Ferreira v. 425 Claremont Apartments Housing Development Fund Company

Background

The court was notified that the parties had reached a settlement in this Fair Labor Standards Act case. The order does not describe the parties’ claims, the proposed settlement amount, or any other settlement terms.

Court’s instructions

The court advised that the parties could not dismiss the action with prejudice based on the settlement unless the settlement was approved by either the court or the Department of Labor. It directed the parties to file a letter or stipulation, together with the settlement agreement, on the public docket by September 1, 2022.

The filing must explain why the proposed settlement is fair and reasonable. The court identified five minimum topics: the plaintiff’s possible recovery; the burdens and expenses the settlement would avoid; the litigation risks; whether experienced counsel negotiated the settlement at arm’s length; and the possibility of fraud or collusion. The filing must also address whether a genuine dispute exists about the hours worked or compensation owed and how much the plaintiff’s attorney will seek in fees. The court stated that, absent special circumstances, it would not approve a settlement filed under seal or in redacted form.

Disposition

Judge J. Paul Oetken ordered the required filing by September 1, 2022. He adjourned all other filing deadlines, conference dates, and the trial date indefinitely. The order did not approve or reject the settlement and did not decide the underlying Fair Labor Standards Act claims.