State Loses Latest Round Against Grocery Chain

State labor officials, continuing their long-running battle with the California Market chain, on Friday made another court bid to temporarily shut down one of its stores, only to be denied again.

In an unexpected appearance in Los Angeles Superior Court, representatives of the Division of Labor Standards Enforcement sought a restraining order against the Asian supermarket in Koreatown, alleging that it operated without workers’ compensation insurance.

It was the state’s second such move in less than two weeks. This time, however, labor officials said they had evidence supporting their contention that California Market did not have insurance coverage. They produced a document disputing the company’s claims that it had coverage from California Compensation Insurance, a private carrier.

But Judge Edward Ross rejected the state’s request after attorneys for California Market said the chain last week obtained insurance from another carrier for its stores in Koreatown and Garden Grove. Inspectors had also said the Garden Grove store was without coverage.

Labor officials also had planned to seek a similar restraining order Friday afternoon in Orange County Superior Court against the Garden Grove store, but they dropped those plans after the ruling was made in Los Angeles.

Raymond Riley, who along with former Los Angeles Dist. Atty. Ira Reiner represents California Market, called the Friday court hearing a “fiasco” that could have been avoided had the state called his office.

Jose Millan, the state’s assistant labor commissioner, said California Market and its owner, Richard Rhee, could still face penalties of $90,000 for allegedly not having insurance coverage when those two markets were inspected last month.

California Market, which has six stores in all, is one of the largest Asian market chains in the state. It has come under increasing scrutiny by various state agencies, including the labor division, which also is seeking $2.2 million in back wages and penalties in connection with allegations regarding myriad labor-law violations.

California Market denies any wrongdoing.