29 Fair Empl.Prac.Cas. 1259,
Clyde WALKER, Plaintiff-Appellant, Cross-Appellee,
v.
FORD MOTOR COMPANY and Northgate Lincoln-Mercury Dealer,
Inc., Defendants-Appellees, Cross-Appellants.
No. 81-5445.
United States Court of Appeals,
Eleventh Circuit.
Sept. 7, 1982.
Joseph R. Moss, Cocoa, Fla., for plaintiff-appellant, cross-appellee.
William E. Sizemore, Tampa, Fla., Thomas M. Gonzalez, Tampa, Fla., for defendants-appellees, cross-appellants.
Appeals from the United States District Court for the Middle District of Florida.
Before TUTTLE, KRAVITCH and HENDERSON, Circuit Judges.
KRAVITCH, Circuit Judge.
In this Title VII case, both Clyde Walker and Ford Motor Company appeal from a judgment entered for Walker after a bench trial. Walker contends that the trial court erred in not awarding him sufficient backpay and in not permitting him to recover compensatory and punitive damages; Ford asserts that the trial court improperly found that it violated Title VII. Finding no error below, we affirm.
I.
Appellant Walker is a black man who in 1975 entered a minority dealer training program instituted by Ford and administered through participating local dealerships. During the 18-month training program trainees received a stipend of $1500 per month. Walker was assigned for his training to the Northgate Lincoln-Mercury dealership in Tampa, Florida. He began the program on October 27, 1975, and over the course of the next few months complained to Ford that Northgate management and employees repeatedly used offensive racial epithets, including referring to poorly repaired cars as "nigger-rigged" and referring to the salesman with the lowest sales volume as "the black ass." On one occasion the Northgate leasing manager called Walker a "dumb nigger";1 another time, this same employee stated that one of the lease cars had been damaged by "niggers." On still another occasion, when a black man created a disturbance at the dealership, a salesman was instructed to call the police to "get this nigger out of here."
Walker was terminated from the training program on June 17, 1976, four days after a Northgate co-owner Parks incorrectly reported Walker absent from work and shortly after Walker had requested a transfer to another dealership because of the racial slurs used by Northgate personnel. Walker sought reinstatement from Ford, and when it refused, filed a complaint with the EEOC. After receiving his right-to-sue letter, Walker filed this action in federal district court, alleging that the termination violated Title VII. The district court found that the pervasive use of racial slurs at the Northgate dealership was an unlawful employment practice under 42 U.S.C. § 2000e-2(a)(1) and that the inaccurate attendance report which resulted in Walker's discharge was motivated by Walker's complaints about the racial epithets. Accordingly, the court found that Ford and Northgate were guilty of retaliatory discharge under 42 U.S.C. § 2000e-3(a). The court awarded Walker reinstatement in the training program, or alternatively backpay for the remainder of the training period missed by Walker after the discharge, and attorney's fees, but denied compensatory damages claimed by Walker and also denied punitive damages.
II.
We first address the issues raised by Ford's cross-appeal. Ford makes two separate arguments concerning the trial court's finding that it violated Title VII. First, it claims that while a work atmosphere tainted by pervasive racially abusive language can be unlawful under § 2000e-2, the racial slurs used at the Northgate dealership were not sufficiently pervasive to rise to a violation of Title VII.
We disagree. As Ford correctly notes, "an employer violates Title VII simply by creating or condoning an environment at the workplace which significantly and adversely affects (the psychological well-being of) an employee because of his race or ethnicity, regardless of any other tangible job detriment to the employee." Henson v. City of Dundee,
This court recognized in Henson that "the mere utterance of an ethnic or racial epithet which engenders offensive feelings in an employee 'does not rise to a Title VII violation.' For ( ) harassment to state a claim under Title VII, it must be sufficiently pervasive so as to alter the conditions of employment and create an abusive working environment." Henson,
The findings were not clearly erroneous. Co-owner Karras admitted to repeatedly using the term "black ass." Although Parks claimed he had never heard the phrase "nigger-rigged" around the dealership, he admitted it was a common term in the car business. Both men asserted, however, that neither of these terms were intended to carry racial overtones. All other instances of opprobrious language alleged by Walker were confirmed by the record, and even Judson Powell, the manager of Ford's trainee program, tacitly admitted the conditions at the Northgate dealership by advising Walker that the racial slurs were "just something a black man would have to deal with in the South," and that Walker should not dwell on "trivialities" but concentrate on the broad goal of finishing the training program. Accordingly, we find no error in the court's conclusion that the work atmosphere at the Northgate dealership violated § 2000e-2.2
Ford's next argument is that even if the trial court was correct in finding a § 2000e-2 violation, it erred in finding a retaliatory discharge under § 2000e-3. Ford contends that the trial court impermissibly shifted the burden of proof to Ford to show a legitimate non-discriminatory reason for the discharge contrary to the Supreme Court decision in Texas Department of Community Affairs v. Burdine,
We find both these arguments without merit. As to the first, we agree with Ford that Burdine mandates that the plaintiff always bear the burden of persuasion on the ultimate fact of discrimination. We also agree that under the traditional three-step proof in Title VII cases,3 once a plaintiff carries his prima facie case, the employer must only articulate, not prove by a preponderance, a legitimate nondiscriminatory reason for the discharge. See Burdine, supra,
Ford's second claim is likewise meritless. The court found after reviewing all the evidence that "a significant motivation" for Walker's discharge was his complaints about the racial slurs at the Northgate dealership. This finding of ultimate fact can be overturned only if clearly erroneous. Pullman-Standard v. Swint, --- U.S. ----,
III.
