EPLI in the New EPLI in the New Millennium:Millennium:Current Trends and Current Trends and Emerging IssuesEmerging Issues

John L. Barber, Esq.Lewis Brisbois Bisgaard & Smith LLPCalifornia/New York

AVERAGE JURY VERDICTS IN EMPLOYMENT CASESAVERAGE JURY VERDICTS IN EMPLOYMENT CASES – – CALIFORNIACALIFORNIA

YearYear Average Jury Average Jury VerdictVerdict

Median Jury Median Jury VerdictVerdict

19931993 $ 1,014,046$ 1,014,046 $ 315,000$ 315,000

19941994 $ 1,924,007$ 1,924,007 $ 300,000$ 300,000

19951995 $ 535,834$ 535,834 $ 350,000$ 350,000

19961996 $ 1,409,793$ 1,409,793 $ 545,172$ 545,172

19971997 $ 992,774$ 992,774 $ 386,000$ 386,000

19981998 $ 2,506,132$ 2,506,132 $ 250,000$ 250,000

19991999 $ 394,483$ 394,483 $ 295,852$ 295,852

20002000 $ 870,390$ 870,390 $ 440,000$ 440,000

2001 w/ Bell v. 2001 w/ Bell v. FarmersFarmers

$ 3,504,150$ 3,504,150 $ 583,600$ 583,600

2001 w/o Bell v. 2001 w/o Bell v. FarmersFarmers

$ 1,286,076$ 1,286,076 $ 494,000$ 494,000

Type of ClaimPercentage of

Employee Verdicts

Number of Reported Claims

Average VerdictMedian Verdict

Breach of ContractBreach of Contract 64%64% 1111 $ 1,134,685$ 1,134,685 $494,000$494,000

Wrongful Wrongful TerminationTermination 75%75% 88 $ 908,800$ 908,800 $ 454,500$ 454,500

Retaliation/Retaliation/

WhistleblowerWhistleblower45%45% 2020 $ 978,244$ 978,244 $ 415,000$ 415,000

Race/National Race/National Origin Origin DiscriminationDiscrimination

25%25% 88 $ 477,105$ 477,105 $477,105$477,105

Disability Disability DiscriminationDiscrimination 0%0% 22 $ 0.00$ 0.00 $ 0.00$ 0.00

Age DiscriminationAge Discrimination 0%0% 11 $ 0.00$ 0.00 $ 0.00$ 0.00

Pregnancy Pregnancy DiscriminationDiscrimination 0%0% 22 $ 0.00$ 0.00 $ 0.00$ 0.00

Religious Religious DiscriminationDiscrimination 0%0% 11 $ 0.00$ 0.00 $ 0.00$ 0.00

Gender Gender DiscriminationDiscrimination 16%16% 66 $ 951,710$ 951,710 $ 951,710$ 951,710

Sexual Orientation Sexual Orientation DiscriminationDiscrimination 100%100% 11 $ 313,400$ 313,400 $ 313,400$ 313,400

Emotional DistressEmotional Distress 100%100% 44 $ 791,750$ 791,750 $ 705,000$ 705,000

Fraud/ Fraud/ MisrepresentationMisrepresentation 100%100% 22 $ 2,850,000$ 2,850,000 $ 2,850,000$ 2,850,000

Sexual HarassmentSexual Harassment 38%38% 1313 $ 310,318$ 310,318 $ 259,568$ 259,568

Overtime & Unpaid Overtime & Unpaid WagesWages 60%60% 55 $ 30,165,504$ 30,165,504 $ 474,000$ 474,000

TOTALSTOTALS 49%49% 8383 $ 3,504,150$ 3,504,150 $ 583,600$ 583,600

(w/o Bell)(w/o Bell) 48%48% 8282 $ 1,286,076$ 1,286,076 $ 494,000$ 494,000

Breakdown by Nature of ClaimBreakdown by Nature of Claim

Observations:

