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Judge says he might exclude Wal-Mart workers from jury

Thu, Jul 31st 2008 12:00 am
BENTONVILLE, Ark. (AP) - A judge says he probably won't seat Wal-Mart employees on a jury when a dispute between the company and convicted former executive Tom Coughlin goes to trial next month.

Wal-Mart greeters, however, might make the panel, Circuit Judge Hon. Jay Finch told lawyers Friday.

"I'm not inclined to let a current Wal-Mart employee be on the jury, with the exception of maybe somebody who works as a greeter," Finch said at a pretrial hearing. "A jury must not only be fair, but it must appear fair."

Wal-Mart sued Coughlin in 2005 alleging that the former vice chairman embezzled money from the company and that Wal-Mart should not have to pay Coughlin retirement benefits. The benefits were estimated at between $12 million and $16 million.

Coughlin pleaded guilty in January 2006 to federal charges of wire fraud and tax evasion, and was sentenced to 27 months of home detention, plus five years' probation. He also was ordered to complete 1,500 hours of community service and pay $400,000 in restitution.

Finch in 2006 dismissed Wal-Mart's lawsuit, but the Arkansas Supreme Court last year agreed with Wal-Mart that Coughlin was obligated to disclose during retirement negotiations that he was stealing from the giant retailer.

Coughlin countersued, claiming that Wal-Mart violated the retirement agreement by refusing to pay the money. Coughlin also named company general counsel Tom Mars as a defendant, alleging that Mars conducted a "witch hunt" that led to Coughlin's conviction.

Although he pleaded guilty, Coughlin maintained through his attorneys that what he took was to reimburse himself for trying to uncover union activities within Wal-Mart. Wal-Mart has said no union project ever existed and that Coughlin made up the story after he got caught stealing.

Finch also said at the pretrial hearing that he was inclined to grant a request from Wal-Mart attorneys to hold separate trials on the retirement dispute and the claim involving Mars. At the request of Coughlin's lawyers, the judge said he would consider whether Wal-Mart could take testimony from Coughlin's criminal defense lawyers.

The trial is set for Aug. 22.