Recreational program employee complains of sexual harassment by supervisor; both are fired. $9.1M. San Diego County.

Summary

Fired employee and her also-fired supervisor trade allegations of sexual harassment.

The Case

  • Case Name: Sarah Freeman v. Bitchin’ Inc., Bitchin’ Sauce, LLC, Bitchin’ Beach Club, LLC and Starr Edwards
  • Court and Case Number: San Diego County Superior Court / 37-2022-00033240
  • Date of Verdict or Judgment: Wednesday, November 27, 2024
  • Date Action was Filed: Monday, August 22, 2022
  • Type of Case: Labor Code Violation, Sexual Harassment, Whistleblower, Wrongful Termination
  • Judge or Arbitrator(s): Hon. Cynthia Freeland
  • Plaintiffs:
    Sarah Freeman, 44
  • Defendants:
    Bitchin' Inc.
    Bitchin' Sauce, LLC
    Bitchin' Beach Club, LLC
    Starr Edwards, CEO
  • Type of Result: Jury Verdict

The Result

  • Gross Verdict or Award: $9,102,028
  • Net Verdict or Award: $9,102,028
  • Settlement Amount: $4,000,000 (before punitive damages determined by jury - see below)
  • Award as to each Defendant:

    Joint/several as to $4,000,000 compensatory damages award. Punitive damages as outlined below.

     

  • Contributory/Comparative Negligence: None.
  • Economic Damages:

    Past loss of earnings: $67,809

    Future loss of earnings: $486,319

    Wage/hour loss: $20,000+

  • Non-Economic Damages:

    Past:  $1,000,000

    Future: $2,500,000

  • Punitive Damages:

    $5,048,000  ($2,500,000 against Bitchin Inc., $2,500,000 against Bitchin Sauce, LLC, $48,000 against Bitchin Beach Club, LLC.)

     

  • Trial or Arbitration Time: 12 days
  • Jury Deliberation Time: 2 days
  • Jury Polls: Mostly 12-0

The Attorneys

  • Attorney for the Plaintiff:

    Fozi Dwork & Modafferi, LLP by Golnar Fozi and Jeremy Dwork, Carlsbad.

  • Attorney for the Defendant:

    Snell & Wilmer by Brook Barnes and Clint Engleson, San Diego.

The Experts

  • Plaintiff's Technical Expert(s):

    Duane Bennett, workplace investigation standards.

    Greg Kaseno, CPA, economic loss.

  • Defendant's Technical Expert(s):

    Kym LeGolvan, workplace investigation standards.

    Brian Bergmark, CPA, economic loss.

    Maria Brady, vocational rehabilitation.

Facts and Background

  • Facts and Background:

    Plaintiff was hired by defendants in late 2020 to work at a beach club in Carlsbad as a recreational program lead.  According to its website, the company ran recreational programs for kids.  Over the next year and a half, plaintiff alleged she was misclassified, denied meal and rest breaks, denied overtime and subjected to sexual harassment by her direct supervisor. When plaintiff complained about her supervisor’s workplace conduct, her complaint was immediately relayed to the supervisor, causing the supervisor to get angry with her and instruct her to never go over his head to report him. As time went on, and the supervisor’s sexually harassing conduct continued, plaintiff confided in a coworker, who in turn, reported plaintiff’s complaint to ownership.

    Ownership decided to fire the supervisor for other misconduct. In firing the supervisor, however, ownership told him that he was being fired in part due to complaints by plaintiff of sexual harassment. After being fired, the supervisor alleged – for the first time – that plaintiff had sexually harassed him. Ownership decided to investigate the fired supervisor’s allegations.

    Plaintiff was fired in March 2022. Her termination came within days of participating in the sexual harassment investigation.  

  • Plaintiff's Contentions:

    That defendants retaliated against plaintiff after her complaints of sexual harassment by her supervisor and for complaining of being forced to work off the clock. That plaintiff was wrongfully terminated from her job.

    At trial, expert testimony alleged that defendants’ supposed investigation into sexual harassment by plaintiff was incomplete, biased, and motivated by defendants’ desire to protect themselves against potential liability, not to determine the truth.

     

  • Defendant's Contentions:

    Defendants denied that plaintiff was misclassified, denied she was subjected to sexual harassment, denied she was wrongfully terminated and denied that she sustained any damages.

    The fired supervisor testified at trial that he made the allegations against plaintiff because he was sad that he had been terminated, and that plaintiff was not telling the entire story. The supervisor testified that the conduct between himself and plaintiff was friendly and joking, and that at the time he did not believe it was sexual harassment. Other employees testified that they had never observed either the supervisor or plaintiff sexually proposition or harass the other person. 

    Per defense counsel:

    Plaintiff never reported the alleged sexual harassment.  When the company discovered the allegations from a third party, it initiated an investigation and terminated the supervisor. Plaintiff only testified to three incidents of verbal sexual harassment, but only reported two of the incidents during the investigation. After being fired, the supervisor alleged that plaintiff had sexually harassed him, was trying to get him fired, and created a hostile work environment. Ownership discovered evidence that plaintiff was, in fact, trying to get him fired and that she had created a hostile work environment. During the investigation, the investigators found a text message from plaintiff to the supervisor that was sexually suggestive. The investigators asked plaintiff if she had sent a sexually suggestive text message to the supervisor and she denied ever sending it, even though the investigators had the evidence.

Injuries and Other Damages

  • Physical Injuries claimed by Plaintiff:

    Plaintiff was denied overtime wages, denied meal/rest breaks, and suffered substantial economic loss by virtue of her termination. She proved ongoing and future economic loss caused by her wrongful termination, and substantial emotional distress resulting from defendants' conduct.

Special Damages

  • Special Damages Claimed - Past Lost Earnings: $67,809
  • Special Damages Claimed - Future Lost Earnings: $486,319

Demands and Offers

  • Plaintiff Final Demand before Trial: $1,000,000
  • Defendant Final Offer before Trial: $60,000, exclusive of attorneys’ fees.