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Verdicts

By ALM Staff | Law Journal Newsletters |
March 27, 2007

Whistleblowers

A Madera County, CA, jury awarded $25 million to two employees who claimed they suffered retribution after blowing the whistle on their employer's insurance fraud. Valladares v. Madera Quality Nut Inc., Superior Court of Madera County, Madera, CA , 09-26-2006

Shortly after a fire at the Madera Quality Nut Co. in 2003, plaintiff Ramon Delgadillo, a forklift operator in the quality control department, was instructed to place pallets of unusable nuts in with the pallets of fire-damaged nuts. He complied, but then he and two others complained to management, the insurance company and the state department of insurance that the company over-reported product damage. Subsequently, each of them was either demoted, suspended or fired. They sued Madera and its parent company claiming that they were wrongfully terminated or demoted in retaliation. The jury awarded $25,208,100 in compensatory and punitive damages to two of the three employees. The $25 million in punitive damages was later reduced to $1.25 million.

Whistleblowers

A Madera County, CA, jury awarded $25 million to two employees who claimed they suffered retribution after blowing the whistle on their employer's insurance fraud. Valladares v. Madera Quality Nut Inc., Superior Court of Madera County, Madera, CA , 09-26-2006

Shortly after a fire at the Madera Quality Nut Co. in 2003, plaintiff Ramon Delgadillo, a forklift operator in the quality control department, was instructed to place pallets of unusable nuts in with the pallets of fire-damaged nuts. He complied, but then he and two others complained to management, the insurance company and the state department of insurance that the company over-reported product damage. Subsequently, each of them was either demoted, suspended or fired. They sued Madera and its parent company claiming that they were wrongfully terminated or demoted in retaliation. The jury awarded $25,208,100 in compensatory and punitive damages to two of the three employees. The $25 million in punitive damages was later reduced to $1.25 million.

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