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Guides, Ltd. v. Yarmouth Group Property Management, Inc.
295 F.3d 1065
10th Cir.
2002
Check Treatment
Docket

*1 LTD., limited GUIDES, a Colorado The doing business

liability company, Foote, House; Tseghe Plaintiffs/Appel

individually,

lants/Cross-Appellees, PROPERTY YARMOUTH GROUP INC.*;

MANAGEMENT, Tabor Cen Defendants/Ap L.P., Associates,

ter

pellees/Cross-Appellants. 99-1392, 99-1389, 99- 99-1388,

Nos. 99-1464. 99-1459 Appeals, Court

United States Circuit.

Tenth

July 2002. Management, Inc. Property Management, Property Group Yarmouth *The Inc., Lang LaSalle as Jones now known *4 ler, Lane, Greisen, LLP, Killmer & Den- ver, CO, Plaintiffs/Appel- for lants/Cross-Appellees. Ashe, Jr., Paul,

Robert Lawrence Has- Walker, LLP, Atlanta, tings, Janofsky & GA, (Kelly J. Koelker and Maureen E. O’Neill, Paul, Hastings, Janofsky & Walk- er, LLP, Atlanta, GA; Grunschlag, Dov M. Falconer, LLP, Steinhart & San Francis- co, California; Aab, and James L. Aab & Botts, Denver, CO, LLC, with him on the Associates, L.P.; brief for Tabor Center Gurr, H. Stacy, Pringle David Elzi & Den- ver, CO, Proper- for The Yarmouth Group Inc., ty Management, joins in the brief Associates, L.P.), Tabor Center for the *5 Defendants/Appellees/Cross-Appellants. McWILLIAMS, Before BRISCOE and JENKINS, Judges; Circuit and Senior Judge.** District BRISCOE, Judge. Circuit Guides, Tseghe Plaintiffs Foote and The (hereinafter Ltd., The Africa House d/b/a House) brought rights Africa a civil action Group defendants The Yarmouth Inc., Property Management, and Tabor Associates, L.P., alleging Center the de- fendants had violated U.S.C. Afri- intentionally and had interfered with prospective ca House’s business advan- tages conjunction with the defendants’ space for eviction and failure to lease retail Africa House. A found in favor of counts, Africa on all and and House plaintiff compensatory awarded each and punitive damages. Following post-trial mo- tions, the Foote as district court dismissed standing an lack of plaintiff individual for (David jury’s Darold W. Killmer H. Miller and to her. The vacated award brief), granted Mari Newman with him on the Mil- district court also Africa House’s ** Utah, Jenkins, sitting by designation. The Bruce S. United Honorable Judge States Senior District for the District of fees, merchandising mix and attorney although concerning it re- ment

request for rates, balance. and further ‍​​‌​​‌​​​‌‌​‌‌‌​​‌‌​​​‌​‌​​​​‌‌​​‌‌‌​​​​​​‌​‌​‌‌‍requested duced the Africa interest

granted prejudgment In defendant Tabor Cen- October Housе. acquired the Tabor ter Associates Center In plaintiffs’ landlord. and became appeal defendants the district February Yarmouth as- defendant court’s denial of their motion for the management responsibilities sumed and motion for new trial as a matter of law improve profit- -In an effort to Center. remittitur, as the district court’s or as well Center, ability imple- Yarmouth plain- interest. The prejudgment award of in- leasing procedures new mented Foote as cross-appeal the dismissal of tiffs negotiating long-term leases with cluded and the reduction plaintiff an individual ap- future tenants. Yarmouth also jurisdiction pursuant attorney fees. Our existing negotiate tenants to new proached part, § 1291. affirm in We 28 U.S.C. short-term tenancies. long-term and part, and remand. reverse approach Yarmouth did not

Foote, in fact had no contact with her I. September ap- until 1996 when Foote possibil- to discuss proached Yarmouth Guides, Ltd., subchapter is a cor- S ity entering renewing or into a new under Colorado law poration organized lease. House, doing business as The meeting From this initial until late Octo- in African art and specializing retail store meetings ber Foote had several with Foote, immigrant Tseghe artifacts. representatives concerning of Yarmouth *6 is its sole shareholder and Ethiopia, from possibility leasing Ta- space president. In Foote entered into bor Center. Yarmouth would agreements lease separate two short-term clarify engage intentions or in its seri- Center, prior owners of the Tabor with negotiations. Foote ous and Yarmouth Denver, Colorado, a downtown mall in for a possible space discussed for relocation of occupy space Africa to 322 at the House business, but Yarmouth would not as- agreement The first short-term Center. space sure Foote would be avail- February through August ran from able, though undisputed it was even there 1993, and the second ran month-to-month many empty spaces were at the available in beginning September 1993. Under the During attempted Tabor these Center. leases, of a terms of the the rent consisted negotiations, representative a from Yar- approximately per amount of base $23 misrepresentations mouth made to Foote foot, square and 15% of sales above a concerning the lease at 322 and com- space did not predetermined level. lease (1) mented that her store: did not “mix require any pay- Africa House to make (2) tenants; well” glam- with other was not operating mall to incur ments for costs or (3) (4) enough; go”; ourous “had to did any improvement expenses. or build-out (5) Center”; image not “fit the of Tabor tеrms, In exchange for these favorable (6) name; change should its devalued the provided lease the owners could ter- (7) Center; unsophisticat- Tabor was tenancy minate the or relocate the busi- Yarmouth also up blueprints ed. drew if days’ they ness with fifteen notice re- which did not include Foote’s store. any quired space 322 for reason. The 13, 1996, possibility dependant September of relocation was On General Nutri- (GNC), upon space judg- available and the owners’ tion Centers a national vitamin and chain, ten-year right into a lease interfered with the health entered lease real property, for 322 at an annual in violation of 42 space with Yarmouth U.S.C. 1982. for Africa House. Africa a charged brought rent double that House also claim alleging intentionally Foote was not informed of this lease while that the defendants had inter- negotiated Sep- prospective with Yarmouth. On fered with its she business advan- 24,1996, tages. arrived at her store tember Foote a man measure- making to find detailed A in jury found favor of both Foote and management ments. When she called to Africa on all House claims. The measurements, purpose find out the $200,000 awarded in compensatory dam- an attempt she was informed that it was $1,500,000 ages and in punitive damages to lower the insurance rates for the Center. Foote; $150,000 compen- and awarded in only It was later that Foote learned that $1,000,000 satory damages punitive GNC, space had been leased damages to Africa House. The defendants the measurements were made connec- remittitur, filed a motion for trial new or

