Helgeson v. American Intern. Group, Inc.

• Decision Date: 02 March 1999
• Docket Number: No. 97-CV-175-JJL-AJB.,97-CV-175-JJL-AJB.
• Citation: 44 F.Supp.2d 1091
• Parties: Kathye L. HELGESON, Plaintiff, v. AMERICAN INTERNATIONAL GROUP, INC., et al., Defendants.
• Court: U.S. District Court — Southern District of California

Page 1091

44 F.Supp.2d 1091

Kathye L. HELGESON, Plaintiff, v. AMERICAN INTERNATIONAL GROUP, INC., et al., Defendants.

No. 97-CV-175-JJL-AJB.

United States District Court, S.D. California.

March 2, 1999.

Order Denying Reconsideration April 29, 1999.

Michelle A. Perfili, Law office of Michelle Perfili, San Diego, CA, for plaintiff.

James S. Bryan, Arter and Hadden, Los Angeles, CA, P. Kevin Connelly, Connelly, Sheehan and Moran, Chicago, IL (argued), for defendants.

OPINION

LONGOBARDI, Senior District Judge.¹

I. Introduction

Plaintiff Kathye L. Helgeson was employed by American International Group ("AIG"), in their wholly owned subsidiary, American International Group Claims Services ("AIGCS"),² from October 1994 until November 1996. Plaintiff originally filed suit in San Diego County Superior Court, but defendants removed the case to this Court. The Complaint contained ten causes of action, including claims for: (1) sexual harassment, (2) retaliation, (3) pretextual constructive discharge, (4) breach of employer's harassment policies (5) breach of implied employment contract, (6) breach of implied contract of good faith and fair dealing, (7) negligence, (8) negligent supervision, (9) intentional infliction of emotional distress, and (10) negligent infliction of emotional distress. Before removal to federal court, the state court dismissed the third and tenth causes of action. This Court granted defendants' motion for summary judgment on the fourth, fifth, sixth, seventh, and eighth causes of action.³ Immediately preceding trial, plaintiff voluntarily dismissed the first cause of action. Accordingly, the only issues that went to trial were the plaintiff's claims of retaliation and intentional infliction of emotional distress.

A jury trial was held from June 8-15, 1998, at which the jury found for the plaintiff on both claims. The jury made the following findings of fact in its verdict: (1) plaintiff reasonably and in good faith believed she was sexually harassed in violation of the FEHA⁴ or the public policy of California; (2) plaintiff, or someone on her behalf, complained or otherwise protested to defendants that she believed she was sexually harassed; (3) defendants took some adverse employment action against plaintiff after she or someone on her behalf complained or protested; (4) the complaints were a motivating factor for defendants' adverse employment action; (5) plaintiff sustained injury, damages, loss or harm as a result of defendants' retaliation; (6) defendants engaged in outrageous conduct; (7) the individuals who engaged in outrageous conduct acted within the scope of their employment; (8) plaintiff suffered severe emotional distress caused by this outrageous conduct; and (9) plaintiff has proven by clear and convincing evidence that any of the individuals who engaged in this conduct are guilty of malice, oppression, fraud or despicable conduct. The jury then awarded plaintiff $350,000 in economic damages,⁵ $650,000 in non-economic damages, and $1,250,000 punitive damages.

Currently pending before this Court are defendants' motions for: (1) Judgment as a Matter of Law Pursuant to Rule 50(b), and (2) New Trial or, Alternatively, Remittitur Pursuant to Rule 59. Also pending is plaintiffs Motion for Attorneys Fees and Costs.

II. Facts

Briefly summarized, the relevant facts, in a light most favorable to the plaintiff,⁶ are as follows: From October 1994 through November 1996, AIG employed Kathye Helgeson as a fraud investigator in the claims division of AIGCS' San Diego office. AIGCS, a wholly-owned subsidiary of AIG, adjusts claims for insurance carriers owned by AIG. On April 3, 1996, plaintiff was engaged in a conversation with Ronnie Austin, a supervisor at AIGCS. In this conversation, plaintiff was acting defensively in response to Mr. Austin's earlier suggestion in a meeting that she needed to handle more claims. Mr. Austin suggested that the two continue the conversation outside, where plaintiff continued to act defensively. At this point, Mr. Austin stated that she should relax, and that she was not being investigated. He then added that "if we caught you in bed with a dead man or a live woman, then we might have to investigate you." Plaintiff reported this comment to David Sossaman, a co-worker who had been plaintiffs former direct supervisor. Mr. Sossaman subsequently notified Ken Coleman, Mr. Austin's supervisor.

