Money BagIn a recent lawsuit before the Superior Court of New Jersey in Hudson County, a jury unanimously awarded $2.1 million in punitive damages to a hospital lab technician after finding his employer retaliated against him for having reported “improper blood bank staffing and management procedures” in violation of New Jersey’s Conscientious Employee Protection Act (CEPA), N.J.S.A. § 34:19-1, et seq. This blog posting summarizes the allegations in Doculan v. Bayonne Medical Center, No. HUD-L-6670-10 (Law Div. May 7, 2013).  This verdict is yet another wake-up call for employers faced with whistleblower claims.

Background.  Defendant Bayonne Medical Center (BMC) employed Plaintiff Ceferino Doculan, Jr. as a generalist medical technologist for nearly two decades. Doculan allegedly made several complaints to hospital management, the human relations department and the director of the laboratory department regarding unlawful staffing practices at BMC. Doculan also allegedly reported that his new supervisor lacked credentials required by law and that she misrepresented her previous work experience as a blood banker. After making these complaints, Doculan claimed that he was “repeatedly disciplined” without cause, and ultimately terminated on September 20, 2010. Shortly after his termination, Doculan filed his CEPA claim in state court, maintaining that BMC took adverse action against him for blowing the whistle.

Jury verdict.  On May 7, 2013, a unanimous jury awarded Doculan $80,000 for lost wages, $60,000 in pain and suffering, and, significantly, $2.1 million in punitive damages. (Although New Jersey law, N.J.S.A. 2A:15-5.14(c), caps punitive damages at five times the amount of compensatory damages or $350,000, whichever is greater, it exempts CEPA.) BMC has stated that it plans to appeal the verdict.

Implications.  This award highlights the serious risks NJ employers face under the CEPA.  And for multi-state employers, this verdict exhibits the recent national trend of juries awarding multi-million dollar judgments in favor of whistleblowers. Accordingly, employers must carefully review and refine their whistleblower policies and attendant practices.

Posted in State-Specific Whistleblower Claims
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Photo of Steven J. Pearlman Steven J. Pearlman

Steven J. Pearlman is a partner in the Labor & Employment Law Department and Co-Head of the Whistleblowing & Retaliation Group and the Restrictive Covenants, Trade Secrets & Unfair Competition Group.

Steven’s practice covers the full spectrum of employment law, with a particular…

Steven J. Pearlman is a partner in the Labor & Employment Law Department and Co-Head of the Whistleblowing & Retaliation Group and the Restrictive Covenants, Trade Secrets & Unfair Competition Group.

Steven’s practice covers the full spectrum of employment law, with a particular focus on defending companies against claims of employment discrimination, retaliation and harassment; whistleblower retaliation; restrictive covenant violations; theft of trade secrets; and wage-and-hour violations. He has successfully tried cases in multiple jurisdictions, and defended one of the largest Illinois-only class actions in the history of the U.S. District Court for the Northern District of Illinois. He also secured one of only a few ex parte seizures orders that have been issued under the Defend Trade Secrets Act, and obtained a world-wide injunction in federal litigation against a high-level executive who jumped ship to a competitor.

Reporting to boards of directors, their audit committees, CEOs and in-house counsel, Steven conducts sensitive investigations and has testified in federal court. His investigations have involved complaints of sexual harassment involving C-suite officers; systemic violations of employment laws and company policies; and fraud, compliance failures and unethical conduct.

Steven was recognized as Lawyer of the Year for Chicago Labor & Employment Litigation in the 2023 edition of The Best Lawyers in America. He is a Fellow of the College of Labor and Employment Lawyers.  Chambers describes Steven as an “outstanding lawyer” who is “very sharp and very responsive,” a “strong advocate,” and an “expert in his field.” Steven was 1 of 12 individuals selected by Compliance Week as a “Top Mind.” Earlier in his career, he was 1 of 5 U.S. lawyers selected by Law360 as a “Rising Star Under 40” in the area of employment law and 1 of “40 Illinois Attorneys Under Forty to Watch” selected by Law Bulletin Publishing Company. Steven is a Burton Award Winner (U.S. Library of Congress) for “Distinguished Legal Writing.”

Steven has served on Law360’s Employment Editorial Advisory Board and is a Contributor to Forbes.com. He has appeared on Bloomberg News (television and radio) and Yahoo! Finance, and is regularly quoted in leading publications such as The Wall Street Journal.

The U.S. Chamber of Commerce has engaged Steven to serve as lead counsel on amicus briefs to the U.S. Supreme Court and federal circuit courts of appeal. He was appointed to serve as a Special Assistant Attorney General for the State of Illinois in employment litigation matters. He has presented with the Solicitor of the DOL, the Acting Chair of the EEOC, an EEOC Commissioner, Legal Counsel to the EEOC and heads of the SEC, CFTC and OSHA whistleblower programs. He is also a member of the Sedona Conference, focusing on trade secret matters.

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