Arazi v. Cohen Brothers Realty Corporation

Background

The court stated that it had been advised that the parties reached a settlement in the case and that the settlement included claims under the Fair Labor Standards Act (FLSA). The order addressed how the parties could resolve or dismiss those FLSA claims. It did not disclose the settlement amount or other substantive terms.

Procedures Ordered by the Court

The court directed the parties to proceed through one of three alternatives:

1. Court approval for dismissal with prejudice. The parties could seek approval under Federal Rule of Civil Procedure 41(a)(2) to dismiss the FLSA claims with prejudice, meaning the claims would be permanently dismissed. Before doing so, they had to discuss whether both sides would consent to conducting all further proceedings before the assigned magistrate judge. If both consented, they had to file the completed consent form by June 30, 2023. If either party did not consent, the parties had to file a joint letter by that date without identifying the party that withheld consent. The parties could withhold consent without negative consequences.

If the case remained before the district judge, the parties had to submit a joint motion explaining why the settlement was fair, addressing the factors identified in Wolinsky v. Scholastic Inc., and attaching the settlement agreement. The court stated that it would not approve settlement agreements containing confidentiality provisions. It also stated that documents related to its settlement review could not be filed under seal without a particularized showing overcoming the presumption of public access. If the settlement included attorney’s fees, the parties had to address whether the fees were reasonable and attach detailed attorney time records.

2. Dismissal without prejudice without an FLSA settlement. The parties could submit a stipulation under Rule 41(a)(1)(A) dismissing the FLSA claims without prejudice, meaning the claims would not be permanently barred, if they certified that there had been no settlement of those claims. If they could not make that certification, they had to seek court review of the settlement under the first alternative. Any stipulation and certification had to be submitted by June 30, 2023.

3. Offer of judgment. The parties could resolve the case through an offer and acceptance of judgment under Federal Rule of Civil Procedure 68(a). The court stated that judicial approval was not required for such an offer involving FLSA claims. The parties had to submit the executed offer and acceptance, along with a proposed judgment, by June 30, 2023.

Disposition and Significance

This order did not approve the settlement, dismiss the case, enter judgment, or decide the merits of the parties’ claims. It set out the procedures and filings required for the parties to complete the case. Judge Gregory H. Woods entered the order on June 7, 2023.