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February 29, 2008

Suit Against Boeing Runs Out of Time

The timeline for justice is not very forgiving, and when many powerful forces are trying to protect themselves from the logical consequences of the alleged wrongdoing, in any way possible including slowing the whole process down in hopes the time will run out before it can be processed in court, it bodes ill for whistleblowers and plaintiffs alike.  GFS

Last updated February 27, 2008 10:31 p.m. PT

Court refuses to let Boeing race suit go forward

Appellate panel rejects suit over racial prejudice in pay

By JOSEPH TARTAKOFF
P-I REPORTER

After more than 10 years of litigation, a lawsuit alleging that The Boeing Co. discriminated against some employees because of their race could be near its end.

On Wednesday, a panel of appellate judges denied the plaintiffs' appeal of a lower court judge's decision to dismiss claims that Boeing discriminated in its pay.

The appeal was the last pending part of a case that dates back to 1998, when a group of African-American employees sued Boeing, alleging the company had systematically discriminated against them. A year later, Boeing settled the case, but the settlement was thrown out in 2003 by a panel of judges who determined that the settlement treated class members differently and that attorney fees were excessive.

In 2004, a judge threw out, without trial, claims that Boeing discriminated in its pay, in part because those claims were based on events that had taken place more than four years before, violating the statute of limitations. A jury then ruled that the company had not discriminated in its promotion policies.

During a hearing in front of a panel of 9th U.S. Circuit Court of Appeals judges more than a month ago, Craig Spiegel, a partner at Hagens Berman Sobol Shapiro LLP, argued that it was inappropriate for the lower court to throw out claims that Boeing discriminated in its pay, as the years during which the 1999 settlement was under appeal should not have counted under the statute of limitations.

But the appellate panel ruled against Spiegel Wednesday, stating, in part, that the plaintiffs could have filed a compensation discrimination claim while the settlement was under appeal, and therefore the lower court was correct to count those years.

Spiegel said Wednesday he was not sure what the next move would be. "This is a victory for Boeing," he said. "We have to see if we're going to accept it or seek some further review."

Boeing spokesman Peter Conte said, "We hope this decision by the court of appeals will bring to an end this protracted litigation."

P-I reporter Joseph Tartakoff can be reached at 206-448-8293 or joetartakoff@seattlepi.com.

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