FRESNO, Calif. — The California Court of Appeals for the 5th District has ruled that Federal Credit Unions are not immune from paying punitive damages by virtue of their being federally chartered credit unions.

The decision stems from a 2003 dispute between the $193 million Tucoemas Federal Credit Union, headquartered in Visalia, Calif., and one of its former employees, Kim McGee.

According to the appellate decision, McGee had been the credit union's Vice President of Lending when, in May 2003, she contracted breast cancer at age 43. The situation wound up in court when McGee sued the CU, charging that its leadership had violated the Fair Employment and Housing Act.

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