Raymond v. Flynt

2010 WL 3751524 (2010)

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Raymond v. Flynt

California Court of Appeal
2010 WL 3751524 (2010)

Facts

Raymond was hired as an executive assistant for two executives at the company L.F.P., Inc., owned by Larry Flynt (defendants). L.F.P. published adult and nonadult content such as Hustler Magazine. Upon being hired, Raymond signed a mandatory-arbitration provision, agreeing that any dispute would be submitted to arbitration rather than subject to litigation. The arbitration agreement included a judicial-review clause stating that a judicial court may review the arbitration award and enter a judgment thereupon. Raymond alleged that during her employment, she was subjected to sexual harassment. Specifically, Raymond alleged that she was required to participate in a scheme designed to warn Flynt when his wife was coming so that she would not see the sexual escapades he was entertaining in his office. Raymond also alleged that Flynt made a handful of sexually suggestive remarks or comments in the years she worked for him. L.F.P. ultimately fired Raymond for breaching confidentiality requirements. As a result, Raymond filed suit for sexual harassment. The trial court granted Flynt’s motion to compel arbitration. The arbitrator found in favor of Raymond and concluded that Flynt created a hostile work environment. The arbitrator further awarded Raymond $175,000 in compensatory damages and a total of $750,000 in punitive damages based on a finding of actual malice. Flynt moved for the trial court to vacate the arbitration award, which was denied. On appeal, Flynt argued that the arbitrator’s factual findings did not constitute sexual harassment as a matter of law. The appellate court remanded the case to the trial court and limited its review of the arbitration award to errors of law or legal reasoning. On remand, the trial court held that Flynt’s conduct constituted sexual harassment because it was based on Raymond’s gender and was severe and pervasive. Flynt appealed.

Rule of Law

Issue

Holding and Reasoning (Johnson, J.)

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