tion with lease. which the district court denied. The de- September Yarmouth informed On fendants also filed motion for Foote that House would not be as matter of law. The district court long-term gross granted part, finding offered lease because its this motion $800,000. merged sales did not meet or exceed Foote’s claims with of Africa those and, therefore, Yarmouth was also reluctant to Afri- House she offer was without space standing. ca House a or a short-term The court different dismissed Foote and 14, 1996, lease. On October the defen- set aside the verdict and her terminating application dants served Foote with notice favor. The filed an space attorney pursuant her lease for 322. The termination fees to 42 U.S.C. 1988(b). any did not contain offer of reloca- The district court granted notice this lease, motion, though hourly tion or a short-term even but reduced the rates re- by quested. grant- other tenants who had been terminated The district court further options. plaintiffs’ prejudgment offered such ed the motion for Yarmouth were attorney negotiate hired an with interest. *7 eventually Yarmouth. Yarmouth offered II. space

Africa House a four-month lease for Center, rejected in 202 the but Foote the plaintiffs’ first address contention We due to short duration. lease its dismissing that the district court erred in 29, 1996, § § On October Foote filed the Foote’s 1981 and 1982 claims for lack complaint standing. Yarmouth of court against this action The district reasoned Associates, along necessary with that was because the and Tabor Center dismissal temporary injury by for a suffered Africa rath- application restraining was House order, Foote, than in that the defendants had hearing order. Before on the the er parties stipulated property to relocate the refused to contract with or lease business until Africa House rather than to Foote indi- space legal 202 issues were injuries claim for complaint, brought vidually, resolved. In the Foote and Foote’s plain- of that clаims on her own behalf and on behalf of was the result refusal. House, argue appeal on that Foote has stand- alleging Africa that the defendants tiffs (1) ing sole shareholder of Africa unlawfully right had interfered with the because as contract, injury and. separate to make and enforce a in violation House she suffered (2) House, 1981; § of Africa and unlawfully of 42 and distinct from that U.S.C. 1072 § claims under 1981 in her own assert discrimination standing that she has

further § discrimination is guaranty con- 1982 where such right signed she because gave employees. which rise to a on the race of one of its tract in her 1993 lease based Ass’n, Inc., and distinct from Health duty separate Group See Gersman v. special (D.C.Cir.1991), on to Africa House. F.2d 1565 vacated that owed 931 1068, 112 grounds, 502 U.S. S.Ct. other standing of de review issues We (1992).2 960, ques 117 L.Ed.2d 127 County Den City v. & Faustin novo. of standing to tion is whether Foote has ver, Colorado, 947 Cir. 268 F.3d damages a claim for emotional which bring 2001). tо determine whether In order allegedly suffered as a result of she herself injury under standing to claim Foote has the defendants’ discrimination. § § we first consider 1981 statutes. Section language used those that, general as a We have held right guarantees 1981 U.S.C. rule, a per a stockholder cannot maintain “make and enforce” con persons all for harm paidy sonal action a third guaran 42 U.S.C. tracts. Section corporation. to the In caused Stat-Tech “inherit, lease, right purchase, tees the Delutes, 47 F.3d Corp. tern. sell, hold, convey personal real and (10th Cir.1995). is, however, There an ex “[p]ru It has been held that property.” ception to this rule where the actions standing ordinarily dential limitations on injure party corporation third action under sections 1981 require that an injury also cause to the shareholder which brought by the direct victims of or 1982 be unique to himself or herself as share they alleged discrimination because corporation and not suffered holder to assert the individual are best situated by the other shareholders. Id. rights question.” Terrace As Clifton alleged Foote that she suffered emotion- socs., Technologies Corp., Ltd. v. United al as a result of the defendants’ distress (D.C.Cir.1991). actions. this arose from distress case, to contract alleged

