The EEOC Gets Knocked Out Of The Ring

On August 7, 2012, Judge Martin Reidinger of the U.S. District Court for the Western District of North Carolina “knocked out” the EEOC’s lawsuit against Propak Logistics, Inc. (“Propak”) - in EEOC v. Propak Logistics Inc., No. 1:09-CV-311 (W.D.N.C. Aug. 7, 2012), - due to the EEOC’s unreasonable and prejudicial delay in prosecuting the suit. The Court found the EEOC dealt Propak a “double fisted blow” by delaying the initiation of the lawsuit, as the passage of time hindered Propak’s ability to prevail on the merits while at the same time inflating the potential damages Propak faced if it did not prevail.

This ruling is a win for any employer forced to go head to head with the EEOC as it gives employers an additional strategy to use to potentially dismiss a suit against them. Further, it establishes good case law on the laches defense.

 

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