By Cathleen S. Yonahara, Freeland Cooper & Foreman LLP
An appellate court in California recently upheld a jury verdict of $3.2 million in compensatory damages and $13 million in punitive damages awarded to a former Staples employee who claimed he was a victim of age discrimination. And what started it all? The alleged theft of a bell pepper valued at 68 cents.
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Can Nickel Be Fired Over 68 Cents?
Bobby Dean Nickel had worked for 7 years at Corporate Express, an office supply company catering business, when it was purchased by Staples, Inc., and renamed Staples Contract and Commercial, Inc. He managed the physical plant at the fulfillment facility in La Mirada and was responsible for general repair and maintenance, equipment maintenance, and security.
In 2007, Nickel began reporting to a new manager, Lionel Marrero, who was on a mission to cut costs at the La Mirada facility by replacing higher-paid, older employees with younger, part-time or temporary employees. He allegedly accomplished that by increasing the workload for older employees, forcing them into retirement, or writing them up for errors or ethical violations to create a basis for termination.
Nickel had positive reviews throughout his employment at Corporate Express and Staples, except for two write-ups in 2009 at Marrero’s direction. In 2011, Staples terminated him for allegedly stealing a bell pepper from the La Mirada cafeteria.
Nickel explained that he entered the cafeteria after hours to check whether the refrigerators were working properly, and a salad fell on the floor when he opened the refrigerator. He ate the bell pepper and threw out the rest of the salad. He planned to pay for it later in accordance with accepted company practice.
On three previous occasions, Nickel had taken drinks from the cafeteria after hours and paid for them later. He claimed in a written statement that he forgot to pay for the 68-cent bell pepper, but he later testified at deposition that he paid for the pepper.
Nickel sued Staples for age discrimination. The jury awarded him $3.2 million in compensatory damages and $22.8 million in punitive damages. The court reduced the punitive damages to $13 million and entered judgment for $16,317,080. Staples appealed.
Read on to see why Staples’ appeal failed—and the bottom line for employers.