Guerra v. Bunny Deli Inc.

• Court: District Court, S.D. New York
• Decided: July 15, 2022
• Docket: 1:22-cv-03498
• Status: Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK -------------------------------------------------------------X : MARTIN GUERRA and FLAVIO GUERRA, : : Plaintiffs, : : 22-CV-3498(VSB) -against- : : ORDER : BUNNY DELI INC. and RASALINO : VICTORIO-MENDOSA, : : Defendants. : : ------------------------------------------------------------X VERNON S. BRODERICK, United States District Judge: The Court has been advised that the parties have reached a settlement in principle in this Fair Labor Standards Act(“FLSA”) case. (Doc. 11.) Parties may not privately settle FLSA claims absent the approval of the district court or the Department of Labor. See Samake v. Thunder Lube, Inc., 24 F.4th 804, 806–07 (2d Cir. 2022); Cheeks v. Freeport Pancake House, Inc., 796 F.3d 199, 200 (2d Cir.2015). Rather, the parties must satisfy this Court that their settlement is “fair and reasonable.” Velasquez v. SAFI-G, Inc., No. 15cv3068, 2015 WL 5915843, at *1 (S.D.N.Y. Oct. 7, 2015). In order to determine whether an agreement is fair and reasonable under the FLSA, I must: consider the totality of circumstances, including but not limited to the following [5] 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. Beckert v. Rubinov, No. 15Civ.1951(PAE), 2015 WL 6503832, at *1 (S.D.N.Y. Oct.27, 2015) (quoting Wolinsky v. Scholastic Inc.,900 F.Supp.2d332, 335 (S.D.N.Y.2012)). And,if the settlement agreement includes a provision for attorney’s fees, I must “separately assess the reasonableness of plaintiffs, attorney’s fees.” Lliguichuzcha v. Cinema 60, LLC, 948 F. Supp. 2d '362, 366 (S.D.N.Y. 2013). In order to aid in this determination, “counsel must submit evidence providing a factual basis for the [attorney’s fees] award.” Beckert, 2015 WL 6503832, at *2. Therefore, it is hereby: ORDERED that by August 11, 2022, the parties must provide this Court with the terms of the their settlement in order to ensure that, in compliance with the FLSA, they are fair and reflect a reasonable compromise of disputed issues. IT IS FURTHER ORDERED that, along with the terms of the settlement, the parties shall provide this court with a joint letter of no more than five (5) pages explaining why they believe the settlement reflects a fair and reasonable compromise of disputed issues. Such letter should include, but need not be limited to, information concerning the five (5) factors identified in Beckert. IT IS FURTHER ORDERED that, if the agreement includes a provision for attorney’s fees, the parties submit evidence providing a factual basis for the attorney’s fees award. Such basis should include “contemporaneous billing records documenting, for each attorney, the date, the hours expended, and the nature of the work done.” Lopez v. Nights of Cabiria, LLC, No. 14—-cv— 1274 (LAK), 2015 WL 1455689, at *7 (S.D.N.Y. March 30, 2015). SO ORDERED. Dated: July 15, 2022 fl q □ ( New York, New York Osi IX Way ba Vernon S. Broderick United States District Judge