Sanchez v. Beauty Trend USA Inc.

Background

Cristian Sanchez sued Beauty Trend USA Inc. individually and on behalf of others similarly situated. On August 16, 2022, the parties notified the court that they had reached an agreement in principle resolving all issues. The order does not describe the settlement’s terms.

Ruling

The court ordered that all previously scheduled conferences and other deadlines be canceled. It dismissed the case with prejudice and without costs, including attorneys’ fees, to either party. The clerk was directed to terminate all open motions and close the case.

The parties could 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 order stated that a request filed after 30 days, or without a showing of good cause, could be denied solely on that basis.

The court also explained that the parties could ask it to retain jurisdiction—the authority to enforce the settlement agreement—if they submitted the settlement agreement and a request for an order expressly retaining that authority within the same 30-day period.

Effect on Proposed Class Members

The court ordered the clerk to remove the words “individually and on behalf of all others similarly situated” from the caption. Because the parties had not notified the court that they intended to comply with Federal Rule of Civil Procedure 23(e), which governs settlement or dismissal of class actions, the dismissal and any settlement operated only between Sanchez and Beauty Trend. They did not bind absent proposed class members.

Disposition

Judge Valerie Caproni dismissed the case with prejudice and without costs, directed that the case be closed, and ordered the caption amended as described above.