Hernandez v. 1268 2nd Ave LLC
- Gabriel Gorenstein
- 1:22-cv-07037
- U.S. District Court · Southern District of New York
- 1
In Hernandez v. 1268 2nd Ave LLC, Judge Gorenstein required settlement disclosures for review of the Fair Labor Standards Act claims.
The parties and their attorneys must jointly submit the required settlement-review materials by February 16, 2023.
What happened
In Hernandez v. 1268 2nd Ave LLC, the court noted that the case includes one or more claims under the Fair Labor Standards Act. Because those claims require review of settlements, the court ordered the parties to submit a joint letter or motion about whether the settlement is fair and reasonable.
The filing must address the claims and defenses, the defendants’ potential financial exposure, the strengths and weaknesses of both sides’ positions, the reasons for any difference between the claims’ potential value and the settlement amount, and the litigation and negotiation process. It must also include the attorney-fee arrangement, the fee agreement, information about fees actually spent, and a copy of the settlement agreement.
The filing is due February 16, 2023. Judge Gabriel W. Gorenstein issued this order, which required information for settlement review but did not decide whether the settlement was fair or reasonable.
The detailed version
- Hernandez v. 1268 2nd Ave LLC · No. 1:22-cv-07037
- Gabriel Gorenstein
- Jan. 26, 2023
Background
The order states that the case contains one or more claims under the Fair Labor Standards Act, a federal law governing certain wage and hour rights. The court cited Cheeks v. Freeport Pancake House, Inc., which requires judicial review of certain settlements involving those claims.
What the court ordered
The parties must file a joint letter or motion by February 16, 2023, addressing whether the settlement is fair and reasonable. The filing must discuss:
- 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 other reasons for a difference between the potential value of the plaintiff’s claims and the settlement amount; - the litigation and negotiation process; and - other issues relevant to whether the settlement is reasonable, including whether a judgment would be collectible if the case proceeded to trial.
The parties must also disclose the attorney-fee arrangement, attach the retainer agreement, provide information about the attorney’s fees actually expended, and attach the settlement agreement itself.
Disposition and effect
The court entered an order requiring the joint settlement filing. It did not state whether the settlement was approved or whether it was fair and reasonable. Judge Gabriel W. Gorenstein signed the order.
Read the full 1-page opinion on CourtListener, the free public archive maintained by the Free Law Project.