Hidalgo v. Doe Corp.

Background

Manuel Hidalgo brought this putative collective or class case on behalf of himself and others described in the complaint as similarly situated. The opinion states that the case contains one or more claims under the Fair Labor Standards Act, a federal law governing certain wage and hour rights. The defendants include Doe Defendant Corp., doing business as Tavola, and others.

On June 25, 2021, the court was informed that the parties had reached a settlement. The parties then consented to have all proceedings held before Stewart D. Aaron.

Court’s Order

The court did not decide whether to approve the settlement. Citing the requirements of Cheeks v. Freeport Pancake House, Inc., 796 F.3d 199 (2d Cir. 2015), the court ordered the parties to file a joint letter or motion addressing whether the settlement was fair and reasonable. The filing was due by July 14, 2021.

The required submission had to discuss the claims and defenses, the defendants’ potential monetary exposure and the basis for calculating it, the strengths and weaknesses of the plaintiff’s case and the defendants’ defenses, reasons for any difference between the potential value of the claims and the settlement amount, the litigation and negotiation process, and other information relevant to the settlement’s reasonableness. It also had to explain the attorney-fee arrangement, attach the retainer agreement, provide the attorneys’ hours and relevant experience, and include a copy of the settlement agreement.