Posted June 9, 2015
The
Supreme Court has agreed to hear Tyson Foods’ challenge to a $5.8 million
judgment against the company regarding worker compensation, according to a
MeatingPlace article available here. Reuters
also published an article available here
and AgWeek here.
The
case involves more than 3,300 current and former hourly workers who have been
employed at the company’s Storm Lake, Iowa, plant since Feb. 7, 2005. The
employees are suing for payment of time spent donning and doffing protective
gear before and after line work.
The case
has been watched by the business community, which has sought to limit big-money
class action payouts, the court will consider the company's objection to the
use of statistics to determine damages instead of assessing individual damages
for each plaintiff. Business groups, including the U.S. Chamber of Commerce and
the National Association of Manufacturers, had asked the Supreme Court to take
the case, according to AgWeek.
The
workers at the Iowa pork facility in Iowa sued in 2007, and the 8th U.S.
Circuit Court of Appeals upheld the judgment in an August 2014 ruling.
The
Chamber of Commerce said in its brief backing Tyson that the case gives the
court a chance to "address ongoing abuses in class action litigation and
to restore proper constitutional limits on lawsuits involving individuals who
have suffered no injury."
Tyson
said in a statement on Monday that it asked for the Supreme Court to weigh in
because "federal courts of appeal are divided over the requirements necessary
to be part of such cases," according to Reuters.
The
employees are represented by Public Citizen, a consumer advocacy group.
"Obviously
we are disappointed that the court decided to grant review, because our clients
prevailed below, but we are confident that when the court analyzes the case, it
will conclude that the lower courts applied the correct legal standards and
reached the correct result," Public Citizen attorney Scott Michelman said.
A
ruling is expected by June 2016, which is the end of term.
The
case is Tyson Foods v. Bouaphakeo, U.S. Supreme Court, No. 14-1146.
For
more information on labor law issues, please visit the National Agricultural
Law Center’s website here.