In the instant Foote the failure defendants discrimination based on her race. Howev with or lease to Africa House and was a er, party seeking product to contract with the of the economic which property, corporation. defendants and to lease and thus were suffered alleged rights victim of the discrimina suffered no violation of her contract direct tion, any way corporation, right was Foote’s Africa or to lease that was House, from rather than Footе herself.1 We different the violations claimed claim agree standing House has to Africa House. Her is derivative of *8 Order, Stipulated standing bring § According to the Pretrial suit under 1981 because 1. § plaintiffs' regard the with injury claims 1981 the it suffered fell "within the zone of § are that “defendants have denied statute,” and 1982 protected interests the in that the opportunity the The Africa House rent or "solely termination of the contract was be- negotiate space for the rental of retail at The cause an individual associated with CSI was Shops App. Center." at 61. Tabor 931 F.2d at 1569. See also Hudson Jewish.” complaint identifies Africa House as the cor- Theater, Heimbach, Valley v. Freedom Inc. 671 Id. at 36. poration. 702, (2d Cir.1982) (holding F.2d 706 theater corporation standing had to assert claim al- Gersman, CSI, corporation, brought 2. In a a leging against it was discriminated because it § against a 1981 claim defendant whо had sought Hispanic to involve the black and com- relationship ended a contractual when the n munities). president defendant learned that the of CSI was Jewish. The court held that had CSI

1073 A party Africa House and she does not have Id. is entitled to judgment that of as a to sue on her own behalf. See if standing only matter of law is no legally there Co., 268, v. Amoco Oil 118 F.3d Bellows evidentiary sufficient basis ‍​​‌​​‌​​​‌‌​‌‌‌​​‌‌​​​‌​‌​​​​‌‌​​‌‌‌​​​​​​‌​‌​‌‌‍for the claim. (5th Cir.1997) (holding plaintiff 276-77 Stores, Inc., Hampton v. Dillard Dept. 247 a president corporation (10th who was Cir.2001). 1091, F.3d 1103 no individual cause of 51% shareholder had § 1981 for emotional distress

action under § A 1981 or plaintiff 1982 arising against discrimination from prove by must a preponderance of the race). corporation based on intentionally evidence the defendant against discriminated him or her on the that she argues Foote also has basis of race. See Stewart v. Adolph standing guarantee аs the result of her (10th Co., 217 Coors F.3d Cir. corporation’s 1993lease. we 2000). proof may Such come from either reject that a stockholder’s sta premise direct or indirect evidence. Hampton, 247 guarantor gives tus as a the stockholder F.3d at 1107. When asked review the against status to assert an individual claim sufficiency of the evidence 1981 and a party third where harm is derivative § 1982 claims based on indirect discrimi corporation. of that suffered See nation, we assume that plaintiff met Co., Sparling v. 864 F.2d Constr. Hoffman his or her burden of proving prima facie Ash, Cir.1988); v. Nicholson trial, claim and properly the claim went to (Colo.App.1990). 800 P.2d only leaving question of whether the guarantor previous Foote’s status as plaintiff presented sufficient evidence to significance lease is of no to her claim that jury’s support the determination that the the defendants refused to contract or lease adverse action was taken on the basis of corporation. to her 1108; Stewart, race. Id. at 217 F.3d at We hold the district court did not 1288. dismissing err in Foote as an individual plaintiff setting aside the whole, Based on the record as a we awarded to her. conclude there was sufficient evidence from which a could infer that

III. defendants discriminated next consider the Although undisputed We defendants’ House. evidence that them judgment always contention motion for indicated that Africa House was an Center, a matter of law should grant have been excellent tenant at the Tabor identify ed because there although was insufficient evidence the defendants could not jury’s finding legitimate why to sustain the of intentional reason she would not be future, reviewing race discrimination. In the dis tenant appropriate 50(b) trict denial of a Rule motion no attempt court’s defendants made to discuss the law, apply possibility as matter of we of a future lease. The defen- the same standard as the district court. dants told Foote that Africa House was States, Inc., Tyler eligible long-term Mountain for a it lease because RE/MAX (10th Cir.2000). sales; enough gross did not have annual We *9 record, however, they review all the evidence in the con at the same time offered a it and all struing long-term inferences drawn there lease to another business whose favorably year-to-date from most to nonmoving approximately sales were $20,000 party, making credibility and refrain from whose ratio less and rent-to-sales weighing comparable. attempted determinations or the evidence. was When Foote lease, told IV. she was a short-term pursue to be- unavailable or was- spaces were there was next contend The defendants only temporаry a lease offered grudgingly jury’s support the evidence to insufficient time, defen- though, at the same even Af- they interfered with determination for soliciting other tenants dants were advan- prospective House’s business rica the de- point, At one leases. short-term court erred and that the district tages, misrepresentations made fendants as a judgment denying their motion taking why they were concerning They to that claim. matter of law as business, telling her of her measurements failed to introduce that Africa House argue pur- for insurance were the measurements induced or the defendants evidence they actually prepara- were poses when not to person a third otherwise caused for a new tenant. tion prospective a busi- into or continue enter Further, from which a there is evidence relationship. ness race and the jury infer that Foote’s cоuld record, of the we After a careful review clientele race of Africa House’s perceived support any to find evidence are unable discriminatory con- for this the basis were jury’s appeal, On verdict. testimony from Jana There" was duct. point any. evi- similarly fails to House long- offered a a tenant who was Thorpe, support the verdict. dence would which lease, that she asked whether when term result, jury’s verdict a we reverse the As long- would be offered business Foote’s on this issue. lease, was told that the business term she proposed image of the Tabor “didn’t fit the V. interpreted App. at 1343. She

