Rivera v. 787 Coffee LLC

Background

The plaintiffs brought this Fair Labor Standards Act case against 787 Coffee LLC and other defendants. After a settlement conference with the court, the parties reported that they had reached a settlement in principle.

Settlement-Approval Requirements

The order states that the parties may not dismiss the action with prejudice based on their settlement unless the settlement agreement is approved by the court or by the Department of Labor. The parties were required to file a letter motion and the settlement agreement on the public docket within thirty days of the order, and the order set September 8, 2023, as the filing deadline.

The letter motion must explain why the proposed settlement is fair and reasonable. It must address at least: the plaintiff’s possible recovery; the burdens and expenses the settlement may help the parties avoid; the seriousness of the litigation risks; whether experienced counsel negotiated the agreement at arm’s length; and the possibility of fraud or collusion. It must also state how much the plaintiff’s attorney will seek in fees. The court stated that, absent special circumstances, it will not approve an agreement filed under seal or in redacted form.

Ruling and Effect

The court ordered the parties to file the required letter or stipulation by September 8, 2023. It also adjourned all other filing deadlines, conference dates, and the trial date without setting new dates. The order does not approve or reject the settlement and does not state its terms. Judge J. Paul Oetken entered the order on August 9, 2023.