Money BagIn a recent lawsuit before the Superior Court of New Jersey in Hudson County, a jury unanimously awarded $2.1 million in punitive damages to a hospital lab technician after finding his employer retaliated against him for having reported “improper blood bank staffing and management procedures” in violation of New Jersey’s Conscientious Employee Protection Act (CEPA), N.J.S.A. § 34:19-1, et seq. This blog posting summarizes the allegations in Doculan v. Bayonne Medical Center, No. HUD-L-6670-10 (Law Div. May 7, 2013).  This verdict is yet another wake-up call for employers faced with whistleblower claims.

Background.  Defendant Bayonne Medical Center (BMC) employed Plaintiff Ceferino Doculan, Jr. as a generalist medical technologist for nearly two decades. Doculan allegedly made several complaints to hospital management, the human relations department and the director of the laboratory department regarding unlawful staffing practices at BMC. Doculan also allegedly reported that his new supervisor lacked credentials required by law and that she misrepresented her previous work experience as a blood banker. After making these complaints, Doculan claimed that he was “repeatedly disciplined” without cause, and ultimately terminated on September 20, 2010. Shortly after his termination, Doculan filed his CEPA claim in state court, maintaining that BMC took adverse action against him for blowing the whistle.

Jury verdict.  On May 7, 2013, a unanimous jury awarded Doculan $80,000 for lost wages, $60,000 in pain and suffering, and, significantly, $2.1 million in punitive damages. (Although New Jersey law, N.J.S.A. 2A:15-5.14(c), caps punitive damages at five times the amount of compensatory damages or $350,000, whichever is greater, it exempts CEPA.) BMC has stated that it plans to appeal the verdict.

Implications.  This award highlights the serious risks NJ employers face under the CEPA.  And for multi-state employers, this verdict exhibits the recent national trend of juries awarding multi-million dollar judgments in favor of whistleblowers. Accordingly, employers must carefully review and refine their whistleblower policies and attendant practices.

Photo of Steven J. Pearlman Steven J. Pearlman

Steven J. Pearlman is a partner in the Labor & Employment Law Department, where he is Head of the Restrictive Covenants, Trade Secrets & Unfair Competition Group and Co-Head of the Whistleblowing & Retaliation Group.

Employment, Restrictive Covenant & Trade Secret, and Whistleblower…

Steven J. Pearlman is a partner in the Labor & Employment Law Department, where he is Head of the Restrictive Covenants, Trade Secrets & Unfair Competition Group and Co-Head of the Whistleblowing & Retaliation Group.

Employment, Restrictive Covenant & Trade Secret, and Whistleblower Practice. Steven’s national practice focuses on defending companies in federal and state courts and in arbitration fora against the full spectrum of employment-related claims, including claims of executives; restrictive covenant violations; employee raiding; theft of trade secrets; whistleblower retaliation under the Sarbanes-Oxley Act, the Dodd-Frank Act and similar state laws; and wage-and-hour violations, including class, collective and PAGA actions.

Steven has successfully handled trials in multiple jurisdictions; prevailed in seeking and defending against applications for temporary restraining orders and preliminary injunctions; defended one of the largest Illinois-only class actions in the history of the federal courts in Illinois (over 90k putative class members); and prevailed following his oral arguments before federal and state appellate courts. He brings his litigation experience (beginning in 1998) to bear in counseling clients to minimize risk and avoid or prepare for success in litigation.

Investigations. Reporting to boards of directors, their audit committees, CEOs and in-house counsel, Steven conducts sensitive investigations and has the unusual experience of testifying in federal court in connection with investigations. His investigations have involved complaints of sexual harassment involving C-suite officers; systemic violations of employment laws and company policies; and fraud, compliance failures and unethical conduct.

Thought Leadership and Accolades. Steven was named Lawyer of the Year for Chicago Labor & Employment Litigation in the 2023 edition of The Best Lawyers in America. He is a Fellow of the College of Labor and Employment Lawyers. Chambers has reported:

  • Steven is “one of the best in the country and has a lot of experience”;
  • Steven is as an “outstanding lawyer” who is “very sharp and very responsive,” a “strong advocate,” and an “expert in his field”;
  • He is thoughtful, attentive and demonstrates an acute understanding of matters top of mind for business-minded general counsel; and
  • “He is someone who can navigate the twists and turns of litigation without difficulty.”

Steven was 1 of 12 individuals selected by Compliance Week as a “Top Mind.” Earlier in his career, he was 1 of 5 U.S. lawyers selected by Law360 as a ”Rising Star Under 40” in the area of employment law and 1 of “40 Illinois Attorneys Under Forty to Watch” selected by Law Bulletin Publishing Company. Steven is a U.S. Library of Congress Burton Award Winner for “Distinguished Legal Writing.”

Steven was appointed to Law360’s Employment Editorial Advisory Board and selected as a Contributor to Forbes.com. He has appeared on Bloomberg News (television and radio) and Yahoo! Finance, and is often quoted in leading publications such as The Wall Street Journal. The U.S. Chamber of Commerce has engaged Steven to serve as lead counsel on amicus briefs to the U.S. Supreme Court and federal circuit courts of appeal.

In 2024, Steven received the Excellence in Pro Bono Service Award from the United States District Court for the Northern District of Illinois and the Chicago Chapter of the Federal Bar Association.

Read more about Steven J. PearlmanEmail
Show more Show less
Photo of Daniel Saperstein Daniel Saperstein
Email