Jury rejects lawyer’s retaliation complaint against former OC district attorney

SANTA ANA -- A federal jury in Orange County rejected a former deputy district attorney's retaliation lawsuit against her ex-boss this week, concluding that while he adversely affected her employment, her election bid against an incumbent judge wasn't a motivating factor.

Former District Attorney Tony J. Rackauckas, who was the only defendant, told the Daily Journal he was "very relieved by the verdict."

"During the trial, I was very concerned because the threshold for a verdict in a civil case like this, I think, is very low. It was quite concerning, so I'm grateful and thankful to the jury for, I think, seeing the evidence the right way and reaching the right verdict," said Rackauckas, who was represented through the county by Norm J. Watkins of Lynberg & Watkins APC.

Watkins told the jury of five women and three men the case "is a political case, make no mistake about it."

"Politics and the courtroom, they don't mix that well," Watkins said in his closing argument Wednesday. "Politics in the courtroom is a tall order."

Plaintiff Karen L. Schatzle and her lawyer, Joel W. Baruch, said they were disappointed by the verdict, which he said "doesn't make sense" because it contradicts the defense "that if there was retaliation he either didn't know about it or his managers did it."

Baruch said he plans to ask U.S. District Judge Andrew J. Guilford for a new trial.

The jury deliberated about an hour after six days of testimony that included Schatlze's emotional recounting of what she described as years of calculated humiliation that ruined her dream career after she unsuccessfully challenged Orange County Superior Court Judge Scott A. Steiner in the 2016 election.

Former colleagues described her as a great trial attorney, but none directly supported her contention that her job changes were driven by Rackauckas' anger over her campaign. Rackauckas is close friends with Steiner's father, influential Orange County politician William Steiner.

"Tony never mentioned anything about her job assignment to me," testified Joseph D. D'Agostino, who retired in January as a senior assistant district attorney. He said he supported Schatzle's campaign but agreed with his supervisor, James A. Coulter, that it posed a conflict of interest for her pending transfer to the North Justice Center, where she was to be a team leader.

"She'd be the manager of cases in that courtroom where Scott Steiner was the judge," said D'Agostino, who was called by Baruch as an adverse witness, along with Coulter, who's also retired.

Schatzle was to become team leader at the North Justice Center until she announced her campaign against Steiner, who was censured by the Commission on Judicial Performance in 2014 for having sex in his chamber with former law students.

She moved briefly to the Central Justice Center before transferring to the West Justice Center, where she told jurors she toiled for four years performing demeaning filing tasks and was bypassed for a position she'd previously been told would not be filled. New District Attorney Todd A. Spitzer moved her to a better position with an auto theft unit after he took office in January, but Schatzle testified, "I lost my passion. I couldn't do it anymore."

Rackauckas denied retaliating against Schatzle and defended his decision to endorse Steiner's reelection, saying the judge "turned into a different, more humble person" after the CJP censure. Rackauckas said he initially "expected him to lose his job."

"It was his sincere promise to never let something like this happen again that convinced me" to endorse him, Rackauckas said.

Rackauckas also said he instructed his deputies not to change Schatzle's rank or responsibilities when he agreed she shouldn't go to north court because of her campaign conflict.

"It could have a tendency to look like some kind of retaliation, but it's not, and I wanted to be clear that it's not," Rackauckas said.

Watkins in his closing pointed to "a little piece of evidence that shines a light on this whole case" in testimony from Senior Assistant District Attorney Tracy A. Miller, who represented the district attorney's office on a bar association committee that voted Steiner as unqualified.

"I got promoted after I made that vote," Miller testified.

Watkins recounted Miller's testimony and asked jurors, "Is that the act of a tyrant that wants to hurt one of his deputies?"

Watkins emphasized in his closing that the case isn't about Rackauckas' endorsement of Steiner, which was his First Amendment right.

"Mr. Rackauckas knew when he made that choice that it was going to be a tough road to hoe for him, and it was. And well, it should have been. That's not what this case is about," Watkins said. Schatzle v. Rackauckas et al., 17-CV01593 (C.D. Cal., filed Aug. 14, 2019).