'Permatemps' Case Dropped From Supreme Court

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By By KOMO Staff & News Services

Summary

High Court refusal to hear appeal clears way for settlement.

Story Published: Nov 13, 2002 at 3:58 AM PDT

Story Updated: Aug 31, 2006 at 12:52 AM PDT

'Permatemps' Case Dropped From Supreme Court
SEATTLE - The U.S. Supreme Court's refusal Tuesday to consider a challenge to the Microsoft "permatemp" settlement cleared the way for thousands of current and former employees to receive their share of $97 million in payouts.

The high court issued its ruling without comment, letting stand a 9th U.S. Circuit Court of Appeals ruling in May. The 9th Circuit affirmed a lower court finding that $27 million in legal fees was reasonable for the Seattle law firm that represented Microsoft's long-term temporary workers.

Stephen Strong, a partner at Bendich, Stobaugh & Strong, said he's thrilled his clients can begin applying for their share of the settlement money.

"Finally we're getting paid," Strong said. "We spent thousands and thousands and thousands of hours and years of work on a risky case, and finally we're going to get something out of it. We're happy to have this over with."

Lawrence Schonbrun, a Berkeley, Calif., lawyer with a national reputation as an opponent of class-action cases, appealed the case to the Supreme Court in August on behalf of two former temporary employees who had argued that their share of settlement money was too small and lawyers' fees were too big.

Calls to Schonbrun's office Tuesday were not returned.

One of his clients, Donna Vizcaino, contended the $65,000 in settlement money she was to receive was insufficient. Efforts to reach Vizcaino and the other "permatemp" who objected to the settlement, Lesley Stuart, were not unsuccessful Tuesday. Neither has a listed telephone number.

The "permatemp" lawsuit was filed in 1992, after some temporary workers had spent years with the company. It was later granted class-action status.

The complaint challenged Microsoft's practice of paying workers through temporary employment agencies, thus denying them certain benefits provided to permanent employees - including the Redmond-based software company's employee stock purchase plan.

The settlement was announced Dec. 12, 2000.

In May 2001, U.S. District Judge John Coughenour approved the deal, finding attorney fees amounting to 28 percent of the settlement were justified, given the 11 years of work plaintiffs' lawyers put into the case without compensation.

Between 10,000 and 12,000 current and former Microsoft employees who worked at least 750 hours over at least nine months are eligible for a share of the settlement money. Payments will vary based on a formula that factors in how long individuals worked for Microsoft and when.

Rust Consulting, a claim administrator based in Minneapolis, has been appointed to manage applications for settlement money.

"At some point - I don't know when - the money will be going out," Strong said. He said he expected that 80 percent to 85 percent of eligible recipients would submit claims.

Microsoft had no immediate comment.

The case is Vizcaino v. Waite, 02-252.

In an unrelated matter Tuesday, the judge overseeing the U.S. Justice Department's antitrust lawsuit against Microsoft formally approved the settlement worked out by the government, nine states and the software giant.

U.S. District Judge Colleen Kollar-Kotelly had approved most of the settlement Nov. 1, but ordered some revisions. The parties submitted those changes last week.

For More Information:

www.bs-s.com/msoft.html
www.microsoft.com