Juarez v. Dolly Food Corp.

Background

The plaintiffs, Gerardo Juarez, Guillermo Mendez, Jose Martinez Casalez, Damian Valencia, Helder Martinez, and Sabas Hernandez, sued Dolly Food Corp., doing business as Moonstruck Eatery, and Rajiv Chowdhury. The court was informed that the parties had reached a settlement involving claims under the Fair Labor Standards Act (FLSA).

Court’s instructions

The court gave the parties two possible ways to proceed. First, if they wanted to dismiss the FLSA claims permanently, they had to seek court approval under Federal Rule of Civil Procedure 41(a)(2). The court relied on the Second Circuit’s decision in Cheeks v. Freeport Pancake House, Inc., which requires judicial approval for a permanent dismissal of FLSA claims.

The parties first had to discuss whether they would consent to having all further proceedings conducted by the assigned magistrate judge under 28 U.S.C. § 636(c). If both sides consented, they had to file the required consent form by June 2, 2021. If either side did not consent, the parties had to file a joint letter by that date stating that they did not consent, without identifying the party that withheld consent. The order stated that withholding consent would not have negative consequences.

If the parties did not consent to magistrate-judge proceedings, they had to file a joint motion by June 9, 2021 explaining why the settlement was fair and should be approved. The motion had to address the factors identified in Wolinsky v. Scholastic Inc. and include the settlement agreement. The court also stated that it would not approve agreements containing confidentiality provisions and would not allow settlement-related materials to be filed under seal without a specific showing overcoming the presumption that judicial documents are publicly accessible. If the settlement included attorney’s fees, the parties had to address their reasonableness under Goldberger v. Integrated Resources, Inc., and the plaintiffs’ attorneys had to provide detailed time records.

Second, if the parties wanted to dismiss the FLSA claims without prejudice under Rule 41(a)(1)(A), they could submit a stipulation of dismissal by June 2, 2021. The court stated that it would accept such a stipulation if it dismissed the FLSA claims without prejudice.

Disposition

The court issued instructions governing the proposed settlement and possible dismissal procedures. It did not approve the settlement or enter a dismissal in this order. The order was signed by Gregory H. Woods, United States District Judge.