Luque v. Z&S Deli Inc.

Background

The court was informed that the parties had reached a settlement in this Fair Labor Standards Act case. The order does not state the settlement amount or other terms.

Settlement-approval requirements

The court advised that the parties could not dismiss the action with prejudice based on the settlement unless the settlement agreement was approved by either the court or the Department of Labor. A dismissal with prejudice would end the action and bar its refiling.

The parties were directed to file a letter motion and the settlement agreement on the public docket within 30 days. The letter motion had to explain why the proposed settlement was fair and reasonable. It also had to address:

- the plaintiff’s possible range of recovery; - the burdens and expenses the settlement would avoid in proving the claims and defenses; - the seriousness of the parties’ litigation risks; - whether the agreement resulted from arm’s-length bargaining between experienced counsel; and - the possibility of fraud or collusion.

The filing also had to address whether a genuine dispute existed about the number of hours worked or the compensation owed, and how much the plaintiff’s attorney would seek in fees. The court stated that, absent special circumstances, it would not approve a settlement filed under seal or in redacted form.

Disposition and next deadline

The court directed the parties to file the required letter or stipulation by September 18, 2023. It adjourned all other filing deadlines, conference dates, and the trial date without setting new dates. Judge J. Paul Oetken did not approve the settlement in this order; he set the procedure for seeking approval.