Settlement agreement clears way for farm workers to receive full damages in Lower Valley lawsuit

May 17--YAKIMA, Wash. -- Farm workers on Friday reached a settlement agreement in a class action lawsuit against Lower Valley orchard owners, so all that remains now is to distribute the $1 million in damages among members of the class.

"We're really pleased to get this resolved, and to do our best to get payment out to the workers as soon as we can," said Lori Isley, attorney with Columbia Legal Services, which represents the farm workers.

The agreement puts to rest a pending appeal by the defendants, and sends the case back down to federal district court to determine the claims and distribution process.

The suit, Saucedo v. NW Management, was filed in 2012 after seasonal agricultural workers raised concerns about NW Management's lack of a valid farm labor contractor's license. The suit also said the contractor failed to properly disclose information about wages and employment conditions.

Workers also said one of the contractor's supervisors routinely intimidated them by displaying and firing his gun in the orchards, and that the company retaliated against employees who spoke out.

The federal district judge initially ruled in the farm workers' favor, which was appealed to the Ninth Circuit Court of Appeals by defendants NW Management, the orchard owners with whom it contracted; John Hancock Life and Health Insurance Co.; Farmland Management Services; and Texas Municipal Plans Consortium.

The Ninth Circuit then sent two questions of law to the state Supreme Court, asking for definition of what qualified as a "farm labor contractor," and whether companies that work with such contractors have any legal liability for the contractors' business practices or violations.

In March of this year, the high court ruled in favor of the farm workers' case, stating that NW Management indeed qualified as a farm labor contractor, and that it was the orchard owners' responsibility to ensure that NW Management was properly licensed while they were doing business together.

"The Supreme Court unanimously said yes ... companies that used the contractor were responsible for the violations because they had not done their due diligence," Isley said.

"Folks who use contractors need to make sure those contractors have a license."

NW Management and Realty Services ceased being an active company in 2014, according to Brendan Monahan, a lawyer for the defendants.

"From the NW Management perspective, obviously the ruling from the Supreme Court ended any further discussion on the merits of the case," he said Monday. "And this settlement just represented the most equitable and efficient way of concluding the litigation and getting the funds distributed to the workers."

There are 722 farm workers represented in the suit, Isley said, and damages will be awarded in terms of $500 per each of the contractor's two violations for each year employees worked there: A one-year employee will receive $1,000; those who worked for three years get $3,000.

The total damages awarded by the district court were $1,004,000.

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