Rossete v. Hong Kong Kitchen Inc.

Background

Arturo Velazquez Rossete and Crescencio Calva Cruz brought the case individually and on behalf of all others similarly situated. The order states that the case includes one or more claims under the Fair Labor Standards Act. After a settlement conference, the parties reached a settlement.

What the Court Required

The court required the parties to file a joint letter or motion addressing whether the settlement is fair and reasonable. The filing was due by May 31, 2023. The court directed the parties to discuss the claims and defenses, the defendants’ possible monetary exposure and the basis for calculating it, the strengths and weaknesses of the plaintiffs’ case, the defendants’ defenses, reasons for any difference between the possible value of the claims and the settlement amount, and the litigation and negotiation process. The court also identified collectability of a judgment as an example of another potentially relevant issue.

The parties also had to explain their attorney-fee arrangement, attach the retainer agreement, provide information about the actual attorney fees incurred and the attorneys’ relevant experience, and attach the settlement agreement.

Disposition and Effect

The order directed the parties to submit materials for review under the requirements identified in Cheeks v. Freeport Pancake House, Inc., a Second Circuit decision concerning review of settlements involving Fair Labor Standards Act claims. The opinion does not state that the court approved or rejected the settlement. Judge Stewart D. Aaron entered the order on May 17, 2023.