Dutcher v. Randall FoodsDutcher v. Randall Foods
Appellant, Lori Duteher, successfully proved her employer, appellee Randall Foods, violated the Equal Pay Act
1
,
see
I. Background Facts and Proceedings.
Lori Duteher began working for Randall in 1984 as a part-time wrapper and counter person in the meat department. In 1990 she was promoted to a full-time position, responsible for the prepackaged meat section of the meat department. At that time, store management granted Dutcher’s request to have a “supervisor” patch sewn on her white work jacket; two other full-time employees in the meat department received the same patch.
In late 1991, Duteher began to suspect that Randall was discriminating against her based on her gender. Her suspicions were primarily based on her belief that Myron Gilliland, a full-time male employee in the produce department, received a higher wage than she did.
Randall hired Gilliland in September of 1991 as a full-time produce clerk. Randall expected Gilliland would move into a management position; he had twelve years of experience in the grocery business, five in managerial positions. Gilliland was initially hired at a rate of $5.80 per hour; three weeks later Dutcher’s wage was raised to the same hourly rate. In October of 1991, however, Gilliland received a one dollar raise; Duteher did not receive a raise at that time.
By coincidence, the produce department manager was Dutcher’s brother-in-law, Tom Duteher. Lori Duteher learned of the pay differential between her and Gilliland when Tom Duteher told his brother, Lori Duteher’s husband, in early 1992.
Lori Duteher then complained to the store manager about being paid less than Gilliland. When she found the manager’s response unsatisfactory, she filed a complaint with the Iowa Civil Rights Commission.
See
Trial of Dutcher’s case was bifurcated: the equal pay claim was tried to a jury and the civil rights claim was tried to the court. The jury decided Randall violated the Equal Pay Act by paying Duteher at a rate less than the rate “paid to a member of the opposite sex for a job doing substantially equal work which required equal skill, effort and responsibility.” It awarded her $2128 for lost wages and benefits, only $40.80 less than what she had requested. The court entered judgment on the jury verdict and addressed the remaining issues.
With respect to the Equal Pay Act, the court found Randall demonstrated it acted in good faith and had reasonable grounds to believe it was not violating the law in setting the pay rate for Duteher and comparable employees. Thus, the court denied liquidated damages.
See
The court then considered Dutcher’s discrimination claim under the Iowa Civil Rights Act. The court adopted the jury’s findings that (1) Randall paid Duteher less than male employees because she was female and (2) Duteher lost wages and benefits of $2128. Dutcher’s claim for additional compensatory damages was denied because the court rejected her testimony that Randall’s discriminatory conduct caused her emotional distress. The trial court also found Randall’s actions were not willful or wanton and consequently concluded punitive damages were not warranted.
On appeal Duteher makes several claims: (1) the trial court erred in considering whether Randall’s conduct was reasonable and in good faith because Randall had not raised this issue as an affirmative defense; (2) even if this issue had been properly raised, the court abused its discretion in finding Duteher was not entitled to liquidated damages; (3) substantial evidence does not support the court’s conclusion that Duteher suffered no emotional distress; and (4) the trial court erred in failing to award Duteher reasonable attorney fees. Randall did not file a cross-appeal and therefore, we accept as established that Randall violated the Equal Pay Act and the Iowa Civil Rights Act by paying Duteher less than males in comparable positions. Similarly, the amount of Dutcher’s lost wages and benefits, not challenged on appeal, is also conclusively determined.
II. Liquidated Damages.
Section 216(b) of the FLSA provides for an award of liquidated damages to a prevailing employee:
An employer who violates the provisions of [the Equal Pay Act] shall be liable to the employee ... affected in the amount of their unpaid ... wages ... and in an additional equal amount as liquidated damages.
[I]f the employer shows to the satisfaction of the court that the act or omission giving rise to such action was in good faith and that he had reasonable grounds for believing that his act or omission was not a violation of the Fair Labor Standards Act of 1938, as amended, the court may, in its sound discretion, award no liquidated damages or award any amount thereof not to exceed the amount specified insection 216 of this title.
Duteher challenges the district court’s denial of liquidated damages on both procedural and substantive grounds. First, she claims
We agree that Randall waived this defense when it failed to raise
A
Iowa Rule of Civil Procedure 101 requires “[a]ny defense ... which admits the facts of the adverse pleading but seeks to avoid their legal effect [to] be specially pleaded.” A
We hold rule 101 required Randall to plead
B.
Here the testimony Randall now relies upon to support its
Because Randall failed to plead
III. Damages for Emotional Distress.
Dutcher also sought damages for emotional distress under the Iowa Civil Rights Act. A person proving discrimination under the Act is entitled to compensation for “actual damages.”
We have held damages for emotional distress are a component of “actual damages.”
Chauffeurs Local Union 238 v. Iowa Civil Rights Comm’n,
The trial court refused to award Dutcher any damages for emotional distress, finding her claims of such distress “difficult to substantiate or believe.” We are bound by this factual finding unless it is unsupported by substantial evidence.
