Ortega v. Faithlife, LLC

Background

On April 25, 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 Orders

The court canceled 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. Such an application had to show good cause for keeping the case open in light of the settlement. The court warned that a request filed after 30 days or without a showing of good cause could be denied on that basis alone.

The court also explained that, if the parties wanted it to retain jurisdiction—the power to enforce the settlement agreement—they had to submit the settlement agreement and request an order expressly retaining jurisdiction within the same 30-day period.

Class-Action Effect

The court ordered the caption amended to remove the language stating that Juan Ortega sued individually and on behalf of all others similarly situated. Because the parties had not told the court that they intended to comply with Federal Rule of Civil Procedure 23(e), which governs certain class settlements and dismissals, the dismissal and any settlement were effective only between Ortega and Faithlife. They did not bind absent putative class members.

Disposition

Judge Valerie Caproni dismissed the case with prejudice and without costs, directed that it be closed, and specified that the settlement did not bind absent putative class members.