Affidavit of W. Edwin McMahan

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BILL LANN LEE 
JOEL R. REYNOLDS
CENTER FOR LAW IN THE PUBLIC INTEREST 
10951 W. Pico Boulevard, Third Floor Los Angeles, California 90064 
Telephone: 213/470-3000
PEARL LATTAKER 
MELANIE LOMAX
4929 Wilshire Boulevard, Suite 256 
Los Angeles, California 90010 
Telephone: 213/936-7494

FILED

JOHN HUERTA 
THERESA FAY BUSTILLOS 
MEXICAN AMERICAN LEGAL DEFENSE 

AND EDUCATIONAL FUND 
634 S. Spring Street, Eleventh Floor 
Los Angeles, California 90014 
Telephone: 213/629-2512
Attorneys for Plaintiffs
PAUL GROSSMAN
ANDREW C. PETERSON
PAUL, HASTINGS, JANOFSKY & WALKER
555 South Flower Street
Twenty-Second Floor
Los Angeles, California 90071
Telephone: 213/489-4000
Attorneys for Defendant

UNITED STATES DISTRICT COURT 
CENTRAL DISTRICT OF CALIFORNIA

MINNIE F. HADLEY; JAMES L. WHITE; )
VIOLA BENNETT; TERENCE GRACE; and )
YVONNE AGUILAR, on behalf of )
themselves and others similarly ) 
situated, )

)Plaintiffs, )
)v. )
)RALPHS GROCERY COMPANY, )
)Defendant. )

________________________________________)

Case No. ^ / / 7  }
CONSENT DECREE IN FULL 
SETTLEMENT OF CLASS CLAIMS

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COURT PROCEEDINGS

1. Plaintiffs filed their complaint in this action 
alleging that the Defendant, Ralphs Grocery Co. ("Defendant" or 
"Ralphs"), had violated Title VII of the Civil Rights Act of 
1964, as amended, 42 U.S.C. S 2000e et seq. ("Title VII"), and 
the Civil Rights Act of 1866, 42 U.S.C. S 1981 (S 1981), by 
discriminating against blacks and Hispanics in recruitment, 
hiring, assignment, and promotion on the basis of race, color 
and national origin. The complaint limited the scope of the 
lawsuit to employment opportunities in Ralphs retail grocery 
stores located in the State of California.

2. By separate order, this Court has certified under 
Fed.R.Civ.P. 23 a class composed of:

(a) All blacks and Hispanics* who are past, 
present or future applicants for employment with Ralphs in 
its retail grocery stores located in the State of 
California;

(b) All blacks and Hispanics who would have been 
or would be such applicants for employment with Ralphs in 
its retail grocery stores located in the State of 
California but for Ralphs' allegedly illegal recruitment 
and hiring practices; and

*The term "Hispanic" denotes persons of Mexican, Puerto 
Rican, Cuban or Latin American origin or ancestry.

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(c) All blacks and Hispanics who are past, 
present and future employees of Ralphs in its retail 
grocery stores located in the State of California.

3. Through the administrative files, investigation 
and information supplied by Ralphs, Plaintiffs are familiar with 
the facts which pertain to Ralphs' employment practices.

4. Because of the expenditure of time and money to 
which both sides would be put, the prospect of delay and 
uncertainty, and Ralphs' continuing desire and efforts to 
provide equal employment opportunities for all employees and 
potential employees, the parties have formulated an affirmative 
action plan which is embodied in this Consent Decree, which will 
promote and effectuate the purposes of Title VII and § 1981.

5. Notice of the proposed settlement set forth in 
this Consent Decree has been given members of the represented 
class by methods and procedures previously approved in writing 
and ordered by this Court.

6. This notice stated that each member of the class 
described in paragraph 2 could, as an individual option, accept 
the benefits of this Consent Decree or, alternatively, "opt out" 
of this case, forego the benefits of this Consent Decree, and, 
if desired, pursue any legal remedies which the individual might 
possess against Defendant. The persons listed in Exhibit A

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hereto have elected to opt out of the class, and are hereby 
excluded from the class and the benefits of this Decree.

