Litigation Is Similar To Democracy

Litigation is similar to democracy as defined by Winston Churchill. To paraphrase, the great man famously said that democracy is the worst form of government devised by the mind of man … except whatever is second. Litigation is similar. It is terribly inefficient, costly, uncertain and frustrating but so far we have yet to find a more just way of resolving intractable disputes.  Sometimes an employer is given no choice but to litigate and ultimately try its case.

An example of this is found in the recent case of Urga v Redlands Community Hospital, which was tried to a jury in San Bernardino County Superior Court in July 2010. Urga and others in this class action contended that in 1999 Redlands Community Hospital adopted a new program in which its twelve hour shift employees would start receiving overtime for shifts lasting more than eight hours.  The new program was prompted by a change in the law on January 1, 2000 requiring overtime pay after eight hours.  Previously employees working overtime were paid straight time not time and a half.

In late 2004, three employees of the hospital filed a class action suit, alleging that the hospital had failed to pay overtime properly for the class certified period of 2000 to June 2007 and the three plaintiffs were certified by the court as representatives of all hospital employees similarly situated during that period. The plaintiffs argued that Redlands never paid the overtime properly and the defense argued Redlands had paid properly, but even if it had not the most it owed was $93,000.

In discovery and pleadings the class argued it was entitled to $23,000,000 and the class’s lawyer argued to the jury they should award $51,000,000.

The result?  The jury awarded $93,000.

San Bernardino is a conservative jurisdiction, that is, jury panels tend to be pro-business, anti-give away, and that was a part of the decision to take the case to trial. The trial judge, Janet M. Frangie, was appointed by California governor Gray Davis, a democratic, who is noted for consensus building and for scholarship. The ultimate decision was of course based on the plaintiffs’ pre-trial demand.  The hospital could not negotiate a reasonable settlement in the face of the millions of dollars demanded.

For employers, sometimes trial may be the only answer.

NBoxley