Morrison v. JSP Life Agency Inc.
- Barbara Moses
- 1:23-cv-06943
- U.S. District Court · Southern District of New York
- 2
In Morrison v. JSP Life Agency Inc., Judge Broderick ordered the parties to submit their Fair Labor Standards Act settlement for fairness review and fee documentation.
The parties to the FLSA case, including Lindon Morrison, the other plaintiffs described as similarly situated, JSP Life Agency Inc., and the other defendants, must provide the required settlement materials.
What happened
In Morrison v. JSP Life Agency 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 private settlements of these wage claims requiring dismissal with prejudice need approval from the district court or the Department of Labor. The court must decide whether the settlement is fair and reasonable, considering factors such as possible recovery, litigation burdens and risks, whether the negotiations were at arm’s length, and possible fraud or collusion.
Judge Vernon S. Broderick ordered the parties to submit the settlement terms within 30 days, along with a joint letter of no more than five pages explaining why the agreement is fair and reasonable. If the agreement includes attorney’s fees, they must also provide records supporting the fee request. The order did not approve or reject the settlement.
The detailed version
- Morrison v. JSP Life Agency Inc. · No. 1:23-cv-06943
- Barbara Moses
- May 10, 2024
Background
The parties informed the court that they had reached a settlement in this Fair Labor Standards Act (FLSA) case. The opinion does not state the settlement amount or other terms.
Court’s analysis
The court explained that parties generally may not privately settle FLSA claims with dismissal with prejudice unless the settlement is approved by the district court or the Department of Labor. The court must determine whether the proposed agreement is a fair and reasonable compromise of disputed issues.
The court identified five factors relevant to that review: (1) the plaintiff’s possible recovery; (2) the extent to which settlement would avoid the burdens and expenses of proving the claims and defenses; (3) the seriousness of the litigation risks; (4) whether experienced counsel negotiated at arm’s length; and (5) the possibility of fraud or collusion. The court also stated that any attorney’s-fee award must be assessed separately and supported by evidence, including contemporaneous billing records showing each attorney’s date of work, hours spent, and work performed.
Order
Judge Broderick ordered the parties to provide the court with the settlement terms within 30 days. The parties must also submit a joint letter of no more than five pages explaining why the settlement is fair and reasonable, including information about the five identified factors. If the agreement includes attorney’s fees, the parties must provide evidence establishing a factual basis for the requested award.
The order did not approve or reject the settlement and did not state the settlement’s terms.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.