Perez-Farias v. Global Horizons, Inc.

286 P.3d 46, 175 Wash. 2d 518
CourtWashington Supreme Court
DecidedSeptember 27, 2012
DocketNo. 86793-3
StatusPublished
Cited by13 cases

This text of 286 P.3d 46 (Perez-Farias v. Global Horizons, Inc.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Perez-Farias v. Global Horizons, Inc., 286 P.3d 46, 175 Wash. 2d 518 (Wash. 2012).

Opinion

C. Johnson, J.

¶1 These three certified questions from the Ninth Circuit Court of Appeals concern application of the farm labor contractors act (FLCA), chapter 19.30 RCW. [521]*521The primary question asks whether a trial court, if awarding statutory damages under the civil remedies provision of the FLCA, RCW 19.30.170(2), must award $500 per plaintiff per violation. We answer this question in the affirmative. The second question asks whether requiring a trial court to award $500 per plaintiff per violation violates due process or public policy. Regarding this question, we answer in the negative and expressly limit our analysis and holding to state due process principles and statutes. The third question asks whether the FLCA provides for awarding statutory damages to persons who have not been shown to have been aggrieved by a particular violation. Because our standing jurisprudence tracks that of the United States Supreme Court, we leave to the Ninth Circuit to answer this question based on its standing jurisprudence and the standing jurisprudence of the Supreme Court.

Facts

¶2 Jose Guadalupe Perez-Farias, Jose F. Sanchez, and Ricardo Betancourt (Workers) brought this action, as class representatives, against Global Horizons Inc. (Global) and Green Acre Farms Inc. and Valley Fruit Orchards LLC (Growers), alleging in relevant part that Global and the Growers violated the FLCA.1 The FLCA attempts to protect farm workers against exploitation by farm labor contractors. As regular practice, farmers secure farm workers through the services of farm labor contractors, who act as intermediary between farm workers and farmer. Generally, they recruit, transport, house, and supervise farm workers, and handle their pay arrangements. The FLCA attempts to protect farm workers through the registration of contractors and the regulation of their activities, and by requiring [522]*522farm labor contractors to disclose to farm workers the terms and conditions of employment.

¶3 The Workers’ allegations arose from the Growers’ decision to use Global to supply the Growers with non-immigrant foreign workers (guest workers) for the 2004 growing season under the federal H-2A temporary agricultural program. The H-2A program allows employers to hire guest workers to perform agricultural labor but only if the United States Department of Labor certifies that a labor shortage exists and finds that the wages of local workers will not be adversely affected. Global allegedly recruited and hired guest workers from Thailand before obtaining approval from the Department of Labor and without first obtaining a farm labor contractor’s license from Washington State. The Workers alleged that Global and the Growers either fired local workers or withdrew offers to hire local workers in an effort to manufacture a labor shortage to justify the use of guest workers.2

¶4 The Workers filed a motion for partial summary judgment on the FLCA claims, to which Global and the Growers failed to respond. The District Court for the Eastern District of Washington granted the motion, finding that Global and the Growers had violated the FLCA by (1) failing to provide required disclosures, (2) providing false and misleading information about the terms of employment, (3) violating the terms of the working agreement, (4) failing to pay wages due, and (5) failing to provide adequate written pay statements.3 Because Global and the Growers also failed to contest the Workers’ motion for damages [523]*523under the FLCA, the court granted the Workers’ request for statutory damages of $500 per plaintiff per violation under RCW 19.30.170(2),4 which states:

[I]f the court finds that the respondent has violated this chapter or any rule adopted under this chapter, it may award damages up to and including an amount equal to the amount of actual damages, or statutory damages of five hundred dollars per plaintiff per violation, whichever is greater, or other equitable relief.

The total amount of statutory damages awarded was $1,857,000.

¶5 The district court’s judgment prompted a response from the Growers, who filed a motion for reconsideration. The Growers conceded they were liable for the violations but requested reconsideration of damages, challenging whether statutory damages of $500 should have been given for each violation. The court granted reconsideration and held a bench trial on the damages question.5

¶6 The district court held it had discretion under the FLCA to award no damages or to award an amount between $0 and $500 per plaintiff per violation. The court also stated that an award of $500 per plaintiff per violation could be construed to violate the Growers’ due process rights by mandating an award of “exorbitant amounts of statutory damages.” Excerpts of Record (ER) at 43. In discussing due process, the court distinguished between Global and the Growers’ technical violations of the FLCA, such as failing to provide the employer’s information on pay stubs, and substantive violations, which resulted in actual harm to workers. Based on factors outlined in Six (6) Mexican Workers v. Arizona Citrus Growers, 904 F.2d 1301, 1310 (9th Cir. [524]*5241990),6 the district court determined that an appropriate amount of statutory damages was approximately $235,000. The court also rejected the Growers’ argument that statutory damages were not warranted for some violations because the Workers could not show injury and thus were not aggrieved. Citing Six (6) Mexican Workers, the court determined it did not “need to make specific factual calculations of actual injury” to find the Workers were aggrieved. ER at 47.

¶7 On appeal, the Ninth Circuit initially reversed the district court before withdrawing its disposition and certifying to us the following three questions:

(1) Does the FLCA, in particular Washington Revised Code § 19.30.170(2), provide that a court choosing to award statutory damages: (a) must award statutory damages of $500 per plaintiff per violation; or (b) has discretion to determine the appropriate amount to award in damages from among a range of amounts, up to and including statutory damages of $500 per plaintiff per violation?
(2) If the FLCA provides that a court, choosing to award statutory damages, must award statutory damages of $500 per plaintiff per violation, does that violate Washington’s public policy or its constitutional guarantees of due process?
(3) Does the FLCA provide for awarding statutory damages to persons who have not been shown to have been “aggrieved” by a particular violation?

Perez-Farias v. Global Horizons, Inc., 668 F.3d 588, 590 (9th Cir. 2011). Interpretation of RCW 19.30.170(2) is a matter of first impression in Washington.

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Bluebook (online)
286 P.3d 46, 175 Wash. 2d 518, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perez-farias-v-global-horizons-inc-wash-2012.