Moody v. Inspire Summits LLC

Opinion

Mob sD DOCUMENT UNITED STATES DISTRICT COURT BUBCIRONICALLY FILED SOUTHERN DISTRICT OF NEW YORK x DATE FILED. 2/13/2021 B. MOODY and kK. O'BRIEN, : Plaintiffs, : -against- : 1:20-cv-05834-GHW INSPIRE SUMMITS LLC and CHRISTOPHER P. - ORDER SKROUPA, : Defendants. : + GREGORY H. WOODS, United States District Judge: The parties have informed the Court that they have reached a settlement in this case, which includes claims arising under the Fair Labor Standards Act (the “FLSA”). The Court has recerved and reviewed the parties’ February 12, 2021 joint letter and proposed settlement agreement. Dkt. Nos. 40 and 41. The Court does not have enough information at this time to properly assess the parties’ proposed settlement agreement, and therefore declines to approve it. The parties are directed to proceed in one of the two ways descnbed below. The first alternative describes the process that the parties must follow if they wish to dismiss FLSA claims with prejudice. ‘The second alternative describes a process that the parties may follow if they wish to

(1) Judicial Approval and Order of Dismissal of FLSA Claims with Prejudice under Rule 41 (a)(2). In light of the decision of the Second Circuit Court of Appeals in Cheeks v. Freeport Pancake Howse, 796 F.3d 199 (2d Cir. 2015), which held that the FLSA falls within the “applicable federal statute” exception to Federal Rule of Civil Procedure 41 (a)(1)(A), the parties cannot dismiss claims arising under the FLSA prejudice pursuant to Rule 41(a)(1)(A). The holding of Cheeés does not apply to claims arising under any statute other than the FLSA. As a result, in order to dismiss an FLSA claim with prejudice, the parties must seek court approval of the proposed dismissal under Rule 41 (a)(2). In order to seek such approval, the parties are directed to proceed as follows:

(a) First, the parties ace ORDERED to discuss whether they are willing to consent, under 28 U.S.C. § 636(c), to conducting all further proceedings before the assigned Magistrate Judge. If both parties consent to proceed before the Magistrate Judge, the parties must, no later than March 1, 2021, file on ECF a fully executed Notice, Consent, and Reference of a Civil Action to a Magistrate Judge form, a copy of which is attached to this order (and is also available at https:/'/nysd.uscourts.gov/sites default, files /2018-06/AO-3 pdf). The executed form should be filed on ECF as a “Proposed Order,” and be described using the “Consent Order” filing event in accordance with ECF Rule 13.18. If the Court approves that form, all further proceedings, including the evaluation of the proposed settlement, will then be conducted before the assigned Magistrate Judge rather than before me. 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. If either party does not consent to conducting all further proceedings before the assigned Magistrate Judge, the parties must file a jount letter, no later than March 1, 2021, advising the Court that the parties do not consent, but without disclosing the identity of the party or parties who do not consent. The parties are free to withhold consent without negative consequences. (b) Second, if the parties do nef consent to conduct all further proceedings before the assigned Magistrate Judge, they shall instead submit to the Court by March 8, 2021 a jot motion via ECF setting forth their views as to why their settlement is fair and should be approved. The motion must address the considerations detailed in Wolinsky v. Scholastic Inc, 900 F. Supp. 2d 332 (8-D.NLY. 2012), and must include a copy of the settlement agreement itself, attached as an exhibit. The parties are advised that the Court will not approve settlement agreements that contain a confidentiality provision, and that the Court will not permit the parties to file any portion of any document related to the Court's evaluation of the proposed settlement under seal unless they have first made a particularized showing of the need for the relevant information to be sealed that rebuts the presumption of public access to judicial documents.

If the settlement includes attorney's fees, the parties should also address the reasonableness of the fees to be awarded under the framework set forth in Goldberger v. Integrated Resources, Inc_, 209 F.3d 43, 50 (2d Cir. 2000). Plaintiffs’ attorneys must also attach as an exhibit detailed attorney time records for the Court’s review, as the Second Circuit “encourage[s] the practice of requiring documentation of hours as a ‘cross check” even in cases in which the fees awarded are a percentage of the total award. Id (citation omitted). (2) Stipulation of Dismissal Without Prejudice under Rule 41(a)(1)(A). The court in Cheeks expressly reserved decision with respect to voluntary dismissals of FLSA claims without prejudice under Rule 41(a)(1)(A). As a result, the Court will accept a stipulation of dismissal under Rule 41(a)(1)(A), so long as the parties’ stipulation of dismissal dismisses claims arising under the FLSA without prejudice. If the parties wish to resolve the case by a stipulation that dismisses FLSA claims nithout prejudice under Federal Rule of Crvil Procedure 41 (a)(1)(A), they are directed to submit such a stipulation by March 1, 2021. The executed stipulation should be filed on ECF as a “Proposed Order,” and be described using the “Stipulation of Voluntary Dismissal” filing event in accordance with ECF Rule 13.18. SO ORDERED. Dated: February 13, 2021 f ~ Wound GRE YH. WOODS United States District Judge

AO $5 (Rev. 01/09) Notice, Consent, and Reference of a Civil Action to a Magistrate Judge UNITED STATES DISTRICT COURT for the Southem District of New York

Plaintiff ) Vv. ) Crvil Action No.

Defendant )

NOTICE, CONSENT, AND REFERENCE OF A CIVIL ACTION TO A MAGISTRATE JUDGE Notice of a magistrate judge's availability. A United States magistrate judge of this court is available to conduct all proceedings in this civil action (including a jury of nonjury tial) and to order the entry of a final judgment. The judgment may then be appealed directly to the United States court of appeals like any other judgment of this court. A magistrate judge may exercise this authority only if all parties voluntarily consent.

You may 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 withholding consent will not be revealed to any judge who may otherwise be involved with your case.

Consent to a magistrate judge's authority. The followimg parties consent to have a United States magistrate judge conduct all proceedings in this case including trial, the entry of final judgment, and all post-trial proceedings. Parties’ printed names Signatures of parties or attorneys Dates

Reference Order ITIS ORDERED: This case is referred to a United States magistrate judge to conduct all proceedings and order the entry of a final judgment in accordance with 28 U.S.C. § 636(c) and Fed. R. Civ. P. 73.

District Judge's signature

Printed name and fitle Note: Return this form to the clerk of court only if you are consenting to the exercise of jurisdiction by a United States magistrate judge. Do not return this form to a judge.