Brown et al v. CE Solutions Group, LLC et al

Filing 86

CHEEKS ORDER: Therefore, it is hereby: ORDERED that by June 7, 2024, 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 compromis e of disputed issues. Such letter should include, but need not be limited to, information concerning the five (5) factors identified above. IT IS FURTHER ORDERED that, if the agreement includes a provision for attorney's fees, the parties subm it 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, 96 F. Supp. 3d 170, 181 (S.D.N.Y. 2015). IT IS FURTHER ORDERED that, if the agreement includes a release, confidentiality or non-disparagement provision, the parties shall provide support for each provision, including citat ions to relevant caselaw. The parties are also reminded that they may, if they would like to, consent to the jurisdiction of the Magistrate Judge for review and approval of the settlement if all parties agree. There are no adverse consequences for withholding consent. SO ORDERED (Signed by Judge Jessica G. L. Clarke on 5/9/2024) (ks)

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
TERRI COLEMAN,
Plaintiff,
-againstCE SOLUTIONS GROUP, LLC, et al.,

23-CV-3029 (JGLC)
CHEEKS ORDER

Defendants.

JESSICA G. L. CLARKE, United States District Judge:
The Court has been advised that the parties have reached a settlement in this Fair Labor
Standards Act (“FLSA”) case. See ECF No 89. Parties may not privately settle FLSA claims
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); Samake v. Thunder Lube, Inc., 24 F.4th
804, 807 (2d Cir. 2022). Rather, the parties must satisfy this Court that their settlement is “fair
and reasonable.” Velasquez v. SAFI-G, Inc., 137 F. Supp. 3d 582, 584 (S.D.N.Y. 2015). In order
to determine whether an agreement is fair and reasonable under the FLSA, the Court must:
consider the totality of circumstances, including but not limited to the following
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.
Wolinsky v. Scholastic Inc., 900 F. Supp. 2d 332, 335 (S.D.N.Y. 2012) (internal citation and
quotation marks omitted).
If the settlement agreement includes a provision for attorney’s fees, the Court 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.” Wolinsky, 900 F.
Supp. 2d at 336.
The Court also must closely scrutinize any release, confidentiality or non-disparagement
provisions included in a proposed settlement. See, e.g., Arango v. Scotts Co., LLC, No. 17-CV7174 (KMK), 2019 WL 117466, at *4 (S.D.N.Y. Jan. 7, 2019); Illescas v. Four Green Fields
LLC, No. 20-CV-9426 (RA), 2021 WL 1254252, at *1–2 (S.D.N.Y. Apr. 5, 2021); Velandia v.
Serendipity 3, Inc., No. 16-CV-1799 (AJN), 2018 WL 3418776, at *3 (S.D.N.Y. July 12, 2018).
Therefore, it is hereby:
ORDERED that by June 7, 2024, 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 above.
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, 96 F.
Supp. 3d 170, 181 (S.D.N.Y. 2015).
IT IS FURTHER ORDERED that, if the agreement includes a release, confidentiality or
non-disparagement provision, the parties shall provide support for each provision, including
citations to relevant caselaw.

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The parties are also reminded that they may, if they would like to, consent to the
jurisdiction of the Magistrate Judge for review and approval of the settlement if all parties agree.
There are no adverse consequences for withholding consent.
Dated: May 9, 2024
New York, New York
SO ORDERED.

JESSICA G. L. CLARKE
United States District Judge

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