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Mohawk Industries Settles RICO Illegal Aliens Class Action, Must Pay $18 Million To American Workers!
In a victory
for all
American workers who have been displaced by illegal aliens
or who have had their wages depressed by
cheap
labor, a
class of plaintiffs have reached a
settlement agreement in a six-year old lawsuit that was filed in
federal district court in Rome,
Georgia in 2004 and heard by the U.S.
Supreme Court in 2006.
The
plaintiffs, represented by co-lead council
Howard
Foster of Chicago, IL-based
Foster PC, are
legally-authorized, hourly-paid workers who alleged that their
wages at Mohawk Industries,
Inc. facilities in
Northwest Georgia were depressed
by the hiring of illegal aliens.
Mohawk, the
leading worldwide producer of flooring, recorded annual
2008 net sales of $6.8 billion.
The
settlement, which is also a major win for the
patriotic
immigration reform movement, entitles approximately 50,000
former and current hourly-paid Mohawk employees to claim awards
from an $18 million settlement fund, the largest payout ever in
this type of litigation.
Mohawk is
responsible for paying out a portion of the funds. But the
majority will be contributed by
Zurich
American Insurance Company, Mohawk's insurance carrier.
Also, Mohawk
has agreed to conduct much needed and
long-overdue
training regarding
immigration laws that make it
illegal to
knowingly
hire workers who are not authorized to be employed in the U.S.
A short
history of the case: Norman Carpenter, a Mohawk production
employee and shift manager, went to his supervisor to complain
about the numerous illegal workers in his midst.
Concerned by
Carpenter's complaints, Mohawk management eventually contacted
company lawyers as well as its lead lawyer,
Juan Morillo, of the prestigious
UK law firm
Clifford Chance's DC office, who was ultimately dispatched
to Georgia to meet with Carpenter.
What transpired at that fateful meeting is
now the subject of a federal civil
rights lawsuit that is still pending.
Carpenter
alleges that Morillo threatened to have him fired if he said
another word about illegal workers to anyone, particularly to
Foster
and his colleagues prosecuting the
RICO
(Racketeer Influenced Corrupt Organization Act) case.
Nevertheless, Carpenter did complain to
others. He was fired, and sued Mohawk for violating his
civil rights by terminating his
employment and violating the federal
whistleblower protection law.
Along with his Mohawk co-worker Christina
Martinez, Carpenter filed sworn
statements about Mohawk's hiring of illegal workers and
Morillo's intimidation.
According to court documents,
In her
declaration, Martinez said:
"Ms Hale informed me
that she was aware that many Mohawk employees are not legally
authorized to work in the U.S.
"She [Hale] informed me however that if these employees come to Mohawk with
social security numbers
and
false identification
she could and would hire them and that Mohawk would employ
them."
To bolster his case of
wrongful termination, Carpenter
subpoenaed Morillo for his deposition. Morillo
asserted the attorney-client privilege, contending that
anything he said to Carpenter was in his capacity as Mohawk's
lawyer.
U.S. District Court
Judge Harold Murphy of the
Northern District of Georgia rejected Morillo's claim and
ordered him to be deposed, but allowed Mohawk to seek appeal of
the order.
The case went all the way to the
Supreme Court which, on December
8, 2009 in a unanimous opinion, ironically written by
Justice Sonia Sotomayor (her
first), ruled for Carpenter. . [Mohawk
Industries, Inc. v. Carpenter,
PDF]
This means,
Morillo will now have to be deposed by Carpenter's lawyers and
the truth surrounding the company's efforts to conceal its
illegal hiring may come to light.
Commenting on the
class action settlement, Mohawk's attorney Morillo said:
"Mohawk is pleased to
have reached a settlement that allows the company to put behind
it the expense and distraction associated with this case." In
settling the case, Mohawk does not admit any of the plaintiffs'
allegations of wrongdoing."Mohawk has always trained its
employees to comply with the immigration and workplace laws, and
this settlement affirms the company's commitment to a continued
culture of compliance," Morillo commented. "Mohawk has provided
and continues to provide good jobs with great benefits to tens
of thousands of workers in Georgia and elsewhere." [Joint
Press Release,
Mohawk lawsuit settled for
$18 million, Dalton
[GA] Daily Citizen,
April 9, 2010]
Foster,
however, noted the lengthy procedural history of the case, which
included three years of litigation to resolve Mohawk's appeal of
Judge Murphy's 2004 ruling that the plaintiffs stated a claim
under the federal and Georgia
RICO laws.
After the U.S. Court
of Appeals for the Eleventh
Circuit affirmed that ruling, Mohawk convinced the U.S.
Supreme Court to hear the case in 2006.
The Supreme Court ultimately ruled that it
had "improvidently"
accepted the case and sent it back to the Eleventh Circuit which
again ruled that the plaintiffs could proceed in 2007.
The parties then undertook discovery on
whether the case should be granted
class action status. In 2008, Judge Murphy denied the
plaintiffs' Motion for Class Certification, precluding the
proposed class of employees from obtaining relief in this case.
But the
Eleventh Circuit accepted the plaintiffs' request to review that
decision, and in May 2009, reversed the denial of class
certification and sent the case back to Judge Murphy to
reconsider the question of class certification.
Settlement discussions occurred after the two
sides agreed on a mediator. A final resolution was reached in
December 2009 at the federal courthouse in
Foster, who
argued the employees' case in the Supreme Court, said:
"We consider this a
hard-fought case and are pleased with the settlement for the
class. The class will receive significant monetary relief and
the company has agreed to train its personnel
regarding the verification of employment eligibility."
Judge Murphy
will now be asked to preliminarily approve the settlement
between Mohawk and the employees. Upon Judge Murphy's approval,
notice of the settlement will be mailed to the class members,
and the Court will then hold a hearing to consider final
approval of the settlement.
Foster's class
action triumph over Mohawk is his second on behalf of betrayed
American workers. In 2006, Foster negotiated a $1.3 million
settlement against the Washington-based
Zirkle
Fruit Company, which by some estimates had at one time only
30 percent of its employees legally authorized workers.
My column about Zirkle is
here;
Peter Brimelow's two blogs are
here
and
here.
At
VDARE.COM we have
consistently argued that when unscrupulous employers are
financially penalized for hiring illegal aliens, jobs for them
will gradually dry up.
Other
employment solutions are also in place that should slow the flow
of aliens, namely
E-Verify
and the
SAVE
Act of 2009, a bill introduced by
North Carolina Democrat
Heath Shuler and currently in committee.
With the recent resignations of key Senate pro-immigration Democrats like Christopher Dodd and Evan Bayh, as well as Republican special election victories in Democratic sanctuaries like New Jersey and Virginia, Foster's win over Mohawk is one more step in the right direction toward ending illegal immigration.
Joe Guzzardi [email him] is a California native who recently fled the state because of over-immigration, over-population and a rapidly deteriorating quality of life. He has moved to Pittsburgh, PA where the air is clean and the growth rate stable. A long-time instructor in English at the Lodi Adult School, Guzzardi has been writing a weekly column since 1988. It currently appears in the Lodi News-Sentinel.






