An Alameda County, Calif., jury on Monday rejected the sexual harassment and wrongful termination claims a paralegal made against her former boss, Oakland, Calif., lawyer Thomas Ostly, instead awarding him $1.55 million in damages in his defamation counter-suit.

The jury, made up of 10 women and two men, also found that the paralegal, Allison Moreno, acted with malice and oppression, laying the groundwork for awarding Ostly punitive damages. That phase of the trial got underway Tuesday.

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