Hampton v. Dillard Department Stores, Inc.Hampton v. Dillard Department Stores, Inc.
Lead Opinion
Paula Darlene Hampton filed suit against Dillard Department Stores, Inc. (Dillard’s), claiming that the company had unlawfully interfered with her right to make and enforce a contract in violation of
We review the district court’s denial of Dillard’s motion for judgment as a matter of law de novo, “applying the same legal standard as the district court.” Brown v. Gray, 227 F.3d 1278, 1285 (10th Cir.2000). A party is entitled to judgment as a matter of law “only if the evidence points but one way and is susceptible to no reasonable inferences which may support the opposing party’s position.” Tyler v. RE/MAX Mountain States, Inc.,
Thus, Dillard’s has a high hurdle to overcome. The focus of Dillard’s appeal is on three questions: (1) whether the fragrance coupon was in fact a benefit of Ms. Hampton’s purchase; (2) whether there was indeed intentional interference with Ms. Hampton’s redemption of the coupon; and (3) whether the interference was in the end based on racial discrimination. We agree with the district court that these are questions of fact, not law, see, e.g., Hampton v. Dillard Dep’t Stores, Inc.,
I. BACKGROUND
The following material facts are taken from the district court’s orders below and from the trial transcript. These facts are undisputed, or where disputed, are taken, as we are required to take them, in the light most favorable to Ms. Hampton. We shall first briefly summarize the facts in this case, while we reserve a more detañed description of the evidence for later discussion of specific issues raised by the parties.
On April 5, 1996, Ms. Hampton and her niece, Demetria Cooper, both African Americans, were shopping for an Easter outfit for Ms. Cooper’s one-year-old son in the Dillard’s children’s department in Overland Park, Kansas. The plaintiffs had four chfidren with them: Ms. Cooper’s son, Ms. Hampton’s eight-month-old and seven-year-old daughters, and her elder daughter’s friend.
Shortly after they entered the store, Tom Wilson, a Dülard’s security officer, noticed them. He observed them for more than fifteen minutes. Mr. Wilson testified that he paid close attention to the party, in part, because they had a stroller with them, because Ms. Cooper had a rolled-up dark cloth item in her hand, and because
The group left the fitting room and Ms. Hampton proceeded to purchase an outfit for Ms. Cooper’s son from the salesclerk in the children’s department. When she did so, the sales associate gave Ms. Hampton and Ms. Cooper each a coupon that was redeemable at the fragrance counter for cologne samples. The shopping group then proceeded on to the fragrance counter, which is located where the Dillard’s store ends and opens into the Oak Park Mall, to redeem their fragrance coupons.
While the women were in the process of redeeming their coupons and while the women were in a conversation with fragrance consultant Betty Chouteau, Mr. Wilson interrupted them. Referring to Ms. Cooper, he advised Ms. Hampton that “the ... black female had been observed placing something in her coat.” Aple’s Supp.App. at 121 (Dillard’s Security Report, dated Apr. 5, 1996). He asked to look inside the Dillard’s bag carried by Ms. Hampton, took the bag, and emptied the contents on the fragrance counter. Mr. Wilson checked the items against the receipt and determined that they corresponded. Ms. Chouteau testified that she perceived it to be “a rather embarrassing situation” for the women and, upon Mr. Wilson’s intervention, she “turned and started talking to other people.” Aplt’s App. vol. 3, at 624 (testimony of Ms. Chou-teau).
