Cumatz v. Lotus West Corp.

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 underlying claims, the settlement amount, or the settlement’s other terms.

Settlement-review requirements

The court advised that the parties could not dismiss the action with prejudice unless either the court or the Department of Labor approved the settlement. The parties were directed to file a letter motion, together with the settlement agreement, on the public docket within thirty days.

The letter motion must explain why the proposed settlement is fair and reasonable. It must address the plaintiff’s possible recovery, the burdens and expenses the settlement would avoid, the litigation risks, whether experienced counsel negotiated at arm’s length, and the possibility of fraud or collusion. It must also address whether a genuine dispute exists about the number of hours worked or the compensation owed, and how much the plaintiff’s attorney will seek in fees. Unless special circumstances exist, the court said it would not approve a settlement filed under seal or in redacted form.

Order

Judge J. Paul Oetken directed the parties to file the required letter or stipulation by March 21, 2023. The court adjourned all other filing deadlines, conference dates, and the trial date without setting new dates. The order did not approve or reject the settlement.