Court rejects $16M punitive damages award, upholds $1.7M award for defamation
A California jury ordered Allstate Insurance Company to pay a former employee nearly $1 million for wrongful discharge, $1.7 million for defamation, and almost $16 million in punitive damages. Allstate appealed, arguing it didn't violate Section 432.7 of the California Labor Code by terminating the employee for his participation in an Arizona domestic violence program, substantial evidence didn't support his defamation claim, and the punitive damages award was excessive compared to the compensatory damages he was awarded. Let's take a look at how the California Court of Appeal dealt with those arguments.
Background facts
On August 16, 2014, Michael Tilkey visited his girlfriend, Jacqueline Mann, and her young grandson in Arizona. The couple got into an argument. When Tilkey stepped outside onto the enclosed patio, Mann closed and locked the glass door. Tilkey banged on the patio door, demanding to be let back in so he could gather his belongings. Mann called the police.
When the police officers arrived at her apartment, Mann told them she didn't want Tilkey inside because she was concerned that he would wake up her grandson. The officers observed that the interior trim on the framing above the patio door was broken. They searched Tilkey's travel bag, which contained marijuana and a plastic container used to smoke it. Tilkey was arrested and charged with criminal damage, possession or use of drug paraphernalia, and disorderly conduct. A domestic violence label was attached to the criminal damage and disorderly conduct charges.