• Filing Date: 2013-11-07
  • Form Type: 10-Q
  • Description: Quarterly report
v2.4.0.8
7. COMMITMENTS AND CONTINGENCIES
9 Months Ended
Sep. 27, 2013
Commitments and Contingencies Disclosure [Abstract]  
Note 7 - COMMITMENTS AND CONTINGENCIES

Legal Proceeding: On August 3, 2012, Trident Seafoods Corporation and Liberty Mutual Insurance Co. filed a lawsuit against us in the United States District Court, Western District of Washington, for declaratory judgment, breach of contract and violation of the Washington Consumer Protection Act. This action is the result of a previous decision of the administrative law judge for the U.S. Department of Labor, wherein it was determined that a former temporary worker of ours was, in fact, an employee of Trident Seafoods for purposes of the U.S. Longshore and Harbor Workers' Compensation Act. The administrative law judge ordered Trident Seafoods and its insurer Liberty Mutual to pay workers compensation benefits to the employee following a serious injury sustained while working on Trident’s project and under its direction and control. Trident Seafoods alleges we have a contractual duty to pay the workers’ compensation benefits for the injured “borrowed” employee. We dispute the claims asserted by Trident and we are vigorously defending this case.  Recently, the parties took part in a court-ordered mediation conference.  Although the case has not yet settled, discussions are ongoing. We believe the amounts accrued in our financial statements are adequate in consideration of the probable and estimable liabilities. The resolution of ongoing legal proceedings is not expected to have a material effect on our results of operations or financial condition.