Lucero v. Papa Hotel Corp.

Background

Claudia Lucero, Magdalena L. Rojas, Olga Saavedra, and Maria del Carmen Silva sued Papa Hotel Corp., doing business as Jetset Hotel and Metro Suites Hotel, and Manny Chadha and Paras Chadha. The claims arose under the Fair Labor Standards Act, a federal wage-and-hour law, and New York Labor Law. The parties consented to the court’s handling of the case and, after reaching an agreement in principle, submitted a proposed settlement for judicial approval.

Settlement review

The court reviewed the plaintiffs’ submission explaining why the agreement was fair, reasonable, and adequate, along with the settlement’s terms. Applying the required fairness review for Fair Labor Standards Act settlements, the court found that the agreement fairly addressed the plaintiffs’ claims and reasonably compensated their counsel for legal fees. The court therefore approved the proposed settlement.

Retention of authority

The approval order did not include the settlement’s terms. The agreement also did not state that the court would retain authority to enforce it, and the court did not independently decide to retain that authority. The court explained that approving a settlement does not, by itself, give a federal court continuing authority to enforce the agreement.

Disposition

As a result of approving the settlement, Judge Katharine H. Parker ordered that the action be discontinued with prejudice and without costs. The Clerk of Court was directed to close the case. The order did not state the settlement amount or other payment terms.