Longo v. Pleasure Productions, Inc.

Plaintiff Doreen Longo worked in the sales department for East Coast News Corp, a company involved in distribution of "adult products." At one time, plaintiff had a pleasant relationship with her co-worker, defendant March Kercheval, but it deteriorated after Kercheval allegedly threatened to sexually assault her, suggested she trade sexual favors with a client, threw a chair, and told her he wanted to gouge out another co-worker's (their supervisor's) eyes. On several occasions, plaintiff told the supervisor she was terrified, but nothing was done. She later sent two e-mails to the supervisor asking for help and explaining that she feared Kercheval was becoming dangerous. Plaintiff sent a copy of her last e-mail to the general manager, Michael Savage, who told her he was too busy to do anything. One week later, plaintiff met with Kercheval, the owner of the company, and the head of Human Resources. The owner screamed at plaintiff and Kercheval, each of whom later received warning notices. Kercheval was fired. Shortly thereafter, plaintiff was told that her complaints about Kercheval disrupted the laid back office environment, and she was let go too. Plaintiff then filed suit under the New Jersey Conscientious Employee Protection Act. The issue before the Supreme Court centered on whether an "upper management" jury instruction was required in deciding punitive damages in the context of the Act. Upon review, the Supreme Court concluded that an upper-management jury instruction was required to support a punitive damages award for claims under the Act. Punitive damages can only be awarded if the jury finds wrongful conduct under a clear-and convincing standard of evidence. The trial court failed to give the upper management instruction. Therefore, the Court reversed and remanded the case back to the trial court for further proceedings. View "Longo v. Pleasure Productions, Inc." on Justia Law