Facts

After five years of employment, Michele Downie was terminated from her position with American Re-Insurance Co. She filed claims for wrongful termination, breach of implied contract, failure to timely pay accrued vacation, and misclassification of her as exempt from overtime pay.

PLAINTIFF'S CONTENTIONS:
Plaintiff claimed that defendant had incorrectly designated her as exempt from overtime pay. She further alleged that the company had created a work load and environment that precluded her from taking rest or meal breaks, and that she was owed for such breaks and for the hours she worked in excess of 40-hours a week during her employment. She also claimed that she had not timely received her final payment of wages, unused vacation pay and other benefits after her termination. Further, she alleged that defendant had discharged her on a pretense of misconduct to avoid paying her severance pay and a substantial bonus for her performance the previous year. When her backlog of work was discovered during an audit, plaintiff and her immediate supervisor were given a deadline to process the backlog, which they did ahead of schedule. She alleged that she was the biggest producer of underwriting policies in the office, but was over-worked and placed under an inappropriate amount of stress to produce the policies without a reasonable amount of clerical support. She contended that her immediate supervisor was aware that she had a backlog, and that company procedures were not being followed and that assistance was not provided. Plaintiff was assured that her job and bonus were not in jeopardy, but shortly thereafter, plaintiff and her supervisor were both terminated.

DEFENDANT'S CONTENTIONS:
Defendant claimed that plaintiff was terminated for legitimately misconduct, and that pursuant to the company's published policies, plaintiff was not entitled to severance pay due to her misconduct. It claimed that plaintiff was properly designated as exempt from overtime pay. It alleged that plaintiff had repeatedly failed to use the required computer system and protocol to input and show as bound approximately $300 million in re-insurance coverage over a period of several years. It argued that plaintiff had hidden her failures, causing the company to lose premiums, not meet its own internal underwriting protocols, and incorrectly calculate its re-insurance exposure, leaving it exposed to unknown re-insurance claims and losses. It did acknowledge that it had miscalculated certain payments due to plaintiff, but emphasized that it had paid her final wages, plus waiting time penalties, before suit was filed.

Settlement Discussions

Plaintiff demanded $558,000, later reduced to $135,000. Defendant made no settlement offer.

Damages

Plaintiff sought lost wages, emotional distress damages, approximately $28,000 in severance pay, $25,000 for her lost bonus, overtime, premium pay, waiting time penalties and punitive damages.

Injuries

Loss of employment, emotional distress, lost past and future wages, interest on late payment of wages, vacation pay, unpaid severance, unpaid hours, overtime compensation and premium pay, late/missed meal periods and rest breaks.

Result

The trial judge found that plaintiff was properly classified as exempt from overtime compensation, and that defendant was not in breach of any contract and did not wrongfully terminate plaintiff or violate public policy in terminating her.

Other Information

Plaintiff also filed suit against Dennis Doyle, defendant's Western Regional Director. However, Doyle obtained summary judgment in his favor before trial. Defendant secured summary adjudication of six of plaintiff's 10 claims prior to trial as well.