Smith v. Town of Patterson

Background

Tammy Smith and Brittany Lowe brought claims against the Town of Patterson, Town of Patterson Supervisor Rich Williams, and fictitiously named defendants. They alleged violations of the Fair Labor Standards Act, a federal law governing certain wage and hour rights, and retaliation that resulted in their constructive discharge. The defendants denied the allegations.

The parties participated in a settlement conference with the court on December 14, 2023, and reached a settlement. They submitted an initial Settlement Agreement and Release for review on January 16, 2024. On February 9, 2024, they submitted a revised agreement that removed a provision barring disclosure of the settlement terms through certain media outlets and platforms. The opinion states that the court had informed the parties that it would not approve the initial agreement because of that provision.

Court’s Review

The court evaluated whether the revised agreement was a fair and reasonable compromise of the disputed FLSA claims. It considered factors including the plaintiffs’ possible recovery, the burdens and costs of continuing the litigation, the risks faced by the parties, whether experienced counsel negotiated the agreement at arm’s length, and the possibility of fraud or collusion.

After reviewing the revised agreement, the supporting letter, and documentation concerning attorney’s fees and costs, the court found that the agreement resulted from arm’s-length negotiations between capable counsel. It also found that the agreement’s terms, including approval of plaintiffs’ counsel’s fees, provided a fair and reasonable resolution.

Ruling

The court approved the revised settlement and dismissed the matter with prejudice. A dismissal with prejudice bars the matter from being refiled. The court also requested that the Clerk close the case.