Tchalim v. 150 Riverside Op. LLC

Background

The court stated that it had been advised that the parties reached a settlement in this case, which included claims under the Fair Labor Standards Act (FLSA). The order addressed how the parties could proceed toward resolving those claims. It did not describe the settlement's financial or other terms, and it did not approve the settlement.

Available procedures

The court described three alternatives:

1. Dismissal with prejudice after court approval. Under the Second Circuit's decision in Cheeks v. Freeport Pancake House, Inc., the parties could not dismiss FLSA claims with prejudice through the ordinary notice procedure in Federal Rule of Civil Procedure 41(a)(1)(A). They instead had to seek court approval under Rule 41(a)(2). First, the parties were ordered to discuss whether they would consent to having all further proceedings conducted by the assigned magistrate judge. If both consented, they had to file the required consent form by October 10, 2023. If either party declined, the parties had to file a joint letter by that date stating that they did not consent, without identifying the nonconsenting party or parties. The order stated that withholding consent would not have negative consequences. If the parties did not consent, they had to submit a joint motion by October 17, 2023 explaining why the settlement was fair, addressing the factors identified in Wolinsky v. Scholastic Inc., and attaching the settlement agreement. The court also stated that it would not approve settlement agreements containing confidentiality provisions and would not allow settlement-related materials to be filed under seal without a specific showing overcoming the presumption of public access. If the settlement included attorney fees, the motion also had to address whether the fees were reasonable and include detailed attorney time records.

2. Dismissal without prejudice if there was no FLSA settlement. The court stated that it would accept a Rule 41(a)(1)(A) stipulation dismissing the FLSA claims without prejudice only if the stipulation said those claims were dismissed without prejudice and the parties certified that no FLSA claims had been settled. If the parties could not make that certification, they had to seek court review of the settlement under the first procedure. Any such stipulation and certification had to be submitted by October 10, 2023.

3. Offer of judgment. The parties could also resolve the case through an offer and acceptance of judgment under Rule 68(a). Citing Second Circuit precedent, the court stated that court approval was not required for a Rule 68(a) offer of judgment in an action raising FLSA claims. The executed offer and acceptance, along with a proposed order entering judgment, had to be submitted by October 10, 2023.

Disposition

The court ordered the parties to proceed through one of the described alternatives and set the related deadlines. The order did not grant or deny a motion, enter judgment, approve the settlement, or state that the case had been dismissed. Judge Gregory H. Woods signed the order on September 26, 2023.