716 F.3d 963
7th Cir.2012Background
- Otto May, Jr., a Chrysler Belvedere Plant pipefitter, was subjected to racist, xenophobic, homophobic, and anti-Semitic graffiti and death threats from 2002–2005.
- Harassment included graffiti, notes in May’s toolbox, tire/sugar damage to vehicles, and a dead bird dressed as a Ku Klux Klansman restrained at a work station.
- Chrysler documented incidents, implemented a harassment policy, and attempted limited investigations, but no harasser was identified.
- May named nineteen suspected employees to Chrysler HR; the company did not interview those individuals and used gate-ring records rather than interviewing suspects.
- Chrysler retained handwriting expert Jack Calvert in 2003; his analysis was inconclusive, and Chrysler supplied additional exemplar samples.
- The jury returned a verdict for May: $709,000 compensatory (remitted to $300,000) and $3.5 million punitive damages; district court vacated punitive damages and remittitur, prompting appellate review.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Chrysler is liable for a hostile work environment | May | Chrysler | Chrysler liable; reasonably likely to end harassment lacking |
| Whether punitive damages were appropriate and properly awarded | May | Chrysler | Punitive damages reinstated; conduct reckless over time |
Key Cases Cited
- Williams v. Waste Mgmt., 361 F.3d 1021 (7th Cir.2004) (employer liability requires reasonable response to harassment)
- Mason v. S. Ill. Univ., 233 F.3d 1036 (7th Cir.2000) (hostile environment elements and employer liability framework)
- Sutherland v. Wal-Mart Stores, Inc., 632 F.3d 990 (7th Cir.2011) (employer's response must be reasonably likely to end harassment)
- McKenzie v. Ill. Dep’t of Transp., 92 F.3d 473 (7th Cir.1996) (case on reasonableness of employer actions in harassment cases)
- Cerros v. Steel Techs., Inc., 398 F.3d 944 (7th Cir.2005) (evaluating whether remedial actions were reasonably calculated to end harassment)