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$12.5 Million Jury Verdict In Airline Whistle Blower Case

A Superior Court jury in Oakland, California returned a verdict of over $12.5 million ($12,576,348) on December 14, 2005 against North American Airlines (NAA), a wholly owned subsidiary of World Air Holdings, Inc., for the wrongful termination of an airline captain who blew the whistle on the airline's unsafe maintenance practices.

The plaintiff, Captain Randall Otto, had an impeccable safety record as a U.S. Air Force Command Pilot, with over 1000 hours flown in Desert Storm. Two years after being hired by North American Airlines and four months after he was promoted to captain, he was wrongfully suspended from work after reporting a serious safety violation involving the illegal dispatches of a Boeing 757 with an unresolved flight control problem. Less than one month later, NAA fired him.

Otto filed the law suit for wrongful termination in violation of a public policy. The jury found that NAA terminated Otto in retaliation for whistle blowing about NAA's unsafe and illegal maintenance practices that were compromising the safety of the traveling public.

The six man, six woman jury was unanimous in finding liability against NAA. Based on the evidence and expert testimony presented during the six week trial, the jury found that Otto's complaints about airline safety and airline maintenance deficiencies were a motivating reason for NAA's decision to discharge him. The jury further found that the airline's conduct constituted malice, oppression or fraud, the standard required for punitive damages.

After hours hours of deliberation on compensatory damages, the jury returned a verdict of $5,576,348. The trial resumed the next day on the issue of punitive damages and the jury returned a verdict for an additional $7,000,000 in punitive damages.

Patrick E. Bailey, of Bailey & Partners, Santa Monica, California, was the trial attorney for the plaintiff. Following the jury verdict, Bailey said, "They were putting profits over safety and rather than listen to their own captain, NAA tried to put a muzzle on Captain Otto's safety complaints by firing him. The jury sent a loud and clear message to NAA - don't put dollars over safety."

     
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