epli in the new millennium: current trends and emerging issues john l. barber, esq. lewis brisbois...
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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