Subsequent to plaintiff's report to Mr. Sossaman, and Mr. Sossaman's report to Mr. Coleman, several events occurred that plaintiff alleged were in retaliation for her reporting Mr. Austin's comment. These events include: (1) AIG threatened to put plaintiff on a work program designed to help her meet critical success goals; (2) Mr. Coleman threatened to lay off plaintiff if she did not transfer to the Costa Mesa office, a threat that AIG rescinded three days later; and (3) defendants assigned several cases to Mr. Sossaman that should have been assigned to plaintiff, although the evidence showed that this practice was occurring before the April incident. Subsequently, at the end of June, plaintiff took a leave of absence from AIG. Plaintiff returned in September, and within two weeks received a verbal reprimand for improperly using her E-mail to spread rumors. Defendant also reprimanded plaintiff for improperly contacting a supervisor in the New York office even though she was expressly given permission to do so. Additionally, Mr. Coleman issued an inaccurate performance review of plaintiff's October performance. Finally, on November 22, 1996, plaintiff resigned from AIG.

III. Notion for Judgment as a Matter of Law

A. Standard

Defendants' first motion is for Judgment as a Matter of Law Pursuant to Rule 50(b) of the Federal Rules of Civil Procedure. "Judgment as a matter of law is proper if the evidence, construed in the light most favorable to the nonmoving party, permits only one reasonable conclusion, and that conclusion is contrary to the jury's." Lambert v. Ackerly, 156 F.3d 1018, 1021-22 (9th Cir.1998) (citing Forrett v. Richardson, 112 F.3d 416, 419 (9th Cir.1997)); Bank of the West v. Valley Nat'l Bank of Ariz., 41 F.3d 471, 477 (9th Cir.1994).

The standard for deciding a Rule 50(b) motion "is appropriately strict." The court must determine whether the evidence, viewed in the light most favorable to the plaintiffs, was sufficient to have allowed a reasonable juror to arrive at a verdict for plaintiffs. The court must draw all reasonable inferences in plaintiff's favor, and all questions of credibility must likewise be decided in plaintiffs' favor.... [T]he court should grant the motion only when (1) there is such a complete absence of evidence supporting the verdict that the jury's findings could only have been the result of sheer surmise and conjecture, or (2) there is such an overwhelming amount of evidence in favor of the movant that reasonable and fairminded men could not arrive at a verdict against him.

Datskow v. Teledyne Continental Motors Aircraft Products, 826 F.Supp. 677, 682 (W.D.N.Y.1993) (citing Stubbs v. Dudley, 849 F.2d 83, 85 (2d Cir.1988); Konik v. Champlain Valley Physicians Hosp., 733 F.2d 1007, 1013 (2d Cir.1984); Mattivi v. South African Marine Corp., 618 F.2d 163, 167-68 (2d Cir.1980)).

B. Intentional Infliction of Emotional Distress Claim

Plaintiff's first cause of action was for intentional infliction of emotional distress. The jury found in plaintiff's favor. The tort of intentional infliction of emotional distress is comprised of three elements: (1) extreme and outrageous conduct by the defendants with the intention of causing, or reckless disregard of the probability of causing, emotional distress; (2) the plaintiff suffered severe or extreme emotional distress; and (3) the plaintiff's injuries were actually and proximately caused by the defendants' outrageous conduct.⁷ KOVR-TV, Inc. v. Superior Court, 31 Cal.App.4th 1023, 1028, 37 Cal.Rptr.2d 431 (Cal.Ct.App.1995). Defendants argue that there is insufficient evidence to support the jury's finding of extreme and outrageous conduct.

To prove extreme and outrageous conduct, "plaintiff must show that defendant[s'] conduct was outrageous and beyond all bounds of decency." Berdan v. Ortho-McNeil Pharmaceutical, Inc., No. C-96-207-VRW, 1997 WL 811782, at *5 (N.D.Cal. Dec.31, 1997) (citing Cervantez v. J.C. Penney Co., Inc., 24 Cal.3d 579, 156 Cal.Rptr. 198, 595 P.2d 975 (Cal.1979)). The conduct "must be so extreme as to exceed all bounds of that usually tolerated in a civilized community. Generally, conduct will be found to be actionable where the recitation of the facts to an average member of the community would arouse his resentment against the actor, and lead him to exclaim, `Outrageous!'" Cochran v. Cochran, 65 Cal.App.4th 488, 494, 76 Cal. Rptr.2d 540 (Cal.Ct.App.1998) (citing and quoting KOVR-TV, 31 Cal.App.4th at 1028, 37 Cal.Rptr.2d 431; Rest.2d Torts, § 46, comment d). See also Cabanas v. Gloodt Associates, 942 F.Supp. 1295, 1311 (E.D.Cal.1996). "In evaluating whether the defendant's conduct was outrageous, it is `not enough that the defendant has acted with an intent which is tortious or even criminal, or that he has intended to inflict emotional distress, or even that his conduct has been characterized by "malice," or a degree of aggravation which would entitle the plaintiff to punitive damages for another tort. Liability has been found only where the conduct has been so outrageous in character, and so extreme in degree, as to go beyond all possible bounds of decency, and to be regarded as atrocious, and utterly intolerable in a civilized community.'" Cochran, 65 Cal.App.4th at 496, 76 Cal.Rptr.2d 540 (quoting Rest.2d Torts, § 46, comment d).

The actions upon which plaintiff bases her claim are the adverse employment actions that are also the basis for her retaliation claim. These actions are: AIG threatened to place plaintiff on a work program; AIG did not assign plai...