Samake v. Thunder Lube, Inc.

24 F.4th 804
CourtCourt of Appeals for the Second Circuit
DecidedJanuary 27, 2022
Docket21-102-cv
StatusPublished
Cited by134 cases

This text of 24 F.4th 804 (Samake v. Thunder Lube, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Samake v. Thunder Lube, Inc., 24 F.4th 804 (2d Cir. 2022).

Opinion

21-102-cv Samake v. Thunder Lube, Inc., et al.

1 United States Court of Appeals 2 for the Second Circuit 3 4 AUGUST TERM 2021 5 No. 21-102-cv 6 7 8 SEKOUBA SAMAKE, 9 Plaintiff-Appellant, 10 11 v. 12 13 THUNDER LUBE, INC., ABKO ASSOCIATES, INC. AND DROR HERSHOWITZ, 14 Defendants-Appellees. 15 16 ARGUED: OCTOBER 8, 2021 17 DECIDED: JANUARY 27, 2022 18 19 20 Before: JACOBS, MENASHI, Circuit Judges, LIMAN, District Judge. 1 21 22 Plaintiff Sekouba Samake appeals from the orders of the United States

23 District Court for the Eastern District of New York (Vitaliano, J.) deeming his

24 Rule 41(a)(1)(A)(i) notice of dismissal without prejudice withdrawn and

25 compelling arbitration. On appeal, Samake argues that the district court should

1Judge Lewis J. Liman of the United States District Court for the Southern District of New York, sitting by designation. 1 have either denied the motion to compel arbitration or given effect to his earlier

2 notice of dismissal.

3 We hold that (i) the district court properly retained jurisdiction following

4 the notice of dismissal to conduct a Cheeks review of any possible settlement of

5 Samake’s Fair Labor Standards Act claims; and (ii) the district court reasonably

6 interpreted Samake’s request to continue the litigation as a withdrawal of the

7 notice of dismissal, and, in its discretion, deemed it withdrawn. Having thus

8 determined that the district court deemed the notice of dismissal withdrawn on

9 June 25, 2019, and therefore had jurisdiction to enter the order to compel

10 arbitration on December 22, 2020, we conclude that Samake failed to take a

11 timely appeal of the order deeming his notice of dismissal withdrawn, and that

12 the order to stay and compel arbitration is an unappealable interlocutory order.

13 We DISMISS the appeal for lack of jurisdiction.

14 JUDGE MENASHI concurs in the judgment in a separate opinion.

15 ____________________

16 ABDUL K. HASSAN, Abdul Hassan Law Group, PLLC, 17 Queens Village, NY, for Plaintiff-Appellant. 18

2 1 MICHAEL BRUK, Law Office of Michael Bruk, New 2 York, NY, for Defendants-Appellees.

3 DENNIS JACOBS, Circuit Judge:

4 Plaintiff Sekouba Samake filed this suit against his former employer for

5 alleged violations of the Fair Labor Standards Act and other laws. After the

6 employer moved to compel arbitration, Samake filed a notice of voluntary

7 dismissal without prejudice pursuant to Federal Rule of Civil Procedure

8 41(a)(1)(A)(i). The next day, the district court entered an order retaining

9 jurisdiction over the case pursuant to Cheeks v. Freeport Pancake House, Inc.,

10 796 F.3d 199 (2d Cir. 2015), pending confirmation that the parties had not

11 reached any settlement that would necessitate review.

12 In response, Samake filed a letter disclaiming a settlement but asserting

13 that the case must continue in federal court. The court interpreted the letter as a

14 request to withdraw the notice of dismissal, and ordered the parties to determine

15 a briefing schedule for the pending motion to compel arbitration. The parties

16 fully briefed the motion to compel arbitration, which the district court granted.

17 In Cheeks, this Court held that any Fair Labor Standards Act (“FLSA”)

18 settlement must be reviewed by the district court for compliance with that Act

3 1 before the parties may dismiss a case with prejudice by joint stipulation pursuant

2 to Federal Rule of Civil Procedure 41(a)(1)(A)(ii). See Cheeks, 796 F.3d at 206–

3 207. The Court acknowledged that a stipulated dismissal is typically effective

4 automatically under Rule 41(a)(1)(A)(ii), but cited the exception for an

5 “applicable federal statute,” Rule 41(a)(1)(A), and ruled that the FLSA is such a

6 statute. Id. at 206.

7 We hold that the FLSA limits the automatic operation of Rule

8 41(a)(1)(A)(i), which concerns unilateral dismissals, as well as (ii), which

9 concerns stipulated dismissals. Accordingly, the district court properly retained

10 jurisdiction to inquire whether the parties had reached a settlement necessitating

11 Cheeks review. Further, we conclude that the district court reasonably

12 interpreted Samake’s letter--filed while the district court retained jurisdiction--as

13 a request to withdraw his unilateral dismissal, which it then in its discretion

14 deemed withdrawn.

15 As a result, the withdrawal of Samake’s notice of dismissal was effected on

16 June 25, 2019. Since Samake failed to appeal it within the 30 days required under

17 Federal Rule of Appellate Procedure 4(a)(1)(A), we lack jurisdiction to review it.

4 1 The order to compel arbitration, entered on December 22, 2020, was appealed

2 within 30 days; but it is an unappealable interlocutory order. See 9 U.S.C. §

3 16(b). Since that is the only order that is presented to us, we dismiss this appeal

4 for lack of appellate jurisdiction.

5 BACKGROUND

6 The facts that bear upon this appeal are procedural. On February 24, 2019,

7 Plaintiff Sekouba Samake filed suit seeking unpaid overtime wages from his

8 former employer, Thunder Lube, Inc. and others (“Thunder Lube”) under the

9 FLSA and other statutes. On May 16, 2019, Thunder Lube moved to compel

10 arbitration. In response, on June 17, 2019, Samake filed a unilateral notice of

11 voluntary dismissal without prejudice under Federal Rule of Civil Procedure

12 41(a)(1)(A)(i).

13 The next day, the district court entered a docket order (the “June 18

14 Order”) reserving decision on whether to so-order the voluntary dismissal. The

15 district court explained that, if the parties had reached a settlement, it was subject

16 to court review and approval in order to ensure compliance with the FLSA

17 pursuant to Cheeks v. Freeport Pancake House, Inc., 796 F.3d 199 (2d Cir. 2015).

5 1 The June 18 Order cited two district court decisions discussing Cheeks review:

2 Gallardo v. PS Chicken Inc., 285 F. Supp. 3d 549 (E.D.N.Y. 2018), in which the

3 parties “filed [a] stipulation of dismissal without prejudice in apparent effort to

4 evade judicial review”; and Carson v. Team Brown Consulting, Inc., 416 F. Supp.

5 3d 137 (E.D.N.Y. 2017), which “discuss[ed] potential preclusive effect of a

6 dismissal without prejudice in light of overbroad release provisions and the

7 applicable statute of limitations.” Joint App’x 3 (internal quotation marks

8 omitted). Although Samake had “implie[d] that no settlement ha[d] been

9 reached,” 2 the district court requested he “file a further letter on ECF, by June 24,

10 2019, stating whether the parties have reached a settlement, and, if so, whether

11 they intend to file a motion for settlement approval” under Cheeks. Id.

12 Samake filed a letter as instructed, which advised that “there is no

13 settlement of this action,” but, addressing the concern expressed in Carson, went

14 on to argue that the validity of the arbitration agreement must be reviewed

15 because it may have “preclusive effect” on refiling his claims. Joint App’x 26–27.

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