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Los Angeles Daily Journal
June 23, 2009
Jury Acquits in Ralphs Labor Case
Los Angeles—A federal jury took less than five hours
to acquit three former Ralphs Grocery Store Co. executives and managers
of charges alleging they illegally rehired hundreds of lock-out workers
using false names and false Social Security numbers during Southern California’s
bitter 2003-04 supermarket labor dispute.
The stunning verdicts came after a three-week trial before U.S. District Judge
Percy Anderson and after defense attorneys—in a highly unusual tactical move
– collectively chose not to call a single witness to testify in their clients’
defense.
“The proof wasn’t there,” said Evan A. Jenness, who along with William J Genego
Jr. of Nasatir, Hirsch, Podberesky & Genego represented ex-Ralphs Vice President
Patrick Anthony McGowan. “These people are innocent.”
Michael M. Amir of Doll Amir & Eley, who represented Scott Drew, a former
vice president of Kroger Co., Ralph’ parent, said the defense told its side of
the story through its cross-examination of prosecution witnesses. Gregory
L. Doll, also of Doll & Amir, represented Drew.
Thorn Mrozek, a U.S. Attorney’s Office spokesman, had no comment on the verdict.
Drew, McGowan and Karen Montoya, who once managed 23 Ralphs stories in Orange
County, were mostly stoic as “not guilty” was read, one by one, on the 12 counts
against him.
But at one point during the hearing, one of Montoya’s attorneys, James W. Spertus
of the Law Offices of James W Spertus, wiped his eyes with a tissue then held
his client’s right hand. An emotional Montoya then began to cry.
After Anderson and the jury separately exited the courtroom, the defendants’
family members wept and hugged them.
“I’m very pleased with the jury’s verdict,” aid Spertus, who was assisted by
his associate, Amanda R. Touchton, after the hearing. “It’s time for healing
now.”
“Karen Montoya can now begin her life without this criminal investigation and
indictment around her neck,” Spertus said.
The verdicts ended a long legal battle for McGowen, Drew and Montoya, as they
h ad been under a federal investigation for five years.
In July 2006, Ralphs pleaded guilty to similar charges stemming from the labor
dispute. Anderson fined the company $20 million and ordered it to pay $50 million
in a fund to reimburse their workers and unions.
After the indictments against McGowan, Drew, Montoya and five other former Ralphs
executives and managers were returned in September 2008, Ralphs stopped advancing
the defendants’ legal fees. In turn, this caused attorneys such as Nicola T.
Hanna of Gibson, Dunn & Crutcher, Bart H. Williams of Munger, Tolles & Olson
and Gary S. Lincenberg of Bird, Marella, Boxer, Wolpert, Nessim, Drooks & Lincenberg,
to step down from the case.
Two other ex-Ralphs managers, Charles Vance and Randall Kruska, pleaded guilty
to charges while jury selection was underway. Three other ex-Ralphs managers,
Craig Totman, Kelly Clark and Allen Moorman, each pleaded guilty in separate
cases to lying to federal investigators.
Ciaran_mcevoy@dailyjournal.com
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