Employment Practices
Claims Scenarios

CALIFORNIA

The Human Resources Director at a surgical instrument manufacturer initially brought a charge and subsequently, a lawsuit against the company alleging sexual harassment, retaliation and wrongful termination. The case was unsuccessfully mediated twice with plaintiff's demand over $500,000; the suit was dismissed on a motion for summary judgment. Plaintiff appealed the dismissal which was upheld.

Defense costs: $167,000
Length of time litigated: 2½ years

A class action was brought against a major clothing manufacturer alleging discrimination, wrongful termination and various FLSA violations. The class were employees of sub-contractors of the company. The company was sued as a joint employer under California law. The allegations against the company survived six demurrers. The case was finally settled at mediation. The female executive claimed that she was sexually harassed by more than one officer of the company. She alleged that the harassment was verbal and physical in nature and was done publicly to humiliate her. The male executive claims that he protested the harassment against the female executive and was retaliated against. The timing of the employees' termination was troublesome as they came on the heels of the complaints. The case was settled at mediation after a protracted discovery battle.

Settlement Amount: $1,050,000
Defense Costs: $490,062

A former Executive Officer alleged to have been interviewed by insured and its past company and recruited from out of state for a position with inaccurate information as to the insured's financial stability as well as the stability of the product line which the plaintiff was to manage. Plaintiff contended he was assured that there was a long-term commitment to the product line he was to manage. Plaintiff was terminated from his position after just two (2) months, following the insured's decision to discontinue the product line for which plaintiff was hired. Plaintiff was earning $250,000 per year. Initial demand was $2.5M.

Settlement Amount: $215,000
Defense Costs: $92,000

A former dispatcher for the insured's trucking company sued in state court for alleged wrongful termination and retaliation. Plaintiff alleges to have been terminated in retaliation for co-operating with the Department of Transportation in an on-going investigation of alleged violations concerning overtime. Plaintiff has made an initial demand of $2.5M.

Two former waitresses at the insured's restaurant sued, alleging to have been sexually harassed by their former supervisor. Both plaintiffs's alleged to have complained to the restaurant manager and contested that no investigation was conducted and no remedial action was taken. Plaintiffs sought compensatory and punitive damages as well as attorneys' fees.

Settlement Amount: $75,000
Defense Costs: $52,000

Plaintiff, a high-tech machinist, alleges to have been wrongfully terminated after returning from a twelve (12) week absence to care for his mother, pursuant to the Family Medical Leave Act. Plaintiff has sued in State Court and seeks front and back pay damages along with reinstatement. Current demand is $175,000.

Plaintiff, an advertising manager, alleges to have been wrongfully terminated and discriminated against due to his religion. Plaintiff contends that he was entitled to take thirty (30) days off of work following the death of his mother in accordance with his religious beliefs. Plaintiff contends that the insureds bereavement policy discriminates against his religious beliefs and seeks compensatory and punitive damages as well as attorneys' fees. Plaintiff has made an initial demand of $200,000.

CONNECTICUT

A former vice president of sales sued his employer for discrimination based on age and sought compensatory and punitive damages. Plaintiff alleged that he was terminated after one (1) year of employment and replaced by a substantially younger male. Plaintiff offered evidence (affidavit) from a co-worker, corroborating allegations that plaintiff was terminated, in part, because the insured wanted a younger person in the position. Plaintiff sought compensatory and punitive damages as well as attorneys' fees pursuant to Title VII.

Settlement Amount: $125,000
Defense Costs: $30,000

DISTRICT OF COLUMBIA

A managing agent for a major hotel chain was sued by a former Director of Sales and Marketing. She alleges that she was sexually harassed and discriminated against due to her gender and National Origin which created a hostile atmosphere in which she was unable to work. At the time suit was filed she was on medical disability leave.

Settlement Amount: $425,000
Defense Costs: $250,000

A real estate management company was sued by a former employee for wrongful termination and age discrimination. His attorney waged a protracted discovery battle attempting top view confidential documents. The case was ultimately settled for $200,000.

Settlement Amount: $200,000
Defense Costs: $207,000

ILLINOIS

Plaintiff, a factory worker, sued the insured, alleging discrimination and retaliatory termination due to plaintiff having previously submitting a workers' compensation claim. Plaintiff contended as well that she unwittingly signed a production quota requirement when she returned from her workers' compensation injury. Plaintiff contended that she only spoke and was literate in Spanish and the quota agreement was in English. Plaintiff was allegedly terminated for failing to meet her quota. Plaintiff sought compensatory damages, damages for lost wages and attorneys fees.

Settlement Amount: $65,000
Defense Costs: $22,000

IOWA

Six women have brought charges against their former employer of sexual harassment by the manager. The harassment ranges from actual sexual relations to comments and unwelcome touching. They claim that he retaliated against them if they refused his attention. While there is some indication some of the women were the actual aggressors, the collective demand remains over $300,000.

NEW JERSEY

A manufacturing company was sued by a former employee for wrongful termination and age discrimination. The former employee alleged that remarks about his age and others were made to him and in his presence. Though the company terminated him for a legitimate business decision, his former supervisor's deposition testimony undermined that defense. The case was settled at mediation for $180,000.

Settlement Amount: $180,000
Defense Costs: $50,000

NEW YORK

A highly compensated employee sued his former employer for age and gender discrimination. He alleges that his job duties were reduced and given to a younger woman. Though the company felt the reasons for his termination were legitimate, they turned out to be unsubstantiated. Further all conversations regarding his work performance and termination were between the employee and the former president.

Settlement Amount: $425,000
Defense Costs: $100,000

Plaintiff, a male, alleges to have been sexually harassed by another male in the men's room at the insured's manufacturing plant. Plaintiff has sued in state court, New York and seeks damages for emotional distress. Plaintiff alleges that the same alleged harasser had previously been found responsible for a similar situation and no remedial action was taken. Plaintiff has made an initial demand of $250,000.

Claimant, an administrative assistant at the insured's retail show room location, alleges to have been subjected to ridicule and disparate treatment due to her ethnic origin (Indian). Claimant has filed a Charge with the New York State Department of Human Rights and the EEOC. Claimant alleges to be the subject of on-going name-calling and ridicule as to her accent as well as the food which she brings to work. No monetary demand has been made, as of yet.

TEXAS

Plaintiff, a nurse at the insured's assisted living facility, alleged to have been terminated in violation of the Texas Whistleblower Act, after she alleged to have reported a violation in which a patient died. Plaintiff contended that she was terminated solely for reporting a violation to her superiors and no investigation was conducted into her allegations.

Settlement Amount: $175,000
Defense Costs: $76,000

WASHINGTON

A large media company was sued by a former executive for wrongful termination and age discrimination. The former employee was extremely bitter and aggressive in this litigation. The case would have been decided on the credibility of the witnesses. There was also some evidence as to the company's push to bring in younger employees. Another age claim was settled for approximately $75,000 prior to this suit being filed. The case was settled at mediation shortly before trial.

Settlement Amount: $397,500
Defense Costs: $340,000

A grocery store has been sued by four former employees for wrongful termination, age and gender discrimination. The terminations were for legitimate business reasons and are well documented. The plaintiffs have unrealistic expectations and have made six-figure demands.

Defense Costs: $35,000