While Mr. Wilson was matching up items to the receipt, Ms. Hampton became visibly upset and told Mr. Wilson that, as a regular customer of Dillard’s, she did not appreciate being accused of shoplifting and she did not deserve to be treated this way. Mr. Wilson told her to calm down or he would call the Overland Park police and have her removed from the store. Ms. Hampton asked Mr. Wilson his name and the location of the customer service counter. She then proceeded to the customer service counter and had no more contact with Mr. Wilson. The encounter with Mr. Wilson lasted approximately five minutes. Ms. Hampton and Ms. Cooper subsequently filed suit against Dillard’s, alleging false imprisonment under Kansas law and a violation of
A. Procedural History
Ms. Hampton and Ms. Cooper based their state tort claims on their detention by Mr. Wilson. They based their
Following the close of discovery, Dillard’s moved for summary judgment on both claims. The district court granted Dillard’s summary judgment on the state tort claims and on most of the
The district court noted, however, that whether Ms. Cooper’s coupon claim was actionable remained in doubt, as the coupon was not received by Ms. Cooper as the result of a purchase but as a benefit of Ms. Hampton’s purchase. The court ordered Ms. Cooper to show cause why her claims should survive in the absence of any purchase made by her. The court subsequently rejected Ms. Cooper’s contention that, as a third-party beneficiary of the sale to Ms. Hampton, her
Noting that our
Dillard’s now appeals the district court’s denial of its motion for judgment as a matter of law and claims that (1) it is entitled to judgment on Ms. Hampton’s
In addition, Ms. Cooper appeals the district court’s dismissal of her
II. CASE NOS. 98-3011, -3261 ANALYSIS
A. Ms. Hampton’s
1. Elements of a
With respect to
(1) that the plaintiff is a member of a protected class;
(2) that the defendant had the intent to discriminate on the basis of race; and
(3) that the discrimination interfered with a protected activity as defined in§ 1981 .
See Reynolds v. School Dist. No. 1, Denver, Colo.,
Typically, most litigation involving
Applying the prima facie elements to the factual setting of this case, the district court instructed the jury that the plaintiff must establish:
First, that plaintiff was entitled to a free cologne sample as a benefit or privilege of her purchase on April 5,1996;
Second, that defendant intentionally interfered with plaintiffs right to enjoy the benefits and privileges of that purchase; and
A The Coupon as Part of the Purchase Contract
Dillard’s appeals the district court’s denial of its motion for judgment as a matter of law, first contending that the coupon was not a contract. We review the district court’s denial of a motion for judgment as a matter of law de novo, applying the same legal standard as the district court. See Deters v. Equifax Credit Info. Servs., Inc.,
Dillard’s challenges whether the fragrance coupon was a benefit of Ms. Hampton’s contractual relationship for the purchase of children’s wear. According to Dillard’s, the coupons were promotional invitations, handed out indiscriminately and not exclusively in connection with a purchase. See Aplt’s App. vol. 3, at 622, 648, 650, 655, 657. Dillard’s maintains that the coupon was a gift and that it was never intended to confer a right upon its recipient. In addition, Dillard’s points to Ms. Cooper’s receipt of a coupon as evidence that a purchase was not required to receive the gift.
In rebuttal, Ms. Hampton argues that we must be mindful of the jury’s appraisal of the credibility of the witnesses as well as the jury’s resolution of factual issues. See United Int’l Holdings, Inc. v. Wharf (Holdings) Ltd.,
Ms. Hampton contends that she performed the steps necessary to act in compliance with the terms and conditions of the offer from Dillard’s: she completed a
Clearly, the purpose of the statute is to “make it clear that the right to ‘make and enforce contracts’ free from race discrimination [is] protected by
In the context of a retail transaction, this court has not had the opportunity to address or apply subsection (b). See id. at 1200 & n. 8 (citing Morris,
Section 45 of the Restatement (Second) of Contracts provides illumination on the common law of contracts regarding an invitation to accept an offer by performance:
(1) Where an offer invites an offeree to accept by rendering a performance and does not invite a promissory acceptance, an option contract is created when the offeree tenders or begins the invited performance or tenders a beginning of it.
(2) The offeror’s duty of performance under any option contract so created is conditional on completion or tender of the invited performance in accordance with the terms of the offer.
Restatement (Second) of Contracts § 45 (1981). The Comment to § 45 further provides that
[t]his Section is limited to cases where the offer does not invite a promissory acceptance. Such an offer has often been referred to as an “offer for a unilateral contract.” Typical illustrations are found in offers of rewards or prizes....
