Case: EEOC v. Henry's Turkey Service

3:11-cv-00041 | U.S. District Court for the Southern District of Iowa

Filed Date: April 6, 2011

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Case Summary

On April 6, 2011, the Equal Employment Opportunity Commission (EEOC) filed this Americans with Disabilities Act (ADA) lawsuit in the U.S. District Court for the Southern District of Iowa. The EEOC sued Henry's Turkey Service, a supplier of workers for poultry processors, on behalf of thirty-two men with intellectual disabilities. The EEOC alleged wage violations, disparate treatment, and maintenance of a hostile work environment based on the claimants' intellectual disabilities, and sought mon…

The facts, all either admitted or proven true at trial, included that the men were employed by Henry's for a period of more than 30 years and that during this entire 30 year period the men were paid $65 a month, working at least 35 hours per week, and were never paid overtime when they should have been eligible. Non-disabled workers at the same facilities holding the same or similar positions received substantially higher wages. All of the claimants received monthly deposits of Social Security and/or Supplemental Security Income into their individual bank accounts. The defendant, by way of an officer listed as Designated Representative Payee on all of these accounts, had sole access to these funds, which according to the defendant were used to "reimburse" the company for the men's "room and board" and "in kind care." The defendant argued that the expense it bore for "room and board" and "in kind care" should be credited toward and justify the men's low wages.

Further allegations, also proven at trial, included that, at least during the period from February 2007 to February 2009, the men were kept in substandard housing in a converted schoolhouse. They were subjected to harsh discipline, including but not limited to being restrained, being confined to rooms, and being denied restroom access. They were denied access to medical care. The men were hit and kicked by supervisors employed by Henry's. They were also subjected to derogatory and humiliating name-calling based on their disabilities.

On June 25, 2012, the EEOC moved for partial summary judgment on the wage violations claims, which the court (Judge Charles R. Wolle) granted on September 18, 2012. The court found that there was no genuine dispute as to any material fact relevant to these claims, and therefore held as a matter of law that the defendant had engaged in unlawful and discriminatory pay practices in violation of the ADA, U.S.C. §12112(a). The EEOC, on behalf of the intellectually disabled employees, was awarded $1,374,266.53 plus prejudgment interest of $283,568.06, an amount based on the comparable market rate for the labor performed from February 2007 through February 2009. EEOC v. Hill Country Farms, 899 F.Supp.2d 827 (S.D. Iowa 2011).

A jury trial on the other claims raised by the EEOC was held from April 23 through April 29, 2013. On May 1, 2013, the jury found for the workers on all claims, including disparate treatment as to the terms or conditions of employment of the intellectually disabled men, and maintenance of a hostile work environment. It found that each of the 32 workers was entitled to $5,500,000 as compensation. The jury also found that the defendant acted with malice or reckless indifference to the federally protected rights of the disabled former employees, and that each of these former employees was entitled to $2,000,000 in punitive damages. The jury, following precedent, was not informed that the ADA and connected statutes capped damages at $50,000 per claimant. 42 U.S.C. §1981a (b)(2), (3)(A). Bound by this statutory limit, the district court entered a judgment on May 14, 2013, for the EEOC for $1,600,000 (equal to $50,000 per claimant) plus an additional $188,329 in interest. This judgment was in addition to the previously issued $1.37 million award of damages and interest for wage discrimination, discussed above.

On May 23, 2013, the parties agreed to injunctive relief which included: [1] a requirement that Henry's or any of Henry's officers that reopen business inform the EEOC; [2] a permanent injunction to stop discriminating; [3] ADA training for employees and supervisors of any successor business; and [4] a requirement that Henry's or its successor business retain a mental health consultant to consider requests for reasonable accommodations.

On June 11, 2013, the District Court (Judge Wolle) entered final judgment approving the injunction agreed to in the May 23 stipulation, confirming the monetary awards already awarded by the court and added a requirement that Henry's pay the EEOC's costs of $10,487, and the court required the payment of post-judgment interest so long as the judgment remained unpaid.

On August 6, 2013, Henry's appealed the pretrial denial of its summary judgment motion to the Court of Appeals for the 8th Circuit. On May 9, 2014, the Eighth Circuit Court of Appeals affirmed the judgment of the lower court, stating simply that the district court did not err in refusing to vacate the motion for partial summary judgment and that it found no plain error in the admission of any evidence. 564 F. App'x 868 (8th Cir. 2014). There is nothing more in the docket after this holding, but since there was an injunctive remedy, presumably it remains open for enforcement if need be.

