Note N - Commitments and Contingencies

9 Months Ended

Mar. 03, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

NOTE N - COMMITMENTS AND CONTINGENCIES

Litigation

We are presently, and from time to time, subject to pending claims and lawsuits arising in the ordinary course of business. We provide reserves for such claims when payment is probable and estimable in accordance with GAAP. At this time, in the opinion of management, the ultimate resolution of pending legal proceedings, including the matter referred to below, will not have a material adverse effect on our consolidated operations, financial position, or cash flows.

On July 23, 2014, a case styled Kimberly LaFrance, on behalf of herself and all other similarly situated v. Ruby Tuesday, Inc., was filed against the Company in the State of New York Supreme Court, County of Onondaga on behalf of the plaintiff and all other similarly situated individuals.  The plaintiff is alleging violations of certain wage notice requirements under New York law and is seeking wages, liquidated damages and attorneys’ fees.  The matter has been removed to the United States District Court for the Northern District of New York.  On November 20, 2014, we filed a motion to dismiss, which was followed by motions filed by the plaintiff on December 29, 2014, for class certification, and on December 31, 2014, for partial summary judgment.  The court stayed briefing on the plaintiff’s motions seeking to first rule on our motion to dismiss.  The parties have agreed to mediate the case, and on March 5, 2015, the court stayed all deadlines in the matter pending the completion of that mediation.  While we believe that we have accrued an appropriate amount based on our current understanding of the case, we may increase our accrual in the future if a class is certified or if our understanding of the matter changes.