Schoen v. FREIGHTLINER LLC

Rule of Law:

An employer can be held liable for intentional infliction of severe emotional distress (IIED) where a sustained, repetitive course of demeaning and humiliating conduct toward an injured employee, especially when ratified by management, collectively rises to the level of 'outrageous conduct' beyond socially tolerable bounds, considering the special employer-employee relationship and the employee's vulnerable status.

Facts:

• Plaintiff began working for Defendant Manufacturer in 1988 and later sustained a work-related shoulder injury requiring surgery in July 2003.
• Upon her return to light-duty work with severe medical restrictions in October 2003, Jennifer Marple, a clerical worker at the nurse's station, was instructed via email to not assign Plaintiff any meaningful work.
• Marple, with occupational health nurse Rosemary Rasmussen nearby, subjected Plaintiff to daily verbal abuse, calling her "worthless" and "Ms. Thing," and assigned her tasks that violated her medical restrictions or were humiliating, like selling snacks and collecting illegal football bets.
• Marple also forced Plaintiff to perform personal errands and threatened her with even more degrading jobs, such as picking up garbage or sitting at a "table of shame," if she complained.
• Plaintiff repeatedly reported her mistreatment and sought productive work from her former supervisor, Mike Calkins, who was told by HR manager Trudy Houghton to "butt out" of Plaintiff's assignments.
• Marple and Rasmussen often pulled Plaintiff from available light-duty production work, sometimes making her sit idle for entire eight-hour shifts.
• In late February 2004, after five months of abuse, Plaintiff confronted HR manager Trudy Houghton, who, smiling, told Plaintiff, "Nobody wants you. You’re worthless," causing Plaintiff to become hysterical and seek psychiatric care.

Procedural Posture:

• Plaintiff commenced this action on March 10, 2004, asserting claims for workers’ compensation discrimination and intentional infliction of severe emotional distress (IIED).
• Plaintiff filed an amended complaint alleging entitlement to punitive damages for both claims.
• Defendant moved for a directed verdict on plaintiff’s claims at the close of her case-in-chief, which the trial court (court of first instance) denied.
• Defendant renewed the motion for directed verdict at the close of all evidence, and the trial court again denied it.
• The trial court granted defendant’s motion to strike the punitive damages claim.
• The case was submitted to a jury, which found in defendant’s favor on the discrimination claim but found for plaintiff on the IIED claim, awarding $250,000 in damages.
• Defendant filed a motion for judgment notwithstanding the verdict (JNOV) or, alternatively, for a new trial, which the trial court denied.
• The trial court entered a judgment reflecting the jury’s verdict.
• Defendant (appellant) appealed the denial of its motion for a directed verdict on the IIED claim to the Oregon Court of Appeals.