EEOC v. Clear Lake DodgeEEOC v. Clear Lake Dodge
PER CURIAM:
This panel‘s original opinion in this case was issued June 24, 1994, and was reported at 24 F.3d 265. Goerlitz filed a petition for rehearing, and the EEOC filed a suggestion for rehearing en banc. In response to the petition for rehearing, we withdraw our earlier opinion and substitute the following opinion.
The Equal Employment Opportunity Commission, on behalf of Rhonda Goerlitz, brought this sex discrimination action--in which Goerlitz later intervened personally to raise state law issues--against Gulf Coast Dodge, Inc., claiming that Gulf Coast fired Goerlitz beсause of her pregnancy. The jury returned a defendant‘s verdict in favor of Gulf Coast on all state law issues. The jury also decided in favor of Goerlitz on the Title VII claims, but its ruling in this respect was advisory only. The district judge
We affirm the district court‘s decision to award attorneys’ fees, but hold that the district court abused its discretion in determining the amount of fees to be awarded. Accordingly, we remand the case to the district court for reconsideration of the fees in the light of this oрinion. Finally, we affirm the district court‘s imposition of sanctions on Gulf Coast‘s attorney in connection with post-trial matters.1
I
Gulf Coast hired Rhonda Goerlitz to be a customer service representative (“CSR“). Goerlitz was hired in probationary status for the first ninety days at $1400 a month with a raise after that to $1500 a month if given permanent status. When she began work on July 15, 1990, Goerlitz was about one month into a pregnancy.
She worked with automobile purchasers to assure that the vehicle was clean when delivered, to demonstrate how to operate various features on the automobile likе the cruise control and the radio, and to show the location of the spare tire. In the case of a van purchase, her job included demonstrating how to fold down the sofa bed.
After a few weeks as a dispatcher, on September 10, 1990, when McMillan was on vacation, Goerlitz slipped and fell on the service driveway. She was taken by ambulance to an emergency room, where it was determined that she had sprained her ankle. She returned to work the same day, but Harry McGinty, who was filling in for McMillan, instructed Goerlitz to stay home for the rеst of the week and to contact McMillan upon his return the next Monday.
On September 17, Goerlitz called McMillan to ascertain her employment status. McMillan told her that he did not need anyone to work in dispatch that day. In response to Goerlitz‘s inquiry about her status, McMillan replied that it had not changed since their conversation in August when he had transferred her from her position as a CSR. According to McMillan, he told Goerlitz that he thought they could put together a job for her doing filing and possibly keypunch. Goerlitz asked several times during the
Goerlitz went to see McMillan the next day, on September 18, and they once again discussed the file clerk job. On the day before the meeting occurred, however, McMillan had prepared a Personnel Action Report and had dated it effective September 12, 1990. On the form, the box labeled “TERMINATION” was checked and the following comment was written: “unable to perform her duties properly due to pregnancy.” McMillan testified at trial that this report was not a termination notice, but merely a transfer slip indicating to the company‘s payroll clerk which department was responsible for the employee‘s pay.
II
The EEOC originally brought this action against Gulf Coast, alleging that Goerlitz was terminated from her position at Gulf Coast because of her sex (pregnancy). The suit was commenced on April 1, 1991, pursuant to Title VII of the Civil Rights Act of 1964,
Some six months later, on October 29, 1991, Goerlitz intervened. She alleged, in addition to the Title VII action, causes of action under the Texas Human Rights Act,
On February 18, 1992, the district court made findings of facts and conclusions of law on Goerlitz‘s claims under Title VII.2 It concluded that the “EEOC and Goerlitz established through direct testimony and documentary evidence that Goerlitz‘s pregnancy was a substantial factor in Gulf Coast‘s decision to reassign her.” The court held that “Gulf Coast had failed to prove by a рreponderance of the evidence that the decision to reassign Goerlitz and then discharge her would have been made absent her pregnancy,” or that “Goerlitz‘s pregnancy interfered with her ability to perform either her job as [CSR] or her job in Dispatch.”
