Saunders v. Orbitz Worldwide, LLC

2023 IL App (1st) 221018, 236 N.E.3d 73
Appellate Court of Illinois·Decided May 24, 2023·No. 1-22-1018·Published·Cited by 1 cases

Opinion

2023 IL App (1st) 221018

FIRST DISTRICT

THIRD DIVISION

May 24, 2023

No. 1-22-1018

KILEY SAUNDERS and SARAH SCANLON, ) Appeal from the ) Circuit Court of

Plaintiffs-Appellants, ) Cook County )

v. )

)

ORBITZ WORLDWIDE, LLC and RAMSES MEIJER, ) No. 2020 L 05809 Individually, )

)

Defendants, )

)

(Orbitz Worldwide, LLC, )

)

Third-Party Plaintiff-Appellee )

)

v. )

)

Havas Chicago Worldwide, LLC, ) Honorable ) Preston Jones, Jr.

Third-Party Defendant-Appellee). ) Judge, Presiding

OPINION

JUSTICE DEBRA B. WALKER delivered the judgment of the court, with opinion.

Presiding Justice McBride and Justice Burke concurred in the judgment and opinion.

¶1 Plaintiffs, Kiley Saunders and Sarah Scanlon, appeal the trial court’s judgment that the Joint Tortfeasor Contribution Act (Contribution Act) (740 ILCS 100/0.01 et seq. (West 2020)) applied to set off a portion of their settlement with Havas Chicago Worldwide, LLC (Havas), against a potential judgment in their case against defendants Ramses Meijer and Orbitz Worldwide, LLC (Orbitz). On appeal, plaintiffs contend that the trial court’s determination was

error where (1) Havas was not a party subject to liability in tort under the Contribution Act, and (2) the civil rights violations caused by Havas’ misconduct were distinct from the tort injuries caused by Orbitz’s misconduct. For the following reasons, we affirm.

¶2 I. BACKGROUND

¶3 Plaintiffs were employed by Havas, an advertising and marketing company. In November 2017, Expedia Group, Inc. (Expedia) hired Havas to create an advertising and marketing campaign for Orbitz. Meijer managed the Orbitz project and worked directly with Havas employees, including plaintiffs.

¶4 In December 2019, plaintiffs filed separate charges against Havas with the Illinois Department of Human Rights (Department), claiming that they were subjected to sexual harassment and a hostile work environment. Both received a “Notice of Opt Out” of the Department’s investigative and administrative process, and the Department notified them of their right to commence an action in circuit court.

¶5 On May 29, 2020, plaintiffs filed a 20-count complaint against Havas, Expedia, and Meijer, alleging violations of the Gender Violence Act (740 ILCS 82/1 et seq. (West 2020)), negligence, sexual assault in violation of the Illinois Human Rights Act (775 ILCS 5/1-101 et seq. (West 2020)), assault, battery, and intentional infliction of emotional distress. Plaintiffs alleged that Meijer raped them after an Expedia-sponsored social event.

¶6 In the complaint, plaintiffs alleged that “Expedia fostered and condoned a corporate culture that tolerated and promoted sexually-harassing and abusive conduct toward women.” Meijer had a “long history” of harassing women, which was “well-known at Expedia.” Senior-level executives at Expedia knew of Meijer’s propensity to make sexual comments toward women, massage the shoulders of women on his team, and kiss them on the cheek. One supervisor expressed concern

to plaintiffs about Meijer’s behavior during work-related social outings. Despite this knowledge, Meijer’s team members “routinely made efforts to explain away [his] lewd, uncomfortable, and sexually charged language as a vestige of his European upbringing.” Plaintiffs alleged that Expedia’s failure to address Meijer’s “sexually harassing behavior,” or discipline him, fostered “a toxic and hostile work environment for women who worked with” Meijer. “As a direct and proximate result thereof, [plaintiffs] suffered severe emotional distress, anxiety, humiliation, anguish, embarrassment, degradation, loss of enjoyment of life, and mental pain and suffering.”

¶7 Havas’ employment practices also created “a hostile and sexually-charged and harassing work environment.” Havas’ sexual harassment policies and training failed to instruct employees on handling sexually harassing behavior, nor did Havas provide a mechanism for confidential reporting of misconduct. Rather, “the culture promoted at Havas was that of the quintessential ‘boys club,’ ” where work-related outings consisted of “alcohol-infused social events and company-expensed trips to strip clubs.” Havas employees were “encouraged and expected to attend happy hours and other social events with clients to maintain and strengthen client relationships.”

¶8 After Havas secured Expedia’s business, Havas management “made clear to its employees that keeping the client happy was a top priority.” As a result, female employees believed they had to endure Meijer’s “increasingly sexual comments and physical conduct with Havas female employees.” Although Havas management witnessed Meijer’s “frequent sexual comments and unwanted physical contact” with female employees, they did nothing “to prevent the foreseeable attacks” on plaintiffs. “Instead, Havas valued the lucrative contract with its client Expedia over the safety and well-being of its employees.”

¶9 Plaintiffs alleged that Havas “failed to take corrective measures to eliminate the ongoing sexual harassment” and, as “a direct and proximate result of Defendant Havas’ actions and failure to address the hostile work environment caused by [Meijer’s] sexual harassment,” each plaintiff has “lost and will continue to lose, income and other employment benefits and has suffered physical and emotional pain, mental anguish, loss of enjoyment of life, and other non-pecuniary losses.”

¶ 10 On August 4, 2020, plaintiffs entered into a confidential settlement agreement with Havas. Plaintiffs moved for leave to file an amended complaint that removed Havas but added Orbitz as a defendant. On September 16, 2020, Havas was dismissed from the action with prejudice.

¶ 11 On January 6, 2021, the trial court dismissed Expedia from the action where uncontroverted affidavits established that Orbitz, not Expedia, employed Meijer. On February 8, 2021, plaintiffs filed their second-amended complaint which removed Expedia as a defendant. Orbitz filed a motion to dismiss, and the trial court granted the motion as to all counts except those alleging negligent retention and supervision of Meijer. The negligence counts asserted that Meijer was acting within the course and scope of employment at all relevant times and that he was unfit to work directly with women and posed a danger to them. Orbitz knew or should have known of the risks in employing Meijer. Plaintiffs sought compensatory and punitive damages, damages for emotional distress, and interest and costs.

¶ 12 On June 14, 2021, Orbitz filed a third-party complaint against Havas for contribution. Havas filed a motion for a good faith finding on the settlement and dismissal of the third-party complaint. On March 4, 2022, the trial court granted Havas’ motion, finding that the settlement between plaintiffs and Havas was reasonable and made in good faith. The proposed order stated that Havas was discharged from all liability for contribution under the Contribution Act.

¶ 13 Although Orbitz did not object to the proposed order, it wanted an amendment providing that if plaintiffs obtained a judgment against Orbitz on the remaining counts, Orbitz was entitled under the Contribution Act to a set off “equal to the full amount of the settlement between Plaintiffs and Havas.” Plaintiffs did not agree with the amendment. On June 10, 2022, after briefing and oral argument, the trial court entered an order finding that the Contribution Act applied and, as a result, Orbitz was entitled to a setoff of 30% of the total settlement. This represented the settlement amount allocated for pain and suffering damages. The order gave Orbitz 30 days from the close of discovery in which to file a motion to reconsider the setoff amount.

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Saunders v. Orbitz Worldwide, LLC, 2023 IL App (1st) 221018, 236 N.E.3d 73 (Ill. Ct. App. 2023).

2023 IL App (1st) 221018 (Saunders v. Orbitz Worldwide, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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