Id. § 45 cmt. a; see also Brown v. State,
Dillard’s also contends that Ms. Cooper’s receipt of a coupon undermines the jury’s finding that the coupon was a benefit of Ms. Hampton’s purchase contract. We disagree. Ms. Cooper, whose child re
With regard to the purpose of the coupon, Ms. Chouteau testified that it served “to entice the shoppers” to sample her company’s products. Aplt’s App. vol. 3, at 622 (testimony of Ms. Chouteau). She also stated that coupon holders were “ ‘entitled to’ ” a fragrance sample. Id. at 625. In addition, we note that the benefit ran to Dillard’s as well: to sample those products, the customer would traverse the store, perhaps eyeing other merchandise for purchase from Dillard’s. The jury’s credibility determinations and conclusion that the coupon conferred a right to a fragrance sample as a benefit of a contractual relationship are not against the weight of the evidence as a matter of law. Whether or not this providing of the sample in hopes that a customer would walk back through the store and purchase cologne or another item was itself an option or unilateral contract, we cannot say that the jury’s conclusion that the coupon was a benefit of Ms. Hampton’s contract with Dillard’s was unreasonable.
3. Intentional Interference with Redemption of the Coupon
Dillard’s also sought judgment as a matter of law because Ms. Hampton suffered no actual loss of a contract right or interest. See Phelps,
A recollection of Mr. Wilson’s testimony may explain why the jury and district court reached the decisions that they did:
Q: What did you think Paula Hampton and Demetria Cooper were doing when you approached them?
A: They were getting ready to exit the Dillard’s store to go out into the mall.
Q: Okay. Did you notice that they were speaking with a cosmetic associate or a fragrance consultant when you approached the two ladies?
A: No, I did not.
Q: Did you knowingly prevent Paula Hampton from receiving a free cologne sample?
A: No, I did not.
Aplt’s App. vol. 3. at 634 (testimony of Mr. Wilson). Thus, we have a trained security guard claiming that he did not notice that the women were redeeming a coupon. Indeed, he did not notice that they were shopping or even talking with a salesperson.
This testimony was directly contested by Ms. Hampton and Ms. Cooper. The jury could have resolved this conflict based on their evidence, but the silver bullet may have been the testimony of Ms. Chouteau, the perfume consultant:
Q: [D]o you recall Paula Hampton and Demetria Cooper and their children coming up to the cosmetics counter?
A: I do.
Q: Do you recall that their discussion with you was interrupted by a Dillard’s security officer?
A: Yes, I do.
Q: When [0]fficer Wilson came up and spoke, what did you do then?
A: Well, because it was a rather embarrassing situation and because I was very busy with a lot of other things going on, I turned and started talking to other people at the time with my back to them.
Q: With your back to whom?
A: To the officer and Paula. I mean, I just felt like it was an embarrassing situation for them and I felt uncomfortable, you know, watching, so I turned and went ahead and did what I was supposed to be doing.
Aplt’s App. vol. 3 at 621-22, 624 (testimony of Ms. Chouteau).
Once again, the evidence in the record is sufficient for the jury to determine that Mr. Wilson deliberately interfered with Ms. Hampton’s redemption of the coupon and that she suffered an actual loss of a privilege of her contract because of this interruption. Ms. Hampton testified that after he approached her and identified himself while she was at the fragrance counter, Mr. Wilson “took [her shopping] bag, dumped the contents out on the counter, and compared them to the receipt that was in the bag, and then he shoved everything back at [her].” Aplt’s App. vol. 3, at 830 (testimony of Ms. Hampton). After this, Ms. Hampton told Mr. Wilson she was shocked to be accused of shoplifting, and Mr. Wilson subsequently threatened to have her removed from the store. See id. at 830-32.
The jury concluded that, had there been no interference, Ms. Hampton would have received the service of [her] redemption of the coupon. As the district court noted, the “plaintiff produced legally sufficient evidence that Wilson intentionally interfered with the redemption of the coupon.” Hampton,
The dissent notes that Mr. Wilson’s testimony does not suggest he had the subjective intent to prevent the redemption of the coupon.