Accordingly, the district court found that Goerlitz was entitled to back pay, prejudgment interest thereon, and attorneys’ fees. The court, however, accepted the jury‘s finding against Goerlitz on her state law claims, and denied Goerlitz‘s motions for judgment notwithstanding the verdict and for a new trial on her state law claims.
Gulf Coast filed its notice of appeal on August 25, and on October 30, Grimes filed a notice of appeal from the court‘s order of sanctions.
III
On appeal, Gulf Coast arguеs that the district court erred by entering a judgment in favor of Goerlitz on her Title VII claim when that judgment was contrary to the jury verdict in favor of the defendant on identical state law claims. Goerlitz, on the other hand, asserts that, according to the agreement of the parties, the jury verdict was not binding on the district court and that any argument to the contrary has been waived. On cross-appeal, Goerlitz argues further that the jury verdict was unsupported by the evidence, and that the district court should have granted her motions for judgment as a matter of law, or alternatively, for a new trial.
In аddition to these “merits” issues, Gulf Coast also appeals two ancillary rulings. Gulf Coast argues that the trial court abused its discretion, first, in awarding attorneys’ fees to
A
(1)
Gulf Coast‘s first claim is that the district court erred when it found in favor of Goerlitz on her Title VII claim. It argues that the jury verdict on the state law claims, which decided all relevant issues against Goerlitz, was binding on the district court. In support, Gulf Coast cites the Eleventh Circuit‘s decision in Lincoln v. Board of Regents, 697 F.2d 928 (11th Cir.), cert. denied, 464 U.S. 826 (1983), which stated:
An action for reinstatement and backpаy under Title VII is by nature equitable and entails no rights under the seventh amendment. An action for damages under § 1981, however, is by nature legal and must be tried by a jury on demand. When legal and equitable actions are tried together, the right to a jury in the legal action encompasses the issues common to both. When a party has the right to a jury trial on an issue involved in a legal claim, the judge is of course bound by the jury‘s determination of that issue as it affects his disposition of an accompanying equitable claim.
Id. at 934 (Wisdom, J.) (emphasis added) (citations omitted). Furthermore, Gulf Coast argues that the Fifth Circuit has adopted this holding in Ward v. Texas Employment Comm‘r, 823 F.2d 907 (5th Cir. 1987).
Although it is not entirely clear whether the Lincoln holding should apply in this circuit beyond the facts of Ward, we do not
The conduct in this case occurred before, and the trial took place after, the effective date of the Civil Rights Act of 1991, which enacted the right to a jury trial on Title VII claims. Throughout the district court proceedings, Gulf Coast argued that the Civil Rights Act of 1991, and its right to a jury trial, should not be retroactively applied.3 The district court agreed with Gulf Coast, and thus ordered that the selected jury would be only advisory as to the equitable Title VII claim. Gulf Coast fully agreed with this decision and repeatedly аnd consistently asserted the view that the district court was the fact finder in the Title VII case. Gulf Coast never argued before the district court that Ward and Lincoln applied to make the jury verdict binding. In fact, even in its post trial motion for judgment under Rule 52(a) Gulf Coast characterized the verdict as “only advisory to the Court, on the . . . Title VII claim.”
Because Gulf Coast argued for, and fully supported the court‘s ruling that the jury would be only advisory on the Title VII case, Gulf Coast waived any right that it might otherwise have had. See Floyd v. Kellogg Sales Co., 841 F.2d 226, 229-30 (8th Cir.) cert. denied, 488 U.S. 970 (1988); see also Rideau v. Parkem Industrial
(2)
Our task thus becomes to review the merits of the district court‘s Title VII findings. A district court‘s judgment cannot stand where its findings are clearly erroneous.
