Facts

Edgar Morales and Marco Ponce sued defendant Midway Jeep Chrysler, Peck Jeep Eagle Inc. in relation to an employment dispute.

PLAINTIFF'S CONTENTIONS: Plaintiffs argued that defendant, an automobile dealership, wrongfully held commissions and lessened the amount of commissions they earned. Additionally, Morales argued that he was wrongfully terminated after he filed suit.
Plaintiffs asserted causes of action for breach of contract, fraud, violations of the California Labor Code, and sought civil penalties under the Labor Code Private Attorney General Act, Ca. Labor Code Secs 2698 et seq. The bulk of the amount the judge awarded was in the form of PAGA penalties.

DEFENDANT'S CONTENTIONS: Defendant denied plaintiff's claims arguing that defendant's commission practice was justified by California law. Defendant also argued that Morales' poor conduct was the reason he was fired. Additionally, defendant contended that plaintiff was aware that plaintiff would be unable to recover since the dealership was sold and going through a Chapter VII bankruptcy proceeding.

Settlement Discussions

Plaintiffs offered $450,000 and defense countered with $115,000 under CCP 998.

Damages

Plaintiffs sought recovery for lost commission and civil penalties under the Private Attorneys General Act. Additionally, Morales sought recovery in an unspecified amount for damages.

Result

The jury found in favor of the plaintiffs on claims regarding labor code violations, unlawful business practices, breach of contract, and breach of implied covenant of good faith and fair dealing. The court awarded plaintuffs $127,749. The bulk of the amount awarded was in the form of PAGA penalties. Defense verdict on Morales' claims for wrongful termination and plaintiffs' fraudulent concealment and negligent supervision claims.