Hudis v. Situ Group, Inc.

Background

Jordan Hudis and Thomas Ritchie sued Situ Group, Inc. and Kiefer Le Moigne in a Fair Labor Standards Act case. The court was advised that the parties had reached a settlement.

Court’s directions

The court stated that the action could not be dismissed with prejudice based on the settlement unless the settlement agreement was approved by the court or by the Department of Labor. If the parties sought dismissal with prejudice, they had to either file a joint letter motion asking the court to approve the settlement or provide documentation of Department of Labor approval. The filing and settlement agreement had to be placed on the public docket by April 25, 2022.

The court required the letter motion to explain why the proposed settlement was fair and reasonable. It identified these subjects for discussion: the plaintiffs’ possible recovery; the burdens and expenses the settlement would avoid; the litigation risks; whether experienced counsel negotiated at arm’s length; and the possibility of fraud or collusion. The letter also had to address whether there was a genuine dispute about the number of hours worked or the compensation owed, and how much the plaintiffs’ attorney would seek in fees.

Any request for attorney fees had to include contemporaneous billing records showing, for each attorney, the date, hours worked, and nature of the work. The court also stated that, absent special or compelling circumstances, it would not approve a settlement filed under seal or in redacted form, containing sweeping nondisclosure provisions, or releasing claims unrelated to Fair Labor Standards Act issues.

Disposition

The court stated that any pending motions were moot and vacated all conferences. The order did not approve the settlement, dismiss the action, or determine the amount of any attorney-fee award.