NEWS STORY

Employer Beware
Got an employee who committed a crime? Don't think you're off the hook just because it didn't happen on the job.

BY MAUREEN O'HAGAN
mohagan@wweek.com

Lawyer Kelly Clark (above) wins big for abuse victims.

 

The victims in both cases are now adults who only recently discovered that problems they have had over the years may be linked with alleged childhood abuse.

 

Oregon's statute of limitations allows victims of child abuse to file suits up to three years from the time that they discover that their injuries were caused by abuse.

 

Employers also face lawsuits from former employees who are angry about being given bad references. On the other hand, new employers have filed suits against old employers who give undeserved glowing references.

 

 

 

The boss man is under attack in Salem again. But this time it's not those pro-labor Democrats in the Capitol causing employers grief; it's the guys (and gal) in the long robes.

Last month the Oregon Supreme Court handed down two opinions that could make it easier for people to sue employers for their workers' bad acts--even when the employers didn't do anything wrong. The decisions put Oregon bosses on the hook more than employers anywhere else in the country. The rulings also prompted a quick response in the state Legislature that could undo the decisions.

The legal battle began several years ago, when Portland lawyer Kelly Clark was hired, in separate cases, by two men who claimed that they had been victims of childhood sexual abuse. One man claimed he was abused by Melvin Bucher, a former Tigard priest. The other said he was abused by John Swensen, a volunteer Boy Scout leader from Portland. For Clark, filing civil suits against alleged abusers was a fairly routine matter. It's well established that child molesters can be held financially responsible for their conduct.

But Clark, a former Republican state representative, wanted to broaden his cases--and his chances of winning bigger judgments for his clients. He added the Archdiocese of Portland and the Cascade Pacific Council of the Boy Scouts as defendants in the two lawsuits, arguing that they should also be held responsible for the men's conduct.

Clark's forays into the land of deep pockets initially seemed a lost cause. The cases against the Scouts and the archdiocese were thrown out at the trial-court level. Clark's problem? Traditionally, employers have been held liable for the conduct of workers only when the employer has been negligent in hiring or retaining them or when the wrongdoing occurred within the "course and scope" of the employees' job duties. Clark had no proof of the former and faced an uphill battle in trying to prove that Swensen's and Bucher's job requirements somehow facilitated the alleged abuse.

Clark took the cases to the state Court of Appeals, where he was shut out again. Finally, he appealed the decisions to the state Supreme Court. "What we argued was the abuse didn't happen between strangers," he said. "It wouldn't have happened between strangers. It happened because these guys had spent two years cultivating relationships with these kids." In other words, the priest and the Scout leader allegedly used their positions of trust--which they gained through their jobs--to "groom" the boys for abuse.

The Supreme Court bought it. On April 8, the justices reversed the lower courts' decisions and sent the cases back to Circuit Court for trial. (The high court did not rule on the strength of the plaintiffs' claims, only on whether they had a legitimate issue for a jury to decide.) The decision pushes the law further than it's been pushed anywhere else in the country, says David Slader, a local lawyer who specializes in sex-abuse cases and who filed a "friend of the court" brief bolstering Clark's argument.

Local employers now worry that the decision will bring additional lawsuits and raise insurance costs. "The general principle will have application outside the sexual-abuse situation," argues employment lawyer Paula Barran.

Lawyer Mary Mertens James, who represents employers, thinks the decision tipped the scales too far against employers. "That's not to say it's never the employer's fault," she says, but employers shouldn't be held financially liable simply because they have deeper pockets than their employees.

Tom Christ, the Scouts' lawyer, can't see why his client is liable. "They're not contending the Boy Scouts did anything wrong in hiring Mr. Swensen or monitoring his behavior," Christ says. "They're simply saying Swensen did it [an allegation the Scouts dispute]; you have to pay for it. I think that is an unprecedented expansion of liability for employers."

State Rep. Max Williams tends to agree: "The two cases are very tragic. But they created a situation whereby, regardless of how much training and procedures and all these things that these organizations put in place, they're going to be liable." Last week, the Tigard Republican quickly put together House Bill 2985, which he says would essentially undo the high court's rulings in regard to future cases.

Clark says the bill goes too far and eliminates too much of an employer's liability. He cites a classic example, that of a bouncer who loses his temper and roughs up a rowdy patron he is trying to remove from a bar. For years, the law in Oregon and other states held an employer liable for the patron's injuries, because the bouncer was essentially doing the boss's bidding in removing the patron. Clark believes HB 2985 would eliminate that liability.

The bill was discussed at a committee hearing last week, but no action was taken. "I'm unresolved as to how it should work out," Williams says, "but I thought it was a significant enough development in the law that it was important we have a conversation about it."

Clark agrees that the rulings were a significant development, and he thinks they should stand. "In the past, too often the institutions of trust were able to shield themselves by claiming that they did not know the abuse occurred," he says. "This decision means it is now their business to know."

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Willamette Week | originally published May 5, 1999



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