Bello Paulino v. S & P Mini Market Corp.

District Court, S.D. New York·Decided July 7, 2025·No. 1:22-cv-08724·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK ---------------------------------------------------------------X JOSE LUIS BELLO PAULINO, :

Plaintiff, : OPINION AND ORDER

-v.- : 22 Civ. 8724 (GWG) S & P MINI MARKET CORP. et al., :

Defendants. : --------------------------------------------------------------X GABRIEL W. GORENSTEIN, United States Magistrate Judge: Plaintiff Jose Luis Bello Paulino filed this action on October 13, 2022, raising claims against S & P Mini Market Corp. (“S & P Mini Market”) and Amantino Vega Rosario under the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §§ 201 et seq., and New York Labor Law §§ 190 et seq. and 650 et seq. (“NYLL”). See Complaint, filed October 13, 2022 (Docket # 1) (“Compl.”). During the jury deliberations of a trial adjudicating the claims against Rosario, Paulino and Rosario announced to the Court that they had reached an agreement to settle the case.1 Before the Court is an unopposed motion by Paulino to enforce this purported settlement 0F agreement and seeking approval of the settlement under Cheeks v. Freeport Pancake House, Inc., 796 F.3d 199 (2d Cir. 2015).2 For the following reasons, the Court grants Paulino’s motion to 1F enforce the settlement agreement and approves the settlement.

1 Trial Transcript, dated January 15, 2025 (Docket # 99) (containing pages 1-100) & dated January 16, 2025 (Docket # 101) (containing pages 101-37) (together, “Tr.”).

2 Notice of Motion, filed February 28, 2025 (Docket # 106) (“Mot.”); Memorandum in Support of Motion to Vacate, filed February 28, 2025 (Docket # 107) (“Mem.”); Proposed Order, filed February 28, 2025 (Docket # 108). I. BACKGROUND A. Procedural Background On October 13, 2022, Paulino filed this action against S & P Mini Market and Rosario, alleging minimum wage and overtime compensation violations under federal and state law. See

Compl. While both defendants were represented for a period of time, on July 10, 2024, the Court deemed S & P Mini Market to be in default because the Court had approved the motion of its attorney to withdraw and as a corporate entity S & P Mini Market could not appear without counsel. See Order, filed July 10, 2024 (Docket # 62). On January 15, 2025, a jury trial commenced on Paulino’s claims against Rosario. See Tr. 1. As further described below, after both sides rested and the jury began deliberations, the parties announced they had reached a settlement agreement. Id. 122:18-19. The Court stated that it intended to take the jury verdict regardless of the settlement. Id. 122-23. The jury later delivered a verdict finding that Paulino had failed to prove his claims against Rosario. Id. 130:19-134:24.

On February 28, 2025, Paulino filed the instant motion to “vacate” the jury verdict and enforce the settlement agreement. See Mot. On March 3, 2025, Rosario’s pro bono counsel announced that they would “not be representing defendant . . . Rosario any further.” Order, filed March 12, 2025 (Docket # 114). Since March 3, 2025, Rosario has proceeded without counsel. Rosario has not filed an opposition to Paulino’s motion to enforce the settlement agreement. The Court specifically warned Rosario that if he failed to file any opposition, the motion would be treated as unopposed. Order, filed March 18, 2025 (Docket # 116).

2 B. Factual Background During jury deliberations, Daniel A. Schnapp, counsel for Rosario, announced that he “believe[d] the parties have reached a settlement.” Tr. 122:18-19. Before the parties went any further, the Court explained that

I can’t have any settlement where there is any danger of someone coming back and saying it was unenforceable or this or that or they didn’t pay on it and, therefore, somehow a trial has to happen again. Whatever the settlement is, the parties have to agree that, no matter what happens, it will not be a remedy to revive this case and have a trial. That cannot possibly be a remedy. I’m almost tempted to say, we are going to take the verdict and the settlement will supersede the verdict, just so that I don’t have to ever worry about this again. . . . I think I want to take the jury verdict, regardless. If you want to give me a settlement that says regardless of the jury verdict, the settlement will supersede the jury verdict and you’re asking me to enter a judgment not on the jury verdict but on the settlement, regardless of what it is, if that’s a term — that’s going to be a baseline precondition for me to hear from you right now. Talk to each other and see if you have any problem with that.

Id. 122:20-123:18. Schnapp responded that “[t]he parties agree.” Id. 123:19. The Court went on to explain that the FLSA claims can’t be dismissed without Cheeks approval anyway. Whatever you do has to be presented to me as part of a Cheeks application. Otherwise, the settlement can’t go into effect. I don’t think you can just — if it was any other type of case, you could just stand up and say, the parties have dismissed the case, here is a stipulation of dismissal, sign it, and then that would be the end of it. I wouldn’t take the jury verdict. It would all be over. The problem is Cheeks. That’s the problem. I think I have to do a Cheeks approval.

Id. 124:3-12. The Court further explained that you need to present to me the terms of an agreement that is enforceable in full, and then you are going to have to go through the Cheeks factors, I can remind you of what they are, and then I’ll have to decide whether I’m approving the settlement. I think you have to put the terms of the settlement on the record for two reasons. One is, it wouldn’t be enforceable otherwise and, two, I have to hear them in order to do Cheeks approval.

3 Id. 124:22-125:5. Schnapp responded: “The terms of the settlement are $20,000 to be paid within 30 days. I will leave it to the plaintiff to add anything else, but that is my understanding of the settlement.” Id. 125:6-9. Plaintiff’s counsel, Mark A. Marino, added: “That’s my understanding of the settlement as well.” Id. 125:10-11.

After the Court inquired what would happen if there was a failure to pay within 30 days, see id. 125:12-13, Marino responded that “all the money would come due upon a breach.” Id. 125:24-25. The parties appeared to disagree as to how any failure to pay would be enforced but ultimately Schnapp explained, without objection, that no judgment would be entered in the federal case but rather “that in the event that our client [sic] is not paid, he [referring to Paulino] will need to sue him [referring to Rosario] in state court for breach of contract.” Id. 126:23-25. The Court clarified that no judgment would be entered. Id. 127:1-2. Schnapp affirmed. Id. 127:3. The Court then stated: “The case is being dismissed on a promise that the defendant will pay $20,000 to plaintiff within 30 days. No other terms to this proposal.” Id. 127:7-9. Both Schnapp and Marino said “correct.” Id. 127:10-12. The Court then stated:

So you understand that’s the only term. There is no judgment that’s going to be entered. I am going to enter an order of dismissal on the grounds that the parties settled.

And there is one other term that’s very important, which is that this settlement will survive the return of the verdict that I intend to take from this jury, assuming I decide to take it and not to stop it at some point, which I doubt I would.

Id. 127:13-21. The Court asked Marino and Schnapp whether this was also an agreed-upon term. Id. 127:22-25. Both said “yes.” Id. Moments later, Schnapp reiterated that the parties “ha[d] a settlement.” Id. 129:17. The Court instructed the parties that they needed to submit a written Cheeks application. Id. 128:1-129:22.

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Bello Paulino v. S & P Mini Market Corp., (S.D.N.Y. 2025).

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