File a frivolous law suit - pay the price

Daniel Krofta and Mary Katz must have thought that they had hit the jackpot when they hooked up with the law office of Knapp Petersen & Clarke.

 

Instead they now collectively owe almost $300,000 in legal fees to their former employer and some of their fellow former co-workers may find themselves in the same boat.

 

Their dilemma arose when they decided to sue AirTouch Cellular on the grounds that they were not paid for attending mandatory meetings.  Under California's Labor Code, if you only make minimum wage, you are entitled to supplemental pay for such meetings.  In this case, both Krofta and Katz made more than minimum wage, so the judge dismissed their cases. 

 

Krofta and Katz's became liable for the legal costs of AirTouch Cellular because some sections of the California Labor Code allow the employer to receive reimbursement for attorney’s fees if they win their case.  The court determined that it was one of those sections that allow for employer reimbursement that controlled the former employees' complaint.

 

This may seem unfair to the downtrodden employee fighting for fair compensation until you consider that there are some sections of the Labor Code that state that, even if the employee wrongfully sues their former employer, only the employee has the right to be reimbursed for their legal costs.

 

The court allocated $146,000 in fees against Krofta and $140,000 in fees against Katz.

 

AirTouch could have walked away, satisfied with their victory, and not sought reimbursement of their costs.  But what better way to fend off future unmerited law suits than to let current and future employees know that if they dance to the music they'll have to pay the band.

 

The lesson:  Employees should not expect to put their employer through the expense of a law suit and not have to pay the cost (literally and figuratively).

 

Disclaimer:

This site was established to provide information about the law, designed to educate users about issues in which they may have an interest. But legal information is not the same as legal advice -- the application of law to an individual's specific circumstances. Although I go to great lengths to make sure the information provided is accurate and useful, I recommend you consult a lawyer if you want professional assurance that the information, and your interpretation of it, is appropriate to your particular situation.