Childress v. Darby Lumber, Inc.
United States Court of Appeals for the Ninth Circuit
357 F.3d 1000 (2004)
- Written by Robert Cane, JD
Facts
Darby Lumber, Incorporated and Bob Russell Construction, Incorporated (defendants) owned and operated a lumber mill under common ownership. Darby Lumber had been suffering losses due to a depressed lumber market caused by a number of factors. On September 7, 1998, U.S. Bank refused to rewrite Darby Lumber’s credit, which Darby Lumber eventually lost in November 1998. On September 24, 1998, the general manager informed Darby Lumber employees that a major layoff would occur due to financial difficulties. Darby Lumber shut down the mill and laid off its employees the next day. Darby Lumber had little knowledge of the Worker Adjustment and Retraining Notification (WARN) Act requirements for plant closures. Sharon Childress and other former employees (plaintiffs) filed a claim, alleging Darby Lumber and Bob Russell Construction violated the WARN Act for failing to give a 60-day notice of the layoffs. The district court granted summary judgment in favor of Childress and the former employees. Darby Lumber and Bob Russell Construction appealed to the United States Court of Appeals for the Ninth Circuit.
Rule of Law
Issue
Holding and Reasoning (Illston, J.)
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