Opinion
22 Civ. 846 (AT)
05-27-2022
Edison Boza, Plaintiff, v. GRJ Construction Corp., Defendant.
ORDER
ANALISA TORRES, UNITED STATES DISTRICT JUDGE
The Court has been advised that the parties have reached a settlement in this Fair Labor Standards Act (“FLSA”) case. ECF Nos. 17, 19.
This action shall not be dismissed with prejudice unless the settlement agreement has been approved by the Court or the Department of Labor (“DOL”). See Cheeks v. Freeport Pancake House, Inc., 796 F.3d 199, 206 (2d Cir. 2015). Accordingly, to the extent the parties seek dismissal with prejudice, they must either file a joint letter motion requesting that the Court approve the settlement agreement or, alternatively, provide documentation of the approval by DOL. Any letter motion, along with the settlement agreement, must be filed on the public docket by June 21, 2022. The letter motion must explain why the proposed settlement is fail and reasonable and should discuss, at a minimum, the following factors:
(1) the plaintiff's range of possible recovery; (2) the extent to which “the settlement will enable the parties to avoid anticipated burdens and expenses in establishing their respective claims and defenses”; (3) the seriousness of the litigation risks faced by the parties; (4) whether “the settlement agr eement is the product of arm's-length bargaining between experienced counsel”; and (5) the possibility of fraud or collusion.Wolinsky v. Scholastic Inc., 900 F.Supp.2d 332, 335 (S.D.N.Y. 2012) (quoting Medley v. Am. Cancer Soc'y, No. 10 Civ. 3214, 2010 WL 3000028, at * 1 (S.D.N.Y. July 23, 2010)). The letter must also address whether there is a bona fide dispute as to the number of horns worked or the amount of compensation due and how much of the proposed settlement plaintiff's attorney shall be seeking as fees. See Cheeks, 796 F.3d at 202, 207.
Any request for attorneys' fees must be accompanied by supporting documentation. “In this circuit, a proper fee request ‘entails submitting contemporaneous billing records documenting, for each attorney, the date, the horns expended, and the nature of the work done.'” Lopez v. Nights of Cabiria, LLC, 96 F.Supp.3d 170, 181 (S.D.N.Y. 2015) (quoting Wolinsky, 900 F.Supp.2d at 336).
Absent special circumstances, the Com! will not approve any settlement agreement that is fried under seal or in redacted form. See id. at 177 n. 44. In addition, absent compelling circumstances, the Court will not approve settlement agreements containing sweeping nondisclosure provisions, see id. at 179-80; Flood v. Carlson Rests. Inc., No. 14 Civ. 2740, 2015 WL 4111668, at *2 (S.D.N.Y. July 6, 2015), or broad releases waiving claims having no relation to FLSA issues, see Flood, 2015 WL 4111668, at *2.
The parties may consent to proceed before the Honorable Robert W. Lehrburger, who would then oversee the approval of the settlement. If the parties consent to Judge Lehrburger's jurisdiction, by June 10, 2022, they shall file a fully executed Notice, Consent, and Reference of a Civil Action to a Magistrate Judge form, available at https://nysd.uscourts.gov/node/754 on the docket. The parties are free to withhold consent without negative consequences. If the Court approves that form, all further proceedings will then be conducted before Judge Lehrburger rather than before me. An information sheet on proceedings before magistrate judges is also attached to this order. Any appeal would be taken directly to the United States Court of Appeals for the Second Circuit, as it would be if the consent form were not signed and so ordered.
Any pending motions are moot. All conferences are vacated. The Clerk of Court is directed to STRIKE the order at ECF No. 18 and reopen the case.
SO ORDERED.