Even under the dissent’s suggestion that subjective intent to interfere with a contract is required, a reasonable juror could find a legally sufficient eviden-tiary basis to support such a finding, if it disbelieved Mr. Wilson’s testimony. As to the issue of Dillard’s intent, the court correctly instructed the jury during the first phase of the trial that Ms. Hampton had the burden of proving by a preponderance of the evidence that “defendant [i.e. Dillard’s] intentionally prevented her from redeeming [the] coupon.... ” Aplt’s App. vol. 1, at 139 (Instruction 10). We note that, because “[t]he issue of intent ... is one that is often not susceptible to direct proof,” the jury correctly “considered] all conflicting inferences” that the circumstantial evidence presented. See Washington,
A Racial Discrimination
Dillard’s next contends that it deserved judgment as a matter of law because there is no evidence of racial discrimination. In the second phase of the trial, the jury determined that the intentional interference with the contract was racially motivated, and it awarded Ms. Hampton $56,000 in compensatory damages and $1,100,000 in punitive damages.
“A plaintiff who lacks direct evidence of racial discrimination may rely on indirect evidence of discrimination....” Perry v. Woodward,
However, after a full trial on the merits, “the single overarching issue” on which we focus is whether the adverse action was motivated by race. Tyler,
Dillard’s contends that Officer Wilson, based on the facts and circumstances, had probable cause to stop Ms. Hampton. However, Dillard’s neglects to acknowledge that the jury may have found Mr. Wilson’s theory pretextual.
“The factfinder’s disbelief of the reasons put forward by the defendant (particularly if disbelief is accompanied by a suspicion of mendacity) may, together with the elements of the prima facie case, suffice to show intentional discrimination. Thus, rejection of the defendant’s proffered reasons will permit the trier of fact to infer the ultimate fact of intentional discrimination.”
Ms. Hampton relies primarily on indirect evidence of discrimination. In its memorandum in support of its motion for judgment as a matter of law before the district court, Dillard’s defends its security policies as “racially neutral,” Aplt’s App. vol. 1, at 182, and contends that there was no evidence that the store’s employees had a history of denying services or products to African American customers. Dillard’s fails to acknowledge that the evidence of discriminatory surveillance, although on its own not actionable under
Ms. Hampton presented multiple forms of indirect evidence of discrimination. She presented testimony from former Dillard’s security officers that corroborated the racial surveillance theory. She also presented testimony that African-Americans wei'e frequently “tracked” upon entering the store; that Dillard’s implemented race “codes” that highlighted African-American shoppers as suspicious; that African-Americans were singled out as “suspicious” for returning merchandise without a receipt or for moving between departments while carrying merchandise. See Aplt’s App. vol. 3, at 745-46, 751, 765-68, 781-85. In addition, store incident reports differentiated shoppers predominantly by race. As to Ms. Hampton specifically, she was noticed and placed under surveillance shortly after entering Dillard’s. The district court also noted that Mr. Wilson’s “Security Report,” despite being less than two pages long, reiterated Ms. Hampton’s race twelve times, reflecting implementation of the store’s policy and reflecting Mr. Wilson’s motivation. Given this abundant evidence, we agree with the district court and hold that the jury’s inference of racial discrimination was a reasonable one.
Finally, Dillard’s and the dissent strenuously argue that there is no direct evidence or indication that Mr. Wilson acted with an intent to discriminate. As discussed above, the fact that Mr. Wilson has not admitted discrimination, however, does not mean there is no evidence of discrimination. See Washington,
Dillard’s next appeals the district court’s denial of its motion for a new trial on the grounds that the district court’s instructions were unfairly prejudicial. We review the trial court’s denial of a motion for a new trial on the basis that the jury’s verdict is against the weight of the evidence for “a manifest abuse of discretion.” Blanke v. Alexander,
Dillard’s argues that the district court’s instructions confused the jury as to the burden of proof and misdirected the focus of the jury’s inquiry. On review, “[w]e consider jury instructions in their entirety, applying de novo review to determine whether the jury was misled on the applicable law.” Smith v. Ingersoll-Rand Co.,
a. Instructions 10 and 17.