1.1. Verdicts DO NOT reflect awards of attorneys' feesVerdicts DO NOT reflect awards of attorneys' fees

2.2. Breakdown between demonstrating a DISCRIMINATORY Breakdown between demonstrating a DISCRIMINATORY

ANIMUS versus SIMPLE ILL-INTENT or EMPLOYER NEG-ANIMUS versus SIMPLE ILL-INTENT or EMPLOYER NEG-

LIGENCE (see discrimination verdicts and compare emotional-LIGENCE (see discrimination verdicts and compare emotional-

distress, fraud, and wage and hour cases)distress, fraud, and wage and hour cases)

3.3. Bell v. FarmersBell v. Farmers verdict as harbinger of things to come verdict as harbinger of things to come

4.4. Incomplete statisticsIncomplete statistics

Expansion of Protection Expansion of Protection

A. State versus Federal laws

B.B. Sexual Orientation -- Protected Characteristic under the Sexual Orientation -- Protected Characteristic under the FEHA, growing protection under Title VIIFEHA, growing protection under Title VII

C.C. Transsexuals/Hermaphrodites Transsexuals/Hermaphrodites

(Perception of Gender/Sex versus reality)(Perception of Gender/Sex versus reality)

D.D. Disability in California versus ADADisability in California versus ADA

Examples:Examples:

One of the Most Common One of the Most Common Personal Injury Lawsuits TodayPersonal Injury Lawsuits Today

September 16, 2002

57 Lawsuits filed in the Central District of the Los Angeles Superior Court

17 were employment-related = 30%

TrendsTrends

1.1. Pre-Issuance of Pre-Issuance of PolicyPolicy Due DiligenceDue Diligence

ExamplesExamples

a)a) QuestionnaireQuestionnaire

b)b) Site Visit to Correct Site Visit to Correct

DeficienciesDeficiencies

c)c) Added ExclusionsAdded Exclusions

2.2. Shifting of HR Shifting of HR Function to Third Function to Third PartiesParties

ExamplesExamples

a)a) Who is the insured?Who is the insured?

b)b) Greatly increased number of Greatly increased number of

employees moving through employees moving through

employer's facilityemployer's facility

c)c) Contractual disputes Contractual disputes

between "insureds" interfere between "insureds" interfere

with resolution of caseswith resolution of cases

3.3. TelecommutingTelecommuting ExamplesExamples

a)a) Wage and hour complianceWage and hour compliance

b)b) What laws applyWhat laws apply

c)c) OSHAOSHA

d)d) Expanded base of potential Expanded base of potential

plaintiffs and defendantsplaintiffs and defendants

4.4. Genetic TestingGenetic Testing -- --

Protected Characteristic Protected Characteristic

in Californiain California

5.5. Growth of Poll of Growth of Poll of AttorneysAttorneys

MediationMediation

1.1. Early (often pre-litigation)Early (often pre-litigation)

2.2. Greater expense and preparation, i.e., Greater expense and preparation, i.e., attorneys' fees and mediator expenseattorneys' fees and mediator expense

3.3. Multi-dayMulti-day

4.4. What's covered, i.e., is it a claim?What's covered, i.e., is it a claim?

Increased Settlement Values -- The Hammer of Increased Settlement Values -- The Hammer of Attorneys' FeesAttorneys' Fees

1998 Litton verdict -- $8,000 in compensatory damages; 1998 Litton verdict -- $8,000 in compensatory damages; $300,000 in attorneys' fees$300,000 in attorneys' fees

$0 to $25,000 settlements are increasingly rare$0 to $25,000 settlements are increasingly rare

Plaintiff's bar perceives $25,000 to $75,000 as early, "cheap" Plaintiff's bar perceives $25,000 to $75,000 as early, "cheap" settlementsettlement

Legislative ActivityLegislative Activity

1. SB688

2. SB1538

3. HR 217