You Can’t Make This Stuff Up!

The owner and supervisor of a company was yelling and visibly upset that there was a sanitary napkin by the toilet and blood around the toilet seat. All female employees were ordered to line up to be checked to see if they were having their period, with a promise that anyone who refused to get in line would be fired. Each had to go into the restroom and pull down her panties and expose her vaginal area for inspection by a designated female inspector. The group of employees sued for various employment related claims, including sexual harassment, invasion of privacy, and false imprisonment. The company tendered the action to its insurer, which denied coverage. The trial court sustained the insurance company’s demurrer without leave to amend. The insurance policy excluded employment-related practices, and on appeal, the company argued the exclusion is ambiguous. In affirming the dismissal of the action, the appellate court noted: “Indeed, it is hard to conceive how the false imprisonment claim of the employees at work in the company bathroom could be unrelated to their employment, and [the company] has not suggested how the claim could be.”(Jon Davler, Inc. v. Arch Insurance Company (Cal. App. Second Dist., Div. 7; September 15, 2014) 229 Cal.App.4th 1025.)