State Supreme Court Orders Retrial for Punitive Damages in Sexual Harassment Case Involving Adult Novelty Wholesaler

The New Jersey State Supreme Court has ordered a wholesaler of novelty adult items and a former female employee must return to the lower courts to determine the fate of $500,000 in punitive damages relating to a sexual harassment lawsuit, nj.com reports.

Doreen Lingo, a former employee at East Coast News, is still able to collect $150,000 in economic and emotional damages, but the State Supreme Court in a unanimous decision ordered a retrial for punitive damages, stating jurors weren't properly instructed prior to their decision, according to the report.

Longo began working for the company in 2002, and began working with a man named Marc Kercheval in 2005, according to the report. Kercheval eventually began threatening to sexually assault her. He also told her to trade sexual favors with a client and said he would like to assault their male supervisor, according to the report.

After complaining about his comments, both employees were fired, according to the report. Longo filed lawsuits against both Kercheval and East Coast News.

In order to receive punitive damages, Longo's attorneys must prove East Coast News was involved in, or indifferent to, Longo's claims of harassment. The court ruled the jury was improperly instructed on how to determine East Coast News' involvement, according to the report.