Judge Denies Costco’s Motion to Dismiss Harassment Lawsuit

October 20, 2008

Los Angeles, CA – A judge denied the motion filed by Costco to dismiss a lawsuit filed by one gay employee who alleges that he was discriminated against and made the subject of an offensive and disparaging video because of his sexual orientation.

Los Angeles Supreme Court Judge Maureen Duffy-Lewis issued the ruling after hearing arguments regarding Juan Isaac Valera’s case, even indicating that she is disgusted with the video in question.

Costco’s lawyers said that Valera did not have enough proof that he was being unequally treated because of his sexual orientation. They also maintained that the video in question was not severe enough to be construed as harassment.

In Valera’s declaration, he stated that he had been working at Costco for 20 years as a photo lab manager in one of the stores. His new manager, John Weaver, arrived in 2005. Valera claimed that Weaver made disparaging remarks about homosexuals, including “There is nothing in Texas but steers and queers.”

Valera had taken a leave of absence because of the stress he experienced in the workplace. Upon his return, he had asked the assistant general manager for protection against further remarks. A day later, he found that his work load was doubled and his pay was cut. Valera had been demoted to cashier after the second time that he took a leave of absence.

In 2006, the woman who had replaced Valera as photo lab manager, Elaine Ponce, took a video of employee Kenneth Ellison calling Valera Auntie Juan and mimicking him. The video caught Ellison telling a fellow employee, “Carlos, I have a dilemma; next Friday is my Auntie Juan’s bar mitzvah, he is a transsexual.” Ponce can be heard at the background repeating “Auntie Juan” and laughing.

Valera’s trial is scheduled on November 3.