Case details

Former employee: Boss offered raise in exchange for oral sex

SUMMARY

$1250000

Amount

Verdict-Plaintiff

Result type

Not present

Ruling
KEYWORDS
emotional distress, mental, psychological
FACTS
In December 2007, plaintiff Karen Moran, 32, a leasing agent and mall manager for the Town Center Mall, had a discussion with the owner of the mall, Sureshchandra Shah, regarding a raise. However, Moran claimed that Shah indicated that she could get a raise if she performed oral sex on him. She claimed that after she declined, Shah threatened to fire her and verbally abused her in numerous other ways, such as sending her sex-based e-mails. In the middle of January 2008, Shah terminated Moran’s employment. Moran sued Shah, individually and as trustee of the Shah family trust and any successor trustee; and Shah’s corporate entities, Shah Management Inc., S.C. Shah Management Co. Inc. and Salsha Enterprises. Moran alleged the defendants’ actions constituted sexual harassment under the Fair Employment and Housing Act. Prior to trial, Moran settled with Salsha Enterprises, and the Shah Family Trust was voluntarily dismissed. In addition, the court granted Shah’s motion for nonsuit as to Shah Management and S.C. Shah Management. Thus, the matter continued against Shah, as an individual, only. Moran claimed that Shah harassed her by asking her to perform oral sex on him and by using other verbal abuse, such as calling her vulgar, sex-based names. She alleged that Shah also did this to another worker who had previously worked for Shah. In addition, she claimed that Shah further harassed her by sending her sex-based e-mails. Moran alleged that when she refused Shah’s advances and demanded he treat her with some respect, Shah retaliated against her by wrongfully terminating her employment. Plaintiff’s counsel presented testimony from eight other female employees who had worked for Shah one time, all of who claimed Shah harassed them in a similar manner. Shah denied Moran’s allegations, arguing that the opportunity for interaction with Moran was minimal. Specifically, Shah denied making any offer of a raise for oral sex and claimed that Moran brought her lawsuit because she was angry at him for having fired her. However, according to plaintiff’s counsel, later in the trial, Shah claimed Moran quit her employment voluntarily., Moran claimed she suffered emotional distress as a result of Shah’s offensive and abusive conduct. Thus, she sought recovery of $1 million in general damages. During the punitive damages phase of the trial, plaintiff’s counsel argued that Shah had sufficient wealth and that Shah’s conduct was sufficiently offensive to warrant a punitive damages award. Shah argued that he did not cause Moran any emotional distress and, thus, Moran was owed zero damages. During the punitive damages phase, defense counsel argued that Shah’s financial condition was such that punitive damages should not be awarded.
COURT
Superior Court of Riverside County, Indio, CA

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