On August 29, 2003, the Equal Employment Opportunity Commission (EEOC) filed suit in the Atlanta U.S. District Court for the Northern District of Georgia against Boca Chica, Inc., (doing business as Loca Luna Restaurant) to enforce an agreement the parties had reached to settle a sexual harassment charge a female employee had filed with the EEOC. The EEOC sought monetary and injunctive relief, including specific performance of the requirements of the settlement, the employee's legal fees and costs in attempting to collect the amount owed, compensation for losses resulting from breach of the settlement, and punitive damages.

Before the EEOC investigates charges it sometimes has the parties participate in mediation. The settlement agreement had been reached during one such mediation session and required Boca Chica to pay the employee $50,000 and provide a neutral reference. The parties had also agreed to a non-disparagement clause. At the end of the mediation session, the employee said something to the effect of "I hope you guys have learned a lesson." The defendant subsequently claimed that the comment violated the non-disparagement clause and refused to comply with the agreement.

The parties eventually reached a settlement, which the Court entered as a consent decree on September 29, 2004. The 13-month decree provided monetary relief and subjected Boca Chica to a variety of injunctive provisions. Boca Chica was required to pay the employee $50,000 and supply a neutral reference, just as the original agreement provided. However, Boca Chica was further required to post an equal employment notice and to appoint a compliance official to oversee compliance with the decree. The parties bore their own costs and fees. The case is now closed.

Kenneth Gray - 07/29/2013


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