Commitments and Contingencies

6 Months Ended

Jun. 30, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies

(3) Commitments and Contingencies

California Labor Code Litigation. The Company is a defendant in a lawsuit originally filed in July 2007 in California state court on behalf of California dock workers alleging various violations of state labor laws. In August 2007, the case was removed to the United States District Court for the Central District of California. The claims include the alleged failure of the Company to provide rest and meal breaks and the alleged failure to reimburse the employees for the cost of work shoes, among other claims. In January 2008, the parties negotiated a conditional class-wide settlement under which the Company would pay $0.8 million to settle these claims. This pre-certification settlement is subject to court approval. In March 2008, the District Court denied preliminary approval and the named Plaintiff filed a petition with the United States Court of Appeals for the Ninth Circuit seeking permission to appeal this ruling. On October 8, 2010, the Court of Appeals issued a memorandum vacating the District Court’s decision and remanding the matter to the District Court for reconsideration of the Plaintiff’s motion for preliminary approval of the settlement. On January 10, 2011, the District Court ordered a March 14, 2011 hearing on the plaintiff’s motion for preliminary approval of the class action and conditional certification of the settlement class. The District Court has requested supplemental briefing and scheduled an August 20, 2011 hearing. The parties are updating information regarding the putative settlement class. The proposed settlement is reflected as a liability of $0.8 million at June 30, 2011 and December 31, 2010.

The Company is a defendant in a lawsuit filed on September 21, 2010 in the Superior Court of the State of California, County of Bernardino. The lawsuit was brought by a former line driver seeking to represent himself and similarly-situated putative class members in connection with his claims alleging various violations of state labor laws. The claims include the alleged failure of the Company to provide rest and meal breaks and the alleged failure to compensate for all time worked. The plaintiff also seeks to recover civil penalties on behalf of California in connection with alleged California Labor Code violations pursuant to the Private Attorney General Statute and is seeking class action certification. We have denied any liability and intend to vigorously defend ourselves in opposing the liability claims and class action certification. Given the nature and status of the claims, we cannot yet determine the amount or a reasonable range of potential loss, if any.

Other. The Company is subject to legal proceedings that arise in the ordinary course of its business. In the opinion of management, the aggregate liability, if any, with respect to these actions will not have a material adverse effect on our consolidated financial position but could have a material adverse effect on the results of operations in a quarter or annual period.