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S.D.N.Y.Procedural orderFiled Mar. 31, 2022

Cruz v. Nova Marketing, Inc.

Judge
Valerie Caproni
Docket
1:21-cv-10000
Court
U.S. District Court · Southern District of New York
Pages
2
Civil ProcedureClass Action
In one sentence

In Cruz v. Nova Marketing, Judge Caproni dismissed the settled case with prejudice, without costs, and without binding absent putative class members.

Who this affects

Shael Cruz and Nova Marketing, Inc. were bound by the dismissal. Absent putative class members were not bound by the dismissal or any settlement between the parties.

What happened

In Cruz v. Nova Marketing, Inc., the parties told the court they had reached an agreement in principle resolving all issues.

The court cancelled the remaining conferences and deadlines, dismissed the case with prejudice, and ordered that neither side receive costs or attorneys’ fees. The court also said the parties could ask to reopen the case within 30 days for good cause and could request that the court retain authority to enforce their settlement agreement.

Judge Valerie Caproni ordered the case closed and removed the class-action language from the caption. Because the parties had not told the court they would follow the procedure for settling a class action, the dismissal and any settlement applied only to Shael Cruz and Nova Marketing and did not bind absent putative class members.

The detailed version

For law students, journalists, and other readers who want the full reasoning

Case
Cruz v. Nova Marketing, Inc. · No. 1:21-cv-10000
Judge
Valerie Caproni
Date
Mar. 31, 2022

Background

On March 29, 2022, the parties notified the court that they had reached an agreement in principle resolving all issues. The opinion does not describe the agreement’s terms.

Court’s action

The court cancelled all previously scheduled conferences and other deadlines. It dismissed the case with prejudice and without costs, including attorneys’ fees, to either party. The Clerk of Court was directed to terminate all open motions and close the case.

The parties were permitted to apply to reopen the case within 30 days. Any such application had to show good cause for keeping the case open despite the settlement. The court also stated that, if the parties wanted the court to retain jurisdiction—that is, continuing authority—to enforce their settlement agreement, they had to submit the agreement and request an order expressly retaining that authority within the same 30-day period.

Putative class

The court directed the Clerk to remove the language stating that Shael Cruz sued individually and on behalf of all others similarly situated. Because the parties had not notified the court that they intended to comply with Federal Rule of Civil Procedure 23(e), which governs court approval of certain class-action settlements, the court stated that the dismissal and any settlement operated only between Cruz and Nova Marketing, Inc. They did not bind absent putative class members.

Disposition and classification

The case was dismissed with prejudice, without costs to either party, and closed. This is classified as a procedural order because the court disposed of the case based on the parties’ agreement and did not decide the underlying claims.

The authoritative version

Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.

Open opinion PDF →
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