We next turn to the claims raised by Walker concerning the backpay award. He first asserts that the trial court erred in awarding his backpay only from the time of dismissal to the end of the training program. The trial court based its denial of further backpay on the theory that because the training program had a fixed term of eighteen months and because the training agreement specifically relieved Ford of any obligation to employ Walker at the program's end,6 Walker was entitled only to backpay for the duration of the program. Walker contends that the evidence showed that Ford placed trainee graduates in dealerships or other management positions and therefore he is entitled to backpay until the time of reinstatement. Ford disputes Walker's characterization of the evidence and urges that the trial court's ruling was correct.
Although we find under separate analysis that Walker was not entitled to further backpay, we conclude that the trial court's reasoning was too superficial. The mere fact that the training agreement was for a fixed term did not automatically end Ford's liability. On the contrary, our cases have recognized that even employees hired for fixed terms may be entitled to backpay from the date of the adverse employment action until reinstatement. See, e.g., McLaurin v. Columbia Municipal Separate School District,
An employee's claim for backpay for a period beyond that set by the employment agreement raises issues of causation which have not been thoroughly analyzed by the courts. In cases involving employment terminable at will or otherwise of indefinite duration, courts in essence have presumed that once the plaintiff shows that discrimination resulted in economic injury, either through improper discharge or a failure to hire, the injury continues until reinstatement. See Merriweather v. Hercules, Inc., supra (once plaintiff proved injury due to discrimination plaintiff was entitled to backpay until date of reinstatement despite questions concerning plaintiff's health, since record did not show high rate of absenteeism); Mims v. Wilson,
The Fourth Circuit has held this presumption applicable even in cases which involve fixed terms of employment. Edwards v. School Board, supra. Unlike situations involving employment of indefinite duration where such a presumption is consistent with the facts of the case, however, applying a presumption of continued employment to fixed-term cases runs contrary to the evidence which, absent anything to the contrary, shows that the employment relationship would have ended as of a set date. Moreover, other courts have not always awarded backpay to the date of reinstatement in cases of fixed-term employment. In Welch v. University of Texas,
Generalizing these holdings to a broad rule of Title VII damages, we conclude that the proper allocation of proof in cases involving fixed-term contracts is that a plaintiff must initially introduce some evidence showing that the economic injury resulting from the discharge extended beyond the employment term. As in the teacher discharge cases, this proof may consist of no more than a showing that the particular plaintiff's contract had been renewed in the past, that contracts of similarly situated employees had been renewed, or that the employer had made a promise of continued employment. Once the plaintiff carries this burden, and thus in the words of Marks v. Prattco, supra, establishes the damages resulting from the discriminatory acts, then the burden shifts to the defendant to show by a preponderance of the evidence that the plaintiff would not have remained in employment beyond the contract term.9
Applying this test to the case before us, we conclude after examining the record that Walker failed to introduce any evidence that he would have continued employment with Ford at the end of the training program. The evidence showed that of 40 trainee graduates, only 11 obtained Ford dealerships, which are independent franchises granted by Ford and not "employment" with Ford. Ford officials did testify that Ford "made efforts" to find trainees management positions, but these efforts were directed at other dealerships, not at Ford itself. The record, moreover, is silent as to the success rate of these efforts. Accordingly, we find no error in the district court's denial of further backpay to Walker.10
We also reject Walker's argument that his last three months' pay11 should not have been deducted from the backpay award because he was in Detroit seeking reinstatement. In Merriweather v. Hercules, Inc.,
IV.
Walker's final complaints concern the district court's denial of certain compensatory damages claimed by Walker12 and denial of punitive damages. Although the question whether compensatory and punitive damages may be awarded in Title VII actions has not yet been decided by any controlling precedent of this court,13 see Whiting v. Jackson State University,
Perhaps the most persuasive rationale behind the damages ban, however, is the courts' observation that in 1968 Congress enacted the Fair Housing laws which specifically provided for both actual and punitive damages remedies, 42 U.S.C. § 3612, yet four years later when Congress amended § 2000e-5(g) it failed to include any provision for damages. As the Ninth Circuit has noted, "the very detailed provisions of § 2000e-5 almost compel the conclusion that Congress intentionally left out any provision for either general or punitive damages." Padway v. Palches, supra,
We find the reasoning presented in these cases persuasive and adopt the rule that compensatory and punitive damages are unavailable in Title VII suits. We caution, however, that the compensatory damages ban does not include concomitants of employment such as fringe benefits, pension benefits, or other lost work benefits which at times have been referred to as "damages."16 As the former Fifth Circuit noted in Whiting v. Jackson State University, supra,
AFFIRMED.
