Childress v. Darby Lumber, Inc.

126 F. Supp. 2d 1310, 2001 U.S. Dist. LEXIS 4890, 2001 WL 25417
CourtDistrict Court, D. Montana
DecidedJanuary 4, 2001
DocketCV99-16MDWM
StatusPublished
Cited by13 cases

This text of 126 F. Supp. 2d 1310 (Childress v. Darby Lumber, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Childress v. Darby Lumber, Inc., 126 F. Supp. 2d 1310, 2001 U.S. Dist. LEXIS 4890, 2001 WL 25417 (D. Mont. 2001).

Opinion

ORDER

MOLLOY, District Judge.

I. Introduction

There are four motions pending in this case: Plaintiffs’ Motion for Partial Summary Judgment on the Applicability and Triggering of the Worker Adjustment Retraining and Notification Act, Plaintiffs’ Motion for Partial Summary Judgment on Defendants’ Affirmative Defenses, Defendants’ Motion for Summary Judgment, and Plaintiffs’ Motion to Certify Order Awarding Sanctions. The summary judgment motions amount to cross-motions for summary judgment.

I heard oral argument on the motions on November 16, 2000. Based on the briefs and supporting arguments, I conclude that the WARN Act does apply in this matter, that the exceptions to a 60-day notice do not apply here, and that Defendants’ written notice was deficient as a matter of law. *1312 I also find that certification of my Order awarding sanctions is inappropriate. The reasons for these conclusions are set forth below.

II.Background

Darby Lumber Inc. shut down its sawmill operation on September 25, 1998. The shut down occurred on one day notice. All sawmill employees were laid off. The planer operation at the mill ran for several weeks before it too shut down and all its employees were laid off. Bob Russell Construction, a wholly-owned subsidiary of Darby Lumber, ran the log yard at the mill, and all the construction employees were laid off in the next few months.

On February 8, 1999 several former Darby Lumber employees filed suit. The essence of their claims involved allegations of violation of the Worker Adjustment Retraining and Notification (WARN) Act, 29 U.S.C. § 2101 et seq. That act requires a 60-day notice of layoffs in certain situations. Darby Lumber claims the WARN Act does not apply since it had less than 100 full-time employees. The act does not apply if there are fewer than 100 employees. Darby Lumber also claims that even if the WARN Act does apply, it was a “faltering company” and/or “unforeseeable business circumstances” existed that preclude application of the Act. Plaintiffs maintain that Darby Lumber and BRC are really one operation and together they had more than 100 employees. The argument is that they are a single employer for purposes of the WARN Act. Plaintiffs also claim that the exceptions do not apply here, but even if they do, WARN sanctions are warranted because the notice of termination was insufficient. The parties also dispute Plaintiffs’ claim that they are owed payment for 60 calendar days, while Defendants maintain that if WARN Act liability is found, Plaintiffs are owed only for their total normal working days in the 60 days prior to layoff.

III.Summary Judgment

Under Fed.R.Civ.P.Rule 56(c), summary judgment is appropriate if “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.”

The moving party must establish that there is no general issue as to any material fact. A material fact is one which is relevant to an element of a claim or defense, and its materiality is determined by the substantive law governing the claim or defense. T.W. Elec. Serv. Inc. v. Pacific Elec. Contractors, 809 F.2d 626, 630 (9th Cir.1987). Once a moving party meets its burden that no genuine issues of material fact exist, the burden shifts to the party opposing summary judgment to show specific material facts which remain at issue. Kaiser Cement Corp. v. Fischbach & Moore, 793 F.2d 1100, 1103-1104 (9th Cir. 1986).

Allegations or denials in a pleading by a party opposing summary judgment do not create genuine issues for trial. There must be sufficient evidence supporting its claim of a factual dispute to require a judge or jury to resolve at trial. T.W. Elec., 809 F.2d at 630.

The Supreme Court has held “the plain language of Rule 56(c) mandates the entry of summary judgment, after adequate time for discovery and upon motion, against a party who fails to make a showing sufficient to establish the existence of an element essential to that party’s case.” Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986).

IV.Analysis

A. WARN Act Employer

The purpose of the WARN Act is to provide workers of advance notice of plant closures and mass layoffs so that workers have time to adjust and seek other employment. Alarcon v. Keller Industries, 27 F.3d 386 (9th Cir.1994), 20 C.F.R. § 639.1(a). In general, the WARN Act requires employees of 100 or more full-time employees to give at least 60 days’ advance notice of a plant closing if the *1313 shutdown results in an employment loss by mass layoff at a single site of employment during any 30 day period for 50 or more employees excluding any part-time employees. 29 U.S.C. § 2101 et seq. A part-time employee is one “who is employed for an average of fewer than 20 hours per week or who has been employed for fewer than 6 of the 12 months preceding the date on which notice is required.” 29 U.S.C. § 2101(a)(8). Employers must serve a written 60-day notice of termination “to each representative of the affected employees as of the time of the notice or, if there is no such representative at that time, to each affected employee.” 29 U.S.C. § 2102(a). Without the required WARN Act notices, employees can recover pay and benefits for the period for which notice was not given, up to 60 days. 29 U.S.C. § 2104.

' Under the WARN Act, an affected employee is one “who may reasonably be expected to experience an employment loss as a consequence of a proposed plant closing or mass layoff by their employer.” 29 U.S.C. § 2101(a)(5). An employment loss is “(A) an employment termination, other than a discharge for cause, voluntary departure, or retirement, (B) a layoff exceeding 6 months, or (C) a reduction in hours of work of more than 50 percent during each month of any 6-month period.” 29 U.S.C. § 2101(a)(6).

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126 F. Supp. 2d 1310, 2001 U.S. Dist. LEXIS 4890, 2001 WL 25417, Counsel Stack Legal Research, https://law.counselstack.com/opinion/childress-v-darby-lumber-inc-mtd-2001.