As the New York Times reported in September 2015 collecting the money owed to the 32 men in this case, however, was troublesome. The combined judgments in this case and a previous one by the DOJ resulted in Henry’s owing over $3 million. The officers of Henry’s Turkey Service transferred many of their assets to their adult children and heirs; therefore, collection of the funds from the officers themselves proved to be difficult, and satisfaction of the judgment continued to elude the former employees.

However, a land deal concerning a property dispute in Mills County, Texas, where Henry’s Turkey Service was based, piqued the interest of the the EEOC. They asked the United States attorney’s office for the Northern District of Texas to monitor this land deal for any suspicious activity. It turned out that this land deal involved a confidential settlement in which about $600,000 would have gone to the heirs of Henry’s Turkey Service, instead of to Henry’s itself or the former employees involved in this case. Federal officials were said to have found evidence of a “fraudulent transaction” and the U.S. Attorney filed an Emergency Motion for Turnover Order on August 26, 2015 in Case No. 3:12-CV-4737-P in the United States District Court for the Northern District of Texas. The motion asserted that the property in question belonged to Henry's, and therefore the court had the authority to turn over the property to the United States. The United States also requested that the court order that the U.S. should receive the $600,000 for application of debt owed of HCF. On September 3, 2015, with leave of the Court, the EEOC filed an amicus curiae brief in support of the motion.

U.S. District Chief Judge Jorge A. Solis granted the Emergency Motion for Turnover Order on September 11, 2015. The order overrode the confidential settlement, re-directing the $600,000 in funds to the United States for application of the judgment for the 32 former employees. Judge Solis wrote that “[t]his was an intentional scheme concocted solely to shield a substantial sum of money from the United States collection efforts. Accordingly, the Court finds… any benefit due to the Estate under the Settlement Agreement is the property of HCF and, as such, is subject to this Court’s authority to aid the United States in obtaining satisfaction of its judgment against Henry and HCF.”

In addition, the EEOC announced in September 2015 that it had managed to collect $272,000 of the the judgment through garnishments and liens. Adding in the additional $600,000 from the case before Judge Solis, the EEOC was able to coordinate with the U.S. Department of Labor to distribute $872,000 to the class members.

As of December 2017, the EEOC was expected to collect an additional $900,000 from the estate of Kenneth Henry, who died in 2016. Distribution of this sum would bring the total recovery to roughly $1.7 million.

	Document
3:11-cv-00041	Docket [PACER] EEOC v. Hill County Farms, Inc.	April 6, 2011	April 6, 2011 Docket
3:12-cv-04737	Docket Report United States of America v. Henry U.S. District Court for the Northern District of Texas	Sept. 11, 2015	Sept. 11, 2015 Docket
1 3:11-cv-00041	Complaint and Jury Trial Demand	April 6, 2011	April 6, 2011 Complaint
36 3:11-cv-00041	Ruling Granting Plaintiff’s Motion for Partial Summary Judgment	Sept. 18, 2012	Sept. 18, 2012 Order/Opinion 899 F.Supp.2d 827
	Intellectually Disabled Workers Awarded $1.3M for Pay Discrimination by Henry's Turkey Service No Court	Sept. 19, 2012	Sept. 19, 2012 Press Release
2 3:12-cv-04737	Writ of Garnishment United States of America v. Henry U.S. District Court for the Northern District of Texas	Nov. 20, 2012	Nov. 20, 2012 Other
99 3:11-cv-00041	Joint Status Report regarding Settlement EEOC v. Hill Country Farms, Inc.	April 1, 2013	April 1, 2013 Order/Opinion
92 3:11-cv-00041	Special Verdict Form EEOC v. Hill Country Farms, Inc.	May 1, 2013	May 1, 2013 Order/Opinion
97 3:11-cv-00041	Plaintiff's Post-trial Brief on Damages and Application for Injunctive Relief EEOC v. Hill Country Farms, Inc.	May 10, 2013	May 10, 2013 Pleading / Motion / Brief
99 3:11-cv-00041	Judgment in a Civil Case EEOC v. Hill Country Farms, Inc.	May 14, 2013	May 14, 2013 Order/Opinion

