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IN THE CIRCUIT COURT OF BENTON COUNTY, ARKANSASCIVIL DIVISION
HENDREN PLASTICS, INC., PLAINTIFFAn Arkansas Corporation
V. CASE NO.:
TIMOTHY STEADMAN DEFENDANT
Individually
PLAINTIFF'S COMPLAINT
COMES NOW Plaintiff, Hendren Plastics, Inc. ("Plaintiff' or "Hendren Plastics"), and for
its Complaint against Defendant, Timothy Steadman, ("Defendant" or "Mr. Steadman") does state
the following:
A. PARTIES AND JURISDICTION
1. Hendren Plastics is an Arkansas corporation with its principal place of business
located in Benton County, Arkansas.
2. Based on information and belief. Defendant is a resident of Pulaski County,
Arkansas and is a licensed attorney with offices located in Pulaski County, Arkansas.
3. This court has jurisdiction over the persons and subject matter and venue properly
lies herein.
B. FACTUAL BACKGROUND
4. On October 23,2017, a class action lawsuit was filed by Mark Fochtman and Shane
O'Neal (the "Class Representatives"). See Benton County Circuit Court Case No.: 04-CV-17-
2190 (the "Lawsuit"). Mr. Steadman was identified as coimsel for the Class Representatives in
the Lawsuit. While many of the statements made in the Lawsuit in reference to Plaintiff are false,
said statements are privileged because they are part of a judicial proceeding and are not at issue in
ELECTRONICALLY FILEDBenton County Circuit Court
Brenda DeShields, Circuit Clerk
2017-Nov-01 16:31:0904CV-17-2314
C19WD04 : 12 Pages
this Complaint. While the statements made in the Lawsuit are not the subject matter of this action,
for the sole purpose of providing background, they will be discussed herein.
5. Hendren Plastics contracted with a drug court rehabilitation facility and agreed to
accept residents provided by the facility to work as independent contractors.
6. Hendren Plastics paid the facility for each hour of work performed by the resident.
Hendren Plastics paid the facility an amoimt equal to the amount Hendren Plastics was paying its
own entry-level employees ($9.25 an hour).
7. Hendren Plastics, Inc., was not a party to any arrangement between the worker and
the rehab facility.
8. In the Lawsuit, the Class Representatives allege they were placed with
rehabilitation facilities as part of their drug court obligations. These rehab facilities then placed
the Class Representatives in gainful employment with Hendren Plastics, Simmons Foods, Inc., and
other unnamed employers. The Lawsuit acknowledges that Hendren Plastics paid the rehab
facilities for the labor performed by the Class Representatives. See If 40 of Plaintiffs Complaint
filed in the Lawsuit. However, the Lawsuit alleges that the rehab facilities did not pay the
participants any of the money received by Hendren Plastics.
9. Despite acknowledging that Hendren Plastics paid for the labor received, the
Lawsuit alleges Hendren orchestrated "a pervasive scheme of slavery". See | 59 of Plaintiffs
Complaint filed in the Lawsuit.
10. Because of the salacious allegations of slavery, the Lawsuit generated considerable
publicity and news coverage.
C. THE DEFENDANT'S NON-PRIVILEGED STATEMENTS
11. As part of the news coverage, on October 31,2017, the local news channel KHBS
(40/29) aired a story about the Lawsuit. The news story also ran on KHBS's website. See Exhibit
"A" attached hereto and incorporated herein by reference as if set forth in full.
12. The news story was further posted to KHBS's and the reporter's Facebook® page
where it received negative reactions and was reposted many times. See Exhibits "B" and "C"
attached hereto and incorporated herein by reference as if set forth in full.
13. During this news story, KHBS did with the Defendant's authorization, re-broadcast
statements made by the Defendant to the KHBS news staff.
14. In referencing the Lawsuit filed against Hendren Plastics and Simmons Food, Inc.,
Defendant stated:
^^These programs are supposed to help people combat addiction, not turn them into slavesfor businesses that are unashamedly for profit"
The reporter, Katie Davidson then stated, "Attorneys for the two bringing the suit say itdoesn't matter if Simmons Food and Hendren Plastics paid."
The story again rebroadcasts the Defendant's statement in which he stated, "Hendren andSimmons Food and the other business that use these men and women are who is profitingfrom this. They control the employment."
15. Defendant's comments that Hendren Plastics was profiting fi-om slave labor is
categorically false.
D. COUNT 1 - DEFAMATION
16. Plaintiff restates and reincorporates all allegations of fact contained in all preceding
paragraphs.
