Roby v. McKesson HBOC

53 Cal. Rptr. 3d 558, 146 Cal. App. 4th 63
CourtCalifornia Court of Appeal
DecidedDecember 26, 2006
DocketC047617, C048799
StatusPublished

This text of 53 Cal. Rptr. 3d 558 (Roby v. McKesson HBOC) 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
Roby v. McKesson HBOC, 53 Cal. Rptr. 3d 558, 146 Cal. App. 4th 63 (Cal. Ct. App. 2006).

Opinion

53 Cal.Rptr.3d 558 (2007)
146 Cal.App.4th 63

Charlene J. ROBY, Plaintiff and Respondent,
v.
McKESSON HBOC et al. Defendants and Appellants.

Nos. C047617, C048799.

Court of Appeal of California, Third District.

December 26, 2006.

*560 Howard Rice Nemerovski Canady Falk & Rabkin, Jerome B. Falk, Jr., Linda Q. Foy, Jason M. Habermeyer, San Francisco; Fitzgerald, Abbott & Beardsley and Sarah E. Robertson, Oakland, for Defendants and Appellants McKesson Corporation and Karen Schoener.

Riegels Campos & Kenyon and Charity Kenyon, Sacramento; Christopher H. Whelan, Gold River; The deRubertis Law Firm and David M.. deRubertis, Woodland Hills, for Plaintiff and Respondent.

Certified for Partial Publication.[*]

*559 BUTZ, J.

Plaintiff Charlene J. Roby was a stellar employee of defendant McKesson HBOC, Inc. (McKesson)[1] for 25 years until she developed panic disorder in 1998, which caused her to start missing substantial time from work. Two years later, McKesson fired Roby for abusing its attendance policy, although many of her absences were attributable to her psychiatric disability.

The jury "threw the book" at McKesson. It awarded Roby millions of dollars in compensatory damages for wrongful discharge in violation of public policy, as well as harassment, disparate treatment, and discrimination/failure to accommodate under the California Fair Employment and

Housing Act (FEHA) (Gov.Code, § 12900 et seq.).[2] The jury rendered a separate verdict finding Roby's supervisor, Karen Schoener, liable for harassment. In a second phase of the trial, the jury levied a $15 million punitive damage award against McKesson and $3,000 against Schoener.

McKesson does not challenge the verdict insofar as the jury found it liable for wrongful termination, disability discrimination, and disparate treatment. McKesson and Schoener do challenge the harassment verdict as unsupported by substantial evidence. Both defendants also claim that reductions in the compensatory damage award are necessary and that the punitive damage award should be stricken or reduced.[3]

We shall conclude that the judgment awards duplicative noneconomic damages based on alternative theories of liability for the same wrong, requiring a downward adjustment. We shall also strike the harassment awards against McKesson and Schoener for insufficiency of the evidence. Finally, while we find the evidence sufficient to support punitive damages, we conclude that a substantial reduction in the size of the award is necessary to comport with constitutional constraints.

We shall thus reduce both the compensatory and punitive damage awards and affirm the judgment as modified.

FACTUAL BACKGROUND

In accordance with well-settled principles of appellate review, we summarize *561 the facts in the light most favorable to the prevailing party (respondent herein), resolving all conflicts in the evidence and all legitimate and reasonable inferences that may arise therefrom in favor of the judgment. (Weeks v. Baker & McKenzie (1998) 63 Cal.App.4th 1128, 1137-1138, 74 Cal.Rptr.2d 510 (Weeks).)

McKesson is a large corporation involved in the worldwide distribution of pharmaceuticals and other health care products. Roby worked as a customer service support liaison for McKesson's West Sacramento Distribution Center. She had been an employee of McKesson for 25 years, with good attendance and an excellent performance record until she developed panic disorder in early 1998.

Panic disorder is a psychiatric condition that puts the patient in an extreme state of fear, which seems to come from "out of the blue." Symptoms can include extreme discomfort, heart palpitations, shortness of breath, dizziness, and feelings of unreality or depersonalization. The first time Roby experienced one of these episodes, she thought she was having a heart attack and was rushed to the emergency room. She ultimately learned it was a psychiatric problem and she was put under the care of Kaiser psychiatrist Dr. Joseph Schnitzler on January 6, 1998.

When Roby had a panic attack, she would experience physical symptoms such as difficulty breathing, uncontrollable shaking, and scratching or picking at her arms until they bled. She would also experience head sweating to the point where her hair was "wringing wet." Moreover, the medications she was taking for her condition caused her to develop an unpleasant body odor that embarrassed her.

When Roby had a panic attack, her symptoms were "very obvious" to fellow workers. Her supervisor Alan Grover would typically send her outside on a break and try to calm her down. He would send a coworker out to check on Roby and make sure she was all right.

Grover manifested awareness that Roby was suffering from panic disorder. He and McKesson employee Luan Chew frequently discussed Roby's condition and the medications that were being used to address it. On four or five occasions, Chew informed Grover that Roby had stayed home because of a panic attack. Grover became concerned that it was affecting her job.

In April 1999, Karen Schoener became Roby's supervisor, replacing Grover, who received a promotion. Grover told Chew he was greatly concerned about Schoener becoming Roby's supervisor because there was already great animosity between the two.

In late 1998, McKesson instituted a new, stricter "90-day rolling" attendance policy, which caused a great deal of confusion among employees. Under the policy, an employee could be terminated if she accumulated too many "occasions" within a specified period. Absences without 24hour advance notice were considered occasions. Thus, if an employee woke up ill and called in sick, that could be counted as an occasion, even if she was entitled to take the day off as sick leave or vacation. Tardiness was counted as a half-occasion. However, if an employee had a clean record with no occasions for the next 30 days following the 90-day period, the first occasion would "drop off and not be counted against her.

If an employee received two occasions within a 90-day period, she would receive an oral warning on the third occasion. Another three occasions during a rolling 90-day period within six months would result in a written warning. One more occasion within 30 days would generate a *562 second written warning. Two more occasions after the written warnings would result in termination.

Although McKesson allowed employees to take excused time off under the federal Family and Medical Leave Act of 1993 (the FMLA) (29 U.S.C. §§ 2601-2654; 29 C.F.R. §§ 825.100 to 825.800), absences were counted as occasions unless the employee specifically requested FMLA paperwork. McKesson's employee handbook contained no explanation of an employee's FMLA rights.

Except for one; five-day absence for which she filled out FMLA paperwork, Roby's absences were always treated as occasions, regardless of the reason. On the other hand, McKesson treated other employees far more leniently. Jamie Steckman, for example, had asthma. When she had asthma attacks, she was rarely able to give 24 hours' advance notice of absence. Yet when she missed 15 to 20 days from work due to asthma attacks, they were all treated as one occasion.

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53 Cal. Rptr. 3d 558, 146 Cal. App. 4th 63, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roby-v-mckesson-hboc-calctapp-2006.