On March 28, 2000 several former employees of Zirkle Fruit Company Matson Fruit Company filed a class action lawsuit against their former employers and the Selective Employment Agency, Inc. in the U.S. District Court for the Eastern District of Washington, alleging that Matson and Zirkle and the engaged in a massive scheme to hire undocumented illegal immigrants for the express purpose of depressing employee wages. Selective was alleged to have acted as a front company in order to shield from Matson and Zirkle from their illegal activity. Plaintiff alleged that defendants' scheme violated the Racketeer Influenced and Corrupt Organizations Act ("RICO"), 18 U.S.C. § 1961 et seq., and the Immigration and Nationality Act, 8 U.S.C. § 1324(a), et seq. Plaintiffs were represented by private counsel and sought a permanent injunction and monetary reimbursement for wages lost during the period of the employment of illegal workers. This case was assigned to District Judge Fred Van Sickle.

The defendants moved to dismiss the case. On September 27, 2000 Judge Van Sickle granted defendants' motion and dismissed the case, citing a lack of standing on the RICO claims. Judge Van Sickle remanded plaintiffs' state law claims to state court. Mendoza v. Zirkle Fruit Co., 2000 WL 33225470 (E.D.Wash.). Plaintiffs appealed.

On October 21, 2002, the United State Court of Appeals for the Ninth Circuit (Judge McKeown) reversed and remanded the case back to the district court. Mendoza v. Zirkle Fruit Co., 301 F.3d 1163 (9th Cir. 2002).

On remand, plaintiffs amended their complaint twice, named several additional defendants and moved for class certification. On July 13, 2004, the District Court, Judge Van Sickle, denied to certify a class of former employees of Mason, but certified a certified a class against Zirkle as follows: "Two classes are certified: Subclass (A) consists of persons who worked in Zirkle Fruit Company's warehouse from November 5, 1999, to the present whether Zirkle hired them directly or obtained them indirectly through Selective Employment Agency. Subclass (B) consists of persons who worked in Zirkle Fruit Company's orchards from November 5, 1999, to the present." Mendoza v. Zirkle Fruit Co., 222 F.R.D. 439 (E.D. Wash. 2004)

On August 13, 2004, Judge Van Sickle ordered the dismissal of individual defendants Roderick Matson and Daryl Matson with prejudice. The remaining defendants then moved for summary judgment. Judge Van Sickle granted in part and denied in part Selective Employment's motion for summary judgment and denied the Zirkle Fruit Companies' motion for summary judgment by order dated January 18, 2005.

Settlement negotiations followed. Plaintiffs and Zirkle Fruit moved for approval of the proposed settlement, which was conditionally approved at a fairness hearing on January 20, 2006. As part of the settlement, Zirkle Fruit agreed to pay $1.3 million towards the class settlement fund. The Court issued its order of final approval and dismissal on May 17, 2006.

Miles Chan - 08/05/2007


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