Center.” that “Africa House to mean this statement argue that The defendants next image fit the of the Tabor Center didn’t trial court committed several the district Africa House was a store owned [because] which, individually and cumulative errors things from person that sold black party seeks ly, require reversal. “When black, Id. at Africa and had customers.” of a denial of of a verdict or ‘reversal testimony was also that Yar- 1344. There claiming trial new trial’ a motion for told Foote that her management mouth errors, alleged trial it ‘must establish the well,” glam- “mix was not business did not clearly prejudicial were both errors Center, enough, ourous and devalued ” Indus., Baty v. Willamette erroneous.’ same time tenants who were while Cir.1999) Inc., (10th 1232, 1247 172 F.3d encouraged sign not black leases. were Jones, 587, 591 (quoting Gust Further, management at various stated Cir.1998)). name “Africa House” should times changed. be First, that it defendants assert to allow the at tri- for the district court

Reviewing presented the evidence was error al, opinion testimony of three witnesses: say points lay we cannot that “the evidence Pankoff, and David Thorpe, Phil way, susceptible but one and is to no rea- Jana Rule of Evidence supporting plain- Fine. Under Federal [the sonable inferences “(a) rationally based Hampton, lay opinion 247 F.3d at 1107. must be claim.” tiffs’] (b) witness,' denying perception court not err in on the The district did understanding of the to a clear helpful motion for as a the defendants’ testimony or the determination sufficiency of law based on the of witness’ matter lay The admission a fact issue.” the evidence. *10 testimony dis- opinion is within the sound for reconsideration in the event that Foote Gust, the district court. 162 actually cretion of did make statements at trial that conclude that the district F.3d 595. We conflicted with testimony her to the com- court did not abuse its discretion in admit- mission. The defendants attempt made no testimony. testimony of ting so, to do and do not point any now to Thorpe, rationally Pankoff and Fine was conflicting statements. The district court perceptions helpful based on their and to did not abuse its in granting discretion of facts in determination issue. plaintiffs’ motion in limine to exclude the report. commission argue The defendants also that in denying the district court erred their argue defendants next that (1) seeking motions in limine to exclude the district court erred when it allowed witness, plaintiffs’ expert Dr. William counsel, plaintiffs’ during closing argu (2) Kaempfer, comparative irrelevant ment, to refer to scope the size and of the evidence. The district court denied the defendants’ operations. Plaintiffs’ counsel motions, reserving the for trial. At issues implored jury to “send a clear mes trial, object any the defendants did not sage” “all way Sydney, Australia testimony identified their motions where [the defendants] are based on the result, they in limine. aAs have failed to world,” other side of the and further im preserve alleged appeal. these errors for size, plied lаrge that the op international Hampton, (stating See 247 F.3d at 1113 erations, presumed profitability of the timely proper that failure to make a defendants large warranted a award of objection constitutes waiver of the issue punitive damages. App. at 1725-27. plain resulting error absent manifest However, the defendants did object injustice). We conclude the defen closing this statement at argument, and we dants have failed to show the denial of will not address it on appeal. See Glenn v. their motions in limine resulted manifest Co., Cessna 32 F.3d Aircraft injustice. (10th Cir.1994) (holding that party “[a] who waits until the returns an unfa

The defendants further con complain tend that vorable verdict to about improper the district court abused its dis granted plaintiffs’ during opening cretion when it comments mo statement and by closing argument tion in limine to finding risky exclude made bound relief’) Rights granted the Colorado Civil decision and should not be Commission there was no cause to believe that Finally, the defendants contend defendants had discriminated allowing the district court erred in plaintiffs in leasing decision. Howev plaintiff Foote to remain as a in the case. er, the decision of whether to admit or They argue presence that her in the case findings rights exclude of a civil commis jury. confused the at no time sion lies within the sound discretion of the trial during object did the defendants Denny district court. See v. Hutchinson presence Foote’s plaintiff. as a Under the Corp., Sales 821-22 circumstances, there was no error. Cir.1981). sought The defendants to admit finding grounds on the that might it VI. contain statements to the commission that testimony would contradict Foote’s at trial. We next consider the defendants’ evidence, The district court argument compensatory damages excluded the that the sup- but stated that it would entertаin a motion awarded to Africa House were not *11 Scheuerman, her- er, and Foote Kathleen jury The by sufficient evidence. ported However, financial consultants that, com- while determining in self. instructed was (1) new busi- suggested consider and Gaiter it could damages, Warren pensatory Africa help and would losses, profits strategies lost which including ness financial (2) name, business, repu- most of these its good loss of House increase and expenses; jury ulti- adopted, not tation, integrity. strategies were honor or business $150,000 more compensatory in made suggestions in fact the were mately awarded alleged actions year prior to the damages. than one no They expressed of the defendants. jury’s a award uphold We will or loss concerning profits lost opinion clearly it is erroneous damages unless name, integ- honor or good Africa House’s support the evidence to is no or there Scheuerman, an Similarly, Kathleen rity. Presbyterian v. Brown award. See House, only of Africa testified employee Services, 1324, 1330 101 F.3d Healthcare space in new was that the business Cir.1996). (10th of dam amount “[T]he space, as it was the old profitable supported be by jury can awarded ages testimony way supports in no her tending to sus evidence by any competent presented profits award for lost above Yeary, v. Capital Corp. tain it.” Advantor any Kaempfer, provide nor does it by Dr. Cir.1998) (10th (quot 136 F.3d name, reputa- good of a loss of evidence Longacre, ing Bennett v. tion, integrity. honor or (10th Cir.1985)). testimony sup- to Finally, Foote’s fails Kaempfer testified as Dr. William those cal- port profits lost over and above ultimately profits, lost to Africa House’s and does not men- by expert, culated her a result of the profits as fixing the lost good any damage to Africa House’s tion $75,316.95. The conduct at defendants’ name, honor, integrity. or As reputation, testimony was argue that this defendants result, conclude there is insufficient we However, jury apparently unreliable. dam- compensatory evidence to sustain “It is within testimony found the credible. $75,316.95, and over and age award above purview of the virtually exclusive the district remand with directions damages.” fix credibility evaluate reducing the com- court enter a remittitur (Hold Holdings Intern. United Wharf to Africa pensatory damages awarded Cir.2000). 1207, 1230 ings), 210 F.3d or, in the alterna- House to that amount Thus, testimony was suffi Kaempfer’s Dr. tive, trial. order a new $75,316.95 compensato support cient to ry damages. VII. not, however, reach the same

