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Martinez v. Rite Aid Corporation (CA2/7 B292672 4/30/21) Wrongful Termination/ Compensatory Damages 

In 2008 Maria Martinez filed this action against her former employer, Rite Aid Corporation, and her former supervisor, Kien Chau.  In 2010 a jury returned a special verdict in Martinez’s favor and awarded her $3.4 million in compensatory damages and $4.8 million in punitive damages.  Following an appeal by Rite Aid and Chau, this court reversed the judgment and remanded the case for a new trial on compensatory damages on Martinez’s causes of action for wrongful termination in violation of public policy against Rite Aid and intentional infliction of emotional distress against Rite Aid and Chau.

At the 2014 retrial, the jury awarded Martinez $321,000 on her wrongful termination cause of action against Rite Aid, $0 on her intentional infliction of emotional distress cause of action against Rite Aid, and $20,000 on her intentional infliction of emotional distress cause of action against Chau.  Following an appeal by Martinez, this court reversed the judgment and remanded the case for another new trial on compensatory damages on Martinez’s wrongful termination cause of action against Rite Aid and her intentional infliction of emotional distress causes of action against Rite Aid and Chau.  Recognizing that the case would be tried for a third time, the court “offer[ed] . . . guidance to the trial court on retrial,” including that the special verdict form ask the jury to apportion noneconomic damages for intentional infliction of emotional distress between Chau and other Rite Aid employees.

At the 2018 retrial, the jury awarded Martinez $2,012,258 on her wrongful termination cause of action against Rite Aid and $4 million on her intentional infliction of emotional distress causes of action against Rite Aid and Chau.  Rite Aid argues the trial court prejudicially erred by rejecting this court’s direction that the special verdict form require the jury to apportion noneconomic damages for intentional infliction of emotional distress between Chau and other Rite Aid employees.  Rite Aid contends the trial court also erroneously instructed the jury about the damages to be awarded for intentional infliction of emotional distress and about Martinez’s post-termination earnings.  Rite Aid further asserts the trial court should have reduced the past economic damages award for wrongful termination by the amount of Martinez’s post-termination earnings.

Actual earnings from substitute employment must be offset from lost earnings awards.  We accordingly agree with Rite Aid that Martinez’s post-termination earnings should have been deducted from the past economic damages award for wrongful termination, and we modify the judgment accordingly.  We affirm the judgment in all other respects.

https://www.courts.ca.gov/opinions/documents/B292672.PDF