Jottings By An Employer's Lawyer

Thursday, August 21, 2003

Kash N Karry Settles Gender Discrimination Class Action for Cash and Coupons

Utilizing a common settlement technique in consumer class actions, a grocery chain has settled a gender discrimination case for $3.1 million, but $500,000 of that will be in grocery coupons good at, yep Kash N Karry. The AP wire has the story here. I am not sure I know of a case where coupons have been used to settle an employment discrimination case.

It is also something that will not be happening in Texas state courts, at least unless the lawyers for the class are willing to take their fees in coupons as well. That's one of the many, many provisions in HB 4, the tort reform legislation passed by the Texas legisature in its last regular session. Check out new Section 26.003(b) of the Civil Practice and Remedies Code which really puts the burden on the Texas Supreme Court to implement rules by 12/31/03 which will provide that
Rules adopted under this chapter must provide that in a class action, if any portion of the benefits recovered for the class are in the form of coupons or other noncash common benefits, the attorney's fees awarded in the action must be in cash and noncash amounts in the same proportion as the recovery for the class.
Stay tuned for the new rules.

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