ECF Number	Description	Date	Link Date / Link
1	COMPLAINT against Hill Country Farms, Inc., filed by Equal Employment Opportunity Commission. Notice of Dismissal for lack of Service deadline set for 8/4/2011. Rule 16 Notice of Dismissal set for 8/4/2011. (Attachments: # 1 Civil Cover Sheet)(Canino, Robert) (Entered: 04/06/2011) 1 Civil Cover Sheet View on PACER	April 6, 2011	April 6, 2011 RECAP
2	Summons Issued as to Equal Employment Opportunity Commission. (Canino, Robert) (Main Document 2 replaced with signed and sealed Summons on 4/6/2011). (dmh) (Entered: 04/06/2011)	April 6, 2011	April 6, 2011 PACER
3	Corporate Disclosure/Statement of Interest by Equal Employment Opportunity Commission. (Canino, Robert) (Entered: 04/06/2011)	April 6, 2011	April 6, 2011 PACER
4	MOTION for Leave to Appear Pro Hac Vice by Equal Employment Opportunity Commission.Motions referred to Thomas J. Shields. (Attachments: # 1 Text of Proposed Order)(Canino, Robert) (Entered: 04/06/2011) 1 Text of Proposed Order View on PACER	April 6, 2011	April 6, 2011 PACER
5	TEXT ORDER granting 4 Motion for Leave to Appear Pro Hac Vice for attorney, Robert A. Canino. Signed by Clerk Marjorie E. Krahn on 04/07/11. (bp ) (Entered: 04/07/2011)	April 7, 2011	April 7, 2011 PACER
6	ANSWER to Complaint by Hill Country Farms, Inc..(Scieszinski, David) (Entered: 05/16/2011)	May 16, 2011	May 16, 2011 RECAP
7	Corporate Disclosure/Statement of Interest by Hill Country Farms, Inc.. (Scieszinski, David) (Entered: 06/01/2011)	June 1, 2011	June 1, 2011 PACER
8	MOTION to Transfer Case out of Current Court Assignment to Judge Vietor Based on Closely-Related and Common Facts, Parties and Legal Issues by Equal Employment Opportunity Commission. Responses due by 6/27/2011 (Canino, Robert) (Entered: 06/09/2011)	June 9, 2011	June 9, 2011 PACER
9	TEXT ORDER denying 8 Motion to Transfer Case. The court denies the plaintiff's resisted motion for transfer of this case to Senior U.S. District Judge Harold D. Vietor. Because no consolidation with the other case is requested, the undersigned senior U.S. District Judge will retain this case on his docket, subject to reconsideration should circumstances later warrant a change of the random assignment of this case. Signed by Senior Judge Charles R. Wolle on 7/6/2011. (alb) (Entered: 07/06/2011)	July 6, 2011	July 6, 2011 PACER
10	ORDER GIVING NOTICE OF DISMISSAL Rule 16 Dismissal deadline set for 9/23/2011. Signed by R Johnson for Clerk, Marjorie Krahn on 9/6/2011. (Attachments: # 1 Local Rule 41.1, # 2 Rule 16 Worksheet) (rmj) (Entered: 09/06/2011) 1 Local Rule 41.1 View on PACER 2 Rule 16 Worksheet View on PACER	Sept. 6, 2011	Sept. 6, 2011 PACER
11	PROPOSED SCHEDULING ORDER AND DISCOVERY PLAN. (Canino, Robert) (Entered: 09/12/2011)	Sept. 12, 2011	Sept. 12, 2011 PACER
12	ORDER approving and adopting 11 SCHEDULING ORDER AND DISCOVERY PLAN: Add Parties due by 10/23/2011. Amended Pleadings due by 11/23/2011. Plaintiffs Expert Witness due by 1/23/2012. Defendants Expert Witness due by 2/21/2012. Plaintiffs Rebuttal Witness Deadline due by 3/23/2012. Discovery due by 5/23/2012. Dispositive Motion Deadline due by 6/23/2012. Trial Ready deadline due by 10/23/2012. Signed by Magistrate Judge Thomas J. Shields on 9/15/2011. (dam) (Entered: 09/16/2011)	Sept. 16, 2011	Sept. 16, 2011 PACER
13	ORDER directing parties to file a joint status report by 10/7/2011 regarding electronically stored information. Signed by Magistrate Judge Thomas J. Shields on 9/16/2011. (dam) (Entered: 09/16/2011)	Sept. 16, 2011	Sept. 16, 2011 PACER
	Set/Reset Hearings	Sept. 20, 2011	Sept. 20, 2011 PACER