Notes
The circumstances surrounding this incident were disputed at trial. Walker claimed that the incident occurred when the Northgate employee spilled coffee on himself after bumping into a door that Walker had left locked. The employee claimed that he and Walker fought over $20 Walker allegedly owed him. The parties do not dispute that the employee later apologized to Walker
The fact that many of the epithets were not directed at Walker is not determinative. The offensive language often was used in Walker's presence after he had voiced objections to Ford. Accordingly, we find that under the circumstances Northgate's conduct "creat(ed) a working environment heavily charged with ethnic or racial discrimination." Rogers v. EEOC,
This three-step process requires a plaintiff to prove certain facts making out a prima facie case, after which the defendant must articulate a legitimate nondiscriminatory reason for the adverse employment action. If the defendant does so, the plaintiff must prove the proffered reason is pretextual. See Burdine, supra,
The transcript reveals the Court's awareness of the correct burden of proof. At one point during final argument, for example, the following colloquy between the court and counsel occurred:
THE COURT: All right. That will be fine. There is one question which I would like to address to you and it is rather difficult to know how to put it precisely, but I would like to ask whether or not you agree that in order for the Plaintiff to recover in this case he must show that he was discharged or terminated by Ford either because of his race or because he objected to racial conditions at the dealership.
Do you agree with that?
MR. MOSS: Yes, sir. (T-286 -287).
Shortly afterward the court again inquired:
THE COURT: Wouldn't I have to find that he was terminated because of discrimination-
MR. MOSS: Yes. (T-299).
Ford contends that the plaintiff could not have carried his prima facie case of retaliatory discharge because no evidence existed which proved a "causal link" between the discharge and Walker's complaints about the racial epithets. See note 3, supra. As we explain in the text, infra, however, the evidence, although circumstantial, was ample for the trial court both to have found such a link and to have rejected Ford's proffered explanation for the discharge
The agreement contained the following provision:
Nothing herein shall be construed as constituting any assurance or promise by Ford Motor Company that you will be offered a job with it or any dealership, or a Ford or Lincoln-Mercury Dealer Sales and Service Agreement, upon the completion of the Dealer Training Program.
The Eleventh Circuit, in the en banc case Bonner v. City of Prichard,
Because this case was decided by a Unit A panel of the former Fifth Circuit subsequent to October 1, 1981, we do not consider it binding precedent on this court. See Stein v. Reynolds Securities, Inc.,
We adopt this test from cases such as Avery v. Homewood City Board of Education,
We do not find any inconsistency between the allocation of proof we adopt here and the Supreme Court's decision in Texas Dept. of Community Affairs v. Burdine,
Finally, we also consider this test fully compatible with our recent decision in Pettway v. American Cast Iron Pipe Co.,
We wish to emphasize that the analysis we have adopted here is applicable only in cases involving fixed-term employment and then only in the narrow category where the plaintiff requests backpay for a period extending beyond the employment term. In cases involving employment at will or other employment of indefinite duration, we see no reason to deviate from a presumption that the plaintiff's economic loss would have continued until reinstatement
Ford paid Walker for 90 days subsequent to his termination
These damages claims included moving expenses to Tampa and then to a new dealership for reinstatement, the loss incurred in the sale of Mrs. Walker's flower shop to facilitate Walker's participation in the training program, and damages for Walker's ruined credit rating
Our precedents have held that both compensatory and punitive damages are available in actions brought under 42 U.S.C. § 1981 and § 1983. See Whiting v. Jackson State University,
The only circuit court case arguably contra is Williams v. Trans World Airlines,
Appellant cited Rosen v. Public Service Electric & Gas Co.,
This section states in relevant part:
If the court finds that the respondent has intentionally engaged in or is intentionally engaging in an unlawful employment practice charged in the complaint, the court may enjoin the respondent from engaging in such unlawful employment practice, and order such affirmative action as may be appropriate, which may include, but is not limited to, reinstatement or hiring of employees, with or without back pay (payable by the employer, employment agency, or labor organization, as the case may be, responsible for the unlawful employment practice), or any other equitable relief as the court deems appropriate.
Courts have rarely been precise in defining whether requested relief in Title VII cases is for "damages" or an equitable remedy. Black's Law Dictionary defines "compensatory damages" as damages "such as will compensate the injured party for the injury sustained and nothing more." While certain types of equitable monetary relief such as backpay or restoration of other lost work benefits could fit this rather expansive definition, the cases holding that "compensatory damages" are unavailable in Title VII actions uniformly deal with either claims for emotional distress (or pain and suffering) or else requests for damages resulting from the consequences of an adverse employment action, such as a ruined credit rating. See, e.g., Pearson v. Western Electric Co.,
