Antigua v. Dynamic Event Group Inc.

Background

Samil Antigua brought Fair Labor Standards Act claims against Dynamic Event Group Inc., doing business as Dynamic Productions USA, and Brian Rosenblum. The parties notified the court that mediation had produced an agreement on all issues.

Court’s order

The court did not approve the settlement or dismiss the case. Instead, it ordered that the parties could not dismiss the action with prejudice unless the settlement agreement was approved by either the court or the Department of Labor. If they wanted court approval, they had to file a joint letter motion with the settlement agreement by March 2, 2022. The motion had to explain why the settlement was fair and reasonable, including the plaintiff’s possible recovery, the burdens and expenses avoided by settlement, litigation risks, whether experienced counsel negotiated at arm’s length, and any risk of fraud or collusion. It also had to address whether there was a genuine dispute about hours worked or compensation owed and the amount of attorney’s fees sought.

The court stated that it was unlikely to approve a settlement filed under seal or in redacted form absent special circumstances. It also warned that it was unlikely to approve a broad release of claims unrelated to the wage-and-hour claims in the complaint, unless the parties explained why such a release was appropriate. The court warned that failure to comply could lead to denial of the approval motion and sanctions against the attorneys.

Alternative dismissal procedure and disposition

The court noted that the Second Circuit had not decided whether the parties could settle an FLSA case without court or Department of Labor approval and dismiss it without prejudice under Federal Rule of Civil Procedure 41(a)(1)(A). If the parties chose that route, they had to file a stipulation within 30 days, accompanied by an affirmation from plaintiff’s counsel stating that the plaintiff or plaintiffs had been clearly advised that another lawsuit against the same defendants would remain possible and affirming that the settlement contained no release of the defendants. The court warned that this option could allow the case to be reopened in the future. If no letter or stipulation was filed by March 2, 2022, the court ordered a conference for March 4, 2022. Judge Caproni therefore issued procedural instructions concerning the settlement and possible dismissal, rather than entering a final judgment or approving the agreement.