Judge Tosses $50m Sex Harassment Suit Against CRC

A California state judge has thrown out a $50 million sexual harassment suit filed against executives at CRC Insurance Services because the managing director who filed the complaint failed to cooperate with attorneys and the court.

Last month, State Judge Soussan Bruguera, Superior Court of the State of California in Los Angeles, dismissed the suit filed by Constance Callan against CRC Insurance Services, the wholesale brokerage subsidiary of BB&T Insurance Services based in Raleigh, N.C.

Judge Soussan ruled that from the filing of the suit in 2006 through the early part of 2008, Ms. Callan failed to comply with numerous requests for discovery from the defendants and failed to cooperate with her own attorneys.

The judge also outlined numerous occasions where Ms. Callan failed to comply with directions and orders from the court over that same period. Ms. Callan also engaged in filing frivolous motions in an effort, the judge said were intended to delay and circumvent attorney's efforts to collect evidence through the discovery process.

"She manipulated her counsel, the parties and the court, to the end of delaying this litigation and defying defendants' clearly stated intention to vindicate themselves," the judge wrote in her opinion. "There is no evidence in the record which suggests that Callan would suddenly comply with lesser sanctions."

In 2006, Ms. Callan filed suit claiming that CRC suspended her in retaliation for numerous complaints against Chris Houska, another managing director. She claimed in the suit that Mr. Houska used offensive language and engaged in offensive behavior of a sexual nature to Ms. Callan and other employees.

Soon after the filing of that complaint CRC filed a counter claim that Ms. Callan and an assistant, Carl Wheaton, engaged in deceptive business practices and violated the non-compete clause in their contracts.

Ms. Callan, the CRC suit alleged, engaged in deliberately posting $8.59 million in phony sales to increase her volume in an effort to win the company's Broker of the Year award in 2005. After winning the award, the complaint said, the bookings were nullified by Ms. Callan and Mr. Wheaton. Subsequently, an audit of the accounts was launched by CRC.

CRC alleges that Ms. Callan and Mr. Wheaton failed to cooperate in the audit and eventually left the company. The two also received bonus portions of which were calculated on the allegedly bogus sales.

CRC is seeking more than $1.4 million in compensatory damages and attorneys fees from Ms. Callan and Mr. Wheaton.

A spokesman for BB&T said the company intends to pursue its legal claims.

Attempts to reach Ms. Callan or her attorney for comment were unsuccessful.