In 1995, Gary Fischer
was president of a Houston company called Alfa Laval Saunders Inc.,
which imported diaphragms for use in valves in the bio-pharmaceutical
industry and other industries. He was instructed to pretend that diaphragms
made in India were made in the United Kingdom,
said his attorney Dennis G. Herlong. The Indian valves,
which were cheaper and therefore more profitable, were considered to
be of lower quality. These instructions came from management at Alfa
Laval Saunders' parent company, Alfa Laval Inc., Mr. Herlong said.
Mr. Fischer refused to comply and was fired, said Mr. Herlong. He sued
Alfa Laval Saunders and Alfa Laval Inc., charging wrongful termination.
Under Texas law, said Mr. Herlong, a company cannot fire an employee
who refuses to commit a criminal act.
After his filing, Mr. Herlong said, Alfa Laval made a self-report to
U.S. Customs admitting that it had not properly marketed the diaphragm,
but the company was not fined or prosecuted. Mr. Herlong contended,
however, that Alfa Laval had misrepresented the nature of the activity.
Alfa Laval said that Mr. Fischer had been fired because of a personality
conflict with the company's European management and as the result of
restructuring.
On July 28, 1998, a Houston jury awarded Mr. Fischer $9.1 million including
$6 million in punitives. On Sept. 30, the court added $553,000 in prejudgement
interest. The award has been appealed.