We do contend that the remaining The defendants regarding conclusion motion $74,683.05 denying court erred their compensatory district law, arguing con- as a matter jury. plaintiffs awarded damages awarded to punitive supported tend that the award is Warren, by the evidence.3 supported Gait- House are not testimony of Andrew Lewis object on plaintiffs argue themselves failed 3. The that defendants failed response ‍​​‌​​‌​​​‌‌​‌‌‌​​‌‌​​​‌​‌​​​​‌‌​​‌‌‌​​​​​​‌​‌​‌‌‍sup- in their to the defendants' this basis raise the issue of insufficient evidence 50(b) such circum- port punitive damages Rule motion. Under in their Fed.R.Civ.P. stances, motions, 50(a) plaintiffs may not assert the fail- not have and therefore should the defendants to raise the insufficient allowed to in a Fed R. ure of been raise issue motion, 50(b) non-moving party appeal. evidence issue. When the Civ. P. or on *12 sufficient evidence ex “Whether VIII. ques is a support punitive

ists The defendants next contend that Fitzgerald de tion of law reviewed novo.” district court abused its discretion when it Co., v. Mountain States Tel. & Tel. 68 F.3d applied state law rate of interest Cir.1995). (10th 1257, have 1262 We held compute the prejudgment award of inter- in punitive damages that the standard for est to Africa House. The district court claiming actions a violation of federal civil applied a 9% interest rate to the prejudg- rights requires the discrimination ment interest award pursuant to Colo.Rev. malicious, willful, must in have been § Stat. Ann. 13-21-101. The defendants disregard rights of gross plain of the argue that the district court should have tiff. 247 Hampton, See F.3d at 1115. applied the rate of for post-judg- interest ment awards found in § 28 U.S.C. 1961 conclude that this We standard jurisdiction because the district court’s was punitive damages cannot be satisfied based on a federal question jurisdiction by showing of intentional discrimination diversity jurisdiction. rather than Otherwise, every jury alone. in a verdict § successful 1981 or 1982 claim would agree that a rate of federal We include an of In punitive damages. award interest rather than the applies stаte rate stead, plaintiff we believe that a must jurisdiction where is based on a federal prove that the defendant acted with mali question, and therefore the district court cious, gross disregard willful or of a plain in erred determining it was bound to rights tiffs over and above intentional dis apply the state rate of interest. See Car crimination. penters Dist. Council New Orleans & of evidence, In examining Vicinity Stores, Inc., we Dept. v. Dillard 15 (5th Cir.1994) 1275, not persuaded plaintiffs are F.3d 1288 (stating that malicious, proved the defendants acted governs range “federal law of reme dies, willful or gross disregard rights. of their including the allowance and rate of prejudgment interest, While the indirect evidence this case is where a cause of action, case, sufficient to establish that the defendants as in this arises out of federal statute”). intentionally Industries, discriminated See also U.S. Inc. v. race, Co., plaintiffs 1223, оn the basis of is there no Touche Ross & 854 F.2d 1254 (10th Cir.1988) evidence which would show that the de (stating that an award of fendants acted malicious or willful prejudgment dis interest in a federal securi regard law), of Africa rights. by House’s As re ties law claim is controlled federal sult, we reverse the district by implication court’s denial overruled on other grounds by defendants’ motion for as Bank Central Denver v. First Inter of Denver, a matter of law 164, million state Bank 511 U.S. 114 $1 of 1439, (1994). punitive damages awarded to Africa S.Ct. 128 L.Ed.2d 119 We House. therefore remand to the district court to Nellis, 50(a) 107, (2d Cir.1994); inadequacy

