Barranco v. La Isla Restaurant, Inc.
- Gabriel Gorenstein
- 1:22-cv-01323
- U.S. District Court · Southern District of New York
- 1
In Barranco v. La Isla Restaurant, Judge Gorenstein ordered the parties to submit information supporting their Fair Labor Standards Act settlement.
The parties and their attorneys were required to file the joint letter or motion and supporting settlement and fee materials by October 17, 2022.
What happened
In Barranco v. La Isla Restaurant, Inc., the court said it appeared that the parties had reached a settlement. The complaint included claims under the Fair Labor Standards Act, a federal wage-and-hour law.
The court required the parties to file a joint letter or motion by October 17, 2022, explaining why the settlement was fair and reasonable. The filing had to address the claims and defenses, possible damages, the strengths and weaknesses of each side’s case, the negotiations, the attorney-fee arrangement, the retainer agreement, actual fees spent, and the settlement agreement itself.
Judge Gorenstein issued the order on October 3, 2022. The order required this information because federal courts must review Fair Labor Standards Act settlements for fairness under applicable Second Circuit precedent.
The detailed version
- Barranco v. La Isla Restaurant, Inc. · No. 1:22-cv-01323
- Gabriel Gorenstein
- Oct. 3, 2022
Background
The complaint asserted claims arising under the Fair Labor Standards Act, a federal law governing certain wage and-hour rights. The order states that it appeared the parties had reached a settlement.
Court’s action
Because the case involved Fair Labor Standards Act claims, the court required the parties to file a joint letter or motion addressing whether the settlement was fair and reasonable. The filing was due October 17, 2022.
The court required the submission to address:
- The claims and defenses; - The defendants’ potential monetary exposure and the basis for calculating it; - The strengths and weaknesses of the plaintiff’s case and the defendants’ defenses; - Any reasons for a 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 was reasonable, including the collectability of a judgment if the case proceeded to trial.
The filing also had to disclose the attorney-fee arrangement, attach the retainer agreement, provide information about actual attorney’s fees expended, and include the settlement agreement.
Disposition
The court entered an order requiring the settlement-related joint letter or motion and supporting materials. The opinion does not state that the court approved or rejected the settlement. The order cites Cheeks v. Freeport Pancake House, Inc., 796 F.3d 199 (2d Cir. 2015), concerning review of Fair Labor Standards Act settlements.
Read the full 1-page opinion on CourtListener, the free public archive maintained by the Free Law Project.