Message from the Firm
The average 1997 California jury verdict in employment cases was $992,700 according to one survey of reported verdicts. The size of the verdict and corresponding employer risk continue to depend on the type of employee claim. Discrimination cases still represent the highest exposure; jury verdicts in race and age cases averaged $1.8 million and $2 million, respectively. Led by the recent Hunter Tylo/Melrose Place verdict, pregnancy discrimination cases averaged a staggering $4.9 million. By comparison, breach of implied contract (i.e., to demote or terminate only upon good cause) had the "lowest" average of about $690,000. Even if an employer might prevail on a motion for summary judgment (e.g., the Paula Jones case), substantial attorneys' fees and executive time are usually consumed by the litigation before most courts consider this motion. The employers' best defense continues to be managing its business to reduce claims and resolve them quickly. Juries expect employers to have written, understandable employment policies and procedures, to clearly communicate with employees about problems and expectations ahead of time, to immediately investigate claims internally, to make fair decisions, and to document everything. Consultation with employment law counsel may help you avoid claims at the outset or defuse these time bombs before they ripen into full-blown litigation.
Reprinted with permission,
© 1998 Reish & Luftman. All rights reserved. The Reish & Luftman Practical Guide to Employment Law is published as a general informational source. Articles are general in nature and are not intended to constitute legal advice in any particular matter. Transmission of this report does not create an attorney-client relationship. Reish Luftman Reicher & Cohen does not warrant and is not responsible for errors or omissions in the content of this report.
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