Cruz Morel v. Green Castle A Mgmt Corp.
- Stewart Aaron
- 1:19-cv-11307
- U.S. District Court · Southern District of New York
- 2
Cruz Morel v. Green Castle A Mgmt Corp.: Magistrate Judge Aaron required settlement disclosures before reviewing the Fair Labor Standards Act settlement.
The plaintiffs, the defendants, and their attorneys were required to provide information about the Fair Labor Standards Act settlement by January 11, 2022.
What happened
In Cruz Morel v. Green Castle A Mgmt Corp., the parties reached a settlement after a December 20, 2021, settlement conference in a case involving Fair Labor Standards Act claims. They later agreed that Magistrate Judge Stewart D. Aaron would handle all proceedings.
Judge Aaron required the parties to file a joint letter or motion addressing whether the settlement was fair and reasonable. The filing must discuss the claims and defenses, possible damages, the strengths and weaknesses of each side’s case, the settlement negotiations, and other relevant issues. It must also explain the attorney-fee arrangement, include the fee agreement and information about the lawyers’ fees and experience, and attach the settlement agreement.
The order required that filing by January 11, 2022. Judge Aaron did not approve or reject the settlement in this order; he required information for the court’s review under the applicable settlement-review standard.
The detailed version
- Cruz Morel v. Green Castle A Mgmt Corp. · No. 1:19-cv-11307
- Stewart Aaron
- Jan. 4, 2022
Background
The case includes one or more claims under the Fair Labor Standards Act, a federal law governing matters such as minimum wages and overtime. The parties reached a settlement at a settlement conference before Magistrate Judge Stewart D. Aaron on December 20, 2021. They then consented to have all proceedings handled by him.
Required Settlement Filing
The court cited Cheeks v. Freeport Pancake House, Inc., which requires review of certain Fair Labor Standards Act settlements for fairness and reasonableness. The order required the parties to file a joint letter or motion by Tuesday, January 11, 2022, addressing that issue.
The filing must discuss the claims and defenses, the defendants’ potential monetary exposure and the basis for calculating it, the strengths and weaknesses of the plaintiffs’ case and the defendants’ defenses, and any reasons for a difference between the potential value of the claims and the settlement amount. It must also describe the litigation and negotiation process and address other relevant issues, such as whether a judgment would be collectible if the case proceeded to trial.
The filing must further explain the attorney-fee arrangement, attach the retainer agreement, provide information about the attorneys’ actual fees and relevant experience, and include a copy of the settlement agreement.
Disposition
Judge Aaron ordered the parties to submit the required joint letter or motion by January 11, 2022. This order did not approve or reject the settlement; it required the information needed for the court to determine whether the settlement was fair and reasonable.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.