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CONFIDENTIAL

May 6, 2000

Employment Law
Constructive Termination
Sexual Harassment

Confidential

Settlement –  $200,000

Judge

Carl J. West

Court

L.A. Superior Burbank


Attorneys

Plaintiff

James H. Goudge

Michael A. Tudzin


Defendant

Glen E. Kraemer

Kathleen E. Collins


Facts

In February 1997, plaintiff was employed as an administrative assistant by defendant realty company.
Commencing in June 1997, plaintiff became co-employed by defendant loan company and defendant realty
company, who were physically co-located.
The plaintiff asserted that during her second week of employment with loan company, the defendant owner of
the loan company began to sexually harass her, including but not limited to non-consensual physical touching,
inappropriate comments and threatening remarks.
When plaintiff asked the owner of loan company to cease the inappropriate behavior and non-consensual
physical contact, the owner of the loan company agreed, but the conduct continued.
When the owner of the loan company continued to harass plaintiff, plaintiff informed defendant realty company
and she was assured that the realty company would take steps to prevent any such conduct.
The plaintiff contended that despite realty company's continued assurances, the owner of the loan company
continued to harass her over the next two months. The sexual harassment culminated in a physical attack on
July 30, 1997; plaintiff's last work day before leaving on vacation, during which plaintiff was scheduled to get
married and take a honeymoon. While plaintiff was on her honeymoon, defendant realty company engaged an
attorney to conduct an investigation into plaintiff's allegation.
The owner of the loan company contended that he and plaintiff had engaged in a consensual sexual relationship
and that plaintiff's allegations of sexual harassment were meritless.
The investigator interviewed plaintiff after returning from honeymoon. The investigator then re-interviewed the
owner of the loan company. After the second interview, the owner of the loan company left the offices, called
plaintiff and threatened her.
Plaintiff, in fear for her safety, left her place of employment that same day, and filed a police report against the
owner of the loan company for making treats on her life over the telephone. The plaintiff never returned to
work.

Settlement Discussions

The plaintiff first made a C.C.P. Section 998 demand of $150,000 on March 30, 1999, later raised to $225,000. The defendants offered $15,000 on May 7, 1999, raised to $25,000 on mediation. The defendants then offered $105,000 on July 21, 1999, and settled for $200,000 four days after plaintiff's deposition.

Injuries

The plaintiff claimed that she suffered and continues to suffer from emotional distress. The plaintiff further contended that she sustained loss of earnings and loss of earning capacity.

Other Information

The case was settled approximately one years and two months after the case was filed.


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