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CONFIDENTIAL

Apr. 18, 1998

Employment Law
Constructive Discharge
Racial Discrimination

Confidential

Settlement –  $0

Judge

Jeffrey T. Miller

Court

USDC Southern District of California


Attorneys

Plaintiff

Donald Holben

Kelley Elliot

David Roper


Defendant

Michele M. Desoer
(101 Studios, LLC)

Jamie Rudman

Dustin K. Finer


Facts

Plaintiff worked as an auto glass installer for defendant from March 14, 1988, to Aug. 5, 1996, at which time he voluntarily resigned. On three occasions during his employment, the plaintiff was demoted following unsuccessful attempts to place him in management. Defendant also transferred the plaintiff several times within the San Diego area for reasons related to plaintiff's performance. The plaintiff brougth this action against the defendant based on retaliation in violation of the Fair Employment and Housing Act, wrongful termination in violation of public policy, breach of contract, breach of the covenant of good faith and fair dealing, intentional infliction of emotional distress, negligent infliction of emotional distress and negligent retention of employee. The plaintiff originally filed this case in the San Diego Superior Court against defendant and two of his former supervisors. Defendant removed the case to the U.S. District Court. Shortly after removal, the plaintiff voluntarily dismissed the individual defendants with prejudice. The plaintiff contended that he resigned as a result of employment actions taken after some of his supervisors learned that he had Native American ancestry, and because he had "supported" a claim previously asserted by two co-workers. The plaintiff also contended that he was contractually entitled to drive a company truck, not a new company van, and that defendant breached this agreement when it leased a new van for his use instead of a truck. The defendant contended the plaintiff had no evidence of animus based upon his Native American ancestry or based on anything he did relating to his co-workers' claims. The defendant further contended the plaintiff's work history with defendant clearly demonsrated that he had numerous problems, including one other demotion and two transfers, before he or his wife advised anyone of his Native American ancestry, and before he spoke with the anyone about his co-workers' allegations. The defendant also contended that when the decisions regarding the most recent transfer and demotion were made, the defendant did not know about the plaintiff's ancestry. Moreover, three of the four persons who particiapated in these decisions, as well as plaintiff's immediate supervisor at the time he resigned, also were of Native American ancestry. The defendant also claimed the plaintiff could not prove any constructive termination because he never complained that he perceived his working conditions were intolerable, nor could he have shown that they were.

Settlement Discussions

The plaintiff made a C.C.P. º998 settlement demand for $ ____________. The defendant made a C.C.P. º998 offer of compromise for $ _________.

Result

Plaintiff accepted defendant's Rule 68 Offer of Judgment in the amount of zero dollars. Each party waived all rights he or it may have had to collect attorney fees and/or costs from the other party. Therefore, neither party received any payment whatsoever from the other party, and the court entered judgment in the amount of zero dollars against the defendant on Nov. 24, 1997.

Other Information

The settlement was reached approximately one year after the case was filed. A settlement conference/arbitration/mediation was held on ____/___/19__ before ___________ (name) of ____________ (affiliation) resulting in _____________ . PLEASE DESCRIBE ANY SIGNIFICANT LEGAL/PROCEDURAL ISSUES WHICH HELP EXPLAIN THE OUTCOME: _________________.


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