In 1992 the Coca-Cola Bottling Company of Chicago (“Coca-Cola”) promoted five men into newly created upper-management positions. Because she was not one of those promoted, Karen Emmel filed a Title VII sexual discrimination complaint. Emmel was then passed over for another set of upper-management positions and filed a second complaint. These two complaints eventually reached a district court jury which ruled that Coca-Cola had violated Emmel’s rights when
I. Sufficiency of Evidence
A. Legal Analysis
Title VII of the Civil Rights Act of 1964 prohibits an employer from “discriminat[ing] against any individual with respect to [] compensation, terms, conditions, or privileges of employment, because of such individual’s ... sex.” 42 U.S.C. § 2000e-2(a)(1) (1994). Two methods exist for proving that an employer violated this prohibition. Troupe v. May Dept. Stores Co.,
In this case, Emmel presented both direct and indirect evidence that Coca-Cola violated Title VIL Based on that evidence, the jury found for Emmel. Pursuant to Rule 50(b), Coca-Cola moved for judgment as a matter of law, but the district court denied the motion. Coca-Cola appeals that denial.
We review the denial of a motion for judgment as a matter of law de novo. McNabola v. CTA,
B. Evidentiary Analysis
With these standards in mind, we consider the evidence Karen Emmel presented to the jury. Coca-Cola expends considerable effort rearguing why the testimony attributing statements to its officers was not credible and treating evidence it submitted at trial in its defense as the facts controlling the case. It does so despite the clear message from the verdict that the jury did not find that evidence credible. When the losing party moves for a judgment as a matter of law, we view all contested facts in the favor of the nonmoving party. McNabola,
Coca-Cola hired Karen Emmel in 1976. She began her career as an account manager. From there she became a route manager (later known as “district sales manager”) in 1981, a supervisory position she held for seven years. There, Emmel directly supervised approximately sixteen employees, and was responsible for training, discipline, and account paperwork for her sales staff and the trade and rental accounts for her route. In 1986 Emmel was recognized as “route manager of the year.” In 1988 Emmel moved from route manager in the bottle/can division to district sales manager in the syrup division. Coca-Cola Bottling had just purchased the syrup division sight unseen from Coke USA and Emmel moved at the request of the general manager of the new division, Ed Jancauskas. Emmel had no prior experience in syrup sales; the job required that she learn everything about the new division. In 1989, because of her expertise in both syrup and cans, John Walsh, vice president of sales for the north zone
In July 1992 Coca-Cola created five new upper-management positions called area development managers (ADMs). In a memo from Coca-Cola president and CEO William O’Rourke and vice president for company-wide sales, H. Thomas Noxon, the new positions were revealed simultaneously with the announcement of the personnel who would fill them. All five employees promoted to the new ADM positions had considerably shorter careers with Coca-Cola and much less time in supervisory positions than Em-mel. Additionally, all five were men. Upon learning she had been passed over, Emmel confronted vice president Walsh and asked for an explanation. He stated first “we just felt these guys deserved promotion.” Em-mel pressed him further, noting that she had more qualifications and experience than any of those promoted. Walsh said “Let’s close the door and speak honestly.” Upon doing so he advised, “Karen, you know, as we all know, they wanted men in these positions in the past to run — to have D licenses [a truck
Because she was again passed over for positions for which she felt she was more qualified, Emmel filed another complaint with the EEOC, which was eventually consolidated into this lawsuit by way of an amended complaint.
C. Emmel’s Direct Case
Emmel’s direct case is built on Walsh’s statement to Emmel that despite being “the only other one qualified” for the new ADM position, she was not promoted to one of the positions because “you know, as we all know, they wanted men in these positions in the past to run — to have D licenses and to run strike duty.” This directly implicates the ADM promotions of July 1992 and indirectly implicates the ADM promotions of September 1993. If Emmel was “the only other one qualified” at the time of the earlier promotions, absent any evidence to the contrary, she was still qualified the following year when she was again passed over. Walsh’s explanation also accounts for her not receiving a promotion to the new key account executive positions in 1993. Walsh was involved in all three sets of promotions; he recognized what “they wanted”; he acted in conformity with what “they wanted” in 1992; and the jury could conclude — as it did — that he continued to act in conformity with what “they wanted” in 1993.