In phase one of the trial, Instruction 10 set out Ms. Hampton’s claims:
Plaintiff Paula Hampton claims that defendant Dillard Department Stores, Inc., violated her civil rights under42 U.S.C. § 1981 by intentionally denying her the right to enjoy all benefits and privileges of her contractual relationship with Dillard’s, on account of her race. More specifically, plaintiff contends that defendant intentionally prevented her from redeeming a free cologne coupon which Dillard’s had given her as a benefit of a purchase in its children’s department.
Ms. Hampton has the burden of proving by a preponderance of the evidence that her claims are more probably true than not true.
Dillard’s denies plaintiffs claims and contends that the cologne sample was a free gift, available to all store patrons, rather than a benefit with purchase.
Aplt’s App. vol. 1, at 139 (Instruction 10). In phase two of the trial, the district court stated that the phase one instructions applied to the jury’s deliberations, with the exception of Instruction 10. Instead, Instruction 17 set out Ms. Hampton’s claims, but in a slightly different context:
Plaintiff Paula Hampton claims that defendant Dillard Department Stores, Inc., violated her civil rights under42 U.S.C. § 1981 by intentionally denying her the right to enjoy all benefits and privileges of her contractual relationship with Dillard’s on account of her race. More specifically, plaintiff contends that defendant’s surveillance, detention and search of her belongings constituted a security practice which unequally burdened her as an African-American shopper.
Ms. Hampton has the burden of proving by a preponderance of the evidence that her claims are more probably true than not true.
Dillard’s denies plaintiffs allegations.
Id. at 150 (Instruction 17). Dillard’s contends that because the above instructions
We hold that Instruction 17 refocused the jury: in phase one, the jury was to focus on whether the coupon was a contract and whether Dillard’s intentionally interfered; in phase two, the jury’s primary focus was to determine whether Dillard’s acted with a discriminatory motive. The instruction echoed the pretrial order’s characterization of Ms. Hampton’s claims—i.e., that Dillard’s engaged in disparate surveillance practices that unequally burdened African-American shoppers and violated Ms. Hampton’s rights under
b. Instruction 18.
Dillard’s also contends that Instruction 18 further confused the jury, because it suggested that Ms. Hampton’s race could be one of several motivating factors behind Dillard’s conduct, rather than the determinative factor. Instruction 18 presented the essential elements that Ms. Hampton had to prove to establish her claim of race discrimination under
In order to establish her claim of race discrimination under42 U.S.C. § 1981 , plaintiff must prove the following essential elements are more probably true than not true:
First, that plaintiff was entitled to a free cologne sample as a benefit or privilege of her purchase on April 5, 1996;
Second, that defendant intentionally interfered with plaintiffs right to enjoy the benefits and privileges of that purchase; and
Third, that plaintiffs race was a motivating factor in defendant’s conduct.
Because you have already resolved the first two issues in favor of plaintiff, you need only address the third element. On this issue, plaintiff does not have to prove that defendant was motivated only by plaintiffs race, but she must prove that her race was a motivating factor in defendant’s decision, that is, that defendant acted, at least in part, because of plaintiffs race.
A “motivating” factor means that but for its unlawful motive, defendant would not have denied plaintiff the right to enjoy the benefits and privileges of her purchase. In other words, you must find that race was at least one of the factors which motivated Officer Wilson to interfere with plaintiffs redemption of the cologne sample. A motivating factor need not be the sole or exclusive reason, however, for Wilson’s actions.
While plaintiff must show that defendant intentionally discriminated against her, she is not required to produce direct evidence of intentional discrimination. Intentional discrimination may be inferred from the existence of other facts and may be inferred from showing that defendant’s explanation is unworthy of belief.
If plaintiff proves her claim by a preponderance of the evidence, you must return a verdict in favor of plaintiff. If plaintiff does not prove her claim by a preponderance of the evidence, you must decide this claim iri favor of defendant.
