A former Xceed Financial Credit Union Controller and Vice President of Accounting filed a wrongful termination lawsuit claiming she was fired due to age discrimination.

The Case: Elizabeth Castelo v. Xceed Financial Credit Union

The Court: Los Angeles CountySuper. Ct.

The Case No.: 19STCV28608

The Plaintiff: Castelo v. Xceed Financial Credit Union

The plaintiff in the case, Castelo, was employed by Xceed as a Controller and Vice President of Accounting. Xceed notified Castelo her employment was being terminated in November 2018, with the termination effective December 31, 2018.

The Defendant: Castelo v. Xceed Financial Credit Union

The defendant in the case, Xceed Financial Credit Union, entered into an agreement with the plaintiff on November 19, 2018. The agreement was titled “Separation and General Release Agreement,” among other things, it specified Castelo’s severance payment in consideration for a full release of all claims, including a release of age discrimination claims.”

The Case: Castelo v. Xceed Financial Credit Union

According to the documents in the case Castelo v. Xceed Financial Credit Union, Castelo remained employed by the defendant through December 31, 2018. Xceed paid Castelo the remainder of the payment agreed to in January 2019. Castelo accepted the $132,334.00 payment. The plaintiff made no effort to revoke the Separation Agreement until August 13, 2019, when she filed a complaint against Xceed alleging age discrimination and wrongful termination violations. The parties agreed the action would be submitted to binding arbitration in October 2019 (per an arbitration agreement in place in 2013). The arbitrator granted summary judgment in favor of Xceed on the ground’s that the release in the separation agreement barred the plaintiff’s claim. Castelo claimed the release violated Civil Code Section 1668 and moved to vacate the arbitration award. The trial court denied the motion to vacate and entered judgment confirming the arbitration award in favor of Xceed. On appeal, the court confirms the trial court’s decision. Section 1668 applies to a release of liability for future unknown claims. However, when Castelo signed the separation agreement, she already believed her termination was due to age discrimination. Since Castelo was aware of the alleged violation when she signed the agreement, Section 1668 does not apply.

If you have questions about how to file a California wrongful termination lawsuit, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in various law firm offices in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.