Mercedes Paredes v. Tesfast, LLC

CourtDistrict Court, S.D. New York
DecidedSeptember 19, 2025
Docket7:24-cv-00525
StatusUnknown

This text of Mercedes Paredes v. Tesfast, LLC (Mercedes Paredes v. Tesfast, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mercedes Paredes v. Tesfast, LLC, (S.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK -------------------------------------------------------------x MERCEDES PAREDES,

Plaintiff, OPINION & ORDER

- against - No. 24-CV-525 (CS)

TESFAST, LLC,

Defendant. -------------------------------------------------------------x

Appearances:

Daniel I. Schlade Justicia Laboral, LLC Chicago, Illinois Counsel for Plaintiff

Seibel, J.

Before the Court is Plaintiff Mercedes Paredes’s unopposed motion to enforce a settlement agreement between Plaintiff and Defendant Tesfast, LLC. (ECF No. 64.) For the following reasons, the motion is GRANTED. I. BACKGROUND Plaintiff filed this action on October 17, 2022, alleging that Defendant violated the Fair Labor Standards Act (“FLSA”) and the New York Labor Law (“NYLL”) by failing to pay her proper wages and overtime compensation. (ECF No. 1 (“Compl.”).) On August 1, 2024, the parties notified the Court that they reached a settlement. (See Minute Entry dated Aug. 1, 2024.) On October 22, 2024, the parties filed a proposed settlement agreement, seeking the Court’s approval pursuant to Cheeks v. Freeport Pancake House, Inc., 796 F.3d 199 (2d Cir. 2015). (ECF No. 60.) The parties filed an amended settlement agreement (the “Settlement Agreement”) on October 24, 2024. (ECF No. 62.) Under the Settlement Agreement, Defendant agreed to pay $6,000 to Plaintiff in six monthly installments of $1,000 each. (Id. ¶ 1.) The first payment would be due on the first day of the month following the Court’s approval of the Agreement, with the remaining payments due on the first day of the five months thereafter. (Id.) Plaintiff agreed to release Defendant “from any and all claims relating to the Lawsuit or other unpaid wage claims arising from [Plaintiff’s] employment at Tesfast, from the beginning of time

through the effective date of th[e] Agreement.” (Id. ¶ 3(a).) On October 25, 2024, the Court approved the Settlement Agreement as “fair, reasonable and adequate.” (ECF No. 63 at 3.) The Court dismissed the action with prejudice “[i]n accordance with the settlement agreement,” but “retain[ed] jurisdiction to enforce the settlement agreement.” (Id.) Defendant has not made any payments pursuant to the Settlement Agreement, despite several communications from Plaintiff’s counsel requesting compliance. (ECF No. 64-2; ECF No. 64-3 (“Plaintiff’s Aff.”) ¶¶ 5-6.) Consequently, on May 15, 2025, Plaintiff filed the instant motion, seeking reinstatement of the case and an entry of judgment against Defendant in the amount of $6,000. (ECF No. 64.) Defendant’s deadline to file a response to the motion has

passed, (ECF No. 65), and no opposition has been received. II. DISCUSSION Jurisdiction “Actions to enforce settlement agreements are in essence, breach of contract actions governed by state law and do not themselves raise a federal question unless the court that approved the settlement retained jurisdiction.” Gomez v. Terri Vegetarian LLC, No. 17-CV-213, 2021 WL 2349509, at *3 (S.D.N.Y. June 9, 2021).1 “[T]hus, where a federal suit has already

1 Unless otherwise indicated, case quotations omit internal citations, quotation marks, alterations and footnotes. been dismissed based on a settlement agreement, and the plaintiff thereafter asks the court to enforce the parties’ agreement, the court must first satisfy itself that it has retained ancillary jurisdiction to act.” Romero v. New Blue Flowers Gourmet Corp., No. 16-CV-8753, 2021 WL 860986, at *2 (S.D.N.Y. Mar. 8, 2021) (citing Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 379-80 (1994)). To retain ancillary jurisdiction, “a district court’s order of dismissal

must either (1) expressly retain jurisdiction over the settlement agreement, or (2) incorporate the terms of the settlement agreement in the order.” Hendrickson v. United States, 791 F.3d 354, 358 (2d Cir. 2015). “[A] district court does not retain jurisdiction to enforce a settlement merely by placing its ‘judicial imprimatur’ on the parties’ settlement, such as by approving the settlement agreement as fair and adequate.” Melchor v. Eisen & Son Inc., No. 15-CV-113, 2016 WL 3443649, at *6 (S.D.N.Y. June 10, 2016) (quoting Hendrickson, 791 F.3d at 359). Here, the Court’s order approving the Settlement Agreement expressly provided that the Court “retains jurisdiction to enforce the settlement agreement.” (ECF No. 63 at 3.) This suffices to retain ancillary jurisdiction. See Barbecho v. Matrat LLC, No. 15-CV-170, 2021 WL

