A former employee is taking legal action against a California corporation, accusing it of violating a settlement agreement and defaming him, leading to significant personal and professional harm. Emmanuel Escalona filed the complaint on November 5, 2025, in the Superior Court of California, County of Santa Clara, against Pho To Chau 999, Inc.
The case revolves around allegations that Pho To Chau 999, Inc., where Escalona was employed as a waiter from November 3, 2021, until his termination on August 15, 2024, breached a settlement agreement reached after his dismissal. The agreement was intended to resolve disputes over harassment and unpaid wages claims. Escalona asserts that despite fulfilling his obligations under the settlement terms—including a non-disparagement clause—Pho To Chau’s agent made false statements about him to potential employers. According to the complaint, Didi Nguyen, an officer at Pho To Chau, told a prospective employer that Escalona had stolen from the restaurant and advised them not to hire him. These actions allegedly violated both the non-disparagement and neutral reference clauses of their settlement agreement.
Escalona claims these defamatory statements led to a rescinded job offer from another restaurant and hindered his employment prospects within the industry. He argues that this breach caused him economic harm and emotional distress. “The accusation of theft constitutes defamation per se,” states the complaint, highlighting how such claims naturally damage one’s professional reputation.
In seeking justice, Escalona demands compensatory damages for lost wages and benefits due to missed employment opportunities. He also seeks general damages for reputational harm and emotional suffering caused by Pho To Chau’s alleged misconduct. Furthermore, he requests punitive damages against the defendant for acting with malice and oppression in their dealings with him post-employment.
Representing Escalona are attorneys Joel Glaser and Sabrina Bowley G., who argue that their client is entitled to recover costs incurred from bringing this action due to the breach of contract by Pho To Chau. The case is being overseen by Judge S. Rodriguez under Case No.: 25CV479401 in Santa Clara County’s Superior Court.
Source: 25CV479401_Emmanuel_Escalona_v_Pho_To_Complaint_County_of_Santa_Clara_California.pdf
