VISALIA, Calif. — The $194 million Tucoemas Federal Credit Union is continuing to appeal a punitive damage award that the California courts have made to a prior employee, according to a local press account.
The case pitted the credit union and its CEO, Linda Reese, against former employee Kim McGee. McGee had been diagnosed with breast cancer in 2003 and sued the CU in 2005 under the charge that Tucoemas leadership had discriminated against her when they demoted her and then pressured her to quit.
A jury agreed with McGee and awarded her $1.2 million in punitive damages as well as additional funds in actual damages, which have been paid.
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The court also awarded McGee $7,000 in punitive damages from Reese. A story in the Visalia Times Delta reported that neither punitive award has been paid so far.
Tucoemas appealed on the grounds that, as a federally chartered credit union and thus a federal "instrumentality" it should be immune from punitive damages. But the 5th District Circuit Court of Appeals disagreed and upheld the award, lecturing the CU on its behavior in its decision.
The CU is appealing the Court of Appeals decision to the California Supreme Court. Lawyers for both sides have yet to become available to comment on the matter.
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