733 F.3d 882
9th Cir.2013Background
- ASARCO operates the Mission Mine Complex in Sahuarita, Arizona, where Aguilar worked from December 2005 to November 2006 and alleged sexual harassment, retaliation, and constructive discharge.
- Aguilar alleges supervisor Johnson pursued her daily, trained poorly when rejected, and occasionally pressed against her, causing fear of rape.
- Aguilar reported harassment to HR and mill management; management allegedly told her there was nothing to be done and that she should handle it herself, leading to transfers.
- During Aguilar’s tenure, the mill lacked a functioning women’s restroom, and graffiti in a portable toilet insulted her; the issue reportedly persisted through 2007.
- Esquivel, a higher-level supervisor, allegedly threatened and verbally abused Aguilar; harassment continued despite some complaints.
- Trial resulted in a jury finding ASARCO liable for sexual harassment, with zero compensatory damages and $1 nominal damages, and $868,750 in punitive damages; district court reduced to $300,000 under Title VII cap, which the court deemed constitutional.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a six-figure punitive award with nominal damages is constitutional | ASARCO acted with malice and recklessness, justifying a large punitive award. | Punitive award excessive given nominal damages and should be remitted within constitutional limits. | Punitive award is constitutional but must be remitted to cap ($125,000). |
| Appropriateness of the Gore guideposts in this Title VII case | High reprehensibility supports a large award. | Maintain ratio under due process and cap; avoid excessive punishment. | Substantial reprehensibility supports a large award, but ratio must be reasonable; remittitur required. |
| Use of Title VII damages cap as a civil penalty benchmark | Cap is a relevant civil penalty informing due process. | Cap should not fix constitutional ratio but set a ceiling. | Cap is a valid civil penalty benchmark; weighs toward remittitur toward cap. |
| Remittitur amount to satisfy due process | Allow as much as necessary to deter future egregious conduct. | Remittitur should align with highest permissible ratio per circuit precedents. | Highest permissible is $125,000; remand for remittitur to that amount. |
Key Cases Cited
- BMW of N. America, Inc. v. Gore, 517 U.S. 559 (1996) (three Gore guideposts for punitive damages; due process limits)
- State Farm Mut. Auto. Ins. Co. v. Campbell, 538 U.S. 408 (2003) (reprehensibility, ratio, penalties; physical vs economic harm)
- Mendez v. County of San Bernardino, 540 F.3d 1109 (9th Cir. 2008) (nominal damages with punitive award; remittitur guidance)
- Zhang v. American Gem Seafoods, Inc., 339 F.3d 1020 (9th Cir. 2003) (Title VII damages cap as civil penalty; comparables)
- Swinton v. Potomac Corp., 270 F.3d 794 (9th Cir. 2001) (reprehensibility and repeated conduct framework)
- Abner v. Kansas City Southern Ry. Co., 513 F.3d 154 (5th Cir. 2008) (nominal damages and cap informing permissible punitive level)
- Williams v. ConAgra, Inc., 378 F.3d 790 (8th Cir. 2004) (cap as controlling factor in due process analysis)
