Leon-Martinez et al v. Central Cafe & Deli et al, No. 1:2015cv07942 - Document 35 (S.D.N.Y. 2016)

Court Description: OPINION AND ORDER OF DISMISSAL: First, given the relatively modest size of the settlement fund in comparison to the plaintiffs' claims, I shall needsome specifics concerning the defendants' assets, such as a statement of assets and liabilit ies and whether defendants have any current sources of income. A defendant's financial condition may justify the deep discounting of a claim, but facts are required to justify the discount. Second, the release language is overly broad. Paragraph 2 appears to provide that the settlement resolves all claims or potential claims plaintiffs may have against the defendants. This language effectively makes the settlement agreement a general release. In addition, it is unclear what claims are relea sed by Paragraph 7. Among other things, Paragraph 7 purports to release "all claims referred to of identified in various correspondence to an between he parties leading up to [the Settlement Agreement]." What this cross reference reaches is undefined. Numerous judges in this Circuit have condemned the insertion of general or broad releases into FLSA settlement agreements. The settlement should more clearly and narrowly define what is being released. I shall await the parties' further submission in this matter. SO ORDERED. (Signed by Magistrate Judge Henry B. Pitman on 12/19/2016) Copies Faxed By Chambers. (ama)