Fontanez v. Eastern US Trading Company, Inc.

Filing 23

ORDER that the confidentiality provision (Doc. 20-1) is STRICKEN. To the extent the modification provision (Doc. 20-1) purports to allow the Settlement Agreement to be modified without Court approval, it is also STRICKEN. Granting 20 Renewed J oint Motion to Approve FLSA Settlement and to Dismiss with Prejudice; the Settlement Agreement, as amended by this Court, is APPROVED; and this case is DISMISSED with prejudice. The Clerk is directed to close this case. Adopting Report and Recommendations - re 21 Report and Recommendations. Signed by Judge Carlos E. Mendoza on 7/17/2017. (DJD)

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
ORLANDO DIVISION

SHYLEEN SOTO FONTANEZ,
Plaintiff,
v.

Case No: 6:16-cv-1917-Orl-41GJK

EASTERN US TRADING COMPANY,
INC.,
Defendant.
/
ORDER
THIS CAUSE is before the Court on the parties’ Renewed Joint Motion to Approve FLSA
Settlement and to Dismiss with Prejudice (“Renewed Motion,” Doc. 20). United States Magistrate
Judge Gregory J. Kelly issued a Report and Recommendation (“R&R,” Doc. 21), in which he
recommends that the Renewed Motion be granted in part. Specifically, Judge Kelly recommends
that the Court strike the confidentiality provision from the Settlement Agreement, find that the
general release clause is reasonable, approve the parties’ Settlement Agreement as modified, and
dismiss the case with prejudice. (Id. at 8–9). The parties subsequently filed a Joint Notice of No
Objection (Doc. 22).
After a de novo review of the record, this Court agrees with the analysis in the R&R except
for the recommendation to approve the general release included in the Settlement Agreement.
Here, there is consideration for the general release that is separate from that being given in
exchange for the settlement of Plaintiff’s FLSA claims. (Settlement Agreement, Doc. 20-1, ¶ 4).
Pursuant to Lynn’s Food Stores, Inc. v. United States, this Court must determine whether a
proposed settlement “is a fair and reasonable resolution of a bona fide dispute over FLSA

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provisions.” 679 F.2d 1350, 1355 (11th Cir. 1982) (emphasis added). Moreover, “the release of
non-FLSA claims is generally not subject to judicial scrutiny.” Shearer v. Estep Const., Inc., No.
6:14-cv-1658-Orl-41GJK, 2015 WL 2402450, at *4 (M.D. Fla. May 20, 2015). Accordingly, this
Court does not express an opinion as to the validity of the separate general release agreement.
Additionally, this Court notes that to the extent that the Settlement Agreement purports to
allow the parties to subsequently modify the Agreement, (see Doc. 20-1 ¶ 9), that language will be
stricken. Pursuant to Lynn’s Food Stores, Inc., 679 F.2d at 1355, any future modifications to the
Settlement Agreement are unenforceable absent judicial approval.
Therefore, it is ORDERED and ADJUDGED as follows:
1. The Report and Recommendation (Doc. 21) is ADOPTED and CONFIRMED as
set forth herein.
2. The confidentiality provision (Doc. 20-1 ¶ 8) is STRICKEN. To the extent the
modification provision (Doc. 20-1 ¶ 9) purports to allow the Settlement Agreement
to be modified without Court approval, it is also STRICKEN.
3. The parties’ Renewed Joint Motion to Approve FLSA Settlement and to Dismiss
with Prejudice (Doc. 20) is GRANTED; the Settlement Agreement, as amended
by this Court, is APPROVED; and this case is DISMISSED with prejudice.
4. The Clerk is directed to close this case.
DONE and ORDERED in Orlando, Florida on July 17, 2017.

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Copies furnished to:
Counsel of Record

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