Settlement FAQs

must all settlements be approvide by presiding jduge

by Rosa Krajcik Published 2 years ago Updated 1 year ago

When does the court not approve the amount of the settlement?

The court may not approve the amount of the cost award to the settlement administrator until the final approval hearing. 3) NOTICE—The parties should ensure that the class notice is easily understandable, taking into account any special concerns about the education level or language needs of the class members.

How does the court review a settlement agreement?

In the cases when it is necessary, the court will review the settlement agreement. The process is simple: just a quick hearing where the judge will have already read the agreement (because it will be required to be submitted prior to the hearing) to be sure that it is fair and equitable.

Can I ask the court to order a different settlement?

You can’t ask the Court to order a different settlement; the Court can only approve or reject the settlement. If the Court denies approval, no settlement payments will be sent out and the lawsuit will continue. If that is what you want to happen, you must object. Any objection to the proposed settlement must be in writing.

Do FLSA settlements require Dol or court approval?

Over the next 30 years, Lynn's Food was cited by district courts in every federal circuit, with the vast majority of courts agreeing that FLSA settlements required either DOL or court approval.

How to determine if a judge is too involved in settlement discussions?

Another factor considered in determining whether a judge is too involved in settlement discussions is whether the case is a jury trial. In U.S. v. Pfizer, the Eighth Circuit reasoned that while a judge presiding over a jury trial may make settlement comments merely giving the parties his or her educated guess on the jury’s finding, a judge presiding over a bench trial who expresses his views on settlement may be guilty of prejudgment and bias. 560 F.2d 319 (8th Cir. 1977). The court reasoned that because of this difference, when the judge is the trier-of-fact, he or she should avoid recommending a settlement figure. Id. at 323.

What is the role of a judge in a settlement?

Judges should … judge. They should decide legal issues. But some judges think their primary role is to “manage” litigation. It turns out that such management often means strong-arming parties into settlement.

What is extrajudicial bias?

629 F.2d 287, 291 (3d Cir. 1980) “Extrajudicial bias” refers to bias that is not derived from the evidence or conduct of the parties that the judge observes in the course of the proceedings. Id. at 291. In this case, the plaintiffs argued that the judge’s comments that the lawsuit was a “personal tragedy for the defendants” who were “honest men of good character” showed extrajudicial bias. In his opinion denying the motion to recuse, the judge asserted that his remarks were based on his perception of the case and were his attempt at getting the parties to settle. Id.

What was the caution in Franks v. Nimmo?

Nimmo, where the trial judge attempted to persuade the plaintiff to accept the defendant’s settlement offer. 796 F.2d 1230 (10th Cir. 1986). Specifically, the judge privately met with the plaintiff and told him “these matters never work out for a plaintiff unless they are settled, and that he ought to settle because the judge could not rule in his favor.” Id. at 1233. The court found that the comments did not show any bias on behalf of the judge because his attempt to settle the case was “clearly beneficial” to the plaintiff. Id. at 1234.

What did the Third Circuit decide about the settlement conference?

The Third Circuit determined that the judge’s comments at the settlement conference did not amount to extrajudicial bias. In making this determination, the court stated that the relevant inquiry was whether the judge’s pretrial comments were linked to his evaluation of the case based on the pleadings and other material outlining the nature of the case , or whether they were based on purely personal feelings towards the parties and the case. Id. Specifically, the court reasoned that his comments “may have been a form of judicial coloration in an overzealous effort to settle what obviously would be a lengthy and complicated case to try.” Id. The Third Circuit emphasized that while the “settlement fever” in this case was not enough to warrant recusal, judges “must not permit their role as negotiator to obscure their paramount duty to administer the law in a manner that is both fair in fact and has the appearance of fairness.” Id. at 292.

Why was Goss Graphics v. Dev Indus. reassigned to a different judge?

v. Dev Indus., the Seventh Circuit reassigned a case to a different judge because the original judge dismissed the case when the plaintiff refused to settle. 267 F.3d 624 (7th Cir. 2001). The court highlighted, “if parties want to duke it out, that’s their privilege. Maybe the plaintiff was less than forthcoming in settlement negotiations than it should in some abstract sense have been, but that was its right.” Id. at 628. In another case, Cabrera v. Esso Std. Oil Co. P.R., the First Circuit concluded that the trial court abused its discretion by factoring the plaintiff’s refusal to settle into its decision to dismiss the case. 723 F.3d 82 (1st Cir. 2013). The court chastised the lower court for “permit [ing] the information gleaned through its involvement with the settlement talks to exert undue influence over its disposition of appellant’s motion.” Id. at 89. The court further noted that while the court’s desire to aid the settlement process was commendable, it became too involved in settlement discussions by obtaining information about the parties’ positions that unduly influenced its ruling. Id. at 90.

When does the judicial jaw-boning begin?