fails to raise the aof Rule beau v. 18 F.3d 109 motion, 50(b) opposition Illinois, 692, motion in (7th to a Rule Collins v. 830 F.2d 698 party argument cannot raise waiver as an 1987); Mercy-Prov Cir. v. Sisters Beauford appeal. Runyon, on 568, See Williams v. 130 F.3d Detroit, Inc., ince 816 F.2d n. 1108 3 (3d Cir.1997); Thompson & Wallace (6th 1987); Kimberly-Clark Cir. Halsell v. Memphis, Corp., Inc. v. Falconwood (8th 1982). Corp., 683 F.2d 293-95 Cir. (5th 1996); Abell, F.3d Cir. Whelan v. Therefore, we will address the issue. (D.C.Cir.1995); 48 F.3d 1251-53 Gi calculat- attorney fees were rates at which See interest. prejudgment fix the rate of under 42 Inc., award T.A.O., of its purposes ed for Towerridge, Inc. v. 1988(b). Cir.1997) had re- (stating where 758, 764 U.S.C. federal governed of 482.70 hours rate for a total prejudgment quested fees any hour, rate to choose law, per is free a court attorney Darold Killmer $250 plaintiff *13 fairly compensate the would which Miller at by attorney David hours 309.55 v. UNUM also Jones delay); see for the by attor- hour, hours and 118.60 per $250 America, 130, 139 Ins. Co. per hour. The at ney of Newman $115 Life Mari Cir.2000) there is (2d (holding that because Killmer’s and Mil- reduced court district to control purports that no federal statute and reduced hourly rates to $200 ler’s interest, rate the prejudgment rate of the $100, finding that hourly rate to Newman’s district of the to the discretion is left evi- produce to had failed plaintiffs the court). rates were higher that the showing dence that the contend also The defendants reasonable. awarding prejudg- in court erred

district claim the date that the interest ment from discretionary the light “In of profits as the lost rather than decision, accrued court’s we of the district nature the that because They argue occurred. award under 42 attorney’s an fee review at the time the all occur profits did not lost 1988(b) of discre § for an abuse U.S.C. in- accrued, awarding prejudgment claim Edmond, City v. 160 tion.” Robinson of the claim accrued date terest from the Cir.1998). (10th 1275, We re 1280 F.3d plaintiffs. the a windfall to gives findings factual for court’s view the district error, legal conclu and the court’s clear in prejudgment purpose of “ novo. Id. sions de wronged the compensate ‘to terest is monetary being deprived party for appli files an A claimant who loss the time of the of his loss from value ” 1988(b) under attorney for catiоn fees judgment.’ Anixter payment to the of fee is prove has burden the that.the 1549, Co., F.2d Prod. 977 Home-Stake A rate is the Id. reasonable. reasonable Cir.1992) (10th Indus (quoting U.S. 1554 com rate in the relevant market prevailing 1256). tries, appears It 854 F.2d at Monahan, 73 F.3d Malloy v. munity. may in the case hand the district court Cir.1996). this To meet 1018 law found apply state have felt bound to burden, claimant the must: the Ann. 13-21-101 Colo.Rev.Stat. interest, which prejudgment of calculation satisfactory evidence—in addi- produce to be interest

provides prejudgment for affidavits— attorney’s own tion to the the ac from the date action calculated in line with requested the rates are remand, district we direct the crued. On community prevailing those of award timing court to consider by lawyers of reason- services similar interest that will serve prejudgment of skill, experience ably comparable Africa House for fairly cоmpensate in this A determined rate reputation. its monetary value deprivation reason- normally to be way is deemed loss. to—for conve- referred able market prevailing rate. nience—as IX. Stenson, n. Blum v. U.S. also contend (1984). 79 L.Ed.2d reducing 104 S.Ct. district court erred Here, the evidence fails to show that the the district court enter a remittitur requested rates were reasonable. While order reducing ‍​​‌​​‌​​​‌‌​‌‌‌​​‌‌​​​‌​‌​​​​‌‌​​‌‌‌​​​​​​‌​‌​‌‌‍the compensatory damages Killmer submitted affidavit as to the $75,316.95 awarded to Africa or, House to prevailing rates at firm his and another alternative, to grant a new trial. firm, charged by attorneys local the rates We AFFIRM the district court’s denial of firm ranged only at the other from .$160 the defendants’ motion for a new trial for per An Lynn hour. affidavit from $190 alleged evidentiary errors. We RE- Killmer, Feiger, partner a former stated VERSE the district court’s denial of the only charged that she per hоur for $310 defendants’ motion for judgment as a mat- type same of work. While evi- this ter of law as punitive to the rate, dence Feiger’s serves to establish it awarded to Africa House and VACATE does not establish the charged rates were the award of punitive damages. We RE- *14 charged by consistent with rates compar- VERSE the district granting court’s order ably lawyers in community. skilled prejudgment interest at the state rate Similarly, only appro- evidence of the from the accrued, date the claim and RE- priateness hourly of Newman’s rate was MAND for a determination of the rate of provided the affidavit of Killmer. prejudgment interest and for a determina- tion of the date or dates of accrual. We that, The defendants contend in AFFIRM the district court’s award of at- rates, relying stead of on their asserted torney fees. the district court incorrectly relied on its However, own knowledge. we are unper JENKINS, Senior District Judge, by argument. suaded this a Where dis concurring and dissenting. trict court does not have before it ade quate prevailing rates, evidence of I concur majority market with the opinion with may factors, the court use other one exception. relevant modest I would reverse including its own the order knowledge, to establish of the court dismissing below rate. See Case v. Ms. Sch. Dist. Foote’s award and reinstate her Unified 233, (10th Cir.1998). No. compensatory 157 F.3d 1243 judgment of $200,000.

