Fernandez Estevez v. Kings Finest Deli Inc.
1:22-cv-07376
S.D.N.Y.Sep 13, 2023Background
- Plaintiff brought an FLSA collective action against Kings Finest Deli Inc. and others; the parties have reached a settlement in principle.
- Under Second Circuit precedent, the court must scrutinize any FLSA settlement (including attorneys’ fees) to ensure fairness.
- The court ordered the parties to file a joint letter by October 23, 2023 explaining why the proposed settlement is fair and reasonable, citing Wolinsky factors.
- The joint letter must address confidentiality, non‑disparagement provisions, and releases, and must justify any requested attorneys’ fees with supporting documentation (normally contemporaneous time records showing date, hours, and work performed).
- A telephonic settlement‑approval hearing was scheduled for October 30, 2023; Roger B. Greenberg’s motion to withdraw as counsel was granted and other conferences and deadlines (including trial) were cancelled.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the proposed FLSA settlement is fair and reasonable | Settlement in principle is fair and should be approved (parties jointly) | Settlement is acceptable as proposed (parties jointly) | Court requires a joint letter applying Wolinsky factors to explain fairness before approval |
| Whether attorneys’ fees are reasonable | Counsel requests fee award as part of settlement | Defendants presumably consent to proposed fee as part of settlement | Court requires adequate documentation (contemporaneous time records) not just fee proportion; failure may lead to rejection (per Fisher) |
| Whether confidentiality, non‑disparagement, and releases are permissible | Parties may have such provisions in their agreement | Parties may defend provisions as necessary to settlement | Court directed parties to specifically address these provisions in their submission for fairness review |
| Motion to withdraw by plaintiff’s counsel | Plaintiff does not oppose withdrawal (implied) | Defendants not opposing | Court granted Roger B. Greenberg’s motion to withdraw and closed that docket entry |
Key Cases Cited
- Fisher v. SD Protection Inc., 948 F.3d 593 (2d Cir. 2020) (requires court scrutiny of FLSA settlements and documentation for attorneys’ fees)
- Cheeks v. Freeport Pancake House, Inc., 796 F.3d 199 (2d Cir. 2015) (orders judicial approval of FLSA settlements to ensure fairness)
- Wolinsky v. Scholastic, Inc., 900 F. Supp. 2d 332 (S.D.N.Y. 2012) (sets factors district courts may consider in evaluating settlement fairness)