Florencio v. Flor Azteca Deli & Grocery Inc
1:18-cv-06619
| E.D.N.Y | Jun 6, 2019Background
- Plaintiffs Rudy Florencio and Oscar Guerra sued under the FLSA and New York Labor Law.
- Defendants served a Rule 68 Offer of Judgment for $150,000 on May 10, 2019, stating it was inclusive of fees and costs.
- Plaintiffs accepted the offer by email on June 4, 2019, and served a Notice of Acceptance on June 5, 2019 — more than 14 days after the offer.
- The parties had exchanged consensual extensions and jointly sought a discovery extension to continue settlement discussions; defendants indicated they would waive the Rule 68 14-day period.
- Plaintiffs moved for entry of judgment under Rule 68; no timely objection was filed by defendants.
- The court addressed whether Rule 68 settlements of FLSA claims require Cheeks approval and whether the late acceptance was waived.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Rule 68 judgment should be entered after Plaintiffs accepted Offer | Acceptance was effective and judgment should be entered | Offer’s 14-day acceptance period had passed, so offer was withdrawn | Entry required: parties waived the 14-day deadline and clerk must enter judgment under Rule 68 |
| Whether Rule 68’s 14-day deadline is jurisdictional and waivable | Acceptance timely as parties consented to extensions; deadline waived | The 14-day limit renders offer withdrawn if not accepted within period | Deadline is a claim-processing rule (not jurisdictional) and may be waived by parties |
| Whether Rule 68 FLSA settlements require judicial (Cheeks) approval | Rule 68 settlement should suffice without Cheeks approval | Cheeks requires court review of FLSA settlements for fairness | Court held Cheeks approval not required for Rule 68 settlements in this circuit context |
| Whether clerk should enter judgment for full amount inclusive of fees | Judgment should be entered for $150,000 inclusive of fees and costs | No timely objection to amount or terms raised | Clerk directed to enter judgment for $150,000.00 in favor of Plaintiffs |
Key Cases Cited
- Campbell-Ewald Co. v. Gomez, 136 S. Ct. 663 (U.S. 2016) (an unaccepted Rule 68 offer is considered withdrawn after 14 days)
- Owen Equip. & Erection Co. v. Kroger, 437 U.S. 365 (U.S. 1978) (Federal Rules do not create or withdraw federal jurisdiction)
- Gunter v. Bemis Co., Inc., 906 F.3d 484 (6th Cir. 2018) (deadlines in the Federal Rules are claim-processing rules that may be forfeited or waived)
- Cheeks v. Freeport Pancake House, Inc., 796 F.3d 199 (2d Cir. 2015) (requirement that FLSA settlements be reviewed and approved by a court to ensure fairness)