Smith v. ADM Feed Corp.,
In reviewing the record, particularly Dutcher’s testimony concerning her emotional distress, it is apparent that her focus is on the negative reaction she received to the filing of this lawsuit. She complains that her immediate supervisor stopped taking his breaks with her because he felt betrayed when she sued their employer. Her supervisor also removed her “supervisor” patch in response to this lawsuit. Her primary source of emotional distress, however, was the reaction of her brother-in-law, the manager of the produce department; he stopped talking with her at the store as well as at family gatherings. As a result Dutcher no longer enjoyed the close relationship she once had with her husband’s family.
It is significant that these events were consequences of Dutcher’s filing of this lawsuit, not the unequal wages she was paid by Randall. Although retaliation for filing a civil rights complaint is an unfair or discriminatory practice, see
IV. Attorney Fees.
The trial court denied attorney fees in its decree denying Randall’s posttrial motions
A.
FLSA requires an award of attorney fees to a prevailing party.
The FLSA
mandates
an award of reasonable attorney fees and costs to the prevailing party.
1.
Dutcher was a prevailing party.
The FLSA directs an award of reasonable attorney fees and costs to a “prevailing party.” “[A] plaintiff ‘prevails’ when actual relief on the merits of his claim materially alters the legal relationship between the parties by modifying the defendant’s behavior in a way that directly benefits the plaintiff.”
Farrar v. Hobby,
2.
Dutcher’s recovery was not nominal.
Randall contends the trial court merely determined a reasonable attorney fee was zero, and that it did not abuse its discretion in making this finding. The United States Supreme Court has stated that even a prevailing party may be denied attorney fees: “When a plaintiff recovers only nominal damages because of his failure to prove an essential element of his claim for monetary relief, the only reasonable fee is usually no fee at all.”
Farrar,
3.
Randall’s settlement offer for less than Dutcher’s recovery does not bar an award of attorney fees.
Randall points out that it had made an offer to confess judgment in the amount of $2000 prior to trial and Duteher’s recovery of $2128 exceeds that figure by only $128. This fact does not preclude Dutcher from recovering attorney fees.
See Haworth v. Nevada,
4.
District court prematurely denied fees.
We also note the trial court ruled on the attorney fee issue prior to a motion requesting fees or the submission of any affidavits setting forth the amount of the requested fees.
See Williams v. Tri-County Growers, Inc.,
B.
Remand for determination of reasonable attorney fees.
Our decision requires that we remand this case to the trial court to determine a reasonable attorney fee award. Dutcher shall be allowed to make a request for attorney fees.
See Grunin v. International House of Pancakes,
The manner of computing a reasonable attorney fee under federal fee-shifting statutes has changed over time.
See Pennsylvania v. Delaware Valley Citizens’ Council for Clean Air,
A reasonable attorney fee is initially calculated by multiplying the number of hours reasonably expended on the winning claims times a reasonable hourly rate.
Hensley v. Eckerhart,
An upward adjustment of the lodestar amount is permissible in “exceptional” cases.
Blum,
Detailed findings of fact with regard to the factors considered must accompany the attorney fee award.
See General Elec.,
C.
Attorney fees under the Iowa Civil Rights Act.
Reasonable attorney fees may also be awarded to a successful party under the Iowa Civil Rights Act.
The vindication of civil rights is so significant that the method of calculating attorney fees should not vary between state and federal courts.
4
Therefore, we adopt the federal analytical framework for the calcula
California courts should follow interpretations of similar federal laws in awarding attorney fees in age discrimination cases. Otherwise, if fee awards were doubtful in California courts, there would exist an incentive for plaintiffs to file suits in federal courts under the federal civil rights statute with more liberal attorney fee provisions. This would effectively defeat the policy of keeping the California law as an effective remedy against age discrimination and would undermine Congress’s intent “to encourage full use of state remedies.”
Stephens v. Coldwell Banker Commercial Group, Inc.,
V. Disposition.
We affirm the trial court’s decision that Dutcher was not entitled to damages for emotional distress. We reverse the district court’s denial of liquidated damages and attorney fees, and remand. Upon remand, the court should determine a reasonable attorney fee for the trial and appeal of this case and enter judgment consistent with this opinion.
AFFIRMED IN PART, REVERSED IN PART, AND REMANDED.
Notes
. The Equal Pay Act,
see
. We do not suggest that there was any merit in Randall’s
. After considering only the amount and nature of the judgment awarded a prevailing party, a court may determine that the plaintiff has only an insignificant technical victory. In those circumstances, the court may deny fees without receiving affidavits or evidence, or computing the lodestar amount.
Farrar,
. Similarly, the United States Supreme Court has held that the method of calculating attorney fees should be uniform under all federal fee-shifting statutes.
Dague,