7. The aforementioned notice set forth procedures by 
which any member of the class described in paragraph 2 could 
object to the fairness of this Consent Decree, either in person 
or in writing.

8. Pursuant to said notice, a fairness hearing was 
held before this Court at which all members of the class were 
given the opportunity to object to the settlement set forth 
herein. The Court has reviewed all objections to this Cons_ent 
Decree, and has determined that the settlement set forth herein 
is fair and reasonable.

9. The parties have waived hearing and the entry of 
findings of fact and conclusions of law, and the parties have 
agreed to the entry of this Decree without admission by 
Defendant of a violation of Title VII or § 1981.

NOW, THEREFORE, IT IS HEREBY ORDERED, ADJUDGED AND 
DECREED that:

JURISDICTION

10. This Court has jurisdiction over the parties and
the subject matter of the action. The complaint, if proven,

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would authorize the Court to grant the relief provided herein 
pursuant to Title VII and § 1981.

GENERAL PROVISIONS
*

11. The negotiation and entry of this Consent Decree 
and the undertakings made by Ralphs hereunder are in settlement 
and compromise of disputed allegations of discrimination in 
employment. Neither the negotiation nor entry of this Consent 
Decree shall constitute an admission by Ralphs that it or its 
officials or employees have violated Title VII, § 1981, or any 
other federal, state or municipal fair employment law, 
ordinance, order, or regulation, and Ralphs specifically denies 
the commission of any such violation. The parties hereto 
approve and agree to the entry of this Consent Decree solely on 
the condition that this Consent Decree does not constitute any 
finding or adjudication by the Court, any evidence on any issue 
of fact or law herein, or any admission by the Defendant, as to 
the truth or merit of Plaintiffs' allegations. The parties have 
consented to the entry of this Consent Decree to avoid the 
burdens of further litigation. This Consent Decree is final and 
binding on all parties as to the issues raised by this case as 
well as upon their successors and assigns.

12. This Consent Decree resolves all issues between 
all members of the plaintiff class and the Defendant relating to
asserted practices, acts, and omissions of the Defendant which 
are raised by the complaint herein, as well as any future

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effects of such asserted practices, acts, and omissions, and, 
with respect to such practices, acts, and omissions, compliance 
with this Consent Decree shall be deemed to be compliance with 
Title VII, § 1981, and all other laws regulating employment 
discrimination, and shall be deemed to satisfy any and all 
requirements for affirmative action by Defendant. The doctrines 
of res judicata and collateral estoppel shall apply to all 
members of the plaintiff class with respect to all issues of law 
and fact and matters of relief within the scope of the complaint 
filed herein. No class members bound by this Consent Decree 
shall seek or obtain, in a separate action or proceeding, relief 
for claims within the scope of the complaint filed herein which 
would add to or be inconsistent with the relief incorporated in 
this Decree. The entry of this Consent Decree and the 
undertakings of the Defendant set forth herein shall extinguish 
all claims for relief within the scope of the complaint filed 
herein, except actions taken to enforce the provisions of this 
Consent Decree.

13. Notwithstanding anything to the contrary 
contained elsewhere in this Consent Decree, the persons who have 
opted out of this Consent Decree, as described in paragraph 6, 
shall not be entitled to any of the rights or benefits 
hereinafter set forth.

14. 29 C.F.R. S 1608, the EEOC's guidelines on
affirmative action, and particularly 3 1608.8 (adherence to 
court order), state in relevant part, among other things, that

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"parties are entitled to rely on orders of courts of competent 
jurisdiction," that such orders can include consent decrees, and 
that "the Commission interprets Title VII to mean that actions 
taken pursuant to the direction of a Court Order cannot give 
rise to liability under Title VII." All actions taken pursuant 
to the requirements of this Consent Decree are taken "pursuant 
to the direction of a Court Order" within the meaning of 
S 1608.8, and the parties to this Consent Decree are entitled to 
the protections of the EEOC's guidelines on affirmative action 
in general and § 1608.8 in particular. Moreover, the parties 
hereto, with respect to any actions taken pursuant to this 
Consent Decree, are entitled to the protections of § 713(b)(1) 
of Title VII, which provides in relevant part as follows:

"In any action or proceeding based on any 
alleged unlawful employment practice, no 
person shall be subject to any liability or 
punishment for or on account of . . . the 
commission by such person of an unlawful 
employment practice if he pleads and proves 
that the act or omission complained of was 
in good faith, in conformity with, and in 
reliance on any written interpretation or 
opinion of the [Equal Employment 
Opportunity] Commission . . . ."

