ERICKSON V. MARSH & MCLENNAN CO., INC.
569 A.2d 793 (1990)
NATURE OF THE CASE: Erickson (P) appealed a reversal of a jury verdict in favor of P on
his reverse sex discrimination claim and his libel judgment.
FACTS: Erickson (P) claims he was the victim of sexual discrimination in that his
employer, Marsh (D) discharged him because of a romantic consensual relationship between his
supervisor and a female employee. In May 1982, the company transferred P to the Commercial
Accounts Department as an account executive. P asserts that this transfer was a promotion
because an account executive enjoys a higher job category than account representative. D
testified that P had been unilaterally transferred from the largest and most prestigious
department to a smaller and less prestigious department, at the same salary, because he had
failed to grasp certain technical aspects of his job. D met with P to discuss sexual
harassment allegations made against him. P eventually contested the accusations. On May 2,
1983, D prepared a formal appraisal of P as 'acceptable' and 'inadequate.' P claimed the
alleged deficiencies contained within the report were never brought to P's attention since
the inception of my employment D. Nowhere within the report is there any mention, nor is it
implied, that P had been previously advised of said alleged deficiencies. D then terminated
P. P sought employment with other insurance-brokerage firms. In response to reference
requests from D, D wrote: John left our operation because his level of expertise and areas
of interest in insurance did not match the depth required for the proper service of [M & M]
clients. John does possess a general knowledge of commercial insurance and is well known
among the insurance markets. If these are qualities you are seeking for your Account
Executive position, we would recommend John Erickson to you. P sued D for sexual harassment
in that he was wrongfully accused of sexual harassment so that a superior, could promote a
woman, whom the superior had been romantically involved. P also charged that D's responses
to his prospective employers had been libelous. A jury found D liable of wrongful discharge
in violation of public policy, wrongful termination based on sex discrimination in violation
of LAD, and libel. A jury awarded P $250,000 in compensatory damages and $750,000 in
punitive damages. The Appellate Division reversed the trial court, and entered judgment in
favor of D on all claims. P appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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