Kim v. Let's Meat Inc

Background

Katie Kim and Miguelina Ortega brought claims under the Fair Labor Standards Act on behalf of themselves and others similarly situated against Let’s Meat Inc dba Let’s Meat and Jung H. Lee aka Jayden. On May 31, 2023, the court was notified that mediation had produced an agreement on all issues.

Court’s order

Because the case involved claims under the Fair Labor Standards Act, the court ordered that the parties could not dismiss the action with prejudice unless the settlement agreement was approved by either the court or the Department of Labor. If the parties sought that type of dismissal, they had to file a joint letter motion asking the court to approve the agreement, or documentation showing Department of Labor approval, by June 30, 2023. The agreement had to be filed on the public docket.

The court stated that the approval request had to explain why the proposed settlement was fair and reasonable. It had to address the plaintiffs’ possible recovery, the burdens and expenses avoided through settlement, litigation risks, whether experienced counsel negotiated at arm’s length, and the possibility of fraud or collusion. It also had to address whether there was a genuine dispute about the hours worked or compensation owed and how much the plaintiffs’ attorney would seek in fees. The court stated that, absent special circumstances, it was unlikely to approve an agreement filed under seal or in redacted form.

The court also warned that it was unlikely to approve a general release, or a release of claims unrelated to the wage-and-hour claims in the complaint and related state-law claims. If the parties believed unusual circumstances justified a broader release, their motion had to explain why. The court warned that failure to comply could result in denial of the motion and sanctions against the attorneys.

The court explained that the parties could instead seek dismissal without prejudice under Federal Rule of Civil Procedure 41(a)(1)(A), without court or Department of Labor approval. That filing had to be made on the public docket within 30 days and include an affirmation from plaintiffs’ counsel stating that the plaintiffs had been clearly advised they could file another lawsuit against the same defendants and affirming that the settlement agreement contained no release of the defendants. The court warned that this option carried a risk that the case could be reopened.

Disposition

The order established procedures for the parties’ proposed resolution; it did not itself approve the agreement or dismiss the case. If no required letter or stipulation was filed by June 30, 2023, Judge Valerie Caproni ordered a conference for July 7, 2023, at 10:00 a.m. in Courtroom 443 of the Thurgood Marshall U.S. Courthouse.