Should any actions taken by any party pursuant to this Consent 
Decree later be held to be unlawful, by reason of the EEOC's

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guidelines on affirmative action, 29 C.F.R. § 1608, such actions 
will have been taken, within the meaning of § 713(b)(1) of 
Title VII, in good-faith reliance upon written interpretations 
and opinions of the Equal Employment Opportunity Commission.

15. Ralphs shall be entitled to utilize any selection 
standard, practice, or procedure whatsoever in hiring or 
promotion in relation to the job groups covered by this Decree; 
provided, however, if Ralphs is not in substantial compliance 
with the terms of this Decree, the Court may, in its discretion, 
issue such orders as it deems appropriate and necessary to 
assure compliance with the Decree.

16. Nothing in this Decree shall be construed in any 
way to require Ralphs to hire or promote persons unqualified 
under current standards or criteria. All provisions in this 
Decree are subject to the availability of qualified black and 
hispanic candidates. Ralphs, however, shall in good faith 
engage in selective recruitment efforts, and in good faith 
conduct such hiring, training and promotion programs as are 
necessary to satisfy the hiring and promotional requirements of 
this Decree. Nothing in this Decree shall require Ralphs to 
grant a preference to any particular individual black or 
Hispanic for hire or promotion.

17. Nothing in this Decree shall be construed to
require Ralphs to violate the terms of any existing bona fide 
seniority system in collective bargaining agreements.

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18. The relief set forth in this Decree represents 
the parties' best efforts to formulate relief for victims of the 
discrimination alleged in the complaint in light of various 
factors, including the complex nature of personnel selection 
procedures, limited records, and the great time and expense 
required to identify specific victims of alleged discrimination.

COVERAGE

19. Coverage of this Consent Decree shall be limited 
to employment opportunities for regular full and part-time 
employees in the job groups defined below in retail grocery 
stores bearing the Ralphs name and operated by Ralphs Grocery 
Co. in the State of California.

J03S GROUPS

20. The job groups referred to in this Consent Decree 
are defined as follows:

(a) Entry-Level. All employees in the clerk 
helper; apprentice general merchandise clerk; and 
journeyman general merchandise clerk job classifications.

(b) Journeyman. All employees employed in the 
following job classifications: apprentice food clerk; 
journeyman food clerk; apprentice meat personnel; 
journeyman meat personnel; and service delicatessen 
employees.

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(c) Department Heads. All employees employed in ! 
the following job classifications: food department heads;
food department assistant heads (who are compensated above 
the journeyman food clerk rate of pay only); general 
merchandise department heads (who are compensated above the 
journeyman food clerk rate of pay only); and meat 
department heads.

ULTIMATE GOALS

is:

ar e:

21. The ultimate goal for the entry-level job group 

Hispanics - 20%

22. The ultimate goals for the journeyman job group

Blacks - 7.50%
Hispanics - 17.75%

23. The ultimate goals for the department head job
group are:

Blacks - 5.50%
Hispanics - 14.75%

ANNUAL GOALS

24. Entry-Level. In each calendar year during the 
period that this Consent Decree is in effect, Ralphs shall 
engage in vigorous good faith efforts to seek to achieve the

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objective that Hispanics are hired into job openings in the 
entry-level job group at or above the annual hiring goal of 20%.

