
Father and Son Distributors Appeal Order Compelling Arbitration in Case Challenging Retaliatory Termination by Largest Tortilla Manufacturer
White Plains, NY – Bleakley Platt & Schmidt, LLP (White Plains, NY) and Public Justice (Washington, D.C.) represent Charles L. Adler, Grant Adler, and C.M. Adler, LLC, in an appeal before the U.S. Court of Appeals for the Third Circuit. The appeal follows the dismissal of the Adlers’ federal and state law claims against Gruma Corporation by the U.S. District Court for the District of New Jersey, which compelled arbitration in a dispute over Gruma’s termination of the Adlers’ distributorship.
For years, Charles Adler and his son Grant ran a New Jersey distribution route for Gruma Corporation through Charles’ solely owned company. Gruma, which owns popular brands like Mission Foods, is the world’s largest tortilla manufacturer. Though Gruma exercised significant control over the Adlers’ work, it denied them the protections typically given to employees or independent franchisees. After the Adlers (and other distributors) consulted with legal counsel regarding their rights, Gruma terminated their route. Represented by Stephen J. Brown, Esq., of Bleakley Platt & Schmidt, LLP, the Adlers filed suit, alleging that Gruma’s termination was retaliatory. They claim that Gruma violated several federal and state laws, including the Fair Labor Standards Act, the New Jersey Wage Payment Law, New Jersey Wage and Hour Law, and the New Jersey Franchise Practices Act. Instead of answering the claims on the merits, Gruma moved to compel the Adlers into arbitration. The District Court granted the motion to compel arbitration and dismissed the Adlers’ case.
The Adlers have appealed to the U.S. Court of Appeals for the Third Circuit. They are represented on appeal by Stephen J. Brown of Bleakley Platt & Schmidt, LLP, and Hannah Kieschnick of Public Justice. Kieschnick presented argument to the Third Circuit on November 6, 2024. The outcome of this appeal could set important precedent regarding arbitration agreements and their impact on access to justice and statutory protections for small business owners and workers like the Adlers.
“These federal and state laws were designed to level the playing field between the little guy (the Adlers) and the giant multi-national corporation (Gruma),” said Brown. “This case and the important issues raised on appeal challenges an arbitration ruling that threatens to erode those protections which provide access to the court system under both state and federal law.”
“This case raises critical issues for workers nationwide, not just about fair treatment under the law but also about their ability to access courts to vindicate their rights,” added Kieschnick. “Public Justice is committed to ensuring that hardworking folks like the Adlers are not forced into arbitration processes that undermine important statutory and constitutional protections.”
The case is Charles Adler, et al. v. Gruma Corporation, et al., No. 23-3177 (3d Cir.). Audio of the November 6 oral argument can be found here.
About Bleakley Platt & Schmidt, LLP
Bleakley Platt & Schmidt, LLP, is a full-service law firm based in White Plains, New York, with a long history of successfully representing clients in complex litigation. Learn more about the firm at www.bpslaw.com. Stephen J. Brown is a partner at the firm with extensive experience representing route distributors in critical actions protecting distributors’ statutory and constitutional rights from management overreach. Mr. Brown’s practice includes commercial, trust and estate and guardianship litigation in state and federal courts. His bio can be found here.
About Public Justice
Public Justice is a national nonprofit organization dedicated to high-impact litigation aimed at promoting access to justice, combating corporate and governmental abuses, and advancing fairness in the legal system. Learn more at www.publicjustice.net. Hannah Kieschnick is as a staff attorney in the Access to Justice Project. She litigates high-impact cases with the goal of making the civil court system a fair and effective tool for those with less power to win just outcomes and hold those with more power accountable. Hannah’s full bio can be found here.