	Set Hearing: Final Pretrial Conference set for 10/22/2012 09:00 AM in Davenport - Room 140 - 1st Floor before Magistrate Judge Thomas J. Shields. Jury Trial set for 11/5/2012 09:00 AM in Davenport - Room 120 - 1st Floor before Senior Judge Charles R. Wolle. (bp )	Sept. 20, 2011	Sept. 20, 2011 PACER
	Set/Reset Scheduling Order Deadlines	Sept. 20, 2011	Sept. 20, 2011 PACER
14	TEXT ORDER. A jury trial will be held commencing at 9:00 a.m. on November 5, 2012, or as soon thereafter as this case can be reached for trial at the U.S. Courthouse in Davenport, Iowa. Magistrate Judge Shields will conduct a final pretrial conference at 11:00 a.m. on October 22, 2012 at the U.S. Courthouse in Davenport, Iowa. Signed by Senior Judge Charles R. Wolle on 9/20/2011. (alb) (Entered: 09/20/2011)	Sept. 20, 2011	Sept. 20, 2011 PACER
	Set Scheduling Order Deadlines: Add Parties due by 10/23/2011. Dispositive Motion Deadline due by 6/23/2012. Defendant's Expert Witness due by 2/21/2012. Plaintiff's Expert Witness due by 1/23/2012. Plaintiff's Rebuttal Witness Deadline due by 3/23/2012. Trial Ready deadline due by 10/23/2012. Amended Pleadings due by 11/23/2011. Discovery due by 5/23/2012. (rmj)	Sept. 20, 2011	Sept. 20, 2011 PACER
15	MOTION for Extension of Time to File JOINT Report on Electronically-Stored Information by Equal Employment Opportunity Commission.Motions referred to Thomas J. Shields. Responses due by 10/24/2011 (Attachments: # 1 Proposed Order)(Canino, Robert) (Entered: 10/06/2011) 1 Proposed Order View on PACER	Oct. 6, 2011	Oct. 6, 2011 PACER
16	TEXT ORDER granting 15 Unopposed Motion for Extension of Time to File Joint Report on Electronically-Stored Information. As requested, the parties shall have until October 14, 2011, to file their Joint Report on ESI. Signed by Magistrate Judge Thomas J. Shields on 10/6/2011. (jeb) (Entered: 10/06/2011)	Oct. 6, 2011	Oct. 6, 2011 PACER
17	NOTICE by Equal Employment Opportunity Commission of Joint Report on Agreements and Information for (ESI) Electronic-Stored Information (Canino, Robert) (Entered: 10/13/2011)	Oct. 13, 2011	Oct. 13, 2011 PACER
18	AMENDED DOCUMENT by Equal Employment Opportunity Commission. Amendment to 7 Corporate Disclosure/Statement of Interest. (Canino, Robert) (Entered: 04/23/2012)	April 23, 2012	April 23, 2012 PACER
19	MOTION for Leave to Appear Pro Hac Vice by Equal Employment Opportunity Commission.Motions referred to Thomas J. Shields. (Attachments: # 1 Text of Proposed Order)(Canino, Robert) (Entered: 06/08/2012) 1 Text of Proposed Order View on PACER	June 8, 2012	June 8, 2012 PACER
20	MOTION to Compel Discovery and Incorporated Brief by Equal Employment Opportunity Commission.Motions referred to Thomas J. Shields. Responses due by 7/2/2012 (Attachments: # 1 Exhibit, # 2 Exhibit, # 3 Exhibit, # 4 Exhibit)(Canino, Robert) (Entered: 06/13/2012) 1 Exhibit View on PACER 2 Exhibit View on PACER 3 Exhibit View on PACER 4 Exhibit View on PACER	June 13, 2012	June 13, 2012 RECAP
21	MOTION for Partial Summary Judgment by Equal Employment Opportunity Commission. Responses due by 7/19/2012 (Attachments: # 1 Motion for Leave, # 2 Brief in Support, # 3 Statement of Undisputed Facts)(Canino, Robert) Modified on 6/29/2012 (rmj). (Entered: 06/25/2012) 1 Motion for Leave View on PACER 2 Brief in Support View on RECAP 3 Statement of Undisputed Facts View on RECAP	June 25, 2012	June 25, 2012 PACER
22	APPENDIX to MSJ 21 State of Undisputed Material Facts by Equal Employment Opportunity Commission. (rmj). [Corrected Filing] (Entered: 06/25/2012) 1 Appendix Part 1 View on PACER 2 Appendix Part 2 View on PACER 3 Appendix Part 3 View on PACER	June 25, 2012	June 25, 2012 RECAP