Aplt’s App. vol. 1, at 151-52 (Instruction 18).
Instruction 18 merely restated
c. Instruction 19.
Dillard’s further argues that the court erroneously instructed the jury to focus on its discriminatory practices when making its apportionment of actual damages. In part, Instruction 19 stated that “[t]he burden is on [the] plaintiff to prove by a preponderance of the evidence the existence and amount of her damages and the fact that defendant’s unlawful conduct proximately caused her damages.” Aplt’s App. vol. 1, at 153. Dillard’s contends that the jury’s consideration of all of its “unlawful conduct” would include Dillard’s allegedly discriminatory surveillance tactics and consequently distorted the award. Because Dillard’s did not preserve this issue for review, we review for plain error. See Unit Drilling Co. v. Enron Oil & Gas Co.,
d. Proposed Instructions Regarding Summary Judgment.
Finally, Dillard’s argues that the district court erred by refusing to give a proposed instruction regarding the district court’s grant of summary judgment to Dillard’s on the plaintiffs’ false imprisonment claims. Specifically, Dillard’s contends that the district court’s summary judgment ruling conclusively established that Mr. Wilson acted with probable cause when he stopped Ms. Hampton and Ms. Cooper and that he stopped them at the nexus of the store and the mall.
“Under Rule 56(d), summary adjudication of only some of the claims imposes a duty on the trial court to ‘if practicable’ articulate what facts are established and which remain controverted.” Anixter v. Home-Stake Prod. Co.,
As noted above, even if the stop complied with state law, Dillard’s is not necessarily shielded from liability under
6. Admission of Irrelevant and Prejudicial Evidence/Exclusion of Exculpatory Evidence
Dillard’s also sought a new trial arguing that the cumulative effect of the district court’s erroneous evidentiary rulings merits a reversal. We review eviden-tiary rulings for an abuse of discretion. See Cartier v. Jackson,
Dillard’s relies upon a continuing objection to opinion testimony about racism by the officer witnesses. The record does not indicate that Dillard’s objected to all of the challenged testimony at trial. A party must make a timely and proper objection to preserve an alleged error for appeal. See United States v. Herndon,
Dillard’s focuses on several areas of allegedly prejudicial testimony: (1) testimony that Officer Wilson’s supervisor used racial epithets in his previous position as director of security for another employer, (2) testimony by former Dillard’s security officers as to training they received regarding treatment of minority shoppers; (3) testimony regarding the racial makeup of Dillard’s shoppers and shift logs and arrest reports; (4) lay opinion testimony about Dillard’s security officers; and (5) testimony that dated back approximately twenty years as to Officer Wilson’s disciplinary proceeding and suspension. In addition, Dillard’s contends that the court erred when it excluded Ms. Hampton’s handwritten complaint that she filed with the customer service department after the incident.
The first three alleged evidentiary errors, taken separately or in the aggregate, do not warrant reversal. The use of racial epithets by Mr. Wilson’s former supervisor, training practices of the store, its shift incident logs and arrest reports may be viewed as indirect evidence of discriminatory animus. As previously stated, “a
As to the testimony regarding Officer Wilson’s suspension from the Kansas Highway Patrol for falsifying a report in 1977, the district court determined that although the event was remote in time, because it was probative of Mr. Wilson’s character for truthfulness, and because Mr. Wilson was able to explain the incident, the court would allow the questioning. The district court did not abuse its discretion in allowing this line of questioning and in allowing the jury to give it appropriate weight.
Finally, Dillard’s contends that the district court erred when it excluded Ms. Hampton’s written complaint to the store, made immediately after her interaction with Mr. Wilson. Dillard’s alleges that the report was an admission against Ms. Hampton’s interest, it closely tracked Mr. Wilson’s story, and made no intimation of racial discrimination. The record indicates that Dillard’s counsel planned to offer specific facts that were admissions against interest in the report. In fact, Dillard’s counsel was able to cross-examine Ms. Hampton thoroughly about the written complaint. Furthermore, Ms. Hampton testified that nothing in the complaint suggested that she believed the interference with her redemption of the coupon was racially motivated. See Aplt’s App. vol. 3, at 837 (testimony of Ms. Hampton). We hold that Dillard’s was not prejudiced by the exclusion of the complaint.
