Unexpected Consequences In Removing Employment Case To Federal Court.

Plaintiff brought a discrimination action against her employer under California’s Fair Employment and Housing Act [FEHA; Government Code section 12900]. Defendant removed the action to federal court on the basis of diversity of citizenship. A jury awarded plaintiff $27,280 for gender discrimination, and the court awarded $697,971.80 for attorney fees. The sole basis of the employer’s appeal was its contention the district court abused its discretion in awarding fees. The Ninth Circuit, in a split decision, affirmed [except for a portion of the fees awarded for paralegal services]. The majority noted the trial court had reduced the amount of fees requested, so that it was clear the trial court recognized it had the discretion to reduce the fee award. Recognizing there was a disparity between the damages recovered and the fees awarded, the majority stated: “We are not convinced that California law requires the trial court to reduced that disparity.” (Muniz v. United Parcel Service, Inc. (Ninth Cir.; December 5, 2013) (Case No. 11-17282) 120 Fair Empl. Prac. Cas. (BNA) 1549.)