Mariano Guerrero v. Jerome Meat & Produce Corporation
- Analisa Torres
- 1:23-cv-03878
- U.S. District Court · Southern District of New York
- 4
In Guerrero v. Jerome Meat & Produce Corporation, Judge Torres required approval before dismissing the settled wage case with prejudice.
The parties to the Fair Labor Standards Act case, including Jesus Mariano Guerrero and the listed defendants, were required to obtain settlement approval before seeking dismissal with prejudice.
What happened
In Jesus Mariano Guerrero v. Jerome Meat & Produce Corporation, the parties told the court that they had reached a settlement after mediation in a wage case under the Fair Labor Standards Act.
The court said the case could not be dismissed with prejudice unless the court or the Department of Labor approved the settlement. The parties had to submit a joint request and the settlement agreement, or proof of Department of Labor approval, by March 4, 2024.
Judge Analisa Torres also required the parties to explain why the settlement was fair and reasonable, provide documentation for any attorney-fee request, and comply with limits concerning sealed terms, nondisclosure provisions, and broad releases. Pending motions were moot, and conferences were canceled.
The detailed version
- Mariano Guerrero v. Jerome Meat & Produce Corporation · No. 1:23-cv-03878
- Analisa Torres
- Feb. 2, 2024
Background
The opinion states that Jesus Mariano Guerrero and the defendants reached a settlement after mediation in this Fair Labor Standards Act case. The defendants are Jerome Meat & Produce Corporation, Jerome Meat & Produce Corporation I, Jerome Meat & Produce Corporation II, H&B Fresh Produce Corp., and Abbas Safa, also identified as Abbas Saffa or Eddie Safa.
Court’s Instructions
The court stated that the action could not be dismissed with prejudice based only on the parties’ settlement. If the parties wanted dismissal with prejudice, they had to either file a joint letter motion asking the court to approve the settlement or provide documentation showing that the Department of Labor had approved it. The filing, including the settlement agreement, had to be placed on the public docket by March 4, 2024.
The requested approval submission had to explain why the proposed settlement was fair and reasonable. The court identified these factors: the plaintiff’s possible recovery; the burdens and expenses the settlement would avoid; the litigation risks; whether experienced counsel reached the settlement through arm’s-length bargaining; and the possibility of fraud or collusion. The submission also had to address whether a genuine dispute existed about the hours worked or compensation owed, and how much of the settlement the plaintiff’s attorney would seek as fees.
Any attorney-fee request had to include contemporaneous billing records showing, for each attorney, the date, hours worked, and nature of the work. The court also stated that, absent special circumstances, it would not approve a settlement filed under seal or in redacted form. Without compelling circumstances, it would not approve sweeping nondisclosure provisions or broad releases of claims unrelated to Fair Labor Standards Act issues.
Other Case Administration
The parties could voluntarily consent to have Magistrate Judge Katharine H. Parker oversee settlement approval. The court stated that withholding consent would not have negative consequences. If the parties consented and the court approved the referral, further proceedings would occur before Judge Parker. The order also stated that any appeal would go directly to the United States Court of Appeals for the Second Circuit.
Disposition
The order did not approve the settlement or dismiss the action with prejudice. It stated that any pending motions were moot and vacated all conferences. Judge Analisa Torres issued the order on February 2, 2024.
Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.