$1.8 Million Sexual Harassment Settlement for Two Café Workers

Hogue + Belong obtained a $1.8 million settlement for two café workers who brought separate sexual harassment lawsuits against a restaurant franchisee and a national franchisor. The employees alleged harassment by the same coworker and failures by management to investigate and stop the conduct. Their cases were consolidated in San Diego Superior Court and resolved on September 18, 2026.

What did the café workers allege?

The two employees worked at locations operated by a Southern California franchisee of a national bakery café brand. The operator ran approximately 180 cafés across 11 states. Each employee alleged that the same coworker subjected her to conduct creating a hostile work environment. Their cases included claims of sexual harassment, failure to prevent harassment under California Government Code section 12940(k), negligent hiring, supervision and retention, and constructive discharge. These were allegations in the lawsuits, not findings by a jury.

What did the investigation and discovery reveal?

According to the firm’s case account, discovery uncovered gaps in how the franchisee handled the employees’ complaints:

• Some complaints were not investigated, and one complaining employee was never interviewed.
• An investigation report was left blank and unsigned.
• Surveillance video was not retrieved until after a state civil rights complaint was filed.
• Discipline was drafted but never delivered, while managers were instructed to “stand down.”

These details became central to the employees’ claims that the employer had failed to respond appropriately to reported harassment.

What complicated the litigation?

The defendants’ insurance carrier treated the two employees’ separate claims as one “interrelated” claim under its policy, despite the claims arising from distinct conduct and being filed more than a year apart. That position would have reduced the coverage available for each claim. The employees disputed the carrier’s interpretation and pursued alter ego allegations against the franchisor.

How did Hogue + Belong prepare the cases for trial?

The defense filed seven ex parte applications seeking to continue trial. As the September 2026 trial date approached, defense counsel also sought to withdraw, citing a conflict related to its joint representation of the franchisee and franchisor, and requested another continuance. Hogue + Belong dismissed the franchisor before the scheduled trial date, removing the joint representation issue cited by the defense, and opposed the latest continuance request.

The firm had completed expert depositions, prepared examination outlines, and filed motions in limine as part of its trial preparation.

How were the café workers’ cases resolved?

On September 18, 2026, the parties reached a $1.8 million settlement resolving both employees’ cases. The result was a settlement of disputed claims, not a jury verdict or a finding of liability.

Considering a workplace sexual harassment lawsuit?

Read about Hogue + Belong’s workplace sexual harassment practice. If you are considering legal action over harassment at work, contact the firm for a case evaluation.

Related results: See the firm’s $10 million workplace harassment verdict and $400,000 UPS sexual harassment settlement.

Past results do not guarantee a similar outcome in another case.