Superior Court Ruling Finds Evidence of Discrimination by California State Automobile Association (CSAA) Against Chinese, Hispanic, and Non-English Speaking Communities

OAKLAND, Calif., Oct. 10, 2006 -- The following was released today by: The Law Firm of Gwilliam, Ivary, Chiosso, Cavalli & Brewer

An Alameda County Superior Court Judge denied CSAA's motion for summary judgment in an order filed late October 6, 2006. Defendant CSAA contended there was insufficient evidence to go to trial on the basis of their discriminating against insureds in a wrongful termination case filed by seven CSAA insurance agents who were fired in late 2004. Defendants contended that they had good reason to fire the agents because they allegedly manipulated mileage. The plaintiffs contended that the terminations of those agents were primarily because the agents were all minorities, save one, Wayne Deshera (whose clientele was 97% Chinese American). All of the agents served non-English speaking insureds. The plaintiffs further contended that CSAA had a pattern of discriminating against minority communities and non-English speaking people in the way they write their insurance policies.

The court agreed with the plaintiffs in a ruling that contained exceptionally strong language. The ruling said among other things:

  "Plaintiff presents evidence sufficient to show such weakness,
  implausibilities, inconsistencies, incoherencies, and contradictions in
  CSAA's preferred legitimate reason for its actions that a reasonable fact
  finder would rationally find those reasons unworthy of credence and could
  infer that CSAA was motivated to terminate plaintiffs because of their
  association with Chinese American clients."

The court also found evidence of discrimination against their Hispanic insureds.

The ruling further criticized CSAA for a poor investigation and said it "was designed to arrive at a pre-determined result." The court also found that "the discipline imposed by CSAA in this case was harsh and arbitrary, and not reasonably related to the conduct of which plaintiffs were charged."

  The ruling further concluded "the fact that all seven of the terminated
  agents were serving primarily a non-English speaking client base also
  creates a reasonable inference that the decision to terminate all seven
  agents was motivated in part by a desire to discourage business with
  Chinese-American customers and other non-English speaking groups perceived
  as unprofitable."  The court finally concluded that the evidence raised "a
  reasonable inference of discriminatory motivation such that a reasonable
  trier of fact could conclude that CSAA engaged in intentional
  discrimination."

  The plaintiffs' attorney J. Gary Gwilliam stated as follows:

  "This termination of seven hardworking, long time insurance agents of CSAA
  is particularly egregious.  They were falsely accused of misrepresentation
  and dishonesty.  The termination has caused them all significant economic
  loss and serious emotional distress.  CSAA should be liable for
  significant punitive damages for its intentional violation of laws
  prohibiting discrimination against employees as well as against their own
  insureds and customers."

The case is set for trial on October 20, 2006 in the Alameda County Superior Court. For copies of the ruling or any other documents in the matter, please contact J. Gary Gwilliam, Law Offices of Gwilliam, Ivary, Chiosso, Cavalli & Brewer, at 510-832-5411.

  80085

  DESHERA, et al. v. CSAA, et al.
  Alameda County Superior Court No RG05-239659