In Carlberg v. Guam Indus. Servs., 2017 U.S. Dist. (D. Guam, Mar. 7, 2017), Chief Judge of the District of Guam, Frances M. Tydingco-Gatewood granted over 150 individuals class certification on the basis of WARN Act violations. A Guam Shipyard terminated all Plaintiffs merely four days after losing a contract to repair ships for the Military Sealift Command.
Defendants filed two motions to dismiss initially holding that “Plaintiffs (1) failed to articulate a legal duty recognized by the courts of Guam and (2) failed to allege sufficient facts that state a gross negligence claim”, citing a lack of case law. Defendants’ second motion to dismiss held that the WARN Act refers only to the 50 states, not U.S. Territories or Associate States.
The Court found that the WARN Act “is applicable to Guam”, moreover, granting Plaintiffs’ leave to amend their complaint concerning employer status, and whether Plaintiffs would proceed with gross negligence or negligence per se claims. Defendants motioned a third time to dismiss the negligence claims in the amended complaint. This motion was granted as Plaintiffs were ‘at-will’ employees. Regardless, the Court found that Plaintiffs satisfied the criteria for class certification under their WARN Act claims.
The decision and order granting class certification can be read here.