ALBERTO TORRES NAVARRO

PRASASTI CHANDRA ABADI

ANNE WIJNBERGEN

SUMMARY

The Kroger Company acquired the Ralphs Grocey chain in 1998. The company had a zero tolerance policy for sexual harassment. In april 2002, the company would have to pay compensatory and punitive damages totaling $30 millions, the second largest sexual harassment vey, veredict in the history of the US, for the actions of Roger Misiolek, a Ralphs store manager accused of harassing six female employees at a Ralphs supermarket, during 1995 and 1996.

Women claimed that Misiolek touched them inappropriately, verbally abuses, grabbed, hugged, and patted them, the women submitted evidence showing that more than 80 harassment complaints had filed against Misiolek

In 1996, when some event came to a head, the company disciplined Misiolek and transferred him to another Ralphs store, where he supervised 80 store employees. After that, female employees and customers there allegedly again complained about him.

On June 1, 1998, the jury awarded the six woman $550.000 in compensatory damages and $3.325 million in punitive damages. California Judge, who presided over the trial, discovered that one of the jurors was a shareholder of Ralphs Grocery Company. Ralphs asked that the case be retried and 6 women and their lawyers would have to return to court to retry the penalty phase of the trial.

14 months after Kroger acquired Ralphs, the company finally suspended Misiolek.

The case took place in 2002 and concluded on April 5, 2002, whe the jury announced that it had awarded each of the six women $550.000 as compensation for emotional damage the harassment had caused them and $5 million in punitive damages, for a total award of $33.3 million.

Woman and their lawyer considered it was not to much compensation because the hight company’s profit. A few months after the trial ended, the verdict of the jurors was a set aside again. The Judge said the $30.6 million exceeded the amount needed to punish Ralphs and to deter other companies from doing the same in the future. Judge concluded by reducing the $30.6million award to $8.25 million.

The judge gave 6 women 10 days to make up their minds whether to accept his reduced award, or he would order a new trial.

On July, 2002, 2 of women, agreed to accept the judged’s reduced award and the other 4 women decided to reject the smaller awards and to return to the courtroom for yet another trial. After 10 years, have not yet received a penny in compensation, to continue to wait.

QUESTIONS AND ANSWERS

1. Do you belive that the judge is right in hiding that the company as a whole should not be held responsible for his actions? Should the company be held responsible for policies that prevent complaints from reaching headquarters?

No, I think is wrong. The company is responsible for the damages, and it continued to maintain the employee in the company, despite being aware of the facts. This is a very serious situation that should have been solved.

2. What kind of penalty do you believe would be appropriate for Ralphs? In your view, was the $33,3 million penalty excessive? Explain

Judge should not only penalize the Kroger with money penalty but judge have to give a

strict sanction by non activate the store.No, it’s too excessive, $33.3 million penalty is to much money.

3. Should Kroger have to pay for events that happened before it took over the chain of supermarkets?

I think Kroger should have to pay for events that happened before it took over chain of supermarkets because currently is the owner, so have to be responsible .

4. Many states adopt federaI rules that place a cap of $300000 on punitive damages in harassment cases. Is such a cap a good idea from an ethical point if view? Explain

I think there should be unity of laws in a country for which there is no difference between citizens of one country, is a very important point that all citizens have equal rights.

5. What can a company do to make sure that a situation like Misiolek’s does not occur? Why do you think Ralphs allowed Misiolek to continue managing stores?

It was proven beyond reasonable doubts by the courts that Roger Misiolek , a manager at Ralph 's Escondido store , sexually harassed six employees with unwelcome touching , and suggestive and vulgar remarks . When the victims complained , management responded by transferring women to different locations . Mr . Misiolek was not penalized by the company for his action , apparently because he boosted profits at his managed stores .