Sometimes the judicial jaw-boning in favor of settlement begins as early as the Fed. R. Civ. P. 16 pretrial conference. But the Advisory Committee Notes on Rule 16 provide that the purpose of this provision is not to “impose settlement negotiations on unwilling litigants,” but rather “it is believed that providing a neutral forum for discussing [settlement] might foster it.”

What types of cases require the court to approve settlement?

Typically, these are class actions, domestic relations cases involving the division of debt/assets and child custody/support, civil rights cases – especially under 42 USC sec. 1983 – whereby the court will often need to approve and oversee consent decrees, certain suits brought by the attorney general on behalf of, and inter-pleading a consumer, and especially any civil action where the plaintiff is a minor, as well as a handful of other less common types of cases.

How does a settlement agreement work?

In the cases when it is necessary, the court will review the settlement agreement . The process is simple: just a quick hearing where the judge will have already read the agreement (because it will be required to be submitted prior to the hearing) to be sure that it is fair and equitable. The types of cases that typically require court approval are specifically those types wherein one party is seen to be in a position of disadvantage (or in a divorce case, because often they use a mediator so the court needs to review it and ask the parties if they agree, also to advise them of their rights, to make sure child support is calculated correctly, and to make sure one party is not coerced into giving up visitation in exchange for monetary relief).

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What does a scheduling order say?

Also, depending on jurisdiction, your scheduling order may say something like "any settlements in compromise require court approval and a hearing on same." (I saw NJ: When I say jurisdiction, I mean this can differ between state and federal court.) If there are no lawyers involved and you're not sure, when the stipulation of dismissal is sent to the court, they will let you know that the agreement requires court approval and the case will not be dismissed until this occurs.

Can a lawyer file a stipulation of dismissal?

They can't do that and your lawyer should have been on it. Most lawyers include a clause that the (usually Defendant) will file the stipulation of dismissal forthwith. Typically it's the duty of the defendant... So it's more like than not your lawyer failed to file it. At most they get a week or the agreement can be voided.

Can a case be dismissed if it was settled over a year ago?

No! If your case was settled over a year ago, your case should be dismissed by now. That is unless you are one member of a class action, and that claim still exists for the other members, or if there were multiple parties (but not a class) and the case is still going on for the others, but even if this is the case, you should have been dismissed out. Typically, when an agreement is reached, the case is dismissed immediately.

When a consent judgment is to be set aside on grounds of fraud or mutual mistake, what is the procedure to answer?

Where a consent judgment is to be set aside on grounds of fraud or mutual mistake, the procedure to file a substantive action, that is by filing an originating process in the same court of original jurisdiction and not by an interlocutory motion on notice ( BABJIDE v. AISA (Supra); DANA IMPEX LTD. v. AWUKAM (Supra).

What is settlement out of court?

Settlement out of court is the amicable resolution of a matter between the Claimant and the Defendant without the direct involvement of the presiding judge. In other words, it is ‘the settlement and termination of a pending suit, arrived at without the court’s participation.’. In civil proceedings, for example, ...

When is consent judgment available?

A consent judgment may also be available in respect of an appeal, if the parties thereto are in agreement to such judgment ( EDUN v. ODAN COMMUNITY (1980) 8-11 SC 103).

What is the focus of the court in Abbey v. Alex?

The focus of the court must be on the settlement reached by the parties in resolving the dispute. Thus, previous rights not covered in the settlement or compromised during the settlement are deemed abandoned ( ABBEY v. ALEX (1999) 12 SCNJ 234 at 246-247).

What does adjournment mean in court?

The Court adjourns the matter, giving parties enough time to resolve/settle the matter and report the progress of settlement to the court on the next adjourned date;

Can a mutual mistake be set aside?

C. may be set aside on appeal for mutual mistake but not for unilateral mistake, unless the unilateral mistake was induced by fraud or misrepresentation ( UTC (NIG.) LTD v. PAMOTEI (1989) 2 NWLR (Pt. 103) 254 at 299 & AKINWUNMI v. IDEWU (1969) 1 ALL NLR 319.);

Is it ideal to state consent on the face of a judgment?

Note that, if a judgment is by consent, it is ideal that it should be so stated on the face of the judgment ( JOZEBSON INDUSTRIES CO. LTD. v. LAUWERS IMPORT-EXPORT (1988) 7 SCNJ 93).

Why do employers need to file unenforceable settlements?

Of course, there may be reasons employers choose to risk an unenforceable settlement. For example, many courts require parties to file the terms of their settlement publicly when seeking judicial approval. Employers may wish to keep the financial and other details of settlements confidential for any number of reasons, not least of which is guarding against other employees learning of the settlement amount. If such considerations outweigh the risk of an unenforceable settlement, employers may be more comfortable proceeding without judicial approval. However, the safest route in terms of enforceable settlements is to submit the settlement for approval.

How many ways can you settle a FLSA claim?

After considering the language of the statute (29 U.S.C. § 216) and related Supreme Court precedent, the Lynn's Food court stated that there are only two ways to settle or compromise FLSA claims. The first is under the supervision of the DOL pursuant to Section 216 (c), which was not applicable in that case because the DOL was not involved in the settlement in question. The second is through a private action under Section 216 (b), where any settlement must be approved by the court:

What court of appeals approved the FLSA settlement?

