Rosas v. Sarbanand Farms, LLC
2:18-cv-00112
| W.D. Wash. | Jun 13, 2019Background
- Plaintiffs are Mexican national H-2A workers who sued CSI Visa Processing S.C. (CSI), Sarbanand Farms, LLC and Munger Bros., LLC (Growers) alleging violations of Washington’s Farm Labor Contractors Act (FLCA); a class was certified.
- CSI is a Mexico-based company that recruits and processes H-2A visa applicants via an online portal, consular representation, and by contracting with U.S. employers; it received $85 per worker from Sarbanand Farms for workers sent directly to Washington.
- In 2017 CSI processed visas for two groups: (a) ~103 workers sent directly to Washington for Sarbanand Farms (CSI received fees); and (b) ~600 workers initially sent to California (Crowne/Munger), ~500 of whom later transferred to Washington (CSI did not receive an additional fee for that transfer).
- CSI did not hold a Washington farm labor contractor license in 2017, did not obtain a surety bond, and did not provide required FLCA disclosure forms to class members; CSI had been told by a Washington L&I employee it could not/need not register because it was located in Mexico.
- Plaintiffs moved for partial summary judgment on FLCA issues. The court granted summary judgment (in part): CSI violated FLCA and is liable (and Growers jointly liable) for statutory damages for workers CSI supplied directly to Washington for whom CSI received a fee; FLCA claims were dismissed for workers transferred from California to Washington where CSI received no additional fee.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Article III standing to sue under FLCA | Plaintiffs: statutory violations (license, bond, disclosures) are concrete injuries supporting standing | CSI: challenges standing | Court: Plaintiffs have standing; statutory procedural rights and concrete harms suffice |
| Applicability of FLCA to foreign entity | Plaintiffs: FLCA covers anyone who engages in farm labor contracting activity affecting WA | CSI: FLCA does not apply to entities operating outside WA; relied on L&I advice | Court: FLCA applies if contractor performed recruiting/supplying activity for a fee that resulted in workers being supplied to WA, regardless of corporate location |
| Whether CSI acted as a farm labor contractor | Plaintiffs: CSI recruited/supplied workers to WA and received fees | CSI: disputes scope, asserts lack of fee for transfers and reliance on L&I advice | Court: CSI was a farm labor contractor as to workers it recruited/supplied directly to WA and received fees for; summary judgment for Plaintiffs on that group |
| Liability for workers transferred from CA to WA | Plaintiffs: CSI’s visa processing made them FLC for transferred workers | CSI: it did not receive additional fee for transfers and contracted with CA entities initially | Court: No FLCA coverage for transferred workers where CSI did not receive an additional fee; Plaintiffs’ claims dismissed for that subgroup |
| Growers’ joint and several liability | Plaintiffs: Growers used services of an unlicensed FLC and are jointly liable | Growers: argued lack of knowledge and reasonable reliance on CSI’s belief it need not register | Court: Under FLCA §19.30.200 and Saucedo, Growers are jointly and severally liable absent inspection of CSI’s license or L&I representation; summary judgment for Plaintiffs on Growers’ liability |
Key Cases Cited
- Anderson v. Liberty Lobby, 477 U.S. 242 (summary judgment standard) (discusses viewing facts in light most favorable to nonmoving party)
- Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574 (summary judgment burden on non-moving party to show genuine issue)
- Lujan v. Defs. of Wildlife, 504 U.S. 555 (standing: injury in fact, causation, redressability)
- Spokeo, Inc. v. Robins, 136 S. Ct. 1540 (statutory/procedural-right violations may give standing only if concrete injury exists)
- Six (6) Mexican Workers v. Ariz. Citrus Growers, 904 F.2d 1301 (class-action standing principles)
- Perez-Farias v. Global Horizons, Inc., [citation="499 F. App'x 735"] (Ninth Circuit: FLCA creates rights sufficient for standing)
- Saucedo v. John Hancock Life & Health Ins. Co., 369 P.3d 150 (Wash. 2016) (under FLCA §19.30.200, users of unlicensed FLCs are jointly liable unless they inspected license or obtained L&I representation)