23	APPENDIX to MSJ 21 Statement of Undisputed Material Facts by Equal Employment Opportunity Commission. (Canino, Robert) Modified on 6/26/2012 to correct document. (rmj). Modified on 6/29/2012 (rmj). (Entered: 06/25/2012) 1 Appendix Part 4 View on PACER 2 Appendix Part 5 View on PACER 3 Appendix Part 6 View on PACER	June 25, 2012	June 25, 2012 PACER
24	APPENDIX to MSJ 21 Statement of Undisputed Material Facts by Equal Employment Opportunity Commission. (Canino, Robert) Modified on 6/26/2012 to correct pleading. (rmj). (Entered: 06/25/2012) 1 Appendix Part 7 View on PACER 2 Appendix Part 8 View on PACER 3 Appendix Part 9 View on PACER	June 25, 2012	June 25, 2012 PACER
25	APPENDIX to MSJ 21 Statement of Undisputed Material Facts (End) by Equal Employment Opportunity Commission. Responses due by 7/19/2012 (Attachments: # 1 Appendix Part 10)(Canino, Robert) Modified on 6/26/2012 to correct filing (rmj). (Entered: 06/25/2012) 1 Appendix Part 10 View on RECAP	June 25, 2012	June 25, 2012 PACER
26	TEXT ORDER granting 19 Motion for Leave to Appear Pro Hac Vice for Attorney Devika Seth. Signed by Clerk, Marjorie E. Krahn on 6/26/2012. (rmj) (Entered: 06/26/2012)	June 26, 2012	June 26, 2012 PACER
27	ORDER granting 20 Plaintiff Equal Employment Opportunity Commission's Motion to Compel Discovery. Signed by Magistrate Judge Thomas J. Shields on 7/11/2012. (jeb) (Entered: 07/11/2012)	July 11, 2012	July 11, 2012 PACER
28	NOTICE by Equal Employment Opportunity Commission re 21 MOTION for Partial Summary Judgment EEOC's Supplementation to Motion for Partial Summary Judgment (Attachments: # 1 Attachment)(Canino, Robert) (Entered: 07/31/2012) 1 Attachment View on PACER	July 31, 2012	July 31, 2012 PACER
	Set/Reset Hearings	Sept. 6, 2012	Sept. 6, 2012 PACER
29	TEXT ORDER. A summary judgment hearing will be held by telephone conference call placed by the court to counsel of record at 1:00 p.m. on September 21, 2012. Signed by Senior Judge Charles R. Wolle on 9/6/2012. (alb) (Entered: 09/06/2012)	Sept. 6, 2012	Sept. 6, 2012 PACER
	Set Hearing: Motion Hearing set for 9/21/2012 01:00 PM in Phone Hearing before Senior Judge Charles R. Wolle. (bp )	Sept. 6, 2012	Sept. 6, 2012 PACER
30	CAMERAS PILOT PROJECT: NOTIFICATION REGARDING VIDEO RECORDING - Parties should complete Form E, Party Response Regarding Video Recording, and return it to the Clerk's Office no later than 7 (seven) days before the scheduled hearing. Do NOT file Form E in CM/ECF. E-mail Form E to IASD_casemanagers@iasd.uscourts.gov. Notification and Party Response Forms Regarding Video Recording sent to Parties. (bp ) (Entered: 09/06/2012)	Sept. 6, 2012	Sept. 6, 2012 PACER
	Set/Reset Hearings	Sept. 12, 2012	Sept. 12, 2012 PACER
31	TEXT ORDER. A status conference will be held with counsel by telephone conference call the court will place to counsel of record at 9:30 a.m. on 9/13/12. The court will address whether defendant intends to resist the motion presently scheduled for hearing on 9/21/12. Any resistance was out of time as of 7/20/12. Signed by Senior Judge Charles R. Wolle on 9/12/2012. (alb) (Entered: 09/12/2012)	Sept. 12, 2012	Sept. 12, 2012 PACER
	Set Hearing: Status Conference set for 9/13/2012 09:30 AM in Phone Hearing before Senior Judge Charles R. Wolle. (bp )	Sept. 12, 2012	Sept. 12, 2012 PACER
32	Text Minute Entry for status conference held before Senior Judge Charles R. Wolle by telephone conference call on 9/13/2012. Discussion of whether is necessary the hearing scheduled for 9/21/12. Discussion of postponing trial date. Order to follow. (Court Reporter none) (alb) (Entered: 09/13/2012)	Sept. 13, 2012	Sept. 13, 2012 PACER

Case: EEOC v. Henry's Turkey Service

3:11-cv-00041 | U.S. District Court for the Southern District of Iowa

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