Radoncic v. ABC Properties Equities LLC

Background

Sanel Radoncic brought this Fair Labor Standards Act (FLSA) case on behalf of himself and others similarly situated against ABC Properties Equities LLC, Fisher Cheeks Associates, LLC, and Alan Fisher, individually. The court was advised that the parties had reached a settlement.

The court explained that FLSA claims cannot be privately settled without approval from the district court or the Department of Labor. The court must determine whether the proposed settlement is fair and reasonable under the circumstances. Relevant considerations include the plaintiff’s possible recovery, the burdens and costs the settlement would avoid, the parties’ litigation risks, whether experienced counsel negotiated at arm’s length, and the possibility of fraud or collusion.

Required submissions

The court ordered the parties to provide the settlement terms within 30 days. It also ordered them to submit a joint letter of no more than five pages explaining why the settlement is a fair and reasonable compromise, including information about the five listed factors.

If the agreement includes attorney’s fees, the parties must provide factual support for the fee award, including contemporaneous billing records showing each attorney’s date of work, hours spent, and the nature of the work. If the agreement includes a release, confidentiality provision, or non-disparagement provision, the parties must provide support for each provision and cite relevant case law.

The parties were also reminded that, if all parties agree, they may consent to have a magistrate judge review and approve the settlement. The order states that there are no adverse consequences for withholding consent.

Disposition

The court did not approve or reject the settlement. It ordered the parties to submit additional materials so the court could determine whether the proposed settlement complies with the FLSA and fairly reflects a reasonable compromise of disputed issues. Judge Jessica G. L. Clarke signed the order.