We conclude that the district court did in finding not err failed Section 1981 persons states “[a]ll satisfy their burden establishing of ... shall have ... right the same to make of requested attorney reasonableness and enforce ... enjoyed contracts as is fees and in reducing those according rates (1994). white 42 citizens.” U.S.C. 1981 knowledge its own of prevailing Section 1982 states that “[a]ll citizens of market rate. the United States shall have the same right ... enjoyed by as is white citizens

X. inherit, lease, sell, thereof to purchase, hold, The decision of the district court dis- convey personal and real proper- (1994). missing Foote for lack of standing ty.” is AF- 42 U.S.C. 1982 Initially FIRMED. We VACATE the pursuant Rights enacted to the Act Civil of 1866, and direct the district court to dismiss sections 1981 and 1982 were “intend- Africa House’s claim of protect] intentional inter- ed ... [to citizens of the United ference with prospective in enjoyment business advan- States rights certain with- tages. We REVERSE the district race, court’s out discrimination on account of col- or, denial of request servitude,” the defendants’ previous a or condition of Cruikshank, remittitur and 542, REMAND with directions United States v. 92 U.S. 1080 because, Arlington claims (1875), and 1982 because

555, or L.Ed. 23 588 be characteristics, cannot corporation a explains, St Heights ancestry ethnic or their of racial dis- Al-Khazraji, target 481 U.S. or victim direct College v. Francis (1987), 2022, L.Ed.2d the Court Ar- 95 582 604, 107 S.Ct. crimination. a whether a [African-Americans] “confer on address Heights and to did not lington enjoyed by equivalent if it were standing civil status have would corporation Stengel, v. discrimination, persons.” Valle white target of racial an indirect (3d Cir.1949). af protection 697, standing is, corporation a has whether roots in its finds by these statutes forded injury as lost such it suffers when Amend Fourteenth the Thirteenth discrimina- from resulting unlawful profits McCrary, 427 U.S. v. Runyon ments. See protected at member tion directed 168-72, 49 L.Ed.2d 96 S.Ct. Heights Arlington indi- since class. Cases Amendment); (Thirteenth v. (1976) Jones harmed that is corporation cate that 437-44, Co., Mayer 392 U.S. H. Alfred standing to liti- discriminatory action has (1968) 2186, 20 L.Ed.2d 1189 88 S.Ct. Valley Free- harm. See Hudson gate that Ass’n (same); Bldg. Contractors General Heimbach, F.2d Theater, Inc. v. dom 375, 384-91, 102 458 U.S. Pennsylvania, Cir.1982) (Pierce, J., (2d concur- 702, 708 (Four (1982) 73 L.Ed.2d S.Ct. (“[U]nder 14th Amendment ring) *15 Amendment). teenth implement to its which seek the statutes 1981 or 1982 neither section Although including a colorless any person, purposes, “citizen,” respectively, or “person” define not a member although corporate ‘person’, pro- has Supreme Court the United States implied an cause group, has protected aof Arlington In guidance. vided useful who, any person other against of action Develop- Housing Heights Metropolitan v. intent, discriminatory causes racially with 252, 97 S.Ct. 429 U.S. Corporation, ment This view com- injury.”). ... ... [an] it (1977), stat- 450 the 50 L.Ed.2d Court Arlington with the Court’s dictum ports that, standing under purposes for the ed for which Con- purposes and the Heights Amendment, corpora- “a the Fourteenth and 1982. enacted sections 1981 gress identity and cannot ... has no racial tion on Gersman majority relies alleged, of the ... target the direct be Association, Inc., 931 F.2d Health Group Id. at 263. discrimination.” (D.C.Cir.1991), on other vacated 1565 majority the disre- today’s opinion, In 1068, 112 S.Ct. 117 502 grounds, U.S. concluding Heights gards Arlington (1992), that “Africa .hold 127 to L.Ed.2d under standing because Africa House has discrimina- standing to assert has House victim “the direct sections 1981 and under tion claims discrimination, Foote’s alleged was based on the is such discrimination where House, than rather corporation, Africa employees.” one of its race of Foote herself.” Gersman,1 reasoning I with the agree case, by can- House itself In this Africa correctly jury found that the agree 1981 and I standing not have assert section predi- identity is a that “racial to rule difficult dined adequately addresses the 1. Gersman ap- discriminatory and instead harm” Arlington Heights. In cate Gers- issues raised in that, assuming man, proached "by the issue if argued corpora- the the defendant tion, CSI, corporation suffer from discrimina- standing bring can harm did have not tion, litigate standing that harm.” has it under section 1981 because cause of action further, Addressing this issue court religious identity. Id. lacked a racial or CSI Gersman, de- stated The court 1568. F.2d injury that Africa House suffered re- to Africa House and Ms. Foote refusing sulting from unlawful discrimination. to deal with Ms. Foote —a jury refusal the jury found that also the de- racially found to be motivated. Affirming fendants had discriminated Ms. liability defendants’ to the corporate Foote because of her race and that Ms. plaintiff, House, acknowledges that Foote a compensable injury suffered dis- corporation suffered an injury result- tinct from that suffered Africa House.2 ing from unlawful discrimination —racial Foote, Ms. required by as is our prior discrimination for which Ms. Foote served cases,3 is a protected member of the class as the very human direct target. under sections 1981 and 1982 and was the In dismissing claims, Ms. Foote’s target direct of the defendants’ racial dis- majority relies on Bellows v. Amoco Oil crimination acting whether she was in her Comрany, Cir.1997). 118 F.3d 268 capacity individual in seeking to enter into However, Bellows does not contract,4 support prospective lease or was act- majority’s holding for ing several agent corporation. for her reasons. She is First, Bellows, injuries entitled to redress for her found in own favor of clearly also fall within defendant the zone of Amoco on corporate protected by interests sections 1981 and section 1981 claim. corpo- 1982. The injury defendants caused both plaintiff, rate Phillips Industrial Construc- party may legally cognizable inju- suffer a —pain, suffering, physical and emo- ry (for from discrimination par- even where that tional Tseghe distress Plaintiff ty not protected minority only). is a member of a Thus, group. necessary it to deter- Plaintiffs, you mine If find identity.” whether CSI has a for the "racial or either of them, relief, on more corporation [Given that a than one entity exists as an claim for *16 you may damages only award separate employees, from its once for the officers and stockholders,] same business losses. query [s]uch a would lead to I-A, (Jt.App. 310.) vol. at what, fact, determining difficulties of in a identity.... constitutes racial For exam- Circuit, 3. In this a identity racial is the cor- case, ple, present alleges in the CSI that it nerstone of a section 1981 and 1982 cause of identity operated has racial because it is necessary action and a plaintiff's element of a Gersman, by and owned Mr. and Mrs. who Dillards, Inc., prima facie case. See Shawl v. are both Jewish. Yet the situation would be 99-1409, No. 2001 WL at *2 no different if Gentile shareholders owned 2001) ("To Aug.27, Cir. establish claim un- CSI [the defendant] ended the contrac- (1) der must show that relationship tual corporation because the ” they protected are members of class .... Thus, single employee. hаd a Jewish CSI Stores, (citing Inc., Hampton Dep't v. Dillard identity,” need not have a “Jewish or even (10th Cir.2001))). predominantly have Jewish owners or em- ployees, injury in order to suffer from [the majority 4. holding The bases its that the cor- discriminatory defendant's] actions. poration was the direct alleged victim of the Id. at 1570. discrimination, part, on the fact that the injury refusal to contract with or lease —the 2.The was instructed: House, property suffered Africa not —was you If find that either or both of the individually. Ms. Foote majori- Defendants discriminated on the basis of ty ignores suggests evidence in the record that making Plaintiffs’ race in the or enforce- space that Ms. Foote leased from the defen- ment of a name', lease for the Tabor Foote, Center for "Tseghe dants under her own they qualified, you which may record, were award existing Tenant.” On the whether compensation reasonable following: for the party Africa House pro- was to be the to the (for —financial Tseghe losses either spective ambiguous Plaintiff contract is at best. House); X, 2445-49.) Foote or (Jt.App. Plaintiff Africa vol. at by the cor- were suffered damages which (“PICI”), appeal not did tors, Inc. testi- Yet the uncontroverted poration.” not and was therefore jury’s determination witnesses and other Ms. Foote mony of at all. As Fifth Circuit before deeply dis- that she became established problem “The obvious stated: itself court 1996—be- September beginning turbed argument, [his] faces with Bellow that any actual had suffered House Amoco that jury found course, that the is fore in Ms. jury found contracts, loss. or economic PICI’s with not interfere did $200,000 in favor, her awarding ba- Foote’s contract, Amoco on the with ability to words, damages. In other 276. Id. at of race.” sis claim, itas Bellow’s that found the court simply substituted its majority has clаim dismissed PICI’s dependent on was jury concerning for that of the judgment appeal. Amoco, meritless on was against the mental suffered Ms. Foote whether from distinguishable Second, are the facts and others testified that she anguish Bel- that case present the facts from the discrimination resulting trial as from step removed claim was one low’s experienced. she That PICI. expressed of action cause Bellows, Bellow claimed is, plaintiff that both Añica hold I therefore would on the against him standing Amoco discriminated have and Ms. House in conduct by engaging his basis of race 1982 causes 1981 and the section assert modify- terminating, defendants, had the effect action to contract right changing Bellow’s ing, or as to Ms. Foote ruling court’s district from PICI’s distinguished PICI as in favor with reversed should be at 272- Amoco. Id. contract with right to reinstated as to Foote should be of Ms. damages. 73. compensаtory de- asserting is Ms. Foote right to con- with her interfered

