Thomas v. Arts in Common LLC

Background

Daria Thomas brought this case on behalf of herself and others in a proposed collective action under the Fair Labor Standards Act. The defendants are Arts in Common LLC and Rafael Baccus. On February 18, 2022, the parties consented to the jurisdiction of a United States magistrate judge for all purposes.

The opinion states that the parties had a settlement requiring review under Cheeks v. Freeport Pancake House, Inc. That precedent requires court consideration of whether a settlement of Fair Labor Standards Act claims is fair and reasonable.

Court’s Order

The court ordered the parties to file a joint letter-motion by March 18, 2022. The letter-motion must address:

- the claims and defenses; - the defendants’ potential monetary exposure and the basis for calculating it; - the strengths and weaknesses of Thomas’s case and the defendants’ defenses; - any reasons for a difference between the potential value of the claims and the settlement amount; - the litigation and settlement-negotiation process; and - other matters relevant to whether the settlement is reasonable, including whether a judgment could be collected after trial.

The parties must also explain their attorney-fee arrangement, attach any retainer agreement, provide information about actual attorney fees incurred—including billing records and documentation of costs—and attach the settlement agreement itself.

Disposition and Effect

The court ordered submission of settlement materials. It did not approve or reject the settlement in this order, and the opinion does not decide the underlying wage claims. The order was signed by United States Magistrate Judge Sarah L. Cave on March 4, 2022.