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Employment Law
Wrongful Termination
False Accusations

Christine Eiden v. Toshiba America Information Systems, et al.

Published: Mar. 16, 1996 | Result Date: Dec. 8, 1995 | Filing Date: Jan. 1, 1900 |

Case number: 714579 –  $227,000

Judge

Robert C. Todd

Court

Orange Superior


Attorneys

Plaintiff

Eric L. Jones

Sharon A. Allard

Audrey Y. Ripley


Defendant

Gary Raskin

Jay Plotkin


Facts

On February 6, 1992, the plaintiff, Christine Eiden, a 44-year-old computer operator, was suspended and later terminated from her employment with the defendant, Toshiba America Information Systems ("Toshiba"), when she was captured on videotape walking in the programmer's area within the MIS department. The defendant alleged that it was experiencing thefts of employee's personal property from within its MIS department. The plaintiff worked during the evening and was primarily responsible for saving and backing-up company-wide information on the defendant's main frame computers. On the evening of February 5, 1992, the plaintiff was videotaped in the MIS department going in and out of numerous work cubicles. The defendant regarded the plaintiff's conduct as suspicious. After reviewing the videotape the next morning, the defendant conducted an initial investigation and suspended plaintiff pending a further investigation. The plaintiff alleged that there was a male computer operator on the tape in the same area as the plaintiff and that he was not suspended or investigated by the defendant. The plaintiff also alleged that the defendant conducted no investigation prior to suspending her for suspected theft because she had been captured on video in the computer programmer's area the night before and the defendant refused to tell the plaintiff the facts causing the suspension other than that she was suspected of theft. Per the plaintiff, the plaintiff alleged that she was afraid of possible criminal proceedings and other consequences and attempted suicide the night she was suspended. Approximately one month into the suspension without pay, the plaintiff contacted her manager in an attempt to find out why she had been suspended. The plaintiff alleged that during this conversation with her manager, she learned the facts of the allegations against her and informed him that she had been in the MIS department to turn off a computer terminal and left a note to that extent on that person's desk. The defendant alleged that the plaintiff asked her manager not to tell anyone of their meeting. The plaintiff alleged that after this meeting, the defendant confirmed for the first time that such a note had been left at the desk. The plaintiff alleged that the defendant confirmed with the programmer that the plaintiff had left such a note. On April 9, 1992, the defendant terminated the plaintiff's employment. The termination letter stated that she was terminated because of suspected theft. The plaintiff brought this action against the defendant based on tortious discharge in violation of public policy, breach of contract not to terminate except for good cause, breach of implied covenant of good faith and fair dealing, fraud, intentional infliction of emotional distress, breach of implied contract and employment discrimination (violation of FEHA) on the basis of age, gender and medical condition/mental disability theories of recovery. The court dismissed the discrimination claims (FEHA) on a motion for nonsuit. The fraud cause of action was dismissed by the plaintiff after the defendant demurred to it. Summary adjudication was granted in favor of the defendant on plaintiff's claims for intentional infliction of emotional distress and employment discrimination based on medical condition/mental disability. The claim for tortious discharge was not pursued at trial as a result of a motion in limine.

Settlement Discussions

Per the plaintiff, the plaintiff's final pre-trial settlement demand was $535,000 and the defendant offered $35,000 prior to trial and $175,000 during trial. Per the defendant, the plaintiff's original demand was $990,000, her final demand was $570,000 and the defendant's final offer was $175,000.

Specials in Evidence

$_______ $166,000 $139,000 (per plaintiff's testimony) $_______

Injuries

The plaintiff alleged that as a result of her employment being suspended and ultimately terminated, she sustained the following injuries and damages: her attempted suicide; hospital stay; and lost income. Per the defendant, the plaintiff also made a claim for psychiatric treatment.

Result

The defendant's motion to correct, modify or enter a different judgment was granted in part. The jury's verdict was reduced from $227,000 to $106,628. The court reduced the verdict in plaintiff's cause of action for breach of the implied covenant of good faith and fair dealing from $50,000 to $4,636 on the basis that any additional amount constituted improper duplicative damages. The court also reduced the verdict on plaintiff's cause of action for breach of an implied-in-fact contract from $177,377 to $96,992, because the award of future damages was based upon speculation. The court denied the plaintiff's request for a jury instruction and present value table for the jury to calculate future damages.

Other Information

The verdict was reached approximately two years and six months after the case was filed. Per the defendant, the plaintiff failed to offer an expert witness to testify as to the proper discount rate for a present value analysis, and, the award improperly included $4,636 which were damages for breach of implied covenant of good faith and fair dealing. Per the plaintiff, the plaintiff initially received a copy of the tape where she was present and the defendant produced the full tape depicting the male computer operator ten days before the trial.

Deliberation

6 hours (per plaintiff) 5 hours (per defendant)

Poll

12-0

Length

8 days (per plaintiff) 14 days (per def)


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