When two or more parties decide to settle a legal dispute outside of court, it’s common for the settlement amount agreed upon to be less than the original value of the claims made by the plaintiff. That’s what makes it a compromise, but if the settlement amount is too much lower than the value of the alleged violations, they may not get approval for the settlement from the court judge.
When determining whether to approve a settlement agreement, the court judge presiding over the case is responsible for determining whether the agreement is fair to both parties. A settlement amount that is too much smaller than the original value of the claims provided might not be fair to the plaintiffs.
A California court judge presiding over a class action wage and hour lawsuit against Frito-Lay has refused to certify a proposed settlement because he says the $600,000 it provides is much too small to be fair to the plaintiffs. Continue reading