The Problem:

You are in-house counsel for a soft drink company, Sodas Bay, Inc., which makes its own line of soft beverages. One day, you learn that a former at-will factory employee, Sugar Cane, is suing you for wrongful termination. In the complaint, Cane alleges that she was fired because she was a woman, and because her supervisor, Rhett Aspartame, hated her. She alleges $1,000,000 in damages.

In your research for this case, you learn that 1) under your state's law, a company can fire an at-will employee for any reason, so long as the reason is not illegal, 2) firing an employee on the basis of his or her genderisillegal, 3) the most a factory employee has ever recovered in an wrongful termination lawsuit in your jurisdiction is $750,000.

You also speak with Rhett Aspartame. When asked why Mr. Aspartame fired Ms. Cane, he responds "that lady was just too emotional; she didn't fit in with the rest of the department." Every other employee is Ms. Cane's former department is male. Mr. Aspartame tells you that he said the exact words he said to you to Ms. Cane when he terminated her.

Explain the company's various options for moving forward (with a focus on the types of dispute resolution you have learned - mediation, trial, arbitration, etc.). What is the short, intermediate, and long-term options available or requirements that must be met?

What are the advantages and disadvantages of every course of action you present?