Littell worked as a paralegal for Allstate in 1996. Aakhus, Littell’s supervisor, regularly told demeaning jokes, touched women inappropriately, commented about other employees’ sexual preferences, and tolerated similar behaviors by other coworkers. After Littell anonymously reported Aakhus to Allstate headquarters, Aakhus started to belittle her in public, disciplined her for pretextual reasons, and became more aggressive in general. Littell eventually left her job after Aakhus denied her leave to deal with a “family crisis.” Aakhus was discharged after Littell left Allstate. Littell subsequently sued Allstate, alleging, among other things, sexual harassment and retaliatory discharge. The jury reached a verdict in favor of Littell, awarding her $360,000 in compensatory damages and $1 million in punitive damages. Allstate appealed.