fendants Ms. Foote House.

tract with Africa injury resulting has an

asserting that she disciiminato-

directly from defendants’ her, and dis- separate

ry conduct towards *17 Africa House— n from that suffered tinct Bellows or dealt with in

an issue raised NELSON, being claim Barbara Jenenne than her Rather or Gersman. House,” Plaintiff-Appellee, if that of of “derivative deriva- House’s claim is anjdhing, Africa Ms. discrimination the unlawful tive of dealing firsthand experienced individually GERINGER, and in his Jim could Africa House

with the defendants. capacity State as Governor partic- her no contract without make BOENISCH, in his of- Wyoming; ED defen- jury found that the The ipation. capacity Adjutant General of as ficial to ob- Ms. Foote’s efforts frustrated dants Guard; Wyoming National lease, ‍​​‌​​‌​​​‌‌​‌‌‌​​‌‌​​​‌​‌​​​​‌‌​​‌‌‌​​​​​​‌​‌​‌‌‍of Ms. and did so because tain a new Defendants-Appel- Wyoming, State race, harming Ms. thereby both Foote’s lants. House. Foote and Africa Association Guard Foote’s National Ms. majority dismisses States, Amicus Curiae. United merely of the economic product “a

harm

Case Details

Case Name: Guides, Ltd. v. Yarmouth Group Property Management, Inc.
Court Name: Court of Appeals for the Tenth Circuit
Date Published: Jul 2, 2002
Citation: 295 F.3d 1065
Docket Number: 99-1388, 99-1389, 99-1392, 99-1455, 99-1459 and 99-1464
Court Abbreviation: 10th Cir.
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