Galvez v. Reggiano Corp.

Background

The court stated that it had been advised that the parties reached a settlement in a case that included claims under the Fair Labor Standards Act (FLSA). The order established procedures for resolving the case but did not itself approve the settlement or enter a dismissal.

Available Procedures

Dismissal of FLSA Claims With Prejudice

The parties could seek court approval to dismiss the FLSA claims with prejudice, meaning the claims would be permanently dismissed. Under the Second Circuit’s decision in Cheeks v. Freeport Pancake House, Inc., the parties could not use Federal Rule of Civil Procedure 41(a)(1)(A) to dismiss FLSA claims with prejudice without court approval. They instead had to seek approval under Rule 41(a)(2).

First, the parties were ordered to discuss whether they would consent to having all further proceedings conducted by the assigned magistrate judge under 28 U.S.C. § 636(c). If both parties consented, they had to file the required consent form by April 22, 2022. If either party did not consent, the parties had to file a joint letter by that date without identifying the party or parties that withheld consent. The order stated that withholding consent would not have negative consequences.

If the parties did not consent to proceed before the magistrate judge, they had to submit a joint motion by April 29, 2022, explaining why the settlement was fair and should be approved. The motion had to address the factors identified in Wolinsky v. Scholastic Inc. and include the settlement agreement. The court stated that it would not approve settlement agreements containing a confidentiality provision. It also stated that documents related to settlement review could not be filed under seal unless the parties made a particularized showing overcoming the presumption of public access to judicial documents.

If the settlement included attorney’s fees, the parties had to address whether the fees were reasonable under Goldberger v. Integrated Resources, Inc. Plaintiffs’ attorneys also had to provide detailed time records for the court’s review.

Dismissal Without Prejudice Without an FLSA Settlement

The parties could instead submit a stipulation dismissing the FLSA claims without prejudice, meaning the claims would not be permanently barred by that dismissal. To use this option, the parties had to certify that there had been no settlement of the FLSA claims. They had to submit the stipulation and certification by April 22, 2022. If they could not make that certification, they had to seek court review of the settlement under the first procedure.

Offer of Judgment

The parties could also resolve the case through an offer of judgment under Federal Rule of Civil Procedure 68. The order explained that, under Second Circuit precedent, court approval was not required for a Rule 68 offer of judgment involving FLSA claims. If the parties chose this option, they had to submit the executed offer, acceptance, and a proposed order entering judgment by April 22, 2022.

Disposition

The court directed the parties to proceed under one of the three described procedures and set the related deadlines. Judge Gregory H. Woods did not state that the settlement had been approved or that the case had been dismissed.