25. Journeyman. In each calendar year during the 
period that this Consent Decree is in effect, Ralphs shall 
engage in vigorous good faith efforts to seek to achieve the 
objective that blacks and Hispanics are hired or promoted into 
job openings in the journeyman job group at or above the 
following annual goals:

Effective date of Consent Decree through December 31, 1986: 
Blacks - 6.50%
Hispanics - 16.75%

Calendar 1987:
Blacks - 7.50%
Hispanics - 17.25%

Calendar 1980 and thereafter:
Blacks - 8.50%
Hispanics - 18.75%

26. Department Heads. In each calendar year during 
the period that this Consent Decree is in effect, Ralphs shall 
engage in vigorous good faith efforts to seek to achieve the 
objective that blacks and Hispanics are hired or promoted into
job openings in the department head job group at or above the 
following annual goals:

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1986:
Blacks - 4.50%
Hispanics - 13.75%

Calendar 1987:
Blacks - 5.50%
Hispanics - 14.75%

Calendar 1988 and thereafter:
Blacks - 6.50%
Hispanics - 15.75%

Provided, if as of January 1 of the year in question the 
percentage of blacks or Hispanics in the journeyman job group is 
less than the applicable percentage goals set forth above in 
H 26, the annual goal for such ethnic group for the calendar 
year following said January 1 shall be at the lower percentage 
composition of said ethnic group in the journeyman job group.
For example, if as of January 1, 1987, blacks comprised 4.73% of 
the journeyman job group, the annual goal for blacks for the 
department head job group for 1987 would be 4.73% and not the 
percentage set forth above in U 26. Provided further: (i) the
above proviso shall not be applicable to any year following a 
year Ralphs has failed to meet the goals set forth above in 11 26 
for the journeyman position; and (ii) if the above proviso 
results in a lowering of annual goals, the number of positions 
by which such goals are lowered shall be added to subsequent

Effective date of Consent Decree through December 31,

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)

annual goals, as soon as this can be done without conflicting 
with the above proviso.

27. The parties recognize that groups of employees 
may be added to Ralphs' work force by transactions such as, for 
example, a merger, a purchase of stores from another 
organization, and/or hiring of employees of another company in 
conjunction with such a merger or purchase. Such new employees 
shall be excluded in determining compliance with the goals 
herein.

28. In determining compliance with annual goals, 
persons who enter a job group by way of demotion (for example, a 
department manager demoted to a journeyman) or by way of recall 
from layoff (for example, a laid-off food clerk who is recalled) 
shall not be counted. Such persons shall be counted with 
respect to determining whether or not an ultimate goal has been 
met.

29. In determining compliance with goals, transfers 
or promotions of employees between jobs within the journeyman 
job group or between jobs within the department head job group 
shall not be counted. The failure of black or Hispanic 
applicants or employees to pass any written examination shall 
not excuse noncompliance with goals.

30. The parties agree that Ralphs' compliance with 
the annual goals set forth in this Decree will be measured by

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Ralphs' vigorous good faith efforts to meet those annual goals. 
Moreover, in determining whether Ralphs has failed to meet the 
annual goals for a particular job group for any year, Ralphs 
shall be entitled to be credited with blacks and Hispanics who 
entered the job group in question in excess of such goals, if 
any, for prior years (i.e., if for a particular year Ralphs 
should have added five additional blacks into the journeyman job 
group, but in the prior year it added six blacks above and 
beyond the number necessary to meet its annual goals for the 
journeyman job group, Ralphs would not be deemed to have failed 
to have met its annual goal for the journeyman job group with 
respect to blacks for the year in question). Should Ralphs fail 
to meet the annual goal for a particular job group in any one 
year, such failure shall not be a violation of or be deemed 
contempt of this Decree. However, in the year following such 
failure, Ralphs shall be expected to attain the prior year's 
annual goal in addition to the present year's annual goal (after 
credit, as aforementioned, for any overage in prior years). If 
in the calendar year following such failure Ralphs achieves the 
remainder of the prior annual goal plus the annual goal for the 
year in question, Ralphs' failure to have achieved the prior 
annual goal shall be deemed remedied, and shall have no legal 
effect whatsoever.

REPORTING REQUIREMENTS

31. For all purposes in this Decree, the first 
calendar year shall be defined as beginning with the effective

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date of this Decree, and ending December 31, 1986. Thereafter, 
the annual goal and reporting requirements will be on the basis 
of calendar years.

