- 01
- Nov
- 2026
Alabama Supreme Court Upholds $675,000 Retaliatory Discharge Verdict
On October 16, 2026, the Alabama Supreme Court affirmed a jury’s finding of liability in Envoy Air, Inc. v. Creagh, 2026 WL 3092689 (Ala. Oct. 16, 2026), involving an employee who alleged she was terminated in retaliation for filing a workers’ compensation claim.
The employee injured her shoulder at work and returned with lifting restrictions. She alleged that her manager became hostile toward her following the injury and threatened to find a way to terminate her employment.
The employer subsequently terminated the employee for allegedly altering a physician’s return-to-work note. The employee denied altering the document and maintained that her manager had fabricated the evidence to justify her termination.
A jury agreed with the employee and awarded $250,000 in compensatory damages and $425,000 in punitive damages.
The Supreme Court concluded that sufficient evidence supported submitting the retaliatory discharge claim to the jury, including conflicting evidence concerning who made the termination decision and whether the stated reason was pretextual.
Four justices dissented in two separate opinions, emphasizing that the employer’s human resources department had independently directed the termination based on the altered medical documentation.
The Court affirmed the liability determination but remanded the case for the trial court to explain its refusal to reduce the damages awards.
About the Author:
This article was prepared by Mike Fish, an attorney with Fish Nelson & Holden, LLC, a law firm dedicated to representing self-insured employers, insurance carriers and funds, and third-party administrators in all matters related to workers’ compensation. Fish Nelson & Holden is a member of the National Workers’ Compensation Defense Network. If you have any questions about this article or Alabama workers’ compensation in general, please contact Fish by e-mailing him at mfish@fishnelson.com or by calling him directly at 205-332-1448.
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