CEPA award does not automatically entitle the plaintiff to punitive damages.

The plaintiff filed a CEPA claim alleging illegal activity by a co-worker. The claim proceeded to trial, and the jury found that the plaintiff's discharge was in retaliation for her whistle-blowing activity. The jury awarded the plaintiff compensatory damages of $126,000, even though it was stipulated that the plaintiff's wage loss was only $35,000. The jury also awarded $300,000 in punitive damages. The court then awarded the plaintiff $600,000 in attorney's fees. On a post-trial motion, the trial judge concluded that the jury verdict on punitive damages was improper and voided that part of the award. In reaching this conclusion, the judge held that the evidence, while sufficient to sustain a CEPA claim, did not surmount the clear-and-convincing standard for punitive damages.

Case Law Alert - 1st Quarter 2013