Sosa v. Abdallah Incorporated

Background

Yony Sosa brought the case on behalf of himself and all other persons similarly situated against Abdallah Incorporated. The opinion states that, on June 17, 2021, the parties notified the court that they had reached an agreement in principle resolving all issues. The opinion does not provide the agreement’s terms.

Ruling

The court ordered that all previously scheduled conferences and other deadlines be canceled. It dismissed the case with prejudice and without costs, including attorneys’ fees, to either party. The Clerk of Court was directed to terminate all open motions and close the case.

The parties were permitted to apply to reopen the case within 30 days. Any such application had to show good cause for keeping the case open in light of the settlement and had to be filed within that period. The court stated that a request filed after 30 days or without a showing of good cause could be denied on that basis alone.

If the parties wanted the court to retain jurisdiction—that is, continuing authority—to enforce their settlement agreement, they had to submit the agreement and request an order expressly retaining jurisdiction within the same 30-day period.

Class-Action Effect

The court directed the Clerk to remove from the caption the language stating that Sosa sued “individually and on behalf of all others similarly situated.” Because the parties had not notified the court that they intended to comply with Federal Rule of Civil Procedure 23(e), which governs certain class-action settlements and dismissals, the court stated that the dismissal and any settlement were operative only between Sosa and Abdallah Incorporated. They did not bind absent putative class members.

Classification

This is a procedural order because the court dismissed the case following the parties’ agreement without deciding the underlying claims. Judge Valerie Caproni entered the dismissal and related orders on June 21, 2021.