Chang v. CK Tours, Inc

Background

The parties were scheduled to begin trial on April 20, 2022. That morning, they told the court that they had reached an agreement in principle and that trial would no longer be necessary. The court granted their joint request to adjourn the trial and directed them to reconvene on May 25, 2022, to discuss finalizing the settlement.

Settlement procedures discussed

According to plaintiffs’ counsel, the parties still had to determine how to document the settlement. One option was a settlement stipulation under Federal Rule of Civil Procedure 41, which the opinion states would require court approval under Cheeks v. Freeport Pancake House, Inc. The other option was an offer of judgment under Rule 68. The opinion cites authority stating that court approval is not required for a Rule 68(a) offer of judgment settling claims under the Fair Labor Standards Act.

Rule 68(a) requires an offer of judgment to be served at least 14 days before the date set for trial. Because any offer in this case would be served after the original trial date, the court required additional briefing if the parties chose to proceed under Rule 68.

Court’s action

The court ordered the parties to submit a joint memorandum of law, alongside any other required submissions, explaining why a Rule 68 offer of judgment would be a viable settlement alternative in this case. The memorandum could not exceed 10 pages and had to be double-spaced. The order did not decide whether the Rule 68 procedure was valid; it required the parties to address that question.