Confidential
Settlement – $225,000Facts
The plaintiff, a 49-year-old woman, was hired as a contract manager by the defendant company in 1992. Between 1992 and 1995 the plaintiff was allegedly subjected to sexual harassment (quid pro quo and sexual climate) and gender bias (failure to promote with raise in pay on the basis of gender). During the plaintiff's employment, the defendant employer's president and chief executive officer allegedly directed sexual comments to the plaintiff including comments about her attire, his sexual "escapades" and the plaintiff's career would advance if she would stay with him at a hotel and satisfy his needs. The plaintiff rebuffed the president's advances and had no sexual contact with him. In 1994, the plaintiff requested that she be promoted to the position of general legal counsel upon her passage of the California State Bar examination. The president told her that there was no money in the budget to provide her an increase in salary. When the plaintiff returned to her office, the president telephoned her and said that he was masturbating and that he was going to ejaculate on the carpet. The president told her that he might be able to take care of her if she took care of him. Upon passing the California State Bar Examination in December 1994, the plaintiff again asked the president for the promotion and for appropriate raise in pay. Again the plaintiff was told that he (the president) could do something nice for her if the plaintiff would do something nice for him. The president further stated that he could provide her with raises and bonuses as he did for other employees who did nice things for him. When the plaintiff refused to submit to his sexual advances, she was told that the company had major losses and there was no money for raises. In Feb. 1995, the plaintiff asked the vice-president to promote her to corporate legal counsel. The vice-president agreed that the plaintiff would be promoted, but stated that there would be not raise in pay because "its a man's world and they (men) were going to continue to run it". The plaintiff reported these incidents to the manager of the human resources department, who was also female. The plaintiff was informed by the Human Resources Manager that the president had made inappropriate sexual comments and gestures to her also and that the manager had allegedly engaged in sexual activities with him. The assistant human resources manager (female) testified at her deposition that she too had been subjected to sexual harassment and had engaged in various sexual activities with the president solely out of fear of losing her job and her husband's job who also worked at the same company. The plaintiff brought this action against the defendant based on violation of the provisions of Government Code Section º12940 et. seq., constituting unlawful employment practice of discrimination based upon gender and discrimination in compensation or in terms, conditions or privileges of employment, and harassment based on sex (gender). The plaintiff alleged that the company was strictly liable for the acts of upper management.
Settlement Discussions
The plaintiff initially made a C.C.P. º998 demand of $499,999. At the mediation the defendant initially offered $25,000.
Damages
The plaintiff maintains that upon passage of the California State Bar Examination and her promotion to the position of in-house counsel, she should have received an increase in pay of approximately $15,000 per year. As to the pain and suffering claim, the plaintiff stated that she suffered that degree of emotional distress one would reasonably suffer when subjected to sexual harassment and gender bias. The plaintiff did not incur any medical expenses and did not participate in any emotional therapy.
Injuries
The plaintiff alleged she suffered emotional distress.
Other Information
The settlement was reached approximately six months after the case was filed. A mediation was held on Aug. 12, 1996 before Linda Meyers resulting in the reported settlement.
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