Reprinted from the July 15, 2007 issue of MANAGER'S LEGAL BULLETIN, a widely read employment law newsletter that communicates legal guidelines to managers through true-to-life dialogue and fact-based examples. Click here to view a sample issue, get more information, or sign up for a risk-free subscription.

A Couple Of "Crazy" Cases

The word "crazy" is used in so many different ways in daily conversation that most people don't even bat an eyelash at it. This means that most managers are not giving a second thought to stopping their employees from saying it. Read two examples of individuals who sued their employers over the word, and why you need to be more aware of how it's used in your workplace.

"SHE'S CRAZY!"

The relationship between Paul Beach and Dena Stetson did not end well. After he fired her, she filed multiple legal claims against the company. Beach found out she contacted other former employees about potentially testifying in her case. One day, while attending an off-site work seminar, Beach ran into one of those ex-employees.

"Hi, Rosa. I heard Dena contacted you."

"Yes," Rosa Ferdinand replied.

"You need to watch yourself because she's crazy," Beach warned her. "She's just doing this to get back at me for firing her."

When Stetson found out that Beach had called her crazy, she added defamation to her claims, albeit unsuccessfully.

Court: "Crazy" used in its popular sense is indefinite and ambiguous; it is a loose and figurative term employed as a metaphor or hyperbole. It does not convey a verifiable fact. As such, it is an expression of opinion that is protected by the First Amendment.

WHEN "CRAZY" CROSSES THE DEFAMATION LINE

Expressing an opinion that someone is crazy is derogatory and disparaging, but it is not defamatory. A defamation claim could succeed if:

• there is a statement of fact (i.e., an expression of fact that the individual has a psychiatric condition);

• the statement is communicated to a third party without legal excuse;

• the words tend to injure a person's reputation, exposing the person to
  public hatred, contempt, ridicule, or financial injury.

"YOU'RE CRAZY!"

After a particularly harrowing day with his manager, Hector Lamada suffered a panic attack. He sought psychiatric treatment for anxiety and depression. His manager, Joanne Alba, never let up on him, and his condition worsened.

Lamada gave Alba a certificate from his psychiatrist stating that a weeklong absence was medically necessary.

"You're crazy!" Alba laughed. From then on, she called Lamada crazy on a daily basis, made jokes in front of others about the fact that he saw a psychiatrist and took medication for his condition, and frequently stated that he posed a risk to others because he was crazy.

Lamada took an extended leave of absence during which he was hospitalized for treatment. He became totally disabled and never returned to work.

Lamada filed a lawsuit claiming that Alba harassed him because of his mental disability. The employer argued in court that while Lamada was ridiculed, it was the sort of conduct that was common in blue-collar workplaces such as theirs; it was inappropriate, but it did not constitute a hostile environment.

Court: The fact that the constant ridicule about his mental impairment caused the employee to be hospitalized and eventually to withdraw from the workforce shows that the conduct was sufficiently severe and pervasive to create an abusive working environment. It upheld a jury award of $300,000.

WHEN "CRAZY" CROSSES THE HARASSMENT LINE

It should go without saying, but in light of this case, it is worth repeating: Managers must not be so insensitive to employees with mental or physical impairments.

• No jokes about the employee's condition — to the employee, to other employees, or to any individuals affiliated with the workplace (e.g., customers).

• Do not disclose an employee's medical condition, treatment, medication, etc., to others unless they have a legitimate need to know.

• Co-worker insensitivity must also be stopped. It's not just ridicule from management that can lead to a harassment complaint.

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