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Lump Sum Damages: What Happens to Employers?

By David H. Ganz
February 09, 2004

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.

Ferrante v. Sciaretta

In Ferrante v. Sciaretta, N.J. Super. __ (N.J. Law Div. Aug. 14, 2003) (approved for publication, Dec. 5, 2003), the jury returned a verdict in favor of plaintiff Mary Ferrante on her sexual harassment and hostile work environment claims. The jury also found that Ferrante had been constructively discharged. She was awarded $340,659 in economic damages, which included back and front pay. The jury awarded those economic damages in the form of a lump sum payment.

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