Lunda Construction profit-sharing trial begins

Daily Reporter (Milwaukee), Apr 24, 2002 by Ellen Hickock-Wall

A former Lunda Construction Co. employee is suing the Black River Falls general contractor over claims that he was misled over a profit- sharing plan.

The trial, expected to last three days, began Tuesday in Waukesha County Circuit Court before Judge Robert G. Mawdsley.

Timothy Galarnyk, Eau Claire, who worked for Lunda from 1980 to 1999, claims that he suffered damages in excess of $1 million when Lunda:

Failed to pay him profit-sharing funds as promised;

Failed to distribute stocks as promised;

Induced him to stay with the company when Galarnyk received lucrative job offers from others by continually refreshing the profit- sharing and stock-distribution promises.

Galarnyk claims that Milt Lunda, founder of the company, presented a plan to senior management in 1996 in which he asked the company leaders to vigorously pursue increased profitability, and in return, the company would pay a percent of annual profits back to the employees.

During opening arguments Tuesday, however, Lunda's attorney, James W. Greer, Milwaukee, said that shortly after Lunda presented the profit-sharing plan, his duties were assumed by his son, Larry, who did not like the plan and, therefore, never implemented it.

Greer said Lunda paid its senior staff higher salaries and discretionary bonuses in lieu of the profit-sharing plan he didn't like.

While Lunda maintains the plan never got off the ground in the first place, Galarnyk claims there was one in place that did not pay.

Galarnyk's attorney, Gregory J. Cook, Wausau, said he wanted to avoid confusion for jury members about the difference between bonus money and profit-sharing money and asked that discussions about bonuses be restricted.

Mawdsley denied the motion because, he said, "this case is about compensation."

Well compensated

The defense claims that Galarnyk was well compensated and received substantial bonuses under the younger Lunda's rule.

"Our defense in the case is he (Galarnyk) has no damages, so even if he could show that we promised him that we would do this, he has no damages," Greer said.

Galarnyk claims that he was not able to calculate the amount due under the profit-sharing plan he says was implemented because the company failed and refused to provide him information about its profits.

But, he said, he has general information that indicates the company profits more than quadrupled during the years he would have benefited.

In November 1999, Cook said, Galarnyk was fired in the company parking lot. He was not able to enter the building and remove personal effects, Cook said, which included documents that would have helped him win the case against Lunda today.

Sometime later, Cook said, Galarnyk received the two files he needed, but critical documents were not in them.

Both sides plan to present several witnesses, among them Milt Lunda, who Cook described as "fatherly" to Galarnyk.

But Greer cautioned jurors that the senior Lunda, now 82, has difficulty remembering details.

Galarnyk said his is a critical case because, even though he's the only plaintiff in the current action, he is just one of about 50 employees who would have benefited by the profit-sharing plan that he claims Lunda proposed.

Ellen Hickok-Wall can be reached at 414-276-0273, Ext. 118.