Facts

On April 4, 2005, Karen Smith was terminated from her employment with Delta Valley Convalescent Hospital, a skilled nursing facility located in Stockton that is owned by defendant Long Term Care Management Inc. Smith had worked as a licensed, long-term health care facility manager at Delta Valley. Prior to her dismissal, Smith was diagnosed with aortoiliac occlusive disease and femoral artery disease, requiring future surgery. After requesting medical leave to treat her conditions, her request was denied and she was terminated.

California Department of Fair Employment and Housing filed suit against Long Term Care Management for violations of the Fair Employment and Housing Act and the California Family Rights Act.

PLAINTIFF'S CONTENTIONS:
Department of Fair and Housing contended that Long Term Care Management discriminated against Smith based on her disability and failed to make the proper accommodations, or provide mandatory medical leave.

DEFENDANT'S CONTENTIONS:
Long Term Care Management contended that Smith had requested an open-ended medical leave for an at-the-time, undiagnosed illness. As a key employee, Long Term Care Management argued that Smith was ineligible for protected leave and Long Term Care Management was required by law to employ a licensed, long-term health care facility manager at Delta Valley.

Damages

Department of Fair Employment and Housing sought damages for Smith in the amount of $143,000 for Smith's lost earnings and $157,000 for her emotional distress.

Injuries

Smith suffered injuries including emotional distress.

Result

The plaintiff agreed to a settlement of $65,000 secured against a $100,000 stipulated judgment. As well, defendants are required to attend an annual training program emphasizing disability discrimination and display a poster regarding employee rights.