32. On or about April 1, 1987, and on or about each 
April 1 thereafter while this Decree is in effect, Ralphs shall 
submit a status report for the prior calendar year to counsel 
for the plaintiff class. The status report shall list by job 
group the persons either newly hired or promoted into regular 
positions in said job group for the first time during the 
calendar year in question. The listing shall indicate the name; 
race; national origin; date of first achieving a position in the 
job group; position title of each such person; immediately prior 
position title with Ralphs, if any; whether hired or promoted; 
and whether full-time or part-time status. A summary shall be 
included that sets forth for each job group the ultimate goal, 
the annual goal, the total number of persons entering the job 
group for the first time, the number and percentage of blacks 
appointed, and the number and percentage of Hispanics appointed, 
the number and percentage of blacks in the job groups, and the 
number and percentage of Hispanics in the job group. Each 
status report shall also list for each job category for the 
period in question the number and percentage of black and 
Hispanic employees hired or promoted pursuant to this Decree who 
have been demoted, terminated or converted to part-time status, 
and the number and percentage of other employees receiving the 
same job actions.

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RETENTION OF JURISDICTION

33. The Court shall retain jurisdiction to enforce 
this Decree.

MONITORING THE DECREE

34. If lead counsel for plaintiff class has reason to 
believe that Ralphs has not complied with this Decree, he shall 
so notify counsel for Ralphs in writing. Ralphs shall have 
sixty (60) days from its counsel's receipt of such notice to 
investigate and attempt to correct or refute the claimed 
violation. The parties will attempt in good faith to resolve 
the matter through informal conciliation.

35. In the event counsel for the Plaintiff class 
continue to believe that Ralphs has not complied with this 
Decree, the plaintiff class may institute formal proceedings 
with the Court to enforce the decree.

36. As is set forth below, Plaintiffs are entitled to 
an award of costs, including attorney's fees, for the work which 
led to this Consent Decree and its approval. Plaintiffs shall 
not be entitled to an award of costs, including attorneys' fees, 
for the normal monitoring of this Consent Decree, including the 
reviewing of reports served pursuant to the reporting provisions 
contained herein. Plaintiffs shall be entitled, however, to an 
award of reasonable costs, including attorney's fees, for work

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done in enforcing this Decree if, but only if, they are the 
prevailing party in connection with a decree enforcement 
proceeding.

DISSOLUTION OF THE DECREE

37. At any point in time that Ralphs believes that it 
has attained one or more of the ultimate goals for any job group 
set forth herein, Ralphs may so notify counsel for plaintiff 
class in writing. If plaintiff class disputes Ralphs' 
contention, plaintiff class shall petition this Court, within 
sixty (60) days (which, upon written request from counsel for 
Plaintiffs, submitted to Ralphs within said 60 days, shall be 
extended an additional sixty (60) days) after receipt by counsel 
for plaintiff class of Defendant's written notification, for a 
hearing to determine whether the ultimate goals for any job 
group as set forth in this Consent Decree has been met. If the 
Court finds that such ultimate goal has been met, the Court 
shall dissolve that portion of the Decree and adjudge that 
Ralphs has satisfied all of its obligations with respect to the 
goal in question for the particular job group. If plaintiff 
class fails to petition this Court within sixty (60) days after 
receipt by their counsel of Ralphs' written notification, that 
portion of the Consent Decree shall no longer have any force and 
effect (for example, if Ralphs meets the ultimate goal with 
respect to blacks in the journeyman position, and so notifies 
counsel for the plaintiff class, upon the failure of counsel for 
plaintiff class to petition for hearing, Ralphs shall be under

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no further obligations pursuant to this Decree with respect to 
blacks in the journeyman job group).

38. When each and all of the ultimate goals set forth 
in this Decree have been met, the Court shall make an order 
terminating its jurisdiction of this matter for all purposes, 
and dissolving this Decree. If not already dissolved, the Court 
shall in all circumstances dissolve this Decree and make an 
order terminating its jurisdiction of this matter for all 
purposes on or about January 1, 1992.

RELIEF FOR NAMED PLAINTIFFS

39. Named plaintiff Minnie F. Hadley shall receive 
the sum of fifteen thousand dollars ($15,000.00) upon approval 
of this Consent Decree, in full satisfaction of any and all 
claims within the scope of the complaint.

