Representative H & L Cases Involving Employment Liability Issues

• Prachasaisoradej v. Ralphs Grocery Company (August 23, 2007, S128576) ___ Cal.4th ____

Action for violation of California labor laws arising out of a profit-based incentive employee bonus plan that promised grocery store employees a bonus, the amount of which would be determined based on a comparison of overall store profitability to a profitability target set by the employer. The California Supreme Court held the bonus plan did not violate labor laws because the employees had no expectation of ascertainable compensation amounting to a wage until store profit was calculated by deducting store expenses from store sales, and therefore taking the costs of workers' compensation and cash and merchandise shortages into account to determine store profit could not be a deduction from the employee's wage.

We appeared as counsel of record on behalf of Ralphs Grocery Company.

• Szetela v. Ralphs Grocery Company (2004) [unpublished].

Action for recovery of interest and punitive damages following an alleged delay in payment of an employee’s wages, resulting in successful demurrer and order of dismissal. On appeal, the plaintiff argued California’s wage laws entitled him to interest on his wages for the period they were owing but not paid. The Court of Appeal rejected that contention and affirmed the order of dismissal, adopting our interpretation of the wage laws applicable to the plaintiff's claim to conclude the plaintiff had no right of action to recover interest on wages that were paid, even if there was some delay in payment.

We appeared as co-counsel of record on behalf of Ralphs Grocery Company.

• Hanna v. Farmers Insurance Group (2001) [unpublished].

Action for employment discrimination and breach of contract, resulting in a defense verdict. On appeal, plaintiff argued that reversible error occurred when a witness called by defendant falsely testified on re-cross-examination that he had not met with defendant’s attorney prior to trial when, in fact, he had. The trial court dismissed the witness before defendant could correct the testimony on re-re-direct. The Court of Appeal affirmed the defense verdict, holding plaintiff failed to demonstrate prejudice from allegedly false testimony by the defense witness. The court also held that the trial court did not abuse its discretion by excluding evidence under Evidence Code section 352 and there was no error in instruction.

We appeared as counsel of record on behalf of Farmers Insurance Group.

• Argo v. General Dynamics Corporation (2001) [unpublished].

Action by 97 employees against their employer for intentional and negligent interference with prospective economic advantage, intentional and negligent misrepresentation, and concealment. Plaintiffs alleged that they chose not to opt into a lawsuit against their employer for wrongfully withheld overtime pay, because they were told by management that joining the suit would harm their careers. Plaintiffs further alleged that management made these representations at a time when they knew that the plaintiffs' division would be closed. The jury awarded plaintiffs $1,772,089 in compensatory damages and $99,298,252 in punitive damages. The Court of Appeal reversed, holding that there was not substantial evidence to support the jury's conclusion.

We appeared as counsel of record on behalf of General Dynamics Corporation.

• Zentner v. Farmers Group, Inc. (2000) [unpublished].

Action for breach of contract, intentional misrepresentation, wrongful termination in violation of public policy, and breach of franchise agreement arising from the termination of plaintiff's district manager appointment agreement with defendant. The trial court sustained defendant's demurrer without leave to amend. Plaintiff appealed. The Court of Appeal affirmed, holding: (1) the claim for intentional misrepresentation was not actionable because the representations contradicted provisions of the appointment agreement; (2) the claim for wrongful discharge was not actionable because plaintiff was an independent contractor, not an employee; and (3) plaintiff was not entitled to the statutory "good cause" protection of the Franchise Relations Act because he was not a franchisee as defined by the statute.

We appeared as counsel of record on behalf of Farmers Group, Inc.

• Gale v. UniHealth Corporation et al. (2000) [unpublished].

Action for breach of implied contract to terminate only for cause, breach of implied covenant of good faith and fair dealing, age discrimination, and tortious discharge in violation of public policy. Plaintiff was terminated for removing a confidential invoice from the chief financial officer's desk and refusing to return it when ordered to do so. UniHealth moved for summary judgment on grounds that plaintiff's employment was at-will and that she was terminated for a legitimate, nondiscriminatory reason. The trial court granted the summary judgment motion. The appellate court affirmed.

We appeared as co-counsel of record on behalf of UniHealth Corporation, Lucy Reimche, Karlene Ewing and Barbara Cook.

• Jensen v. Greater Valley Medical Group, Inc. (1999) [unpublished].

Action for wrongful termination. After receiving notice of lay-off, physician sued medical group for wrongful termination, claiming she was singled out for termination because she had complained about medical group practices that she believed affected patient care (in violation of Business and Professions Code section 2056). Jury returned defense verdict, finding no causal connection between physician's complaints and termination. Court of Appeal affirmed, holding trial court correctly interpreted and instructed jury on section 2056.

We appeared as co-counsel of record on behalf of Greater Valley Medical Group.

• Southern California Physicians Insurance Exchange v. William Kirksey & Associates (1999) [unpublished].

Action for race discrimination and federal racketeering (RICO) violations based on employer's conduct in declining to hire black job applicant for high level managerial position. Trial court granted summary adjudication in favor of employer on RICO claims and jury found employer did not discriminate. Court of Appeal affirmed, holding (1) job applicant did not establish prima facie case of race discrimination because there was no evidence employer knew applicant's race when it decided not to hire him, (2) trial court did not err in admitting after-acquired evidence about the applicant's qualifications, and (3) there was no evidence of wire fraud or mail fraud necessary to prove a RICO claim.

We appeared as co-counsel of record on behalf of Southern California Physicians Insurance Exchange, SCPIE Management Company, Margaret McComb, Donald Zuk and Martha Andreani.

