Siri v. Sutter Home Winery, Inc.

Plaintiff alleged that she was terminated in retaliation for having brought to the attention of Defendant’s management and the Board of Equalization defendant’s failure to pay use taxes (Labor Code section 1102.5). Proceeding as if the case turned on whether Plaintiff correctly accused Defendant of failing to pay use taxes, Plaintiff pursued and Defendant resisted efforts to obtain copies of Defendant’s tax returns. The court of appeal held that Defendant had not “waived the privilege against forced disclosure of tax returns” and that no exception to that privilege applied. In moving for summary judgment Defendant did not address Plaintiff’s allegation that she was terminated in retaliation for raising the tax-avoidance issue, nor did it seek to establish an affirmative defense to the claim. The motion was granted on the theory that Plaintiff could not prove her case without the tax returns. The court of appeal reversed. Defendant made no attempt to demonstrate that the reason Plaintiff was discharged was not the reason she alleges, nor has it argued that discharge for that reason would not violate section 1102.5(b) or fundamental public policy. Firing a “whistleblower” for complaining of the employer’s willful failure to pay taxes that are due would support a right to relief under both of Plaintiff’s causes of action. View "Siri v. Sutter Home Winery, Inc." on Justia Law