By: Micah Maidenberg April 16, 2012
In a 33-page ruling issued in late March, U.S. District Court Judge Joan Lefkow certified two classes of black Walsh employees who could be included in the lawsuit, potentially covering thousands of workers. A jury award in the case could be as high as $500 million if the workers prevail in the case, their lawyer estimates.(Crain's) — A dozen black workers employed by Walsh Group Ltd. have scored a big victory in a racial-discrimination suit against the Chicago-based construction company, with a federal judge allowing them to pursue their case as a class-action claim.
The ruling is a setback to Walsh, which had $3.4 billion in revenue in 2010, making it the largest contractor in the Chicago area, according to a 2011 Crain's list.
“The fact that she certified two of the claims gives the plaintiffs a real shot,” says Samuel Tenenbaum, an associate professor at Northwestern University School of Law. In class-action suits, the biggest hurdle for plaintiffs is often achieving class certification, he says. “A lot of this is very discretionary with the judge.”
Calls to Walsh were not returned. The company, which denies the discrimination allegations, had asked Judge Lefkow to deny class certification. Aimee Delaney, a partner at Hinshaw & Culbertson LLP in Chicago and the company's lead lawyer on the case, did not return calls seeking comment.
Judge Lefkow certified a class of all-black employees at Walsh construction sites in the Chicago region between June 2001 and the present. They allege that Walsh permitted a hostile work environment on its job sites, including racist language and graffiti.
The judge also certified a class of black journeymen who worked at Walsh construction sites in the Chicago region between June 2001 and the present. That group alleges the workers were denied opportunities to work and did not receive overtime or other “premium” pay chances because they were black.
Judge Lefkow declined to certify a class of black employees at Walsh who the lawsuit alleges were denied the chance to be hired, recalled or promoted because of their race, and one made up of black employees who alleged they were laid off or fired because they were black.
Between 500 and 1,000 black journeymen could be part of the overtime and premium pay-related class, with another 1,000 to 2,000 employees grouped in the hostile-work-environment class, according to Peter Currie of the Law Firm of Peter L. Currie P.C. in Chicago and member of the plaintiffs' legal team. He says a jury award could run from $200 million to $500 million, including punitive, emotional distress and other damages.
“We didn't win on every piece, but (the opinion) is certainly enough to accomplish the goals that we're looking for. At least I hope it will be,” says the plaintiffs' lead counsel, Aaron Maduff of Chicago-based Maduff & Maduff LLC.
Twelve plaintiffs filed the suit about six years ago under the Civil Rights Act of 1964 and the Civil Rights Act of 1866, both as amended.
The plaintiffs, all of whom are black, worked at Walsh as journeymen or foremen, according to Judge Lefkow's ruling, including at Skybridge, a high-profile residential and commercial structure in the West Loop that Walsh started to build in 2000.
For about a year starting in February 2002, each plaintiff filed charges with the Equal Employment Opportunity Commission alleging Walsh discriminated against them because of their race.
The EEOC found cause to believe Walsh had discriminated against the plaintiffs and other black workers through its hiring and layoff practices and by harassing them, Judge Lefkow's opinion states. Mediation efforts between the plaintiffs failed and in 2006 the 12 sued Walsh in federal court here after receiving right-to-sue letters from the EEOC.
Walsh operated 262 construction sites in the Chicago area between 2000 and 2009, according to the opinion.
The Bloomberg BNA Daily Labor Report first reported the news of the class-action ruling last week.
Read more: http://www.chicagorealestatedaily.com/article/20120416/CRED03/120419851/race-bias-lawsuit-against-walsh-okd-as-class-action#ixzz1sVElTylD
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