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Moreau v. Express11/6/2002
NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS
California Rules of Court, rule 977(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 977(b). This opinion has not been certified for publication or ordered published for purposes of rule 977.
Lawrence Moreau sued Paystation America, Inc., formerly known as Direct Express, LLC, and its president Louis J. Krouse for damages caused by termination of his employment as chief financial officer of Direct Express. Moreau alleged that defendants had fired him based in part on an allegation he had sexually harassed two employees even though they knew the allegation was false. A jury awarded Moreau $107,000 for breach of his employment contract and $500,000 in compensatory damages, plus $103,000 punitive damages, for intentional infliction of emotional distress.
Defendants appeal from the damages award for intentional infliction of emotional distress, contending that claim is within the exclusive jurisdiction of the Workers' Compensation Act, Labor Code section 3600 et seq. We agree and reverse the judgment for intentional infliction of emotional distress.
FACTUAL AND PROCEDURAL BACKGROUND
Moreau was hired as chief financial officer of Direct Express on May 28, 1999. He was suspended from his position on August 16, 1999, based on allegations of sexual battery against two Direct Express employees, and terminated on August 20, 1999. Following his discharge, Moreau sued defendants for breach of written agreement, breach of oral contract, breach of implied-in-fact contract, fraud and negligent misrepresentation. He alleged defendants had fraudulently induced him to serve as Direct Express's chief financial officer and then terminated him without cause, three months into his three-year employment contract.
During discovery evidence was produced that Moreau believed demonstrated defendants knew before his discharge that there was no truth to the sexual battery accusations. He therefore amended his complaint to add a sixth cause of action for intentional infliction of emotional distress, alleging that Krouse and Direct Express accused Moreau, orally and in writing, of sexually harassing two female employees despite knowing there was no reasonable basis to believe the allegations were true. He further alleged the false allegations and resulting disciplinary action caused him to suffer physical and emotional distress.
At the close of trial, the court granted defendants' motion for non-suit on Moreau's claims for fraud and negligent misrepresentation. The trial court also held that Moreau had presented evidence sufficient to remove his remaining claims from the exclusive workers' compensation remedy.
The jury found Direct Express liable for terminating Moreau's employment agreement without good cause and found Direct Express and Krouse liable for intentional infliction of emotional distress. The jury awarded compensatory damages on both claims and also awarded punitive damages against Direct Express on Moreau's claim for emotional distress. Judgment was entered on March 23, 2001. Defendants' motions for new trial and judgment notwithstanding the verdict, based on the exclusivity of the workers' compensation scheme, were denied.
Defendants appeal from the portion of the judgment awarding compensatory and punitive damages for intentional infliction of emotional distress.
CONTENTIONS
Defendants contend the trial court lacked jurisdiction over Moreau's claim for intentional infliction of emotional distress. Moreau contends the trial court had ju
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