17. Hendren Plastics is not a public figure, but is rather a private corporation.
18. Defendant's statements that Hendren Plastics profited from slave labor was an
assertion of fact and not a mere opinion. The Defendant's assertions of fact were categorically
false.
19. Considering the Lawsuit acknowledges that Hendren Plastics paid the workers'
wages. Defendant's false assertion that Hendren Plastics was using slave labor was made with
knowledge that such a statement was false. Alternatively, the statements were made with
negligence in failing to determine the truth of the statement prior to publishing the statement to a
popular television news channel.
20. Defendant's statements have and will continue to negatively affect Plaintiffs
business and has injured Plaintiffs reputation. Specifically, Plaintiffs value is in part based on
its "good will" which had been damaged by the defamatory statements of Plaintiff. Further,
Plaintiffs on-going business requires continually attracting new employees in order to meet its
labor demands. Due to the defamatory comments made by Defendant, attracting new employees
will be made more difficult.
21. As a result of Defendant's false and defamatory statements. Plaintiff has been
damaged in an amoimt to be proven at trial.
22. Defendant's actions demonstrate an intentional course of conduct for the purpose
of causing damage to Plaintiff. To wit. Defendant's actions were done with the knowledge that
the conduct would naturally and probably damage Plaintiff and continued in such action with
malice or reckless disregard of the consequences - from which malice can be inferred.
E. COUNT II - PUBLICITY PLACING THE PLAINTIFF IN A FALSE LIGHT
23. Plaintiff restates and reincorporates all allegations of fact contained in all preceding
paragraphs.
24. Plaintiff sustained damages resulting from the Defendant's publication of
statements that placed Plaintiff in a false light.
25. The false light in which Plaintiff was placed would cause a reasonable person to be
justified in feeling seriously offended and aggrieved by the publicity.
26. Defendant's public statements that put Plaintiff in a false light were the proximate
cause of the damages suffered by Plaintiff.
27. Defendant put Plaintiff in a false light knowing it was false or having a high degree
of awareness of its probable falsity.
28. Plaintiff demands trial by jury.
F. DAMAGES
29. Plaintiff respectfully requests the following damages to be considered for the
purpose of determining the sum of money that will fairly and reasonably compensate it for the
damages suffered by the actions of Defendant;
a. Damages resulting from Plaintiffs loss of reputation and character in an amount to
be proven at trial; and
b. Punitive damages in an amount to be proven at trial.
WHEREFORE, premises considered, Plaintiff respectfully prays this Court grant Plaintiff
the relief requested herein and award Plaintiff any other relief to which it may be entitled.
Respectfully submitted.
By:Tim Hutchinson (2000-030)Reece Moore Pendergraft LLP
75 North East Avenue, Ste. 500P.O. Box 1788
VERIFICATION
I, Jim Hendren, President of Hendren Plastics, Inc., do hereby state that I have reviewedthe foregoing and the statements contained therein are true and correct to the best of myknowledge and belief
Dated I , 2017.
endren
STATE OF ARKANSAS
COUNTY OF WASHINGTON
)) ss.
)
Personally appeared before me this date, the J day of X^0V/'OTti:>^, 2017, Jim Hendren,to me well known (or sufficiently proven) to be the person whose name is subscribed to theforegoing Complaint and acknowledged tbat he executed the same for purposes expressedtherein.
KELLI MARIE FOUTSWASHINGTON COUNTY
NOTARY PUBLIC -- ARKANSASMy Commission Expires May 7,2022
Commission No. 12388259
fARY PUBLIC
My commission expires:
7 ̂ 0^^
Suit says rehab programs used patients for free labor Page 1 of 3
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Suit says rehab programs used patients for free labor
Updated: 6:51 PM CDT Oct 31,2017
Katie Davidson f if ^l.u.'ltimedia Jcotnalist
Adam Roberts, DMM f SF HDigitoi Media Man.-tget
BENTONVILLE, Ark. — Two men filed a lawsuit in Benton County, saying couit-ordered drug and alcohol recovery programs used them as freelabor for local businesses.
http://www.4029tv.com/article/suit-says-rehab-programs-used-patients-for-free-labor/1312... 11/1/2017
EXHIBIT A
Exh. A-1
Suit says rehab programs used patients for free labor
"They =yj>Ucipated receiving treatment for an addiction to help better their lives than they were before," said Jerry Garner, an a^grnfey for the
plaintlES^mTmstead they get to these facilities and essentially it's a labor camp." shares
Guaranteed
Recovery,
D.AWM
;n;-vrMtNr<.rMiK>
The two programs are the Drug and Alcohol Recovery Program (OARP) and Christian Alcoholics and Addicts in Recovery (CAAIR).
