Authorities Get Court Order to Shut Branch of Grocery Chain

After weeks of legal maneuvering, state labor officials Wednesday finally obtained a court order forcing the California Market chain to shut down its Garden Grove store, at least temporarily.

But stoking the fire in a long-running battle with the state, managers continued to operate the supermarket as usual.

Exasperated, state officials late Wednesday vowed to obtain a contempt-of-court order.

“The state views it as very serious. You don’t flaunt a court order like that,” said Barbara Ferguson, a staff attorney for the California Division of Labor Standards Enforcement, which has been pressing its case in court since April, alleging that some of California Market’s six stores are not operating with workers’ compensation insurance.

But California Market’s lawyer, former Los Angeles Dist. Atty. Ira Reiner, said the business did not have to abide by the court order. The order, he said, is effective immediately, but only if the store does not currently have the insurance. And Reiner, as he has all along, insisted that the supermarket is covered.

“All of this is just frustration on their part,” Reiner said of the state’s latest effort in court. He added that he would be back in court today to show the judge the insurance policy, which he said is with Golden Eagle Insurance of San Diego, and have the court order dissolved.

California Market, owned by businessman Richard Rhee, is one of the largest Asian market chains in the state. But it has come under increasing scrutiny by various state agencies, including the labor division, which has cited the chain for a variety of labor law violations. Rhee and his attorneys have denied any wrongdoing.