Aguilera Mora v. Chinelus Corp.

Background

Maria Del Carmen Aguilera Mora brought this case on behalf of herself and others similarly situated against Chinelus Corp. and Alma Felicies. The court was advised that the parties had reached a settlement involving claims under the Fair Labor Standards Act (FLSA). The order established procedures for completing the case but did not state the settlement's terms or approve it.

Court's Directions

The court explained that, under the Second Circuit's decision in Cheeks v. Freeport Pancake House, Inc., the parties could not dismiss FLSA claims permanently through a notice of voluntary dismissal under Federal Rule of Civil Procedure 41(a)(1)(A). To permanently dismiss those claims, they had to seek court approval under Rule 41(a)(2).

If the parties wanted to seek approval of a permanent dismissal, they first had to discuss whether to consent to having all further proceedings conducted by the assigned magistrate judge. If both sides consented, they had to file the completed consent form by February 10, 2022. 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 nonconsenting party or parties. The court stated that withholding consent would not have negative consequences.

If the parties did not consent to proceedings before the magistrate judge, they had to submit a joint motion by February 17, 2022 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. If the settlement included attorney fees, the parties also had to address whether the fees were reasonable and provide detailed attorney time records.

The court stated that it would not approve settlement agreements containing confidentiality provisions. It also stated that documents related to the court's settlement review could not be filed under seal unless the parties made a particularized showing overcoming the presumption that judicial documents should be publicly accessible.

Alternatively, the parties could submit by February 10, 2022 an agreement dismissing the FLSA claims without prejudice under Rule 41(a)(1)(A). The court stated that it would accept such an agreement.

Finally, the parties could resolve the case through an offer and acceptance of judgment under Federal Rule of Civil Procedure 68. If they chose that option, they had to submit the executed offer and acceptance, along with a proposed order entering judgment consistent with those terms, by February 10, 2022. The court stated that judicial approval was not required for a Rule 68 offer of judgment involving FLSA claims.

Disposition and Classification

The court ordered the parties to proceed through one of these three settlement procedures. The opinion did not approve the settlement, dismiss the claims, or enter judgment. This is a procedural order because it addressed the process for resolving the settlement rather than deciding the underlying wage claims.