Parabal v. 333 Hudson Corp.
- Katherine Failla
- 1:21-cv-10575
- U.S. District Court · Southern District of New York
- 2
In Parabal v. 333 Hudson Corp., Judge Failla ordered the parties to report whether their FLSA settlement exists and, if so, submit it for fairness review.
The plaintiffs, defendants, and their counsel must provide the court with information about any settlement and possible dismissal of the FLSA case.
What happened
In Parabal v. 333 Hudson Corp., employees brought a proposed group and collective lawsuit under the Fair Labor Standards Act and New York Labor Law. After mediation, the parties told the court they had resolved all issues, and the plaintiffs filed a notice seeking to dismiss Gerardo Garcia’s claims without prejudice.
The court explained that it must determine whether the parties reached a Fair Labor Standards Act settlement before approving the dismissal. If there is a settlement, the court must review whether its terms are fair under the law.
Judge Katherine Polk Failla ordered the parties to file a letter within 21 days stating whether the plaintiffs or their lawyers received anything in exchange for dismissing the case. If they settled, they must submit the agreement and a joint letter addressing its fairness; if not, they must tell the court that no settlement occurred.
The detailed version
- Parabal v. 333 Hudson Corp. · No. 1:21-cv-10575
- Katherine Failla
- Mar. 3, 2022
Background
Evaristo Parabal and Gerardo Garcia filed a proposed class and collective action against 333 Hudson Corp. and Ok Ryon, also known as Alex Kim. The complaint asserted claims under the Fair Labor Standards Act (FLSA) and the New York Labor Law.
The parties informed the court that, after a successful mediation, they had reached a resolution of all issues. Garcia then filed a notice of voluntary dismissal under Federal Rule of Civil Procedure 41(a)(1)(A)(i), which purported to release the defendants from all claims brought by Garcia without prejudice.
Court’s Analysis
The court relied on Second Circuit precedent holding that, when a plaintiff files a notice of voluntary dismissal in an FLSA case, the district court must determine whether the parties reached an FLSA settlement. If they did, the court must conduct a fairness review under Cheeks v. Freeport Pancake House, Inc. A fairness review examines whether the settlement is fair under the FLSA and applicable Second Circuit law. If there was no settlement, the notice of dismissal should be formally approved by the court.
Order
The court ordered the parties to file a letter within 21 days stating whether they had settled the plaintiffs’ claims, including whether the plaintiffs or their counsel received any consideration for dismissing the action. If the parties had settled, they were ordered to provide the completed settlement agreement and a joint letter concerning the agreement’s fairness. If they had not settled, they were ordered to advise the court of that fact. The opinion does not itself approve the dismissal or decide whether the settlement is fair.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.