Facts

Individual plaintiffs filed suit against three business entity defendants regarding violations of California labor statues related to paying prevailing wages, meal and rest break violations, and off-the-clock work allegedly committed by All West Iron Inc. Plaintiffs claimed the other two business defendants were alter egos of All West Inc. because all three entities shared the same sole owner, address, employees and equipment. Ironworkers Local 433 alleged unpaid contributions.

All West Iron Inc. filed for bankruptcy one week before trial, and the case proceeded against the other two business entities on alter ego theory.

PLAINTIFF'S CONTENTIONS:
Plaintiffs claimed that two corporations and individual shareholders were liable to individuals for wage violations on an alter ego theory.

DEFENDANT'S CONTENTIONS:
Corporate defendants claimed that they were separate and distinct corporations and not liable on alter ego theories. Defendants further contended the individual defendants were not liable as shareholders.

Settlement Discussions

Talamantes demanded $100,000 before trial. Robles plaintiffs demanded approximately $250,000 before trial.

Damages

Plaintiff Talamantes claimed damages of $206,240 at trial. The three plaintiffs in the Robles trial claimed damages of approximately $500,000.

Result

The Court found that All West Iron committed the alleged wage and hour violations. However, the Court found no alter ego liability on the part of the other two defendants.

Other Information

Local 433 articulated no damages at trial and submitted damages of $5,000 in post trial briefs. FILING DATE: Nov. 22, 2006.