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ARTICLE · 10 AUGUST 2015

Frivolous Whistleblower Claim Yields Stiff Sanctions

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The New Jersey Appellate Division recently upheld sanctions of more than $191,000 to Sunhillo Corporation in connection with its defense of claims under the New Jersey Conscientious Employee Protection Act.

United StatesEmployment and HR
Steven Pearlman
Steven Pearlman
Edward Young
Edward Young
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The New Jersey Appellate Division recently upheld sanctions of more than $191,000 to Sunhillo Corporation (Company) in connection with its defense of claims under the New Jersey Conscientious Employee Protection Act, Fulton v. Sunhillo Corp., No. A-3950-13T2, 2015 WL 4390550 (N.J. Super. Ct. App. Div. Jul. 20, 2015), finding the whistleblower claims frivolous.

Background

In December 2007, the Company hired Ronald Fulton (Plaintiff) as its Director of Business Development to develop new business and new markets. In late 2008 and early 2009, Plaintiff raised concerns about whether the Company was complying with federal export requirements in its business dealings with China and the Company investigated. The Company terminated Plaintiff's employment in September 2009 based on the stated reason that he did not develop sufficient business. Plaintiff responded by filing a pro se complaint in October 2009, seeking $5 million in damages and alleging that he had been

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