Dillard’s also contends the cumulative effect of the errors they appeal unduly prejudiced their case. As we have found no error, there can be no compound effect.
7. Damages
a. Compensatory Damages
Dillard’s contends that the compensatory damages award of $56,000 is not supported by the evidence and must be set aside. When a party complains there was insufficient evidence to support a damage award, we must determine whether the damage award is supported by substantial evidence. See Baty v. Willamette Indus.,
Dillard’s states that any emotional damages Ms. Hampton suffered resulted from Mr. Wilson’s belief that her niece was shoplifting and not from any alleged
Ms. Hampton counters that the damages from the accusation and interference with the contract were substantial: she felt humiliated and disgraced by the accusations. Clearly the accusation, though directed at her niece, implicated her as part of the entourage in the dressing room. In addition, Ms. Hampton claims that she, too, was accused of stealing. She contends that her emotional damages were immediately evident, as she was visibly upset after the incident, as well as lasting, as she is now unable to shop with her children for fear of future ridicule and humiliation.
We note first that any economic damage that resulted from the store’s intentional interference with the redemption of the fragrance sample was negligible. Our review of compensatory damages is limited to Ms. Hampton’s testimony regarding her emotional suffering. See Karnes v. SCI Colo. Funeral Servs.,
[I]n this case plaintiff gave eloquent and emotionally moving testimony that Wilson disgraced and humiliated her, in front of her chfidren, that she was too emotionally distraught to drive, and that she had to call her husband for a ride home. Immediately after the incident she was crying and she was so upset that she could not write out a customer comment card, and a Dillard’s employee fiUed it out for her. She testified that “I don’t feel that my life wñl ever be the same.” The jury was entitled to credit this testimony and to compensate plaintiff accordingly.
Hampton,
b. Punitive Damages
Dillard’s also seeks to reduce or eliminate the $1.1 million punitive damage award. Dillard's argues that there was insufficient evidence for the jury to conclude that the defendant discriminated against plaintiff willfully or maliciously, which is required for an award of punitive damages under
(1) Award of Damages
“In the Tenth Circuit, the standard for punitive damages for discrimination in violation of federal civü rights is that the discrimination must have been ‘malicious, willful, and in gross disregard of [plaintiffs] rights.’” Jackson v. Pool Mortgage Co.,
Based on the testimony presented, the jury could reasonably find that Dülard’s took part in the intentional discriminatory conduct. See id. at 1379 (holding that trial court’s finding of intentional discrimination was correct and noting that “[w]here the evidence supports a conclusion either way the choice between two permissible views of the weight of the evidence is not clearly erroneous”) (internal quotation marks omitted). The jury found Ms. Hampton’s witnesses credible. The jury also weighed testimony regarding the store’s training
(2) Amount of Damages
Dillard’s also argues that the severity of the punitive damage award violates its constitutional right to due process. “One must receive fair notice both that certain conduct will subject him to punishment, and the possible severity of the punishment that may be imposed.” Deters,
The availability of punitive damages under
a. Reprehensibility
Dillard’s argues that it is authorized to engage in reasonable loss prevention activity and that, during the five-minute episode, Ms. Hampton was “free to leave” at any time. Aplt’s Br. at 46. Dillard’s suggests that the reprehensibility of its conduct is further minimized because Ms. Hampton “had shopped at Dillard’s hundreds of times, but was stopped only this once.” Id. Finally, Dillard’s purports its surveillance tactics involved no verbal ox-physical abuse, and thus are inappi-opriate for punitive damages.
