Arave v. Merrill Lynch, Pierce, etc.

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Plaintiff-appellant, J. Brent Arave, brought several claims under the California Fair Employment and Housing Act (FEHA) against his former employers, Merrill Lynch, Pierce, Fenner & Smith, Inc. (Merrill Lynch), Bank of America (BoA), his supervisor Joseph Holsinger, and a human resources supervisor, Katherine Anderson (collectively, defendants). He sought to recover damages caused by discrimination, harassment, and retaliation based on his membership in the Church of Jesus Christ of Latter-day Saints. He also sought damages for nonpayment of wages, and whistleblower retaliation. A jury returned a verdict in favor of defendants on all counts that had survived summary judgment and dismissal. The trial court denied Arave’s post-trial motions and awarded defendants, as prevailing parties, costs, expert witness fees, and attorney fees incurred defending against Arave’s wage claim. Arave appealed, alleging numerous alleged evidentiary errors, issues with the trial court’s jury instructions, counsel misconduct, and related claims that he maintained, warranted reversal of the outcome against him. Defendants cross-appealed, contending the trial court abused its discretion when it determined Arave’s FEHA claims were not frivolous and denied them attorney fees on those claims. After careful consideration, the Court of Appeal affirmed the trial court in all respects but two. The Court concluded the trial court erred by awarding $83,642.68 in costs and expert witness fees though it found Arave’s FEHA claims were nonfrivolous, and therefore reversed the order making the award. However, because a portion of the award could be attributable to Arave’s wage claim, and the trial court erred by awarding $97,500 in attorney fees on the wage claim without determining whether that claim was frivolous, the matter was remanded for the trial court to make those apportionments, as appropriate. View "Arave v. Merrill Lynch, Pierce, etc." on Justia Law