Jim, this is the latest inquiry into the existence of the Employment Practices coverage. You will recall we were trying to maintain on a confidential basis.  It is becoming more and more difficult to avoid talking about this insurance as the exposure is often discussed in the press.  Do you have any thoughts on disclosure to NEPCO? 


   

	  	
		












To:	Mikei@nepco.com
cc:	johng@nepco.com, rvincen@enron.com 

Subject:	FW: Newest ASAP from Littler Mendelson

Mike,  According to a recent decision by the Washington Supreme Court, a
supervisor can be held personally liable for job-related discrimination or
harassment.  We need to check out with Enron Insurance group to determine if
our current employment practice liability insurance covers a situation like
this.  The distinction is that if the plaintiff employee names the company,
we're covered, but he/she names only the supervisor "personally" would the
Enron insurance decline coverage?  

By copy to Dick Vincent, I am asking him to confirm this issue with our
insurance program.  If coverage exists, then should we document something in
the policy to specifically cover this new form of employment liability
unique to Washington State? 

David H. Lund, Jr.
Assistant General Counsel
National Energy Production Corporation
11831 North Creek Parkway N.
Bothell, WA 98011
425-415-3138
Fax: 425-415-3032
David.Lund@nepco.com or davidlu@nepco.com

-----Original Message-----
From:		 Notestine, Kerry [mailto:KNotestine@littler.com]
<mailto:[mailto:KNotestine@littler.com]> 
Sent:		 Monday, April 23, 2001 5:57 AM
To:		 'knotestine@mciworldcom.net'
Subject:		 Newest ASAP from Littler Mendelson

I am sending you our most recent ASAP.  Our ASAP's are our summaries of
recent developments in employment matters.
This ASAP addresses a recent case from the Washington State Supreme Court in
which that court held that individual supervisors can be held personally
liable for acts of unlawful harassment and discrimination.  This ruling
relates to the Washington state discrimination statute and not Title VII.
This ruling is contrary to federal law under Title VII where individual
supervisors are not personally liable for such acts.  Similarly, individual
supervisors are not subject to personal liability under the Texas Commission
on Human Rights Act.  It may be prudent for employers with workers in
Washington to review insurance and indemnity agreements to determine if
these contracts cover supervisors who may be sued for acts in the course and
scope of their employment.  
http://www.littler.com/nwsltr/asap_scott_paper.html
<http://www.littler.com/nwsltr/asap_scott_paper.html> 
Please double click on the above link to access the ASAP.  Let me know if
you have trouble accessing this ASAP, and I can send you a hard copy.  You
also may visit our website (www.littler.com <http://www.littler.com> ) to
review these and other
publications by lawyers from our firm.  Feel free to forward this link or
print a copy and distribute it to others within or outside your
organization.  In addition, let me know if you do not want to receive these
updates, and I will delete you from my distribution list.
I also wanted to call your attention to the invitation to our National
Employer seminar that you should have received in the last week or two.  The
invitation is a two-sided document, with the white side having valuable
information regarding current employment issues and the dark side being the
invitation.  If you look at the white side originally, you may not realize
that the document is an invitation.  Our National Employer is one of the
largest and most comprehensive employment-law conferences in the country
with over 1000 people attending every year.  You can review the invitation
and more information regarding the National Employer by visiting our website
(www.littler.com <http://www.littler.com> ) or I will send you another copy
of the invitation if you tossed yours or never received one.  
Littler Mendelson is the nation's largest firm representing employers in
employment and labor matters.  With approximately 400 attorneys in 30
office, we address more issues related to employment than any other law
firm.  Please contact me if we can assist you with employment issues related
to harassment, discrimination, other matters.

Kerry E Notestine
Littler Mendelson, PC
1900 Chevron Tower
1301 McKinney Street
Houston, Texas 77010
713.652.4748
713.951.9212 (fax)
knotestine@littler.com <mailto:knotestine@littler.com> 
www.littler.com <http://www.littler.com> 


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