Carrie Gallagher vs. City of West Covina

Case Background

On February 24, 2021, Carrie Gallagher filed a wrongful termination lawsuit against the City of West Covina alleging retaliation violating Labor Code Section 1102.5. This case was filed in the California Superior Court, Los Angeles County. Judges Maurice A. Leiter and Michelle Williams Court presided over this case. [Case number: 21STCV07298]

Cause

Plaintiff Carrie Gallagher, also known as Ms. Gallagher, lived in San Diego County, California, and worked in Los Angeles County. She began her role as Assistant City Clerk with the City of West Covina in January 2019, managing the City Clerk’s Office and overseeing its staff. Her duties included acting as the municipal clerk and serving as the City’s Election Official.

On December 5, 2019, the City of West Covina terminated Ms. Gallagher’s employment. She believed this was due to retaliation for her refusal to engage in activities she thought were illegal, reporting these concerns to City Manager David Carmany, and directing her staff to comply with a subpoena. Additionally, she stopped researching Mr. Carmany’s financial matters, which she felt interfered with her job.

Ms. Gallagher’s role required her to remind City Council members, including Jessica Shewmaker, to complete mandatory Ethics and Harassment training. She faced hostility from Ms. Shewmaker and was later ordered by Mr. Carmany not to contact Council members directly, removing a crucial part of her duties.

When Ms. Gallagher was hired, she was informed she needed to work 40 hours a week but was not required to be at her desk at a specific time. However, Mr. Carmany insisted she be present by 7:30 a.m., contrary to her agreement.

Mr. Carmany asked Ms. Gallagher to research a loan against his 457 Account, a task outside her job description. He pressured her to continue this work during office hours, despite her concerns about its impact on her duties.

Ms. Gallagher had to manage initiatives for the ballot, and when Mr. Carmany proposed an inappropriate delivery method, she refused and suggested a police escort instead. Following this, Mr. Carmany told her to remove controversial items from the City Council agenda, leading to tension and threats from Mr. Duarte, the City Attorney.

After layoffs reduced her support staff, Ms. Gallagher faced an unmanageable workload. She continued encountering difficulties with ballot Resolutions, ultimately resulting in her dismissal three days after a positive performance review, which Mr. Carmany did not sign.

Damages

Due to the alleged wrongful termination, the Plaintiff suffered significant mental and emotional harm. This included mental pain, loss of enjoyment of life, inconvenience, anxiety, and humiliation. The Plaintiff also endured anguish, worry, shame, mortification, fear, and loss of confidence, resulting in emotional distress.

Additionally, due to Defendant’s actions, Plaintiff needed medical care and incurred related expenses. These costs covered healthcare services, supplies, medications, and other necessary treatments.

The Plaintiff also faced economic losses due to the Defendant’s conduct. This included lost income, wages, earnings, fringe benefits, and reductions in her Public Employment Retirement System (PERS) vesting. The Plaintiff sustained both past and future financial damages.

Moreover, the Plaintiff sought prejudgment interest as allowed under California Civil Code Section 3287 or any other relevant legal provision.

Key Arguments and Proceedings

Legal Representation

  • Plaintiff(s): Carrie Gallagher
    • Counsel for Plaintiff(s): Robert S. Brown | Sa’id Vakili | Jason C. Ming
  • Defendant(s): City of West Covina
    • Counsel for Defendant(s): Thomas M. O’Connell | Christina M. Morgan | Adam Smith

Claims

The Plaintiff claimed unlawful retaliation by the City of West Covina and Does 1 to 25 under Labor Code Section 1102.5. The statute protects employees from retaliation for disclosing information about potential legal violations to authorities or their employers, regardless of whether reporting such information is part of their job duties.

Gallagher alleged that she engaged in protected activities by reporting her supervisor’s advice to violate California Election law and by stopping research on personal financial matters for her supervisor, which she believed was not part of her job and constituted time theft. The Plaintiff’s actions, including directing staff to comply with a valid subpoena and halting personal errands for her supervisor, were considered legally protected activities under Labor Code Section 1102.5 and Section 1102.6.

Defense

Defendant City of West Covina answered Plaintiff Carrie Gallagher’s wrongful termination complaint with a general denial.

In its affirmative defenses, the Defendant argued that Gallagher should reduce her recovery because she failed to mitigate damages. The Defendant also claimed that Gallagher’s at-will employment barred some of her claims. Additionally, Defendant asserted that it performed all actions in good faith and based on reasonable grounds.

The Defendant maintained that any conduct complained of was a proper exercise of management discretion and was not retaliatory. They also contended that decisions made were for legitimate business reasons and were not discriminatory. Furthermore, Defendant argued that Gallagher failed to perform her job duties as required.

The Defendant sought judgment for dismissal of the Complaint with prejudice, costs, attorney’s fees, and any other relief deemed appropriate by the Court.

Jury Verdict

On March 15, 2024, a twelve-panel California jury returned a defense verdict in this wrongful termination case. The jury determined that Plaintiff Carrie Gallagher’s refusal to participate in an activity she believed to be a violation of a rule, statute, or regulation was a contributing factor in the City of West Covina’s decision to terminate her. However, the jury also found that the City of West Covina would have discharged Gallagher anyway for independent and legitimate reasons.

On June 10, 2024, Hon. Maurice A. Leiter entered a judgment on the special verdict stating that Plaintiff Carrie Gallagher shall have and recover nothing under this action against Defendant City of West Covina.

Court Documents:

Available upon request