Lump Sum Damages: What Happens to Employers?

More often than not, it is the defendant who brings the post-trial motions that follow a jury finding that an employer is liable for employment discrimination. Those motions normally seek, among other things, a new trial, a judicial determination that the evidence did not support the verdict, and/or a remittitur of the damages awarded. Less common are substantive motions brought by the victorious plaintiff, such as a motion for additur, where a damages award larger than that assessed by the jury is sought. That may soon change, as victims of discrimination, bolstered by a new trial court decision from New Jersey, may seek to hold their employer responsible for any increased taxes that he or she may have to pay as a result of winning at trial. Such a tactic has the potential to increase greatly -- perhaps into six figures -- the amount of damages for which the employer found to have discriminated may be liable.