Dealership Ordered to Pay in Harassment Case

Hendrick Automotive Group, one of the nation’s largest auto dealerships, has been ordered to pay $815,000 in damages to a former employee who accused a sales manager of sexually harassing her. The Charlotte, N.C.-based company was ordered this week by an Alameda County Superior Court jury to pay compensatory and punitive damages to Joann McQuagge, who testified she was subjected to daily harassment, including a sales manager who allegedly screamed obscenities and exposed himself to her. Hendrick spokesman Kirk Heppler said the company’s management wasn’t aware of the allegations until the lawsuit was filed in February 1995. “This is a situation that developed from a personal and professional conflict between two management personnel,” Heppler said. “Hendrick Automotive Group does not tolerate sexual harassment and has clear written policies against such conduct.” It was not immediately known whether the company would appeal. Other trial witnesses also alleged there was a hostile environment toward female employees and customers at a now-closed Oakland dealership. McQuagge worked for Hendrick from December 1992 to March 1994. The sales manager was not disciplined by the firm and left Hendrick when the dealership closed. Hendrick had $2.4 billion in sales last year and employs more than 5,000 people. The firm is a unit of Hendrick Management Corp., whose owner, Rick Hendrick, was indicted last year on federal charges of conspiring to bribe Honda Motor Co. executives to get extra cars and dealerships.