In the present case, the evidence adequately supports a finding that Gulf Coast transferred Goerlitz because of her pregnancy and, ultimately, discharged her for that same, impermissible reason. The evidence, for example, reveals the undisputed fact that McMillan completed and signed a Personnel Action Report regarding Goerlitz on which he checked the option labеlled “TERMINATION” and noted “UNABLE TO PERFORM DUTIES PROPERLY DUE TO PREGNANCY.” McMillan also authorized that Goerlitz be given severance pay when he filled out the Personnel Action Report. Furthermore, several of the plaintiff‘s exhibits demonstrate that when Gulf Coast employees are transferred, “TERMINATION” is not checked on the Personnel Actions Report, and the details of the transfer are noted.
This evidence fully supports the finding that Goerlitz was fired from her job; it adequately refutes Gulf Coast‘s contention that she was transferred and that she quit. In short, the evidence will support the finding that the reason for Goerlitz‘s termination was her pregnancy. Although other evidence may support a contrary
Furthermore, we hold that the court committed no error in calculating the amount of its damage award.7
B
In addition to its damage award, the district judge ordered Gulf Coast to pay Goerlitz‘s attorneys’ fees in the amount of one hundred thirty-two thousand, nine hundred twenty-six dollars and twenty-one cents ($132,926.25). The Civil Rights Act of 1964 provides that a “prevailing party” in a suit brought under Title
The action before us was originally brought by the EEOC. It asserted Goerlitz‘s rights only under Title VII of the Civil Rights Act of 1964. All other claims asserted in this case were not part of the original suit. On October 29, 1991, more than six months after the original suit was filed, Goerlitz, through her private attorney, intervened, and added state law claims. As to each and every claim added to this case by Goerlitz, the jury found in favor of Gulf Coast Dodge. In short, the EEOC brought each and every prevаiling claim; Goerlitz brought each and every rejected claim.
We recognize, however, that after Goerlitz intervened in this case, her private lawyer represented her not only on her losing state law claims but also on claims under Title VII. Goerlitz obtained a favorable judgment on her Title VII claims; in this sense, she qualifies as a “prevailing plaintiff” under our
As wе have earlier noted, the plaintiff was not the prevailing party with respect to her state law claims. The plaintiff, however, clearly was the prevailing party with respect to her Title VII claims. As we have also noted, however, the plaintiff was competently represented by the EEOC who initiated and prosecuted all the Title VII claims with respect to which the plaintiff prevailed. Notwithstanding the redundancy of Goerlitz‘s private attorney, as far as the Title VII claims are concerned, she nevertheless participated in the related discovery and in the presentation of the Title VII claims, and, obviously, made some contribution to the Title VII victory Goerlitz won before the district court. Our consideration of the district court‘s award of $132,926.25 in attorneys’ fees in comparison to that contribution, however, convinces us that although the district court did not
When assessing the appropriateness of attorneys’ fees, we must recognize the well-settled principle that attorneys’ fees must be awarded only for those lawyer hours that are reasonably necessary to adequately prosecute the case. City of Riverside v. Rivera, 477 U.S. 561, 568, 106 S.Ct. 2686, 2691, 91 L.Ed.2d 466; Hensley, 461 U.S. at 434, 103 S.Ct. at 1939. Attorneys’ fees must not be awarded for attorney hours that are “excessive, redundant, or otherwise unnecessary.” Hensley, 461 U.S. at 434, 103 S.Ct. at 1939-40. Title VII, furthermore, does not allow for the award of any attorneys’ fees requested, but only reasonable fees. Curtis v. Bill Hanna Ford, Inc., 822 F.2d 549, 551 (5th Cir. 1987). Another important consideration is that once civil rights litigation materially alters the legal relationship between the parties, “the degree of the plaintiff‘s overall success goes to the reasonableness of a fee award.” Farrar, 113 S.Ct. at 574. There is no windfall of attorneys’ fees when the district court properly considers the relationship between the extent of the success and the amount of the fee award. See id. at 575. Similarly, “the district court should focus on the significance of the overall relief obtained by the plaintiff in relation to the hours reasonably expended in the litigation.” Rivera, 106 S.Ct. at 2691.