40. Named plaintiff James L. White receive the sum of 
five thousand dollars ($5,000.00) upon approval of this Consent 
Decree, in full satisfaction of any and all claims within the 
scope of the complaint.

41. Named plaintiff Viola Bennett shall be appointed 
to a regular full-time position as a key person and receive a 
transfer to the Bundy or Westchester retail store in full 
satisfaction of any and all claims within the scope of the 
complaint.

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42. Named plaintiff Terence Grace shall receive the 
sum of seven thousand five hundred dollars ($7,500.00) upon 
approval of this Consent Decree, in full satisfaction of any and* k
all claims within the scope of the complaint.

43. Named plaintiff Yvonne Aguilar shall receive the 
sum of five thousand dollars ($5,000.00) upon approval of this 
Consent Decree, in full satisfaction of any and all claims
within the scope of the complaint.

44. Defendant Ralphs shall remove any reference in 
the personnel files of the named plaintiffs concerning their 
involvement in this lawsuit or any derogatory information and 
opinion falling within the scope of matters raised in the 
complaint. Ralphs shall insert in each such personnel file a 
memorandum stating its desire that its officials, agents and 
employees shall limit any information given to any prospective 
employers of any of the named plaintiffs to dates of employment, 
positions held and any other information that Ralphs is 
requested in writing by the named plaintiff to release.

ATTORNEY'S FEES

45. For purposes of an award of costs, including 
attorney's fees pursuant to 42 U.S.C. S 2000e-5(k) only, 
plaintiff class shall be considered the prevailing party. After
entry of this Consent Decree, the parties shall attempt to 
negotiate a settlement of Plaintiffs' claims for an award of

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costs, including reasonable attorney's fees. If those 
negotiations are unsuccessful, the matter shall be submitted to 
a practicing attorney of recognized reputation specializing in 
litigation and familiar with billing rates and practices in the 
Los Angeles area, serving as Special Master. The parties shall 
attempt to agree on the person to serve as a Special Master. If 
the parties are unable to agree on a Special Master, the Court 
shall appoint a practicing attorney of recognized reputation 
specializing in litigation and familiar with billing rates and 
practices in the Los Angeles area to serve as Special Master.

The determination of any Special Master shall be 
final, binding and nonappealable. Defendants shall pay the 
costs and fees of any Special Master.

Plaintiffs shall apply for no more than $51,000 in 
costs, including attorneys' fees, for all work done through 
approval of the Decree, except that plaintiffs shall not be 
subject to any limitation if the Decree is not finally approved 
in a form agreeable to both parties and further proceedings are 
required.

The determination and award of costs, including attor­
neys' fees, and the payment of said costs, including attorneys' 
fees, shall not be delayed by reason of any appeal. If for any 
reason after the payment of costs, including attorneys' fees,
the Decree is disapproved as a final matter by a federal court 
and the Decree is vacated to the extent that the plaintiffs no

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longer would be considered the prevailing party, plaintiffs' 
counsel will be obligated to repay all costs, including 
attorneys' fees, to Defendant.

NOTICE

45. Notice under this Decree shall be given by
certified mail, return receipt requested. Notice to counsel for 
the plaintiff class shall be given as follows:

Bill Lann Lee, Esq.
Center for Law in the Public Interest 
10951 West Pico Boulevard, Third Floor 
Los Angeles, California 90064

Notice to Ralphs shall be given as follows:

Andrew C. Peterson, Esq.
Paul, Hastings, Janofsky & Walker 
555 South Flower Street, 22nd Floor 
Los Angeles, California 90071

DATED: SEP 3 U 1985

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— ^ -----------------United Stat ict Judge

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( >

CONSENTED TO:
BILL LANN LEE 
JOEL R. REYNOLDS
Center for Law in the Public Interest
PEARL LATTAKER 
MELANIE LOMAX
JOHN HUERTA 
THERESA FAY BUSTILLOS 
Mexican American Legal Defe 

and

By
B

Attorneys for Plaintiff Class

PAUL GROSSMAN 
ANDREW C. PETERSON

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