The Fifth Circuit become the second court of appeals to directly address court approval of FLSA settlements when it approved of the Martinez court's reasoning in Martin v. Spring Break '83 Productions, L.L.C., 688 F.3d 247 (5th Cir. 2012). Martin involved the FLSA claims of unionized film employees of Spring Break Louisiana. When the employees filed a wage grievance, the union sent a representative to investigate the claims. The representative concluded it would be impossible to determine if the plaintiffs worked on the days they claimed, after which, the union and employer entered into a settlement agreement pertaining to the disputed hours. The district court below had relied on and adopted the Martinez holding, so the Fifth Circuit also analyzed the Martinez case and approved of its rationale. Like the Martinez case, Martin involved a bona fide dispute over the number of unpaid hours worked and the Fifth Circuit held that a settlement agreement "is an enforceable resolution of those FLSA claims predicated on a bona fide dispute about time worked and not as a compromise of guaranteed FLSA substantive rights themselves." Id. at 255.

What is the case of Martinez v. Bohls?

The landscape began to shift with the district court decision of Martinez v. Bohls Bearing Equipment Co., 361 F. Supp. 2d 608 (W.D. Tex. 2005). In Martinez, the plaintiff had signed an agreement accepting "full payment" for unpaid overtime and releasing the employer from further claims. After Martinez subsequently brought an FLSA claim, the employer moved for summary judgment based on the settlement and release, posing the question of "whether purely private compromises of claims under the FLSA involving bona fide disputes as to liability are prohibited or permitted." Id. at 618. After a detailed and thorough analysis of the FLSA and its amendments, legislative history, and related Supreme Court and federal precedent (including Lynn's Food ), the Martinez court broke from the majority of courts and determined that private settlements without court approval may be enforceable in some circumstances. The court held: " [P]arties may reach private compromises as to FLSA claims where there is a bona fide dispute as to the amount of hours worked or compensation due. A release of a party's rights under the FLSA is enforceable under such circumstances."

Can a plaintiff dismiss a case without court approval?

Two other recent cases addressing FLSA settlement agreements are worth noting. The primary question at issue in Picerni v. Bilingual Seit & Preschool Inc. was under what circumstances FLSA plaintiffs can dismiss their cases without court approval. Under Federal Rule of Civil Procedure 41 (a), plaintiffs can normally dismiss their cases voluntarily — alone if early enough or with the defendant's stipulation later on — except as limited by class action rules or "any applicable federal statute." Picerni considered whether the FLSA is one of the "applicable federal statutes" that preclude parties from dismissing a case voluntarily under Rule 41 (a). ___ F. Supp. 2d ___, No. 12 CIV. 4938 BMC, 2013 WL 646649 (E.D.N.Y. Feb. 22, 2013). The Picerni court recognized that some of the progeny of the Lynn's Food rationale, including cases before the same judge, had gone so far as to require a fairness determination before a case could be voluntarily dismissed. The court then distinguished Lynn's Food on its "rather egregious facts" and hewed toward the Martin case, saying, " [i]t is hard to conceive of any reason why, if a court is presented with an eminently reasonable, albeit after-the-fact, settlement, it is precluded from giving it legal effect." Id. at *6. More importantly, said the court, Lynn's Food is silent on whether plaintiffs can voluntarily dismiss their FLSA cases. In the end, Picerni concluded that whether an agreement is enforceable is a more different question than whether a plaintiff may voluntarily withdraw a case, and therefore the FLSA is not one of the statutes that limit Rule 41 (a) dismissals.

Is a release of a party's rights under the FLSA enforceable?

A release of a party's rights under the FLSA is enforceable under such circumstances.". Under the Martinez holding, a court's analysis of a settlement agreement is limited to simply whether there was a bona fide dispute over the hours worked or wages due or whether anything else would invalidate the agreement.

Does Lynn's Food require DOL approval?

Over the next 30 years, Lynn's Food was cited by district courts in every federal circuit, with the vast majority of courts agreeing that FLSA settlements required either DOL or court approval.

What happens during the probate approval process in a personal injury case?

The probate approval process for a personal injury case includes the following steps:

When is probate approval required in a personal injury case?

If a plaintiff dies as a result of an accident or injury, the case will require intervention by the relevant probate court. In personal injury cases, it is far more common that a person will sustain a non-fatal injury in a car crash, slip and fall, or nursing home accident and then at a later date, dies due to unrelated causes. In these instances, the cases will require probate approval, as well.

What is probate court and probate approval?

The relevant probate court will then identify the rightful heirs to the deceased’s estate and approve its distribution according to the local laws and rules. Probate courts also manage the estates of minors and incapacitated or disabled persons. In these situations, the court serves as a default guardian to the minor or disabled person’s property and will only approve the distribution of the property that is in the minor or disabled person’s best interests.

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