Facts

ACCORDING TO THE PLAINTIFF: In February 2000, plaintiff Khybrette Neal was hired by Gail Watts, vice president of Human Resources Operations. From February until April 2000. Neal worked under Watts' direct supervision. At that time, there was no EEO-AA Director in place.

In April 2000, Watts hired Gilbert Gallegos as EEO-AA Director. Neal contended that she was better qualified than Gallegos and should have been selected by Watts for the Director position. Neal further contended that Gallegos subjected her to unlawful harassment and discrimination, consisting of the following conduct: 1. coming into plaintiff's office and staring at her; 2. asking questions about her professional background and laughing at some of her responses to these questions; 3. making dismissive comments about her prior work experience; 4. rarely making eye contact with her; 5. slouching in his chair, staring into space or not affirmatively responding to her when she asked him questions; 6. failing to say "hello" when they met in the hall;
7. jingling his keys in his pocket; 8. giving her last minute work assignments and then claiming credit for her work; 9. failing to tell her about meetings until the last minute; and 10. "belittling" her once at a meeting that she was leading by leaving before it was over. Neal, who primary job responsibility was to investigate charges of discrimination and harassment, never made a complaint of harassment or discrimination to Health Net.

In addition, Neal described an altercation with Gallegos on her last day of work. Neal contends that Gallegos called her into his office at the close of the workday. Gallegos sat on one side of his desk; Neal on the other (closest to the door). Gallegos allegedly demanded that Neal return some manuals and other materials she received at a professional seminar, all of which she planned on taking with her. Neal testified that when she questioned his request, Gallegos began to yell at her, causing her to suffer a panic attack, which required a call to the paramedics by one of her co-workers. (However, when the paramedics arrived her vital signs were normal. The paramedics administered no treatment, nor did they take her to the hospital for further examination). Neal contended that as a result of this altercation, she suffered permanent psychological injuries that ultimately led to her separation from Chase Manhattan Bank some 18 months later and required her to go on disability for over two years.

ACCORDING TO THE DEFENDANT: Neal was not subjected to illegal harassment, discrimination or retaliation, as evidenced by Neal's failure to make a complaint of harassment or discrimination to Health Net.

In February 2000, Neal began working at Health Net as manager, EEO-AA, reporting to Gail Watts, vice president of Human Resources Operations. The EEO-AA manager position represented an increase in salary for Neal of about $10,000 as well as a better commute from her residence in the North Valley. From February 2000 until April 2000, Neal worked under Watts' direct supervision. Throughout that time, Watts was actively recruiting for an EEO-AA director, who, once hired, would function as Neal's immediate supervisor.

In April 2000, Watts hired Gallegos as EEO-AA director. From the start, Neal made it clear to her colleagues that she bitterly resented Gallegos' presence and his authority over her work activities. Neal insisted that Gallegos was incompetent and had less EEO-AA experience than she did. (Gallegos holds a Masters degree in Public Administration and has worked in the EEO-AA area since 1979. In contrast, Neal's EEO-AA experience was limited to the one-plus year that she worked at Health Net of California, from August 1997 to November 1998, and her position as Human Resources Manager at Disney, where she remained until she accepted Watts' offer of employment at Health Net Inc.) Neal also complained to Watts that Gallegos was uncommunicative and not a team player. Watts recommended that Gallegos and Neal begin to meet on a regular basis to discuss work issues. She also encouraged Gallegos to train Neal in areas of EEO-AA in which she had no experience.

At trial, Neal was unable for proffer any evidence of discrimination or harassment by Gallegos. Neal's former colleague, Sonya Kemp, also African-American, testified that she had never observed Gallegos acting inappropriately; nor had Neal complained of discrimination or harassment by Gallegos to her. Kemp's testimony was corroborated by other former co-workers of Neal. Health Net further denied that Gallegos "assaulted" Neal on her last day of work. Gallegos testified that in response to his request to return professional manuals belonging to Health Net, Neal began screaming and shaking her finger at him during their meeting. Gallegos testified that he remained calm throughout the meeting. Gallegos' version of what occurred that day was corroborated by another co-worker.

On Oct. 3, 2000, Neal tendered her notice of resignation, stating that she had accepted more lucrative vice president position with Chase Manhattan Bank. Her starting salary was to be $90,000, plus a $20,000 signing bonus and stock options, based on Neal's representations that she earned a salary of $85,000 at Health Net and was bonus eligible. (Neal's last salary at Health Net was $78,000. She was not bonus-eligible). At the time that she gave notice, Neal never suggested that her decision to resign was based on any perceived discriminatory treatment by Gallegos. Watts and Gallegos testified that Neal was thrilled about this opportunity. They, in turn, took her to lunch to celebrate and she enjoyed the lunch.

Neal began work at Chase in late October 2000. She remained there until March 2002 when she was advised of Chase's decision to terminate her employment for performance-related issues and excessive absenteeism. Neal, with the assistance of counsel, negotiated a separation agreement with Chase, which entitled her of two months severance pay following a 60-day period. During the 60-day notice period, Neal went out on a two-year medical leave of absence, during which time she received disability insurance benefits of over $5,000 per month. After the expiration of her disability benefits, she received two months severance pay from Chase. Neal returned to part time work as a human resources manager in November 2005.

Health Net denied that Neal's psychological condition was caused by her employment at Health Net. The evidence showed that Neal had pre-existing psychological problems that were exacerbated in October 2000 by a marital problems, as well as family and financial issues.

Settlement Discussions

The plaintiff demanded $500,000, later reduced to a C.C.P. Section 998 offer in the amount of $195,000. The defendant made no offer.

Result

Defense verdict.

Deliberation

one day

Poll

11-1 (all claims)