Lenk

Lenk v. Total-Western, Inc.

Good Law

108 Cal. Rptr. 2d 34·2001 Cal. App. LEXIS 436·2001 Daily Journal DAR 5783·89 Cal. App. 4th 959·66 Cal. Comp. Cases 711

Court of Appeal of CaliforniaJune 4, 2001F032238California4,100 words

Opinion

Wiseman, J.

Plaintiff and respondent Mike Lenk (Lenk) filed suit against his former employer, defendant and appellant Total-Western, Inc. (TWI), for breach of contract and fraud. In a bifurcated trial, the jury found in favor of Lenk and awarded him $210,320 in compensatory damages, $50,000 in emotional distress damages and $1 million in punitive damages.

In the unpublished portion of this opinion, we reverse that part of the judgment awarding Lenk $210,320 in compensatory damages. We also reverse the punitive damages award, and remand the case for a new trial on those issues. In the published portion of this opinion, we determine the language in an employment agreement relating to a performance review after one year does not constitute a term of employment. We also find that emotional distress damages arising from a claim of fraud in inducing employment are not barred by the workers’ compensation exclusivity doctrine.

I. Procedural and Factual Histories

A. Liability phase

In 1990, ARB Inc. (ARB), a general contractor with several divisions in the construction industry, hired Lenk as a purchasing agent in its Bakersfield, California office. In September 1995, ARB moved its…

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