Facts

Between December 2001 and Oct. 31, 2007, defendant Morningstar Inc. employed plaintiff Michael Drumm as a sales director in the Data business unit. In mid-October 2007, a major client complained to Drumm's supervisor about Drumm's performance on its contract renewal and requested, for the second time, that Drumm be removed from the account. Drumm's supervisor transferred the account to another salesman who performed substantial work to complete the renewal and was paid a commission of approximately $100,000. Two weeks after the client's second request, Morningstar terminated Drumm's employment, citing the client's requests as well as other similar requests from another client in 2006. Morningstar did not pay Drumm a commission for the contract renewal or for unutilized vacation time or sabbatical leave at the time of his termination. Drumm sued Morningstar for violation of the Fair Employment and Housing Act based on his sexual orientation, for wrongful termination in violation of public policy, and alleged failure to pay wages he felt were due at the time of termination in violation of the Labor Code.

The court sustained Morningstar's motion for summary judgment, with respect to the claims for sexual orientation discrimination, wrongful discharge, and unpaid commissions and vacation time. The case proceeded to trial solely on the issues of unpaid sabbatical time and associated waiting-time penalties.

DEFENDANT'S CONTENTIONS:
Morningstar contended that it terminated Drumm's employment because two clients complained about his performance and requested his removal from accounts. It further contended that Drumm was not entitled to a commission on the contract renewal or to compensation for allegedly unused vacation or sabbatical time.

Damages

Drumm sought $106,000 in remaining commissions, $19,000 in waiting time fines, $400,000 for back pay, $1,500,000 for front pay, six weeks of unused vacation, and attorney fees. According to defense counsel, Drumm sought over $10 million in damages, plus attorney fees.

Result

The jury awarded Drumm $19,385 as compensation for unused sabbatical leave and associated waiting-time penalties.

Other Information

FILING DATE: Nov. 13, 2009.