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Employment Law
FEHA
Unruh Act

Herbert McCurdy v. Truck Underwriters Association, Truck Insurance Exchange, Farmers Group Inc.

Published: Dec. 14, 2004 | Result Date: Feb. 26, 2004 | Filing Date: Jan. 1, 1900 |

Case number: DR020669 Verdict –  $194,885

Judge

J. Michael Brown

Court

Humboldt Superior


Attorneys

Plaintiff

Caroline O. Musolff

W. Timothy Needham
(Janssen Malloy LLP)


Defendant

Arthur Schwartz

Steven R. Enochian
(Low McKinley Baleria & Salenko LLP)


Experts

Plaintiff

Patrick F. Mason Ph.D.
(technical)

Defendant

A. James Robertson
(technical)

Margo Rich Ogus Ph.D.
(technical)

Facts

Plaintiff Herbert McCurdy, 72, was a commercial truck driver. He had driven logging trucks for over 50 years. He started driving for H.A. Blankenship trucking in 1967. In 2000, Blankenship's insurance policy with defendant Truck Insurance Exchange was up for renewal. The next year, on renewal of the policy, Blankenship was told that McCurdy was being excluded because he was over age 69, "the maximum age allowed" by Farmers. Blankenship appealed the decision because they wanted to retain plaintiff's services. The insurers told Blankenship the decision would stand. In 2002, McCurdy was terminated because he could not be insured under defendants' insurance policy.

Settlement Discussions

The plaintiff demanded $350,000, plus attorney fees at trial. The defendants' offer was $250,000.

Damages

The plaintiff found a job with another trucking company at a slightly reduced pay. He claimed he would be able to work until he is 80 and, thus, would suffer a loss of income. The plaintiff also claimed emotional distress from the termination. The plaintiff's expert testified that, if McCurdy continued to work until he was 80, his total wage loss is $60,000.

Result

The jury found for plaintiff and awarded him $69,885 in compensatory damages and $125,000 in statutory damages pursuant to the Unruh Act. According to plaintiff's counsel, this is the first case against a non-employer under FEHA holding that a third-party could be liable for coercing an employer to discriminate. After trial, the judge entered a statewide injunction against Truck prohibiting it from using age as a factor when determining whether to insure truck drivers. The court allowed to use age as a basis for additional underwriting investigation. The defendants' motions for a new trial and judgment notwithstanding the verdict were denied. The total judgment was $634,885. The defendants have filed an appeal.

Deliberation

11 hours

Poll

11-1 (Unruh claim), 9-3 (FEHA claim), 10-2 (for defendants on punitive damages)

Length

five days


#116901

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