LOS ANGELES (Legal Newsline) - An employee of a hologram production company will get to keep his $6 million punitive damages award after alleging he was retaliated against over safety concerns at a Los Angeles theater.
California's Second Appellate District ruled for Karl Zirpel on July 14 in his lawsuit against Alki David Productions. Zirpel took a stand against renovations on a Hollywood Boulevard theater he felt were dangerous and was shouted down by David, who was hoping to have the theater ready for a hologram event in September 2017.
The decision noted hazards like plywood being used to cover exposed electrical wires on the theater's walls. The plywood was painted black and covered with drapes. When Zirpel had had enough and suggested the theater not open on David's target date, David told him to "go with the program."
Ultimately, Zirpel refused, and David called him a homophobic slur and yelled at him to "suck my d---." Zirpel never returned to work.
A Los Angeles jury found ADP had terminated his employment and retaliated against him, awarding him $368,717 in economic damages and $700,000 in non-economic damages. A punitive damages phase of the trial was held Oct. 6, 2021, and the jury awarded $6 million more.
ADP argued on appeal that Zirpel's continued installation of the hologram equipment would not have violated any law, that the trial court wrongly found construction work was unlawful and the punitive damages award was unconstitutionally excessive.
All arguments were rejected. The 6:1 ratio of punitive-to-compensatory damages falls under a maximum 10:1 ratio issued by the California Supreme Court in a previous case, the decision says.
"The facts and circumstances here, moreover, support the jury's award," it adds. "David berated and verbally abused Zirpel.
"While doing so, David stood inches away from Zirpel, so close that his spittle flew into Zirpel's face. David's verbal abuse was laced with obscenities and homophobic epithets.
"To increase the humiliation, David berated Zirpel in front of his coworkers. Zirpel, who had not revealed his sexual orientation to his coworkers, was traumatizd by David's behavior. The most reprehensible aspect of David's conduct was firing an employee for standing up for the safety of invitees to the event."