Coca-Cola argues Walsh’s statement was not relevant to the discrimination alleged by Emmel. It does so by focussing on the word “past” in the midst of Walsh’s statement. “[Y]ou know, as we all know, they wanted men in these positions in the past_” According to Coca-Cola, Walsh was merely providing a history of the company’s prior employment policies, not proffering a reason for its contemporary actions. But isolating and focussing on “in the past” in this way ignores the context of the sentence. Emmel had just found out she was passed over for promotion. She was upset. She asked her supervisor, who had been involved in the promotion decisions, why she had been passed over. He told her, “Let’s close the door and speak honestly.” By context what was said next would relate directly to why Emmel was not promoted. That is what they were talking about. Walsh told her “you were the only other one qualified” for the position, but added, “Karen, you know, as we all know, they wanted men in these positions in the past to run — to have D licenses and to run strike duty.” Thus, the explanation Walsh offered her for why she was passed over now was that the firm had in the past wanted men in these positions. The only way such a statement is relevant in context is if it also explains why Emmel was not promoted — that the past is no different than the present;
Specifically, Emmel also introduced evidence of a number of statements by the top officers at Coca-Cola indicating a corporate bias against women holding upper-management positions. Duane Hallstrom, vice president of the south zone, in the presence of Thomas Noxon, vice president of company-wide sales, told Joan Fitzimons as she was being transferred out of her route manager position, that “Marvin Herb, the owner of [Coca-Cola], no longer wanted women in route management.” Coca-Cola president William O’Rourke was quoted at a gathering of company management at the Brookwood Country Club “that he didn’t think the beverage industry was where women were meant to be,” and “that he wouldn’t have his own daughters be managers of Coca-Cola Company,” and that “it was a man’s business.” At another management meeting at McDonald’s Lodge, vice president of sales Tom Noxon was quoted as stating “Let’s have the women stand. We’re filling our quotas nicely.”
These statements not only corroborate Walsh’s statement that “they” wanted men in these positions, they prevent Coca-Cola from effectively arguing that Walsh’s statement was merely an isolated instance of a loose tongue misstating company policy. In this regard, Coca-Cola relies on the comments by Justice O’Connor in a mixed motive ease that “stray remarks in the workplace ... cannot justify requiring the employer to prove that its hiring or promotion decisions were based on legitimate criteria. Nor can statements by nondecisionmakers, or statements by deci-sionmakers unrelated to the decisional process itself, suffice to satisfy the plaintiffs burden in this regard.” Price Waterhouse v. Hopkins,
D. Emmel’s Indirect Case
Emmel’s indirect ease is built on the evidence that she was more qualified than at least some of those men promoted to the July 1992 and September 1993 ADM positions and the September 1993 key account executive positions. She had more time in a supervisory capacity at Coca-Cola than all of those promoted to these ADM and key account executive positions. She had been with the company longer than any of them. She had a positive employment history (Walsh had “always admired her work”), unlike some of those promoted. And she had a college degree, unlike some of those promoted. For example, in July of 1992, one of those promoted to ADM had 5]k year’s experience with Coca-Cola, compared to Emmel’s 16 years. Emmel had 8 years supervisory experience in the position of district sales manager compared with the 2 $ years held by the male employee who was promoted. Emmel was named “Route Manager of the Year” in 1986 and her supervisor vice president John Walsh by his own admission “always had admiration for the work she had done for the company.” In contrast, the promoted employee had received four disciplinary warnings during the preceding four years prior to his promotion. At the time of trial, over a year after he was promoted to ADM, the employee in question was unable to explain to the jury the qualification for or the skills required for the position.
Coca-Cola responded at trial by articulating a nondiseriminatory explanation for the promotions. First, it noted, promotions are not based on length of service with Coca-Cola, or on college educations, but on who would be best for the job. Beyond that, Coca-Cola offered a north zone reason and a south zone reason. According to Coca-Cola, all north zone promotions were made on recommendation of north zone vice president Walsh. According to Walsh, his criteria for promotion to ADM was recent supervisory experience and his criteria for promotion to key account executive was ADM experience. As Emmel points out, at least one ADM promotion was directly from cold drink representative, the same non-supervisory position Emmel held, and at least one key account executive was promoted directly from district sales manager, rather than from an ADM position. Coca-Cola distinguished these promotions by classifying them as south zone promotions. According to Coca-Cola, south zone promotions were made on recommendation of south zone vice president Hallstrom and his criteria were different than Walsh’s. Hallstrom apparently did not care whether the employee promoted had recent supervisory experience. He promoted only south zone personnel, personnel with whom he was personally familiar and who he believed would be best for the job.
