Licona Perez v. Hummus On 6th LLC
- Stewart Aaron
- 1:20-cv-05705
- U.S. District Court · Southern District of New York
- 2
In Licona Perez v. Hummus On 6th LLC, Judge Aaron required a joint filing addressing whether the Fair Labor Standards Act settlement was fair and reasonable.
The plaintiffs and defendants, who were required to jointly submit information supporting judicial review of their settlement, as well as the attorneys whose fees and fee arrangement had to be disclosed.
What happened
Ernesto Licona Perez and Jose Quic sued Hummus On 6th LLC and other defendants in a case involving claims under the Fair Labor Standards Act. The parties reached a settlement after a settlement conference before Judge Stewart D. Aaron and agreed that he would handle all proceedings.
Judge Aaron ordered the parties to file a joint letter or motion explaining whether the settlement was fair and reasonable. The filing had to discuss the claims and defenses, potential damages, the strengths and weaknesses of the case, the settlement negotiations, and other relevant factors.
The order also required information about attorney fees, a copy of the fee agreement, details about fees incurred and the attorneys’ experience, and the settlement agreement itself. Judge Stewart D. Aaron set June 14, 2021, as the filing deadline; the order did not itself approve or reject the settlement.
The detailed version
- Licona Perez v. Hummus On 6th LLC · No. 1:20-cv-05705
- Stewart Aaron
- May 14, 2021
Background
The case included one or more claims under the Fair Labor Standards Act. The parties reached a settlement after a settlement conference conducted by Magistrate Judge Stewart D. Aaron. They later consented to have all proceedings handled by him.
Order
Because settlements of Fair Labor Standards Act claims require judicial review for fairness under Cheeks v. Freeport Pancake House, Inc., Judge Aaron ordered the parties to file a joint letter or motion addressing whether their settlement was fair and reasonable.
The filing had to address:
- The claims and defenses; - The defendants’ potential monetary exposure and the basis for calculating it; - The strengths and weaknesses of the plaintiffs’ claims and the defendants’ defenses; - Any reasons for a difference between the potential value of the claims and the settlement amount; - The litigation and settlement-negotiation process; and - Other issues relevant to whether the settlement was reasonable, including whether a judgment would be collectible after trial.
The parties also had to explain the attorney-fee arrangement, attach the fee agreement, provide information about fees actually incurred and the attorneys’ relevant experience, and attach the settlement agreement.
Disposition
Judge Aaron set June 14, 2021, as the deadline for the joint filing. The order required additional information for settlement review but did not approve or reject the settlement.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.