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The court also unanimously reversed the trial court's dismissal of plaintiff's hostile work environment sexual harassment claim and remanded the matter to the trial court for further fact-finding. The Appellate Division unanimously affirmed the trial court's dismissal of plaintiff's non-LAD claims for invasion of privacy, intentional infliction of emotional distress, reprisal, and tortious interference with contractual relations. Plaintiff's appeal to the Appellate Division resulted in the filing of three separate opinions. She also alleged various other claims, separate from her LAD claims, including battery, negligence, intentional interference with contractual relations, and intentional infliction of emotional distress.Īfter a six-day bench trial, the trial court dismissed all of plaintiff's causes of action against defendants except her battery claim against Baylous, for which it awarded her $5,000 as damages. She asserted that sexual harassment perpetrated and condoned by the defendants had caused her to suffer damages including loss of wages and pension benefits, anxiety, detriment to her health, medical expenses, humiliation, and pain and suffering, and also that she had been required to expend attorneys' fees and to incur other litigation costs. Plaintiff's principal allegations were that defendants subjected her to a hostile work environment on the basis of her sex in violation of the LAD. (Toys 'R' Us) her former supervisor, Don Baylous and Jeffrey Wells, a human resources manager at Toys 'R' Us. Plaintiff, Theresa Lehmann, brought a civil action in the Law Division against her former employer, Toys 'R' Us, Inc. We further hold that in the determination of an employer's liability for damages when an employee raises a hostile work environment discrimination claim against a supervisor: (1) an employer will be strictly liable for equitable damages and relief (2) an employer may be vicariously liable under agency principles for compensatory damages that exceed equitable relief and (3) an employer will not be liable for punitive damages unless the harassment was authorized, participated in, or ratified by the employer. First, what are the standards for stating a cause of action for hostile work environment sex discrimination claims? Second, what is the scope of an employer's liability for a supervisor's sexual harassment that results in creating a hostile work environment? We hold that a plaintiff states a cause of action for hostile work environment sexual harassment when he or she alleges discriminatory conduct that a reasonable person of the same sex in the plaintiff's position would consider sufficiently severe or pervasive to alter the conditions of employment and to create an intimidating, hostile, or offensive working environment. This appeal presents this Court with two questions concerning hostile work environment sexual harassment claims under the New Jersey Law Against Discrimination, N.J.S.A. The opinion of the Court was delivered by GARIBALDI, J. Weiner submitted a brief on behalf of amicus curiae Employment Law Council (Timins & Weiner, attorneys). Nadine Taub and Michelle Joy Munsat submitted a brief on behalf of amici curiae Women's Rights Litigation Clinic and NOW-NJ. Burstein, Deputy Attorney General, on the brief). Del Tufo, Attorney General, attorney Jeffrey C. Waugh, Jr., Assistant Attorney General, argued the cause for amicus curiae Attorney General of New Jersey (Robert J. Baken, a member of the New York bar, and Ina B. Williams, a member of the New York bar, argued the cause for respondents and cross-appellants (Greenberg, Dauber & Epstein, attorneys Mr. Gross argued the cause for appellant and cross-respondent. TOYS 'R' US, INC., A CORPORATION, DON BAYLOUS, AND JEFFREY WELLS, DEFENDANTS-RESPONDENTS AND CROSS-APPELLANTS. THERESA LEHMANN, PLAINTIFF-APPELLANT AND CROSS-RESPONDENT,