Solano Felix v. Parkchester Fishery, Inc.

Background

Alberto Solano Felix brought claims individually and on behalf of others similarly situated against Parkchester Fishery, Inc., Parkchester Fishery Market, Inc., and Chan-Young Pak, also identified in the caption by other names. The case involved claims under the Fair Labor Standards Act (FLSA). On February 14, 2024, the parties notified the court that mediation had resulted in an agreement on all issues.

Settlement-approval requirements

The court ordered that the parties could not dismiss the action with prejudice based on the settlement unless the settlement agreement was approved by the court or the Department of Labor. If the parties wanted court approval, they had to file a joint letter motion and the settlement agreement on the public docket by March 14, 2024. The motion had to explain why the settlement was fair and reasonable, including the parties’ claims and defenses, the litigation risks, whether experienced counsel negotiated 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 a settlement filed under seal or in redacted form. It also warned that it was unlikely to approve a general release or a release covering claims unrelated to the wage-and-hour claims in the complaint and related state-law claims. The order stated that any request to approve an unusually broad release would need to explain why that term was appropriate.

Alternative dismissal without prejudice

The order explained that the parties could seek to proceed without court or Department of Labor approval by filing a stipulation under Federal Rule of Civil Procedure 41(a)(1)(A). That stipulation had to be filed on the public docket within 30 days and accompanied by an affirmation from the plaintiff’s counsel stating that the plaintiff or plaintiffs had been clearly advised that the settlement would not prevent another lawsuit against the same defendants and affirming that the settlement contained no release of the defendants. The court warned that this option could allow the case to be reopened in the future.

Disposition

The court did not approve the settlement or dismiss the case. Judge Valerie Caproni cancelled all previously scheduled conferences and other deadlines. If no approval motion or stipulation was filed by March 14, 2024, the order directed that a conference be held on March 15, 2024, at 10:00 a.m.