Having articulated a non-discriminatory reason which plausibly explains why Emmel would be passed over for promotion, Coca-Cola would have us end the inquiry there. After all, Coca-Cola is not required to make the best employment or promotion decisions. In fact, its decisions may be objectively wrong-headed, so long as they are not unlawfully discriminatory. The inquiry here is whether Coca-Cola honestly believed the reason it proffered. Rand v. CF Industries, Inc.,
Coca-Cola’s problem is two-fold. First, the jury heard evidence from which it could infer pretext. Second, just because Coca-Cola articulated a non-discriminatory reason, the jury did not have to believe it. “The defendants are off base in arguing that because the testimony of their officers ... was not contradicted directly, the jury had to accept it. The jury may have thought them liars. It is the prerogative of a jury or other trier of fact to disbelieve uncontradicted testimony unless other evidence shows that the
Pretext does not require that the facts presented by the defendant as the reason for its employment action not be true, only that they not be the reason. When a plausible reason was in fact not the reason, it is pretextual. “Pretext ... means a lie, specifically a phony reason for some action.” Perdomo v. Browner,
The evidence provides several bases by which the jury could conclude Coca-Cola’s explanation was pretextual. The memos announcing the promotions came from O’Rourke and Noxon, the president and vice president for sales, not from the respective zone vice presidents, Hallstrom and Walsh. This undercuts the argument that the promotions were made by Hallstrom and Walsh rather than by company-wide officers. And the jury may have found incredible Coca-Cola’s assertion that the qualifications for its upper-management positions differed depending upon the zone in which the prospective manager presently worked. Further, evidence indicated that in the past, before the ADM position was created, key account executives had been promoted directly from district sales manager positions.
More compelling may have been Coca-Cola’s failure to express this explanation earlier despite several opportunities to do so. See, e.g., Perfetti v. First Nat. Bank of Chicago,
This conclusion is also drawn from Coca-Cola’s response to an interrogatory that, in several parts, asked the same question. Interrogatory 4(a) inquired: “Do you contend that plaintiff was denied promotions and salary increases for incompetence, unsatisfacto
Defendant objects to Interrogatory No. 4 in part because it is not applicable to this case, ... [and] ... object[s] to all inquiries regarding promotions prior to September 29,1991 and after July 8,1992, and salary, because they are overbroad, they are burdensome, they seek information which is irrelevant, immaterial, and not reasonably calculated to lead to the discovery of admissible evidence.
This was followed by the answer:
Without waiving such objections, defendant states that because plaintiff did not seek promotion, she was not denied promotion. Thus, defendant’s response to Interrogatory No. 4(a) is no. [Tr. Vol. 7 pp. 1390-91]
Although this response may have seemed clever at the time, a jury could see it as an attempt to stonewall. Not only did it refuse to answer the question, which it would later be forced to address at trial, it did so by way of questionable objections. By the time the case went to trial Coca-Cola evidently thought an answer to the question was relevant to the case. When Coca-Cola responded that because Emmel had not applied for a promotion, she had not been denied a promotion, it increased the relevance of the evidence at trial that none of the men who had been promoted to the upper level management position had applied for them either. Thus, a new discriminatory inference could be drawn: at Coca-Cola women but not men must apply for promotions. But the evidence revealed that the answer simply was not true. At Coca-Cola promotions at this level of management were never carried out in response to applications; they were carried out by the top-level management on its own initiative.
Answers to interrogatories are evidence. In this instance, they were admissions by a party opponent. Attorneys must anticipate that such an answer might find its way to the jury. And while attorneys may appreciate legalistic responses to interrogatories, juries may not. Employing this discovery tactic has risks, evident in this case. The interrogatory and Coca-Cola’s response were presented to the jury, both in written form and through the testimony of one of the Coca-Cola employees responsible for providing the answers. The jury apparently concluded from the total absence earlier of the justification Coca-Cola would later offer at trial that the justification had been concocted in preparation for trial to fit the available facts. In other words that it was pretextual.
