Ingles v. Heathcote ( 2024 )

USDC SDNY UNITED STATES DISTRICT COURT DOCUMENT SOUTHERN DISTRICT OF NEW YORK ELECTRONICALLY FILED MA. VICTORIA INGLES . DOC DATE FILED: 3/12/2024 Plaintiff, -against- 23 Civ. 9807 (AT) ANNA HEATHCOTE AND JAMES ORDER HEATHCOTE, Defendants. ANALISA TORRES, District Judge: The Court has been advised that the parties have reached a settlement in this Fair Labor Standards Act (“FLSA”) case. See ECF No. 20. An FLSA action shall not be dismissed 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); Samake v. Thunder Lube, Inc., 24 F Ath 804, 810—11 (2d Cir. 2022) (“The concern of Cheeks was with the settlement that included as one of its terms the dismissal of the action, and not specifically with whether the dismissal was with prejudice or without.”). Accordingly, to the extent Plaintiff seeks dismissal pursuant to Rule 41, Plaintiff—or the parties jointly—anust either file a 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 April 12, 2024. The letter motion must explain why the proposed settlement is fair 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 agreement 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 hours worked or the amount of compensation due and how much of the proposed settlement plaintiff's attommey shall be seeking as fees. See Cheeks, 796 F.3d at 202, 207. The parties are advised that they should be specific as to the range of possible recovery and the seriousness of the litigation risks faced so that the Court can evaluate the settlement, as “conclusory statements are insufficient.” Brito v. Alpine Constr. & Renovation Corp., No. 23 Civ. 2748, 2024 WL 323368, at *2 (S.D.N.Y. Jan. 29, 2024). Absent special circumstances, the Court will not approve any settlement agreement that is filed under seal or in redacted form. See Lopez v. Nights of Cabiria, LLC, 96 F. Supp. 3d 170, 177 0.44 (S.D.N.Y. 2015). In addition, absent compelling circumstances, the Court will not approve settlement agreements containing sweeping non-disclosure 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. Specifically, absent extraordinary circumstances, the Court shall not approve settlements that (1) “release from liability numerous entities beyond Defendants, including] their predecessors, successors, assigns, parents, subsidiaries,” and other entities; (2) “bind not only Plaintiff]] but also [her] successors, assigns, heirs, and any legal and personal representatives”; and (3) require Plaintiff to release “any claim regarding unpaid or improperly paid wages,” not only the claims involved in the instant action. Velez v. S.T.A. Parking Corp., No. 23 Civ. 4786, 2024 WL 552781, at *3 (S.D.N.Y. Feb. 12, 2024). Sucha “release—read literally—would have the . . . effect of releasing any wage and hour claims that [P]laintiff has against a wide range of unidentified individuals and business[es] only tenuously affiliated with [D]efendant[s].” Lara v. Air Sea Land Shipping & Moving, Inc., No. 19 Civ. 8486, 2019 WL 6117588, at *2 (S.D.N.Y. Nov. 18, 2019). Any request for attorneys’ fees must be accompanied by supporting documentation. “Tn this circuit, a proper fee request ‘entails submitting contemporaneous billing records documenting, for each attorney, the date, the hours expended, and the nature of the work done.’” Lopez, 96 F. Supp. 3d at 181 (quoting Wolinsky, 900 F. Supp. 2d at 336). The parties may consent to proceed before the Honorable Sarah Netburn, who would then oversee the approval of the settlement. Ifthe parties consent to Judge Netburn’s jurisdiction, by April 1, 2024, 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 Netburn 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. SO ORDERED. Dated: March 12, 2024 ~ ANALISA TORRES New York, New York United States District Judge AO 85 (Rev. 0104) Notice, Consent, and Refurence of 2 Civil Action ma Magistrate Judge UNITED STATES DISTRICT COURT for the sinetof as?) Plangg ) vw ) 0 Cril Action No. i“) Deyn ) NOTICE, CONSENT, AND REFERENCE OF A CIVIL ACTION TO A MAGISTRATE JUDGE Notice of a magistrate judges availabaligy. A United States magistrate podge of tis court i: available to conduct all proceedmgs m this crvil action (imclodme a pory of nonyury tal) and to order the entry of a final judgment The podement may then be appealed directly to the United States court of appeals like any other jadgment of this court. A magistrate judge may Youmay consent to have your case referred to. a magistrate judge, or you may withhold your consent without adverse substantive consequences. The name of any party withholdmg consent will not be revealed to any judge who may otherwise be mvolved with your case. Consent fo a magisirate judge ‘s authority. The followme partes consent to have a United States magistrate padze Parties" printed names Signatures of partie: or attorneys Datez Reference Order IT TS ORDERED: This case 1s referred to a United States magistrate judge to conduct all proceedings and order the entry of a final jodzment in accordance with 78 U.S.C. § 636(c) and Fed K. Cr. P73. Date District Judge's signature Printed name and ie Note: Retorn this form to the clerk of cout only if you are consenting to the exercise of pomisdicton by a United States marfistrate judge. Do mot retwm this form to a yodge. ifs, ee, United States District Court a a Bf Southern District of New York UNITED STATES MAGISTRATE JUDGES: REFERRALS AND CONSENTS All cases in the Southern District of New York are assigned to two judges: a district judge and a magistrate judge. District judges are appointed for life terms by the President. Magistrate judges are selected by a majority vote of the district judges in the particular district and serve terms of eight years. Referrals to the Magistrate Judge. The district judge assigned to your case may refer the case to a magistrate judge for specific purposes. Commonly, the referral will be for the magistrate judge to conduct the proceedings that occur before trial, such as resolving discovery disputes or presiding over settlement conferences. A referral may also be made for the magistrate judge to issue to the district judge a report and recommendation on how to resolve a motion, such as a motion to dismiss or a motion for summary judgment. The consent of the parties is not needed for the district judge to refer the case to the magistrate judge for these purposes. If the district judge has made such a referral, you can ask the district judge to review any magistrate judge's decision district judge will rule on any timely objections that you file. If you do not file an objection, you will give up your right to challenge the magistrate judge's decision at a later time, including on appeal. See Rule 72 of the Federal Rules of Civil Procedure. Consent to Proceed Before the Magistrate Judge. If you would like your case to move more quickly, it is helpful to consent to proceed before the magistrate judge for all purposes, including any trial. If you consent, the magistrate judge will perform the would be either a jury or a nonjury trial, depending wpon whether there is a right to a jury trial and a proper request for such a trial. The only difference is that the magistrate judge - and not the district judge - would preside over that trial. Cases that proceed for all purposes before a magistrate judge generally move more quickly than cases before a district judge. If you consent to proceed before the magistrate judge, the district judge plays no further role in the case. Any appeal is taken directly to the Court of Appeals. It is your choice whether or not to consent to proceed before the magistrate judge, and all parties must consent or the case will not proceed before the magistrate judge. A copy of the appropriate consent form is attached. Additional forms are also available from the Pro Se Intake Unit and on the Court's website. 300 Peam. Street |New Yorx, N¥ 10007 300 Quannoras STREET Waive Plans, NY 10601 PRO SE ESTAKE UNIT: 212-805-0175 Rev. 2/20/13