In August 2023, a California jury awarded $9.5 million for disparate treatment of an employee due to mental health disability. How did this happen?

Lowry McCray was initially hired by WestRock Services, a global packaging manufacturer, in 1994. According to McCray, he received positive performance reviews and customer feedback throughout his employment at WestRock. By 2017, when WestRock transferred McCray to its La Mirada warehouse that was operated by a third party company, McCray was a distribution specialist coordinator for the company’s Beverage division.

In January 2020, WestRock’s corporate logistics team recommended that McCray’s position be eliminated because the site could be fully operated by the third party company. However, WestRock’s Director of Supply Chain for its Beverage division chose not to do so at the time. McCray complained to the human resources department of a personal issue with WestRock’s onsite general manager in June 2020. Although the human resources department spoke with McCray about his complaints, the company chose not to further investigate his complaints, as they related to a business decision.

McCray subsequently requested a medical leave of absence that began in September 2020 after he was diagnosed with a psychological disorder that interfered with his ability to work. Although WestRock claimed it was never provided information or documentation regarding McCray’s disability or medical treatment, McCray alleged WestRock was provided with updates throughout his treatment and had been notified of the cause of his illness. WestRock contends it never filled McCray’s position throughout his leave.

In April 2021, while McCray was still on leave, WestRock determined the third party company operating its La Mirada warehouse had been effectively handling the Beverage division’s needs and, as a result, decided to eliminate McCray’s position. However, the company did not immediately notify McCray of the decision because he remained on a leave of absence with no definite return date. In June 2021, McCray advised WestRock of his intended return to work date in July 2021 via email. The email also referenced “perceived adverse discrimination in the workplace.”

WestRock claims it was not aware that McCray’s leave was related to “perceived discrimination” or that McCray was receiving mental health treatment for harassment. McCray requested that, upon return to work, he have no and/or limited interaction with the onsite general manager and report only to his director supervisor as an accommodation. WestRock subsequently provided McCray with a severance package and notified him of the elimination of his position.

McCray sued WestRock for mistreatment and termination because of a disability. In his lawsuit, McCray claims disability discrimination, failure to engage in the interactive process, failure to provide reasonable accommodation, retaliation, failure to prevent disability discrimination/retaliation, and wrongful termination in violation of public policy. Specifically, McCray alleged that WestRock used a pretextual reason to terminate him because of a mental disability that caused his unfair treatment in the workplace, refused to investigate his unfair treatment, and retaliation for his complaints of discrimination and his medical leave of absence. WestRock claimed McCray’s position was eliminated as part of a long-standing business plan to operate its La Mirada warehouse using only a third party company.

The case was tried in August 2023, and a California jury ultimately found that McCray was subjected to disability discrimination, specifically disparate treatment. The jury also found that WestRock failed to (1) reasonably accommodate McCray’s mental disability; (2) engage in the interactive process; and (3) prevent disability discrimination and/or retaliation. The jury awarded McCray $4,010,000 in compensatory damages. Because the jury also found that WestRock’s conduct constituted malice, oppression or fraud, McCray was also awarded $5,450,000 in punitive damages, bringing the total damages against WestRock to $9.5 million.

Claims for disability discrimination and mental health disability discrimination require vigilant adherence to best practices relating to documentation, communication and reasonable accommodations. Our attorneys in Austin and Dallas routinely assist employers in reviewing employee manuals, processes and systems, and investigation of claims.  Please contact us at info@gstexlaw.com if you have any questions.

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