Of course, Emmel’s case is not based just on indirect or circumstantial evidence, or on demonstrating that Coca-Cola’s proffered reason was recently fabricated. Her case is a mix of both circumstantial evidence, evidence of pretext, and direct evidence of discrimination. See, e.g. Troupe v. May Dept. Stores, Co.,
Two plausible but conflicting explanations exist for what happened in this case. Substantial evidence, in the form of testimony and exhibits, supports each position. As
II. Motion for a New Trial
Coca-Cola also attacks the verdict with a brief, undeveloped argument that, absent outright reversal of the verdict, we should reverse the district court’s denial of its motion for a new trial. Our review of the district court’s denial of a motion for a new trial is for clear abuse of discretion. McNabola,
III. Punitive Damages
The jury awarded Emmel $43,000 in back pay and $7,325 in compensatory damages. In addition, pursuant to a jury instruction permitting punitive damages on a special finding that Coca-Cola “engaged in intentional discrimination or retaliation with malice or reckless indifference to the rights of plaintiff Karen Emmel,” the jury awarded Emmel $500,000 in punitive damages. The district court subsequently reduced the combined compensatory and punitive damage award to $300,000 as required by 42 U.S.C. § 1981a, resulting in a final punitive damage award of $292,675. Coca-Cola asserted that the jury erroneously returned a punitive damage award of $500,000, even though there was no evidence of malice or reckless indifference to Emmel’s federally protected rights. We review the district court’s denial of that motion for clear abuse of discretion. McNabola, 10 F.3d at 516.
Title VII provides for punitive damages in employment discrimination cases. The prevailing party is not automatically entitled to such damages. To prevail only requires that the plaintiff have proven that intentional unlawful discrimination was more likely than not the reason underlying the adverse employment decision in question. See, e.g., Hybert v. Hearst Corp.,
In this case, the district court found that the evidence at trial “established that Coca-Cola had a policy of discrimination against women in upper-management posi
Coca-Cola argues the punitive damage award must be reduced further, relying principally on our decision in Hennessy,
By contrast, viewing the evidence favoring the verdict for Emmel, the situation at Coca-Cola was considerably more egregious. At Coca-Cola, company policy, as articulated by the owner and the top corporate officers, was that women did not belong in upper management. Walsh explicitly stated this to Emmel, telling her behind closed doors that despite the fact that she was the only other one qualified, “they wanted men in these position.” The “they” about whom Walsh spoke confirmed Coca-Cola’s reckless indifference to Enamel’s individually held right to be free from unlawful discrimination. The owner told his top officers that he did not want women in route management. The firm’s president and CEO declared that women did not belong in the beverage industry. He expressed that he would not even have his own daughters in Coca-Cola management, and pronounced that “it was a man’s business.” The vice president of Coca-Cola had the women stand at a company meeting and explained that Coca-Cola was “filling our quotas nicely,” conveying the message, as Emmel described it, that rather than promoting women on their individual merit, Coca-Cola maintained an unlawful quota system wherein they cared only if they had the correct percentage of women employees as a group. Evidence before the jury indicated that Coca-Cola came up with the “recent supervisory experience” justification as a pretext for its failure to accord Emmel an equal opportunity for promotion despite significantly more supervisory experience with Coca-Cola than the men who were promoted. The failure to promote Emmel was not an isolated instance of discrimination by a single
For the foregoing reasons, the decision is Affirmed.
Notes
. Coca-Cola divides its bottle/can but not its syrup division into north and south zones.
. Emmel testified she took Noxon’s statement to mean "[t]hat the women were like a minority that were filling the quotas nicely, and that’s where we’re going to stay ... that they need so many women at Coca Cola.” Another witness, Joan Fitzimons, also described the statement as a “discriminatory comment.” In addition to suggesting the statement was never made, Coca-Cola argued the reference was to sales quotas rather than hiring or promotional quotas. Because we must view this contested evidence in the light most favorable to the verdict, McNabola v. CTA,
. While we permit this inference in our review of a jury verdict, we note that the argument that a jury might not believe the proffered legitimate business reason is not enough to defeat summary judgment. EEOC v. G-K-G, Inc.,
