Del Medical to pay $2.2M after losing suit filed by former employee

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Court forces Del Global to compensate former Del Medical employee. ource: Del Medical  

Del Global Technologies reported Tuesday that its subsidiary, Del Medical, lost a personal lawsuit in Cook County, Ill., filed by a former employee in 2002. 

On June 28, 2002, Jeffrey N. Moeller, a former employee of Del Medical, filed the suit in Circuit Court of Cook County, Ill., against the company’s medical imaging division and Walter Schneider, the former president of Del Medical.

The Franklin Park, Ill.-based Del said that Moeller’s suit made four claims in the action, for which he was seeking $2.37 million in damages:

  • Retaliatory discharge from employment with Del Medical;
  • Defamation;
  • Intentional interference with his employment relationship with Del Medical with prospective employers; and
  • To hold the company liable for misconduct of Del Medical under “a theory of piercing the corporate veil.”

The court dismissed the part of Moeller’s claim of intentional interference with his relationship with prospective employers on Sept. 15, 2006, according to Del.

After that point, Del said that the trial date was postponed on various occasions at the plaintiff’s request and was rescheduled for April 7 of this year.

On April 17, the Circuit Court jury returned a verdict in favor of Moeller for $1.8 million for lost earnings, back pay, front pay and benefits on the retaliatory discharge claim, $200,000 for emotional distress/reputation damages and 200,000 in punitive damages on the defamation claim, Del reported.

The company said it is assessing the probable loss if the jury verdict is not overturned, and any increase in liability will be recorded as a charge to the company’s earning for the third quarter of fiscal 2008.

“Obviously, we are extremely disappointed with this verdict; however we continue to believe that Del Medical committed no wrongdoing in releasing Mr. Moeller. Furthermore we intend to vigorously pursue available post-trial remedies, including appeal,” said James A. Risher, CEO of Del Global.