The Third Appellate District affirmed in part and reversed in part a judgment. The court held that the sole shareholder and manager of a corporation alleged to have discriminated against its employees could not be held individually liable under California’s Fair Employment and Housing Act for discriminatory acts allegedly committed in his individual capacity as an “employer.”

Donna Leek, John Borden, and Cindy Buschmann were former employees of Auburn Honda, a California corporation. Jay Cooper was Auburn Honda’s sole shareholder. Leek and the others sued both Auburn Honda and Cooper for age discrimination in violation of California’s Fair Employment and Housing Act (FEHA). In a separate action former Auburn Honda employee Larry Leonardo also sued both Auburn Honda and Cooper for age discrimination as well as violation of the California Family Rights Act.