Trial Magazine

Michael Tilkey, 52, worked as a sales leader at Allstate Insurance Co. While in Arizona, he was arrested after having an argument with his then-girlfriend. Two of the charges, including domestic violence and possession of marijuana paraphernalia, were dismissed the following year.

The remaining charge of disorderly conduct was dismissed approximately six months later, following his completion of an anger management course. After learning of the arrest, Allstate began an internal investigation and then fired Tilkey, citing his purported violation of company policy prohibiting threats against other people.

Tilkey had been earning $200,000 annually but was unable to find alternative employment after prospective employers learned why he was terminated.

Tilkey sued Allstate, alleging violation of Cal. Labor Code §432.7, which prohibits employers from basing an employee’s termination on arrest records that do not result in a conviction, and defamation for forcing him to self-publish defamatory statements about his purportedly threatening behavior to prospective employers and others in the industry.

The jury awarded approximately $18.64 million, including $15.9 million in punitive damages.

Citation: Tilkey v. Allstate Ins. Co., No. 37-2016-00015545-CU-OE-CTL (Cal. Super. Ct. San Diego Cnty. May 4, 2018).

Plaintiff counsel: Joann F. Rezzo and L.B. Chip Edleson, both of San Diego.

Plaintiff experts: Robert Hall, vocational rehabilitation, and Heather Xitco, economics, both of San Diego; and Carlos Estrada, Arizona law and procedure, Phoenix.