Dalmau v. 1084 NY Ave LLC
- Barbara Moses
- 1:21-cv-04407
- U.S. District Court · Southern District of New York
- 2
In Dalmau v. 1084 NY Ave LLC, Judge Moses vacated deadlines and required materials to support review of the parties’ Fair Labor Standards Act settlement.
Juan Mejia Dalmau, 1084 NY Ave LLC, and the other defendants named in the action, along with their counsel, were required to provide settlement and fee-related materials to the court.
What happened
In Dalmau v. 1084 NY Ave LLC, the parties settled their dispute, including claims under the Fair Labor Standards Act, a federal wage-and-hour law. The action had been referred to Judge Moses for settlement, and the parties later agreed that she could handle the remaining proceedings.
The court vacated all previously scheduled deadlines. It ordered the parties to submit by June 29, 2022, a joint explanation of why the settlement was fair and reasonable, the signed written settlement agreement, and materials supporting any requested attorney-fee and cost award.
Judge Moses also cautioned that confidentiality provisions, restrictions on truthful statements, and broad releases may prevent approval of a Fair Labor Standards Act settlement. She stated that any fee request must be included in the written agreement and supported by relevant records. The order required submissions for review; it did not state that the court had approved the settlement.
The detailed version
- Dalmau v. 1084 NY Ave LLC · No. 1:21-cv-04407
- Barbara Moses
- June 17, 2022
Background
The action was referred to United States Magistrate Judge Barbara Moses for settlement. The parties informed the court that they had settled their dispute, including claims brought under the Fair Labor Standards Act (FLSA). They then consented to Judge Moses’s authority over all remaining proceedings under 28 U.S.C. § 636(c).
Order
The court vacated all deadlines previously set in the action. It ordered the parties to submit, by June 29, 2022, three categories of materials:
- A joint letter explaining why the settlement was fair and reasonable under the factors identified in Wolinsky v. Scholastic Inc.;
- A written settlement agreement executed by all parties, which would be placed on the public docket; and
- Any contingency-fee agreement and counsel’s time and expense records needed to support a request for attorney’s fees and costs.
Settlement-review guidance
Judge Moses cautioned that confidentiality provisions in an FLSA settlement would ordinarily be inappropriate because of the policy concerns underlying the statute. She also cautioned that a non-disparagement provision may be improper if it prevents the plaintiff from making truthful statements about his employment, the lawsuit, or the settlement. The order further noted that courts in the district ordinarily refuse to approve one-way or overly broad general releases in FLSA settlements.
The court stated that its fairness review includes the reasonableness of attorney’s fees and costs. Any proposed fee and cost award had to be included in the signed settlement agreement, supported by properly authenticated records, and accompanied by a detailed explanation. The court identified the degree of success obtained as the most important factor in evaluating a fee award.
Disposition
Judge Moses ordered the deadlines vacated and required the parties to submit materials for review. The opinion does not say that the court approved or rejected the settlement.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.