Confidential
Settlement – $250,000Facts
In 1997, plaintiff, a 21-year-old high school graduate, was hired by the defendant to work as a sales person for a
small, 20-employee industrial distribution company. After about 10 months with the company, the defendant
owner of the company began making inappropriate comments to the plaintiff. The comments included that the
plaintiff was his "boy" and he was "cute".
The defendant owner also began excessively instigating playful physical contact with the plaintiff, including
patting on the back, putting him in head locks, fixing his collar or adjusting his tie.
During a business trip in 1998, the defendant owner cornered the plaintiff in a hotel bathroom and allegedly
attempted to fondle the plaintiffÆs genitals. Within a week of the business trip, the plaintiff quit the company.
Over the course of the next year, the defendant owner recruited the plaintiff to return to work for the company.
The defendant repeatedly assured the plaintiff that no improper behavior would occur again.
The defendant offered to increase the plaintiffÆs salary from $27,000 per year to $50,000. The plaintiff accepted
the defendantÆs offer and rejoined the company in March 1999. The plaintiff did not experience any further
problems until August 1999, when the defendant resumed his inappropriate physical contact and began
showing up unannounced at the plaintiffÆs home.
The plaintiff repeatedly demanded that the defendantÆs conduct cease, but the defendant
continued with his actions. In October 1999, the plaintiff resigned from the company.
Settlement Discussions
In October 1999, plaintiffÆs counsel sent a letter of representation. Within two months, a voluntary settlement conference was scheduled and the action was resolved. The settlement included a $245,000 payment in cash, plus $5,000 to be deposited into a mutually agreeable income generating account to be held for 18 months to guarantee that the defendant did not have any contact with the plaintiff. If there is no contact then the defendantÆs $5,000 will be returned, with the interest on the money going to the plaintiff, If there is contact, the plaintiff keeps the principal amount and interest.
Injuries
Plaintiff claimed emotional distress and four weeks of lost earnings totaling $4,000.
Other Information
There was no insurance money available for the plaintiffÆs claims. All settlement money was paid in cash by the defendants.
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