Lawyer Commentary Mondaq United States California Employment Law Notes - March 2014

California Employment Law Notes - March 2014

Document Cited Authorities (11) Cited in Related

$150,000 Sexual Harassment Verdict And $680,000 Fee Award Affirmed

Taylor v. Nabors Drilling USA, LP, 222 Cal. App. 4th 1228 (2014)

Max Taylor worked as a floorhand on an oil rig where he alleged he was harassed by his supervisors who called him "queer," "fagot [sic]," "homo," and "gay porn star" and was subjected to other humiliating and harassing conduct, including simulated masturbation in his presence. Following a trial, the jury awarded Taylor $160,000 in damages, including $10,000 for past economic loss. In its unsuccessful motion for judgment notwithstanding the verdict ("JNOV"), the defense argued that Taylor had failed to prove that he was harassed "because of his sex and/or perceived sexual orientation" in the absence of evidence of actual sexual desire or intent by the harassers. The Court of Appeal affirmed denial of the JNOV motion on the ground that "the focus of a [sexual harassment] case is whether the victim has been subjected to sexual harassment, not what motivated the harasser." See also newly enacted Cal. Gov't Code § 12940(j)(4)(C) (same). The defense also unsuccessfully challenged a defective special verdict form because it had failed to object to it before the jury was discharged. Because the jury had concluded that Taylor had been lawfully discharged, the Court reduced the verdict by $10,000 (from $160,000 to $150,000) but otherwise affirmed the verdict and the award of $680,520 in attorney's fees. See also Kelley v. CUIAB, 2014 WL 505343 (Cal. Ct. App. 2014) (conditions for return to work demanded by employee's lawyer were not "ultimatums" and did not justify employer's termination of employee for purposes of eligibility for unemployment benefits).

$238,000 Wrongful Termination Verdict Is Reversed In Light Of Improper Jury Instructions

Mendoza v. Western Med. Ctr. Santa Ana, 222 Cal. App. 4th 1334 (2014)

Romeo Mendoza worked as a nurse for the hospital for more than 20 years. In late 2010, Mendoza reported that he was being sexually harassed by a supervisor (Del Erdmann). Both Mendoza and Erdmann are gay. Mendoza's complaint was investigated, and it was determined that Erdmann had made inappropriate sexual comments to Mendoza and that he had shown his genitals to Mendoza. Erdmann contended that Mendoza welcomed the behavior and that he had "bent over provocatively" in front of Erdmann, requested that Erdmann display his genitals and in fact had "assisted Erdmann in exposing his genitals." Erdmann claimed he was a "reluctant participant" in the conduct initiated by Mendoza. Upon completion of the investigation, the hospital fired both Mendoza and Erdmann for "unprofessional conduct." Mendoza subsequently sued for wrongful termination in violation of public policy (for reporting sexual harassment to his employer), and the jury awarded him $238,328, including $145,000 in past emotional distress damages. However, because the jury was instructed to determine if Mendoza's reporting sexual harassment was "a motivating reason" and not "a substantial motivating reason" for his termination as required by Harris v. City of Santa Monica, 56 Cal. 4th 203 (2013), the Court of Appeal reversed the judgment. The Court rejected the employer's contention that its simultaneous termination of Erdmann was "conclusive proof" that it had acted in good faith in light of the "numerous shortcomings in the investigation" conducted by the employer following Mendoza's complaint.

$100,000 Attorney's Fees Award Was Properly Granted Against Employee

Robert v. Stanford Univ., 2014 WL 739112 (Cal. Ct. App. 2014)

Francis Robert, an American Indian, was terminated from his employment at Stanford due to his harassment of a female Stanford employee. Before his termination, Robert was given several warnings and was the subject of a restraining order. Robert then sued Stanford for discrimination under the Fair Employment and Housing Act ("FEHA"), claiming he was discriminated against on the basis of his "native ancestry." The trial court granted Stanford's motion for nonsuit as to his FEHA claim but allowed his claims for retaliation and breach of contract to go to the jury, which returned a defense verdict in 15 minutes. The trial court awarded Stanford $100,000 in attorney's fees against Robert on the ground that the "FEHA claim was without merit and was frivolous and vexatious. It was a legal theory in search of facts." The Court of Appeal affirmed the award against Robert despite the trial court's failure to make written...

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