

The court required any attorney-fee request to include supporting documentation, including contemporaneous billing records for each attorney showing the date, time spent, and nature of the work. The court also stated that, absent special circumstances, it would not approve a settlement filed under seal or in redacted form. Absent compelling circumstances, it would not approve broad nondisclosure provisions or releases covering claims unrelated to Fair Labor Standards Act issues.

Disposition

The court ruled that any pending motions were moot and vacated all conferences. It did not approve the settlement or dismiss the action in this order. Judge Analisa Torres signed the order.