Businesses Monitor Court Review of Class Action Suits

When the U.S. Supreme Court resumes in October, among cases it will consider is Tyson Foods v. Bouaphakeo.

The U.S. Chamber of Commerce and the National Association of Manufacturers are among groups who have asked the high court to hear arguments in the case, which could curb class action litigation, Reuters New Agency reported.

Lower courts issued a $5.8 million judgment against Tyson after workers at one of the company’s meat-processing plants in Iowa claimed they were entitled to overtime pay and damages because they were not paid for time spent putting on and taking off protective equipment and walking to work stations.

The 8th U.S. Circuit Court of Appeals upheld the judgment in August 2014. The justices will consider Tyson’s objection to deciding the judgment amount based on statistics rather than individual damages of each plaintiff. Tyson told Reuters it asked for the Supreme Court’s review because “federal courts of appeal are divided over the requirements necessary to be part of such cases.”

A brief from the U.S. Chamber of Commerce said the case is an opportunity for justices to “address ongoing abuses in class action litigation and to restore proper constitutional limits on lawsuits involving individuals who have suffered no injury.”

The consumer advocacy group Public Citizen represents the Tyson employees. Attorney Scott Michelman told Reuters the group is confident that the Supreme Court will conclude that the lower courts “applied the correct legal standards and reached the correct result.”  S