Belmonth v. Lucky Dollar 207 Inc.

Background

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

Court’s directions

The court advised that the parties could not dismiss the action with prejudice based only on their agreement. They first needed approval from either the court or the Department of Labor. The court cited the requirement that settlements in these cases be reviewed for fairness.

The parties were directed to file a letter motion, together with the settlement agreement, on the public docket. The letter had to explain why the proposed settlement was fair and reasonable and address: the plaintiff’s possible recovery; the burdens and expenses the settlement would avoid; the litigation risks; whether experienced counsel negotiated the agreement 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 plaintiff’s attorney would seek in fees. The court stated that, absent special circumstances, it would not approve an agreement filed under seal or in redacted form.

Disposition

Judge J. Paul Oetken ordered the parties to file a letter or stipulation meeting these requirements by November 18, 2023. The order did not approve or reject the settlement. It postponed all other filing deadlines, conference dates, and the trial date without setting replacement dates.