61 F. Supp. 3d 592
W.D. Va.2014Background
- This is a WARN Act class action alleging mass layoff/plant closing without 60 days' notice against Virginia Fuel Corporation.
- Plaintiffs seek 60 days of wages and benefits for themselves and similarly situated employees.
- Defendant moved to strike the plaintiffs' jury demand; the court grants the motion.
- WARN Act requires 60 days' advance written notice and imposes back pay, benefits, and penalties for violations.
- Remedies under the Act are limited (back pay, benefits, penalties) and may be reduced for good faith actions.
- Court adopts the Seventh Amendment and statutory-remedial framework to determine whether a jury trial is available.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the WARN Act provides a right to jury trial | Plaintiffs argue for a jury trial under Seventh Amendment. | WARN remedies are equitable; no jury trial right. | No right to jury trial under WARN Act. |
| Whether WARN Act remedies are legal or equitable in nature | Remedies resemble legal damages under other statutes with jury rights. | Remedies are equitable restitution for withheld pay/benefits. | Remedies are equitable in nature. |
| Whether § 2104(a)(4) good-faith discretion affects the right to a jury trial | Discretion in setting liability suggests legal character of relief. | Discretion confirms equitable nature and proper relief allocation. | Discretion supports equitable nature; no jury right. |
Key Cases Cited
- Bledsoe v. Emery Worldwide Airlines, Inc., 635 F.3d 836 (6th Cir. 2011) (remedies are equitable; fiduciary-duty analogy supports 60-day notice restitution)
- Bentley v. Arlee Home Fashions, Inc., 861 F. Supp. 65 (E.D. Ark. 1994) (addressed WARN Act analogies; supports non-jury posture)
- Frizzell v. Sw. Motor Freight, 154 F.3d 641 (6th Cir. 1998) (FMLA jury-trial discussion; distinguishable remedies)
- Lorillard v. Pons, 434 U.S. 575 (1981) (distinguishes legal vs. equitable relief in mixed schemes)
- Chauffeurs, Teamsters & Helpers, Local No. 391 v. Terry, 494 U.S. 558 (1990) (multifactor inquiry into whether a remedy is legal or equitable)