Flait v. North American Watch Corp.

3 Cal. App. 4th 467, 4 Cal. Rptr. 2d 522, 92 Daily Journal DAR 1843, 1992 Cal. App. LEXIS 134, 63 Fair Empl. Prac. Cas. (BNA) 785
CourtCalifornia Court of Appeal
DecidedFebruary 6, 1992
DocketB057311
StatusPublished
Cited by165 cases

This text of 3 Cal. App. 4th 467 (Flait v. North American Watch Corp.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Flait v. North American Watch Corp., 3 Cal. App. 4th 467, 4 Cal. Rptr. 2d 522, 92 Daily Journal DAR 1843, 1992 Cal. App. LEXIS 134, 63 Fair Empl. Prac. Cas. (BNA) 785 (Cal. Ct. App. 1992).

Opinion

Opinion

BOREN, J.

Stuart Flait claims his former employer wrongfully terminated his employment in violation of the California Fair Employment and Housing Act (CFEHA). (Gov. Code, § 12900 et seq.) There are triable issues concerning whether Flait was terminated in retaliation for putting a stop to his supervisor’s sexual harassment of a coworker. Accordingly, we reverse the trial court’s summary adjudication, its entry of a final judgment, and its award of attorney fees and costs to the employer.

Facts

Appellant Flait went to work as a sales representative for respondent North American Watch Corporation (NAWC) on February 1, 1984. Plait’s employment agreement states that “it is not a contract of employment for a definite period.”

Flait increased NAWC’s sales within his territory. In 1987, for example, his sales increased by 58 percent over the previous year. NAWC does not deny that Flait increased its sales volume. Nevertheless, it became dissatisfied with Plait’s performance, purportedly because he exhibited greater allegiance to his customers than to his employer, did not require customers to carry all segments of NAWC’s line, and did not adequately service some stores. NAWC’s president, James Reilly, its vice-president of human resources, Anthony Ruggiero, and Plait’s supervisor, John Pistner, spoke to Flait about what they termed an “attitude problem” in 1986 and 1987, and he agreed to improve. Flait observes that NAWC controls the makeup of the line carried by customers because all customer orders must be approved and accepted by the company, a fact conceded by NAWC.

Flait supervised a NAWC marketing representative named Pamela Berger. Berger called Flait in March of 1987, and complained that a few days earlier, during a sales meeting, Pistner had called her a vulgar slang expression for female genitals in front of other employees. Flait, in turn, spoke to Pistner and told him it was improper to speak to a female employee in that manner. Pistner did not confront the issue and hung up the telephone. Subsequently, in March or April of 1987, Berger reported to Flait that Pistner had made comments to her on at least one occasion regarding his oral sex habits. Flait called Pistner and reiterated his belief that it was inappropriate for Pistner, a *472 senior vice-president, to make sexual comments to Berger and that this had to stop. Pistner responded by saying, “Next subject. Next subject.” Plait also recalled that Berger subsequently informed him that Pistner had telephoned her and asked, in crude terms, whether she had had sexual relations the previous evening. Once again, in August of 1987, Flait called Pistner and told him to cease bothering Berger. Pistner said good-bye and hung up the telephone. Flait subsequently noticed that Pistner “turned against him” despite Plait’s business success, and was confrontational with him in front of Reilly.

Although Berger never used the precise term “sexual harassment,” Flait was convinced that Berger felt harassed because she reported the incidents with Pistner to him time and again. Her complaints indicated to him that Pistner’s behavior bothered her. He felt the problem was creating a hostile work environment for Berger because she told him it displeased her and was improper, and it caused her to lose respect for her superiors. Flait thought he was responsible for taking care of Berger’s dissatisfaction because he was her supervisor and she had reported the incidents to him directly. NAWC does not have any established policy or guidelines under which complaints of employee harassment or discrimination may be addressed.

In early January of 1988, Flait was summoned to NAWC’s main office. He believed he was going to be promoted because Pistner had told him there was a possibility he would be made a regional manager, because he had opened many new accounts and increased sales, helped train new salesmen, and never received letters of criticism. Instead, his employment was terminated because he was not a “company man.” Pistner made the decision to terminate Plait’s employment, telling Reilly it was because he was “continually” dissatisfied with Plait’s performance. Reilly could not, however, recall any instances of dissatisfaction with Flait that he discussed with Pistner. Pistner never voiced any criticisms of Flait to John Curliss, Pistner’s assistant sales manager and the person to whom Flait reported, prior to making his decision to terminate, nor could Pistner recall reviewing Plait’s sales record before firing him. According to Reilly, Pistner and Ruggiero, Flait was terminated because of his attitude toward company policy. Flait revealed to Reilly his belief that he was being terminated as punishment for protesting Pistner’s abuse of Berger. Reilly was taken aback to learn of Pistner’s offensive behavior, but after Pistner denied making the statements to Berger, Reilly did not look any further into the matter.

Flait did not remember speaking to anyone at NAWC other than Pistner about Pistner’s comments to Berger, believing that the matter could be resolved between the two of them without it going any further. However, *473 Curliss recalled that in 1987, Flait told him he had confronted Pistner and told him not to say obscene things to Berger. Curliss was not surprised because he knew Pistner engaged in this type of behavior.

Shortly after Flait was terminated, Berger handwrote a statement regarding Pistner’s behavior at Flail’s request. She stated that Pistner had expressed the vulgar epithet and comments to her, that she reported these incidents to Rail, and that she resigned from NAWC in January of 1988 because she was unable to tolerate the harassment. At her deposition during the course of this lawsuit, taken pursuant to subpoena, Berger acknowledged that the handwritten statement was “accurate, true and correct,” and that it was made of her own free will. She confirmed the incidents with Pistner, but testified that he had apologized for calling her the sexual epithet after she confronted him, and that this was satisfactory “knowing Mr. Pistner,” by which she meant that he had “a dirty mouth.” Though offended, she tried not to take the remarks personally because she heard this was common behavior for Pistner, who made similar comments to other employees.

Berger agreed that she complained about Pistner’s comments to Rail, to whom she spoke only briefly once a month. She did not tell Rail she felt the matter had been resolved because she was not sure what else would happen in the future. Berger testified that Pistner’s comments “made me not respect my bosses too much, and it’s hard to do a good job for a company when you don’t respect them.” They did not, however, affect her job performance, in her opinion, nor did she feel they created a hostile work environment. Contrary to her written statement, Berger stated in her deposition that she did not feel harassed by Pistner, nor was his conduct the reason she quit her job. Rather, she quit because she felt “harassed” by NAWC’s demands that she travel constantly as part of her job, which she felt unable to do after being injured in a car accident.

Berger was upset when she received the subpoena to testify, and called Rail to say that she had just started a new job and did not want to be involved because she feared tarnishing her reputation and losing her job if it was discovered that she was cooperating in Rail’s lawsuit against NAWC.

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3 Cal. App. 4th 467, 4 Cal. Rptr. 2d 522, 92 Daily Journal DAR 1843, 1992 Cal. App. LEXIS 134, 63 Fair Empl. Prac. Cas. (BNA) 785, Counsel Stack Legal Research, https://law.counselstack.com/opinion/flait-v-north-american-watch-corp-calctapp-1992.