In this case, the Court of Appeal reaffirmed the principle that an employee's tort claim is not separately actionable against an employer when it is premised upon the same conduct that gave rise to the termination...

United States California Employment and HR

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$2.16 Million Defamation Verdict Is Voided On Appeal

Hearn v. Pacific Gas & Elec. Co., 108 Cal. App. 5^th 301 (2025)

In this case, the Court of Appeal reaffirmed the principle that an employee's tort claim is not separately actionable against an employer when it is premised upon the same conduct that gave rise to the termination of employment and where the damages sought are solely related to the loss of employment. The Court relied upon case law going back as far as Foley v. Interactive Data Corp., 47 Cal. 3d 654 (1988), which delineates the ability of an employee to recover tort damages.

Todd Hearn went to trial on claims for (1) retaliation in violation of section 1102.5 of the California Labor Code and (2) defamation. Hearn's former employer (PG&E) terminated Hearn based on findings from an investigation into various violations of the employee code of conduct. At trial, the jury found against Hearn on the retaliation claim but found in his favor on the defamation claim, awarding him $2.16 million in compensatory damages. The jury specifically found that the investigative report that resulted in Hearn's termination was the source of the purportedly...

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