Suit against automobile association can proceed

0 Comments | Oakland Tribune, Oct 11, 2006 | by Jason Dearen, STAFF WRITER

OAKLAND -- An Alameda County Superior Court judge has denied the California State Automobile Association's request to throw out a discrimination lawsuit filed by seven former employees.

The employees claim CSAA fired them because the association wanted to discourage the sale of auto insurance in non-English speaking communities.

In her ruling, Judge Winifred Smith wrote that evidence was presented that showed the "CSAA was motivated to terminate (insurance) agents who served Chinese customers" because the association "perceived that insuring the Chinese-American community was not profitable."

The plaintiffs' attorney, J. Gary Gwilliam, said the effect of discouraging the sale of auto insurance to certain communities is discriminatory because owning insurance is mandatory by state law.

Gwilliam argues CSAA's practices in firing agents in order to deny auto insurance to non-English speaking communities is particularly egregious.

"(The agents) were falsely accused of misrepresentation and dishonesty. ... CSAA should be liable for significant punitive damages for its intentional violation of laws prohibiting discrimination against employees as well as against their own ... customers," Gwilliam said.

The seven plaintiffs are all minorities, except for one white male, Wayne Deshera. The lawsuit argues his dismissal was discriminatory because his clientele is 97 percent Chinese American.

While Smith allowed the discrimination lawsuit to move forward, she dismissed other lawsuits filed by the same plaintiffs that sought damages for defamation and other issues.

CSAA spokeswoman Jenny Mack said the group was pleased Smith dismissed the other lawsuits.

"We were pleased with the rulings in our favor and look forward to presenting our side to the jury at trial. The summary judgment on these factual disputes has resulted in a significantly narrowed case that we believe is without merit. Judge Smith's decision validates a number of the positions we put forward in this case," Mack said in a statement.

A trial has been set for Oct. 20 and the two sides will meet before that date for a settlement conference.

Staff writer Jason Dearen can be reached at jdearen@angnewspapers.com.