Bravo Saavedra v. Salvatore's NY Pizza, Inc.
- Analisa Torres
- 1:23-cv-08826
- U.S. District Court · Southern District of New York
- 4
In Bravo Saavedra v. Salvatore’s NY Pizza, Judge Torres required approval of the FLSA settlement before dismissal and set filing requirements.
The plaintiff, Salvatore’s NY Pizza, Inc., and Abel Gonzalez, whose proposed FLSA settlement required court or Department of Labor approval before dismissal.
What happened
In Bravo Saavedra v. Salvatore’s NY Pizza, Inc., the parties told the court they had reached a settlement in a Fair Labor Standards Act case. The opinion does not describe the settlement’s terms.
The court explained that the case could not be dismissed under Rule 41 unless the settlement was approved by the court or the Department of Labor. It required the plaintiff or the parties jointly to file a request for court approval, with the settlement agreement, or documentation of Department of Labor approval, by April 26, 2024. The filing must explain why the settlement is fair and reasonable and address recovery, litigation risks, bargaining, possible fraud or collusion, any dispute about hours or compensation, and attorney-fee documentation.
Judge Analisa Torres did not approve or reject the settlement in this order. She also stated that the parties could voluntarily consent to have Magistrate Judge Ona T. Wang oversee settlement approval, without negative consequences for withholding consent.
The detailed version
- Bravo Saavedra v. Salvatore's NY Pizza, Inc. · No. 1:23-cv-08826
- Analisa Torres
- Apr. 1, 2024
Background
The court was advised that the parties had reached a settlement in this Fair Labor Standards Act (FLSA) case. The opinion states that the complaint had not been formally served. It does not provide the settlement amount or other settlement terms.
Settlement-Approval Requirement
The court explained that an FLSA action cannot be dismissed under Federal Rule of Civil Procedure 41 unless the settlement agreement is approved by the court or by the Department of Labor. The lack of formal service did not eliminate the need for that review because the parties had been communicating about the case and had agreed to dismiss it under Rule 41.
Required Filing
To the extent the plaintiff seeks dismissal under Rule 41, the plaintiff or the parties jointly must either:
- file a letter motion asking the court to approve the settlement, together with the settlement agreement; or - provide documentation showing that the Department of Labor approved the settlement.
The filing must be made on the public docket by April 26, 2024. A request for court approval must explain why the proposed settlement is fair and reasonable, including:
- the plaintiff’s possible recovery range;
- how the settlement avoids anticipated burdens and expenses of proving the parties’ claims and defenses;
- the seriousness of the litigation risks;
- whether experienced counsel negotiated the settlement at arm’s length; and
- the possibility of fraud or collusion.
The filing must also address whether a genuine dispute exists about the hours worked or compensation owed, and must state the amount of attorney’s fees sought. Any fee request must include contemporaneous billing records identifying, for each attorney, the date, hours worked, and nature of the work.
Settlement Terms the Court Identified
The court warned that it generally would not approve a settlement filed under seal or in redacted form absent special circumstances. It also generally would not approve broad confidentiality provisions or releases of claims unrelated to the FLSA dispute absent compelling or extraordinary circumstances. The court specifically identified concerns with releases covering entities beyond the defendants, the plaintiff’s successors and representatives, or wage claims broader than those involved in this action.
Magistrate-Judge Consent
The parties could voluntarily consent to proceed before Magistrate Judge Ona T. Wang, who would then oversee settlement approval. If they consented, they had to file the completed consent form by April 12, 2024. The order states that parties could withhold consent without negative consequences. Any appeal would go directly to the United States Court of Appeals for the Second Circuit.
Disposition
The order did not approve or reject the settlement and did not dismiss the case. Instead, it required the specified approval filing or Department of Labor documentation before any requested Rule 41 dismissal.
Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.