Tapia v. Super Noriega, LLC
- Robert Lehrburger
- 1:21-cv-08778
- U.S. District Court · Southern District of New York
- 2
In Tapia v. Super Noriega, LLC, Judge Broderick ordered the parties to submit their FLSA settlement for fairness review and support for attorney fees.
Juan Tapia and the other plaintiffs, Super Noriega LLC and the other defendants, and their attorneys are affected because the parties must submit settlement terms, an explanation supporting the settlement, and any required attorney-fee records.
What happened
In Tapia v. Super Noriega, LLC, the parties told the court they had reached a settlement in a Fair Labor Standards Act case. The court explained that this type of settlement requires court or Department of Labor approval.
The court ordered the parties to submit the settlement terms within 20 days. They must also provide a joint letter of no more than five pages explaining why the settlement is fair and reasonable, including information about specified factors such as possible recovery, litigation risks, and whether the agreement resulted from arm’s-length negotiations.
Judge Vernon S. Broderick further ordered the parties to provide factual support for any attorney-fee award, including billing records showing each attorney’s dates, hours, and work performed. The order required additional submissions for review; it did not state that the settlement was approved.
The detailed version
- Tapia v. Super Noriega, LLC · No. 1:21-cv-08778
- Robert Lehrburger
- Mar. 30, 2023
Background
The court was advised that the parties had reached a settlement in this Fair Labor Standards Act (FLSA) case. The order states that parties may not privately settle FLSA claims without approval from the district court or the Department of Labor.
Court’s analysis
The court explained that it must determine whether the settlement is fair and reasonable by considering the totality of the circumstances. The listed considerations include:
- the plaintiff’s possible recovery; - the extent to which the settlement avoids the burdens and expenses of proving the claims and defenses; - the seriousness of the parties’ litigation risks; - whether experienced counsel reached the agreement through arm’s-length bargaining; and - the possibility of fraud or collusion.
The court also stated that any attorney-fee provision must be evaluated separately. Counsel must provide evidence establishing the factual basis for the requested fees, including contemporaneous billing records identifying, for each attorney, the date, hours worked, and nature of the work.
Order
The court ordered the parties to provide the settlement terms within 20 days so the court could determine whether they comply with the FLSA and reflect a reasonable compromise of disputed issues. The parties must submit a joint letter of no more than five pages explaining why they believe the settlement is fair and reasonable, including information about the listed factors. If the agreement includes attorney fees, the parties must also submit supporting evidence. The order does not state that the settlement was approved.
Judge Vernon S. Broderick signed the order.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.