Davenport v. Sollis Health, P.C.

Background

The court was advised that the parties had reached a settlement in this Fair Labor Standards Act case. The opinion does not state the settlement amount or the specific terms of the agreement.

Legal standard

The court explained that parties may not privately settle Fair Labor Standards Act claims without approval from the district court or the Department of Labor. The court must determine whether the settlement is fair and reasonable by considering the total circumstances, including the plaintiff's possible recovery, the burdens and expenses the settlement may avoid, the litigation risks, whether experienced counsel negotiated at arm's length, and the possibility of fraud or collusion.

If the agreement includes attorney's fees, the court must separately assess whether those fees are reasonable. Counsel must provide evidence supporting the requested fees, including contemporaneous billing records showing each attorney's date of work, hours spent, and the nature of the work. The court must also closely examine any release, confidentiality, or non-disparagement provision.

Order

Judge Jessica G. L. Clarke ordered the parties to provide the settlement terms within 30 days. The parties must submit a joint letter of no more than five pages explaining why the settlement is a fair and reasonable compromise of disputed issues and addressing the identified factors. If the agreement includes attorney's fees, they must provide supporting evidence. If it includes a release, confidentiality provision, or non-disparagement provision, they must provide support for each provision, including citations to relevant case law. The order required these submissions; the opinion does not state that the court approved the settlement.