Scott

This is a wrongful termination action. Plaintiff Jennifer Scott was employed by defendant Phoenix Schools, Inc. (Phoenix), as the director of its Rocklin, California, preschool. She had the responsibility of assigning personnel to comply with the state regulations that set the minimum teacher-student ratios for childcare centers. (Cal. Code Regs., tit. 22, §§ 101216.3, 101416.5 & 101516.5.)

Phoenix terminated Scott in August 2006, shortly after she informed the parents of a prospective student that the school had no room for their child. Scott sued Phoenix, alleging her termination violated the public policy embodied in the state regulations. She alleged she was terminated for refusing to violate the staffing ratio regulations, the implication being that the admission of the extra child would have resulted in a regulatory violation. After a jury trial, judgment was entered in favor of Scott, awarding her $1,108,247 in compensatory and $750,000 in punitive damages.

Phoenix argues there was insufficient evidence to sustain the jury’s finding that it violated public policy when it terminated Scott, that the trial court erred in refusing to set aside the punitive damages…