San Diego, CA (PRWEB) August 09, 2013
Class action suits usually result in a victory for the class members with a settlement before the trial or a win at trial. In the class action filed by former employees against San Diego Attorney Lenden Webb’s client AmeriGuard Security Services, the ruling by Superior Court Judge Joan Lewis resulted in neither outcome. Webb and his client won the case – avoiding the plaintiff’s demand of $4.2 million in damages. The case took place in San Diego County Superior Court and was named Rutledge v AmeriGuard Security Services, Inc. DOCKET No. 37-2010-00086129. Judge: Joan M. Lewis Trial type: Bench 3 weeks. Verdict/Judgment Date: 8/1/2013.
AmeriGuard contracted with the US Navy to provide security services. The plaintiffs were individuals who applied to work for AmeriGuard as security guards on the contract. They claimed that they were not paid for pre-employment qualification training in a timely manner and were due penalties under California Code of Regulation section 13520 and plaintiffs also claimed that AmeriGuard’s 401k contributions were “wages” that were not paid on time.
Judge Lewis concluded that AmeriGuard had a "Good Faith Dispute" regarding its responsibilities to pay for pre-employment qualification at a Navy gun range. According to Webb, a partner at Webb & Bordson, the "Good Faith Dispute" under California Code of Regulation Section 13520 is the reasonable defense when an employer would usually be liable to pay penalties of 30 days wages per employee. In a class action context, a judgment for this size of penalties can force an employer out of business.
Judge Lewis also concluded that the 401k contributions made by AmeriGuard were not wages but were untaxed benefits that were, in fact, paid timely. Further, Judge Lewis noted that AmeriGuard successfully argued that ERISA preempts state law and that ERISA was the exclusive source of remedies for the 401k participants.
Webb believes that his firm’s commitment being a creative problem solver with specialized knowledge defense resulted in the victory. To schedule a confidential consultation, visit http://www.WBLawGroup.com or call 619-399-7700.
About Webb & Bordson
Webb & Bordson is a law firm with offices in San Diego and Fresno, California. The firm’s main areas of practice include employment law, breach of contract and collection matters, business disputes, intellectual property disputes, class action lawsuits, and real estate disputes.
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