Here, we are faced with a somewhat unusual case. As discussed above, in April 1991 the EEOC instituted this suit on behalf of the
Additionally, the court erroneously concluded that the plaintiffs should be granted an enhancement to the hourly rate. As justification for the enhancement, the district court stated that the case “required highly skilled counsel” and that Goerlitz needed these attorneys to conduct a “complex factual investigation, including a large number of documents and depositions to rebut Gulf Coast‘s defenses of inadequate performance and poor attitude.” As further justification for the enhanced award, the court noted that Goerlitz had obtained “positive results on her Title VII claim, and that in achieving this result, she had encountered `the uncooperative behavior of defense counsel throughout pretrial matters and trial preparation.‘” These factors do not impress us
We therefore remand the case to the district court for reconsideration of attorneys’ fees. The district court must keep foremost in its mind that Goerlitz succeeded only on her Title VII claims with respect to which the EEOC was fully adequate to prosecute. The district court must also remember that Goerlitz lost on all of the claims brought by her рrivate counsel, and that the fact that she happened to win before the district judge on her Title VII claims does not provide a windfall of compensation for claims prosecuted, but lost.
C
Finally, we turn to address Gulf Coast‘s argument that the district court erred by imposing sanctions on its attorney, Walter Grimes. The appropriate standard of review in assessing the district court‘s award of Rule 11 sanctions is the abuse of discretion standard. Thomas v. Capital Sec. Servs., Inc., 836 F.2d 866, 872 (5th Cir. 1988). The district court imposed these sanctions because Grimes repeatedly failed to comply with
It is clear that under Rule 11, an attorney has the obligation to conduct “a reasonable inquiry into the law such that the document [that he signs] embodies existing legal principles.” Yet, it is equally clear that when Goerlitz attempted to enforce the judgment against Gulf Coast, Grimes’ rеsponse was to file an incomplete, insufficient supersedeas bond.10 Acting to protect the interest of her client, Goerlitz‘s attorney filed an opposition to the motion to approve the supersedeas bond, pointing out the defects in the bond, and requesting sanctions against Grimes. Grimes then filed an amended supersedeas bond that corrected several of the problems with his original bond, but which still failed to give an adequate assurance that the bond would be effective.11
IV
Having found that Gulf Coast waived any right that it might have had to a binding jury verdict for its equitable claims, and having found that the district court‘s findings in favor of Goerlitz on her Title VII claims were not clearly erroneous, we AFFIRM the Title VII judgment of the district court. Further, we AFFIRM the district court‘s rulings denying Goerlitz‘s JNOV and new trial motions. We also AFFIRM the imрosition of sanctions against Gulf Coast‘s attorney, Walter Grimes. We REVERSE, however, the district court‘s award of attorneys’ fees to Goerlitz because we find that the district court abused its discretion in determining the amount of fees to be awarded. We therefore REMAND to the district court for a recalculation of Goerlitz‘s attorneys’ fees consistent with the observations of this opinion.
AFFIRMED in part, REVERSED in part, and REMANDED.
Because I would hold that no attorneys’ fees are warranted in this case, I respectfully dissent from Part III.B of the opinion. I concur, however, in all other parts of the opinion.
Goerlitz‘s private attorneys intervened in this case only to prosecute her state law claims; that is, the claims that the EEOC was not statutorily authorized to pursue on behalf of Goerlitz. Each and every state law claim was rejected. There is nothing in the record to suggest that the EEOC attorneys were not perfectly capable of handling the Title VII claims. Moreover, these were the only ones on which she prevailed. In my view, private attorneys were wholly and completely redundant and unnecessary, and payment of any fees to them constitutes a windfall. I adhere to the position that I earlier expressed, when I wrote for the majority, that “--absent unusual exceptions not here present--that it is patently ‘redundant’ and ‘unnecessary’ for a private attorney to participate in the litigation of identical claims that are simultaneously being pursued by the government-paid attorneys of the EEOC.” Clear Lake Dodge, 25 F.3d at 272.
For these reasons, I respectfully dissent.