• Johnston v. Southern California Permanente Medical Group (1998) [unpublished].

Action for wrongful termination of medical group department manager. Trial court granted summary judgment on behalf of employer. Court of Appeal affirmed, holding plaintiff was an "at will" employee and, in any event, good cause supported termination.

We appeared as co-counsel of record on behalf of Southern California Permanente Medical Group.

• Carr v. Kaiser Foundation Hospital (1997) [unpublished].

Action for wrongful termination. Trial court sustained demurrer as to portions of first and second amended complaints and then granted summary judgment on behalf of defendant on remaining causes of action. Court of Appeal affirmed, holding (1) first and second amended complaints were identical, not timely filed, and did not relate back to original complaint because they referred to a different incident and (2) no triable issues of fact were raised as to claim for termination for cause.

We appeared as co-counsel of record on behalf of Kaiser Foundation Hospital and Kaiser Foundation Health Plan, Inc.

• Pate v. Parsons-Dillingham (1997) [unpublished].

Action for violation of Labor Code section 1050, which imposes criminal liability and treble civil damages for a misrepresentation by a former employer that "prevents . . . [a] former employee from obtaining employment." Jury found for plaintiff and its trebled award was $1,380,000. Trial court remitted damages to $810,000. Court of Appeal reversed, holding former employer's communication was made without malice and was thus privileged under the common-interest privilege of Civil Code section 47, subdivision (c).

We appeared as co-counsel of record on behalf of Parsons-Dillingham, et al.

• Vickers v. S & S Services (1997) [unpublished].

Action for discrimination, breach of contract and related causes of action arising out of termination of employment. Jury returned a verdict awarding plaintiff $3,331,450 in damages, including $2,018,500 in punitive damages. Court of Appeal reversed the awards of tort damages, finding insufficient evidence to support a finding of liability on the tort theories. The court affirmed $1,172,950 in contract damages.

We appeared as co-counsel of record on behalf of Stewart & Stevenson Services, Inc., Ronald Stutesman, Charlie Upton and Peter Watson.

• Villanueva v. Kaiser Permanente Medical Group (1996) [unpublished].

Action for national origin discrimination in connection with medical group's decision not to extend partnership offer. Trial court granted summary judgment based on physician's admission that he did not believe his national origin had anything to do with the decision. Court of Appeal affirmed.

We appeared as co-counsel of record on behalf of Southern California Permanente Medical Group, et al.

• O'Harren v. USAir, Inc. (1994) [unpublished].

Action for intentional infliction of emotional distress by an airplane pilot against his employer. Jury awarded $100,000 in compensatory damages and $2,000,000 in punitive damages. Court of Appeal reversed with directions to enter judgment for USAir.

We appeared as co-counsel of record on behalf of USAir, Inc.

• Stolinsky v. University of Southern California (1993) [unpublished].

Addressing the Workers' Compensation Act's exclusive remedy provision as a bar to plaintiff's breach of contract claim following a work-related injury. Trial court granted summary judgment, ruling the contract claim was barred. Court of Appeal affirmed.

We appeared as co-counsel of record on behalf of the University of Southern California.

• Heston v. Farmers Insurance (1992) [unpublished].

Addressing issue of unfair competition and fraud. Court of Appeal affirmed compensatory damages award but reversed the punitive award.

We appeared as co-counsel of record on behalf of Farmers Insurance Exchange.

• Carlson v. Kinney Shoes (1991) [unpublished].

Addressing issue of wrongful discharge in violation of public policy and for breach of an implied or express contract. Trial court entered summary judgment against plaintiff. Court of Appeal affirmed trial decision.

We appeared as co-counsel of record on behalf of defendant Kinney Shoe Corporation.

• Rognstad v. Cedars-Sinai Medical Center (1991) [unpublished].

Addressing issue of wrongful termination. Court of Appeal affirmed trial court judgment on behalf of defendant hospital.

We appeared as counsel of record on behalf of defendant Cedars-Sinai Medical Center.

• Litwak v. The Fedmart Corporation (1990) [unpublished].

Action arising out of corporate president's three-year employment contract. Trial court granted contract damages and $1,500,000 in tort damages on theories of breach of implied covenant of good faith and fair dealing and defamation. Court of Appeal reversed the tort damages.

We appeared as co-counsel of record on behalf of defendant The Fedmart Corporation.

• Martin v. Farmers Insurance Exchange (1990) [unpublished].

Breach of contract action by terminated independent insurance agent. Court of Appeal affirmed the contract damage award but reversed the emotional distress and punitive damage awards.

We appeared as co-counsel of record on behalf of defendant Farmers Insurance Exchange.

• Wallis v. Farmers Group, Inc. (1990) 220 Cal.App.3d 718.

Breach of contract action by terminated insurance agent. Court of Appeal affirmed compensatory damages award but reversed the punitive damage and emotional distress awards.

We appeared as co-counsel of record on behalf of defendant Farmers Group, Inc.

• Silverman v. Farmers Insurance Exchange (1989) [unpublished].

Addressing issue of breach of an implied-in-fact contract not to terminate an insurance adjuster except for good cause. Trial court granted summary judgment on behalf of defendant employer. Court of Appeal affirmed.

We appeared as co-counsel of record on behalf of defendant Farmers Insurance Exchange.

• Nazari v. St. John's Hospital (1989) [unpublished].

Action for employment discrimination under the FEHA. Trial court granted hospital's motion for summary judgment. Court of Appeal affirmed.

We appeared as co-counsel of record on behalf of St. John's Hospital.

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