Those programs sent men to work for Hendren Plastics and Simmons Foods. Hendren Plastics is owned by State Sen. Jim Hendren of Sulphur
Springs. Hendred told 40/29 his company has already canceled its contract with the court-ordered program.
"Several years ago, we were approached by the folks at DARP who asked if we would be willing to participate in a drug court program to allow kids
alternative sentencing," Hendren said, "instead of going to jail they would have an opportunity to work and learn some skills and hopefully have a
job when they finished the program."
Hendren told 40/29 his company paid DARP $9.25 an hour for the labor its men performed. But the lawsuit says DARP kept the money.
"These programs are supposed to help people combat addiction, not turn them into slaves for businesses that are unashamedly for profit,"
Steadman told 40/29.
Hendren told 40/29 he signed onto the program because he wanted to help people.
"It's very disheartening, and it's disheartening to think about the kids now that are going to have to sit back in jail because of these types of
lawsuits," he said.
Simmons Foods released a statement to 40/29 News;
The claims by former CAAIR participants of their experiences are inconsistent with Simmons' operational policies and core values. There is
another side of this story that has not been told about the hundreds of CAAIR participants who successfully completed CAAIR's program and
decided to continue to work at Simmons' facilities. Simmons is proud of the nearly 30 current employees who graduated from the CAAIR program,
including some who are pursuing advanced college degrees and developing their careers.
http;//'www.4029tv.com/article/suit-says-rehab-programs-used-patients-for-free-Iabor/1312... 11/1/2017Exh. A-2
Suit says rehab programs used patients for free labor Page 3 of 3
Whjle cannot comment on the specifics of any pending litigation related to this matter, we want to assure our custon^^rs,
and c^iOTtlTOs that we are prepared to use every resource at our disposal to vigorously defend the company. sharesemployees,
f ̂
October 12,2017
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http://www.4029tv.eom/article/suit-says-rehab-programs-used-patients-for-free-labor/l 312... 11/1/2017Exh. A-3
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Shane Lllsenl>ee Praying tor all the victims and their families
Like Reply '6 'ifs
40/29 News - Fort Smith & Fayetteville, ArkansasL.'Mi. i! 40/29 Katie Davidson ■- post'./lire »•«
40/29 Katie Davidson i4 Like Page
FREE LABOR: A new lawsuit claims court-ordered rehabilitation
programs placed people convicted of crimes In Jobs at Simmons andHendren Plastics and made them work for tree
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CAAIR. ISC, MMMONS f<S)|>S. INC,r»ARr, INC., HI sHKrs n ahtic^ ivc.
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Suit says rehab programs used patients for free laborTwo men filed a lavr/suit in Benton County, saying court-ordered drug andalcohol recovery programs used them as free labor for local businesses.
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Sheila Moyers I hope these guys go through with this. One of those employersbuilt a dorm for them to house more guys. There is a sehous lack of treatmentfacilities and lots of addicts but the focus has to be on sobriety and not makinga profit off of someone's pain and sufferingLike Reply O
Marlis Ketrow The former head of Simmons HR Department "developed" this"rehab" solution after being unable to fill Jotjs for the company and help addicts.NPR did a story on Uiis a couple of weeks ago Including an interview with her.Like Reply ^ 1 v/ nif.
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EXHIBIT B
40/29 Katie
Davidson
@4029KatleDavidson
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o40/29 Katie Davidson
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FREE 1_A80R: A new lawsuit claims court-ordered rehabilitation programsplaced people convicted of crimes in jobs at Simmons and Hendren Plasticsand made them work for free.
ind!vidu4lly ott behalf of 4II olhcr*»im>brly •iluiled PI-AINTIITS
CAAIK. INC. FOODS, IKC..DAttP. INC., Ill NDKLN PLAMICS, INCjnd lOIINDOi St-.IU DKIItNDANTS
CLASS ACTION COMITAINT
I.I.VtlU>f>tXlMM
1 Thi« I* rt itUv. a<Uon lt»r vioUitofte Ktl ihe Arluinu» CmvtlUiUon'*
prohtWhon on »bvcr>. aa well 4* Un unfwul mttutnum wAfge and twrtlnw under Ihc
ArWnivsjis Minimum VVagr Act IX-lffvl.ints CAAIK. Iw. fCAAIR') Dik) OARP. Itx
Suit saj^ rehab programs used patients for free laborTwo men filed a (awsuit m Benton County, saying court-ordered drug and alcoholrecovery programs used them as free labor for local businesses.
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