Sanchez v. R.Q. Realty Mgt. LTD. et al

Filing 31

ORDER: granting 30 Letter Motion to Adjourn Conference. The Court has been advised that the parties have reached a settlement in this Fair Labor Standards Act ("FLSA") case. (Doc. 30.) Parties may not privately settle FLSA claims with pr ejudice absent the approval of the district court or the Department of Labor. ORDERED that within thirty (30) days of this Order the parties provide this Court with the terms of the settlement in order to ensure that, in compliance with the FLSA, the y 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. 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 fe es award. Such basis should include "contemporaneous billing records documenting, for each attorney, the date, the hours expended, and the nature of the work done." IT IS FURTHER ORDERED that the status conference scheduled for April 1, 2021 is adjourned. SO ORDERED. And as set forth herein. SO ORDERED. (Signed by Judge Vernon S. Broderick on 3/31/2021) (ama)

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
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:
RAFAEL SANCHEZ,
:
:
Plaintiff,
:
:
-against:
:
:
R.Q. REALTY MGT. LTD., et al.,
:
:
Defendants.
:
:
:
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3/31/2021

19-CV-5599 (VSB)
ORDER

VERNON S. BRODERICK, United States District Judge:
The Court has been advised that the parties have reached a settlement in this Fair Labor
Standards Act (“FLSA”) case. (Doc. 30.) Parties may not privately settle FLSA claims with
prejudice absent the approval of the district court or the Department of Labor. See 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. 15 Civ.1951(PAE), 2015 WL 6503832, at *1 (S.D.N.Y. Oct. 27, 2015)
(quoting Wolinsky v. Scholastic Inc., 900 F. Supp. 2d 332, 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 within thirty (30) days of this Order the parties provide this Court with the
terms of the 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).
IT IS FURTHER ORDERED that the status conference scheduled for April 1, 2021 is
adjourned.
SO ORDERED.
Dated:

March 31, 2021
New York, New York

________________________________
Vernon S. Broderick
United States District Judge