Business Services Industry
Employers have reputations to uphold
Business Insurance, July, 1998 by Bruce, William C.
Recent court decisions demonstrate that companies may be held financially liable for defamation of employees William C. Bruce TWO RECENT DECISIONS in Illinois - one in federal court and one in state court - foretell a possible trend toward intolerance of workplace defamation and a willingness to hold the corporate employer responsible.
In the state case, Gibson vs. Philip Morris Inc., the Illinois Court of Appeals confirmed a trial court judgment and an award of compensatory and punitive damages in favor of the plaintiff, a sales manager, on his complaint of defamation. The plaintiff, Randy Gibson, was awarded $115,000 in lost wages and benefits and $100,000 for personal humiliation and mental suffering. In addition, he was awarded $1 million in punitive damages...
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