3862662, at *1 (S.D.N.Y. Aug. 30, 2021); Tendilla v. 1465 Espresso Bar LLC, No. 18-CV-5991, 2021 WL 2209873, at *2 (S.D.N.Y. June 1, 2021); Romero, 2021 WL 860986, at *3; Cardoso v. Paramount Foods Inc., No. 15-CV-7674, 2020 WL 8880943, at *2 (S.D.N.Y. Apr. 30, 2020). The Court thus proceeds to the merits. Motion to Enforce “A breach of contract claim under New York law has four elements: (1) the existence of an agreement, (2) adequate performance of the contract by the plaintiff, (3) breach of contract by the defendant, and (4) damages.” N.Y. SMSA Ltd. P’ship v. City of Rye, No. 19-CV-10159, 2022 WL 2965981, at *6 (S.D.N.Y. July 27, 2022).2 “To the extent these elements are satisfied, the court has the authority to force compliance with the terms agreed upon by the parties, whether

2 The Settlement Agreement contains a choice-of-law provision that provides that the Agreement “shall be governed by the laws of the State of Illinois.” (ECF No. 62 ¶ 14.) The Court believes, for the reasons set forth below and because the Settlement Agreement misgenders Plaintiff throughout, that that provision is an artifact of a settlement template used by Plaintiff’s counsel, who works for a law firm based in Illinois. Regardless, the Court declines to apply Illinois law to the Settlement Agreement. “The validity of a contractual choice-of-law clause is a threshold question that must be decided not under the law specified in the clause, but under the relevant forum’s choice-of- law rules governing the effectiveness of such clauses.” Fin. One Pub. Co. v. Lehman Bros. Special Fin., Inc., 414 F.3d 325, 332 (2d Cir. 2005). Because the Court’s jurisdiction is based on ancillary jurisdiction, as opposed to diversity jurisdiction, federal common law applies. See Huynh v. Chase Manhattan Bank, 465 F.3d 992, 997 (9th Cir. 2006); cf. DarkPulse, Inc. v. Crown Bridge Partners LLC, No. 23- 7550, 2024 WL 3872725, at *2 (2d Cir. Aug. 19, 2024) (federal common law applies to validity of choice-of-law clause where jurisdiction is predicated on federal question); Romero, 2021 WL 860986, at *3 n.4 (applying federal common law to determine what law applies on motion to enforce settlement agreement). “[W]hen conducting a federal common law choice-of-law analysis, absent guidance from Congress, [the Court] may consult the Restatement (Second) of Conflict of Laws.” Eli Lilly Do Brasil, Ltda. v. Fed. Express Corp., 502 F.3d 78, 81 (2d Cir. 2007); see Lola v. Skadden, Arps, Slate, Meagher & Flom LLP, 620 F. App’x 37, 42 (2d Cir. 2015) (relying on Restatement (Second) of Conflict of Laws in federal choice-of-law analysis). Under the Restatement (Second) of Conflict of Laws § 187, “[t]he law of the state chosen by the parties to govern their contractual rights and duties will be applied . . . unless . . .

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Related

Kokkonen v. Guardian Life Insurance Co. of America
511 U.S. 375 (Supreme Court, 1994)
Eli Lilly Do Brasil, Ltda v. Federal Express Corp.
502 F.3d 78 (Second Circuit, 2007)
Powell v. Omnicom
497 F.3d 124 (Second Circuit, 2007)
Lien Huynh v. Chase Manhattan Bank
465 F.3d 992 (Ninth Circuit, 2006)
Smart Oil, LLC v. DW Mazel, LLC
970 F.3d 856 (Seventh Circuit, 2020)
Hendrickson v. United States
791 F.3d 354 (Second Circuit, 2015)
Cheeks v. Freeport Pancake House, Inc.
796 F.3d 199 (Second Circuit, 2015)
Lola v. Skadden, Arps, Slate, Meagher & Flom LLP
620 F. App'x 37 (Second Circuit, 2015)

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Mercedes Paredes v. Tesfast, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mercedes-paredes-v-tesfast-llc-nysd-2025.