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Zweizig v. Nw. Direct Teleservices Inc.

Citation: 331 F. Supp. 3d 1173Docket: No. 3:15-cv-02401-HZ

Court: District Court, D. Oregon; July 25, 2018; Federal District Court

Narrative Opinion Summary

In a case concerning retaliation and emotional distress, the plaintiff, a former IT director, pursued claims against his former employer and an individual defendant, alleging retaliation through a blog post following an arbitration victory for whistleblower retaliation. The jury awarded the plaintiff $1,000,000 in noneconomic damages, which the court later capped at $500,000 as per ORS 31.710. The defendant sought a new trial, citing errors in jury instructions, improper closing arguments, and insufficient evidence, all of which the court rejected. The court found no significant misconduct or prejudice that warranted a new trial, emphasizing the discretionary nature of such decisions. Additionally, the court addressed issues of statutory interpretation and constitutionality, affirming the applicability of the damage cap to emotional distress claims. The court found the capped award substantial under the Oregon Constitution, rejecting the defendant's objections and motion to set aside the judgment. Ultimately, the plaintiff's request for attorney's fees was granted, and the parties were instructed to submit a joint proposed judgment.

Legal Issues Addressed

Application of ORS 31.710 to Emotional Distress Claims

Application: The court applied the statutory cap on noneconomic damages, finding that ORS 31.710 covers emotional distress claims within its scope.

Reasoning: The Court finds in favor of the Defendant, ruling that the statute's application is constitutional.

Constitutionality of Oregon's Noneconomic Damages Cap

Application: The court upheld the $500,000 cap as constitutional under the Oregon Constitution, stating the amount remains substantial.

Reasoning: The Court supports the Defendant's position, referencing the Oregon Court of Appeals case, Vasquez v. Double Press Manufacturing, Inc.

Jury Instruction Objections

Application: Defendant's failure to object to jury instructions during trial precluded claims of error on appeal, aligning with Federal Rule of Civil Procedure 51.

Reasoning: Defendant also sought a new trial based on allegedly flawed jury instructions but failed to object to these instructions during the trial.

Retaliation Claims and Emotional Distress Damages

Application: The court affirmed a $1,000,000 jury award for noneconomic damages due to emotional distress caused by a retaliatory blog post, later capping the award at $500,000 in accordance with statutory limits.

Reasoning: Plaintiff alleged that Rote's blog about the arbitration constituted retaliatory action... resulting in a $1,000,000 award for noneconomic damages to Plaintiff.

Standards for Granting a New Trial

Application: The court denied the motion for a new trial, emphasizing the trial court's discretion and finding no pervasive misconduct or error that warranted a new trial.

Reasoning: The Court denied the motion for a new trial but capped the noneconomic damages award in accordance with ORS 31.710.