Florentine A. Hernandez v. Thasos Corporation, et al.
Published: Apr. 25, 1998 | Result Date: Apr. 9, 1998 | Filing Date: Jan. 1, 1900 |Case number: 96AS06863 Verdict – $2,090,000
Judge
Court
Sacramento Superior
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Gerald D. Martin
(technical)
James A. Blanco
(technical)
Facts
Plaintiff, Florentine A. Hernandez was a 31-year-old, long-time sales manager for California Tile in Sacramento. The company came upon hard times, and she purchased it in 1993. The former owner failed to disclose a number of debts and/or allegedly misrepresented numerous debts had been paid. One of the debts was a debt of over $600,000 to a marble and granite distributor called Marble Agura Inc. (MA) owned by John Sykoudis. In order to satisfy the debt, on Feb. 1, 1996, she agreed to turn over the company to MA and to act as an independent contractor/consultant in addition to subleasing 12,000 square feet of her 60,000 sqaure foot premises from MA in which she could continue to operate her retail marble, granite and tile store. This arrangement was to begin Feb. 1, 1996. A new corporation called Thasos Corp. was set up by the defendants to take over the lease, operate a California location for wholesale distribution of marble and granite, employ the plaintiff as a subcontractor and sublease her space for her retail operation. The attorney for Marble Agura Inc., Stephen J. Foodos, was named as Vice President of Thasos Corp. and became an active manager in the business. Disputes arose between Hernandez and Foondos about his authority over Hernandez as an independent contractor. Hernandez complained to John Sykoudis when he arrived in California in mid-February 1996. To resolve these problems plaintiff was made an employee, and her sublease and status as an independent contractor was postponed for six months. Following John Sykoudis' arrival in California, the plaintiff alleged he subjected her to a hostile environment of sexual comments, offensive touching and assault at the end of February 1996. Plaintiff reported this to Mrs. Sykoudis, a vice-president of the company. Within one week of the plaintiff's report of the sexual harassment and assault, she was terminated with accusations of poor performance and dishonesty and denied her sublease. The plaintiff alleged that, thereafter, when potential customers, former customers, or suppliers would call or come by the old location looking for her, Foondos, Sykoudis and other employees and agents attempted to destroy her reputation by publishing false and outrageous defamation concerning her. This defamation allegedly included statements that she stole customer deposits, and materials; stole equipment and records from defendants; she had been arrested and/or would be arrested for theft; that she was incompetent, an embezzler, extortionist, arsonist, engaged in bribery, engaged in witchcraft, strange mystical beliefs, bizarre sexual behavior and gave sexual favors. Foodos testified that one of the "reliable sources" he relied upon had seen an elderly female ghost riding a bicycle in plaintiff's home. He further testified that another of his "reliable sources" saw ghosts at the business, had ghosts following him and believed in the "evil eye." The plaintiff brought this action against the defendants based on sexual harassment, discrimination, retaliation, defamation, interference with contract, and assault and battery theories of recovery.
Settlement Discussions
The plaintiff made a pre-trial settlement demand for $300,000. The defendant made pre-trial offer of $25,000.
Damages
The plaintiff claimed a large section of the building industry shunned her, including many long time customers who initially thought she had stolen their deposits and materials. The plaintiff previously earned in excess of $70,000 per year, but now she contended she cannot earn more than $24,000. The plaintiff claimed she was humiliated and embarrassed by the alleged defamation.
Injuries
The plaintiff claimed emotional distress, damages to reputation, and damage to employability.
Other Information
The verdict was reached approximately one year and four months after the case was filed. During final arguments, the defendants filed bankruptcy. Emergency hearings were held in federal bankruptcy courts in Houston, Tex. and Sacramento to lift the automatic stays to allow the jury to continue to deliberate on these non-dischargeable debts. The federal courts granted the plaintiff's motions and allowed the jury to continue to deliberate as to all defendants. The jury found the plaintiff to be an independant contractor and, therefore, did not find sexual harassment. Per the plaintiff, the automatic stays caused by the bankruptcy filings during final arguments were skillfully and quickly lifted by bankruptcy expert, Scott Coben, Esq., in Sacramento and Reese Bolser and Jeff Oppel of Broocks, Baker & Lange, LLP in Houston, Tex.
Deliberation
five days
Poll
12-0 (defamation)
Length
six weeks
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