1. Wrongful Termination & Retaliation

ABC Company terminated a manager citing performance issues and absenteeism. The manager filed a state agency charge and later a lawsuit alleging wrongful termination and retaliation. The claimant was a long time employee who had provided years of excellent service. The claimant had recently filed a workers' compensation claim for stress in employment and was granted workers' compensation benefits. The owner of ABC Company had tried to persuade her not to file the workers' compensation stress claim as he felt she was being "sissy".

Claimant was terminated shortly thereafter for poor performance and absenteeism. The claimant felt she was being terminated due to filing a workers' compensation claim.

After the lawsuit was filed, the company determined that defending against the lawsuit would be costly. The case eventually settled out of court for $180,000, while defense expenses totaled more than $30,000

2. Wrongful termination and libel/slander

An employee was terminated due to the company’s belief that the employee was stealing parts. The long time employee denied the charge. The employee filed a lawsuit alleging wrongful termination and libel/slander, as another company employee had told other employees and even some customers regarding the alleged theft by the employee.

In the lawsuit, the employee alleged compensatory and punitive damages. During discovery, the Insured's defense counsel recommended and convinced the company to settle the claim due to the potential punitive damages that could be awarded if the jury found in favor of the terminated employee.

The employee was paid a settlement of $215,000, while defense costs exceeded $60,000.

3. Ethnic Discrimination

Five employees filed a multiple plaintiff racial and ethnic discrimination claim against their employer alleging they were only allowed to assist customers of a certain racial and ethnic background. The employer defended the practice due to ethnic customs and the language barrier that would be created if these employees were allowed to assist all customers.

The claim was settled for over $920,000, with additional defense costs of $65,000.