Butler v. The All American Bar on First Avenue Inc.

Background

The plaintiffs are Alla Butler, Ian Hannah, and Edith Zagrod. The defendants are The All American Bar on First Avenue Inc., 58 E. 34th St. Wings Lodge Inc., Robert J. Gerola, Jr., Robert O’Rourke, Claudine M. O’Rourke, and Louise Demarco. On June 2, 2022, the parties consented to have a United States magistrate judge handle the case for all purposes. On June 10, 2022, they informed the court that they had reached a settlement.

The case includes one or more claims under the Fair Labor Standards Act. Under the Second Circuit’s requirements for reviewing settlements in those cases, the court must evaluate whether the settlement is fair and reasonable before accepting it.

Order

The court ordered the parties to file a joint letter-motion by June 17, 2022. The submission must address the claims and defenses, the defendants’ potential monetary exposure and the basis for calculating it, the strengths and weaknesses of the plaintiffs’ case and the defendants’ defenses, reasons for any difference between the potential value of the claims and the settlement amount, the litigation and negotiation process, and other matters relevant to whether the settlement is reasonable. The parties may also address whether a judgment would be collectible if the case proceeded to trial.

The joint submission must explain the attorneys’ fee arrangement and include any retainer agreement, records showing the attorneys’ actual fees, documentation of costs, and a copy of the settlement agreement. The order required the parties to submit these materials; it did not state that the court had approved or rejected the settlement.

Disposition and Classification

The court ordered the parties to submit settlement materials. This is a procedural order because it concerns court review of a proposed settlement and does not decide the underlying claims.