As discussed above, the jury was presented with evidence about the coding and close surveillance of African-American shoppers. The jury must have agreed with Ms. Hampton that the store’s surveillance tactics are pai-ticulai-ly reprehensible.
b. Ratio
Dillard’s next contends that the punitive damages ratio of approximately 20 to 1 is impermissibly excessive and unconstitutionally disproportionate. Dillard’s relies primarily on the BMW Court’s admonitions regarding economic damage cases, where a ratio of 10:1 was cited with approval. See BMW,
As stated above, the economic injury suffered here was nominal, but the actual injury is more difficult to quantify. “[B]oth the Supreme Court and this court acknowledge that low awards of compensatory damages may support a higher ratio if a particularly egregious act has resulted in a small amount of economic damages. Additionally, ... where the injury is primarily personal, a greater ratio [than 10:1] may be appropriate.” Deters,
c. Sanctions for Comparable Misconduct
The third prong of inquiry further supports our holding.
B. Ms. Cooper’s
On appeal, Ms. Cooper seeks reversal of the district court’s grant of summary judgment to Dillard’s on her
1. Standard ofRevieiv
“We review the district court’s grant of summary judgment de novo, ap
2. The Coupon as a Contract Between Ms. Cooper and Dillard’s
We agree with the district court that Ms. Cooper’s receipt of the coupon did not establish a contractual relationship between Ms. Cooper and Dillard’s. In this regard, we refrain from adopting Amicus Curiae’s (Lawyers’ Committee for Civil Rights Under Law) expansive interpretation that
Because there is no dispute as to a material fact regarding Ms. Cooper’s failure to make or attempt to make a purchase at Dillard’s, we hold that the district court correctly dismissed Ms. Cooper’s claims as a matter of law.
3. Third-Party Beneficiary
In the alternative, Ms. Cooper argues that, as the recipient of the purchased clothing and as a part of the shopping party, her receipt of the coupon conferred
“A contract is a stipulation pour autrui [for others] if it clearly reveals that the intent of the contracting parties was to provide a benefit to a third party.” Wallace v. Texaco, Inc.,
The “[performance of a contract will often benefit a third person. But unless the third person is an intended beneficiary ..., no duty to him is created.” Restatement (Second) of Contracts, § 302 cmt. e. An incidental beneficiary is a person who will be benefitted by performance of a promise but who is neither a promisee nor an intended beneficiary. See Holbrook v. Pitt,
Undoubtedly, Ms. Cooper, as a third party, derived some benefit from the contract between Ms. Hampton and Dillard’s. This derivation of benefit does not, however, automatically render the contract a third-party beneficiary contract, as it reaches beyond the intent of the contracting parties. Ms. Cooper was simply an incidental beneficiary. See id. Merely because she may have derived a benefit, purely incidental and not contemplated by the contract between Ms. Hampton and Dillard’s, does not entitle her to sue to enforce the contract.
A Credibility and Intent
Lastly, Ms. Cooper contends that the district court prematurely disposed of her § 1981 claim and her state law false imprisonment claim and made credibility and factual determinations that should have been made by the jury. As to her § 1981 claim, there is no legitimate factual dispute as to whether Ms. Cooper attempted to purchase an item from Dillard’s. Because we have held as a matter of law that Ms. Cooper is not a third-party beneficiary of the contract between Ms. Hampton and Dillard’s, her claim as to outstanding credibility determinations raises no material facts.
As to her false imprisonment claim, we agree with the district court that Mr. Wilson’s statement to Ms. Hampton that she needed to calm down or he would call the Overland Park Police, does not constitute false imprisonment. See Thompson v. General Fin. Co.,
III. ANALYSIS OF CASE NO. 98-3306
In a companion case, Dillard’s raises two arguments in its effort to overturn the district court’s determination that Ms. Hampton was entitled to attorney’s fees and expenses in the amount of
As to the first argument, because we have determined above that Ms. Hampton prevailed below on her § 1981 claim based upon her rights under the coupon, no further discussion is required. As to the unrelated and/or dismissed claims, Dillard’s contends that fees incurred and costs spent in connection with Ms. Hampton’s state law false imprisonment claim and Ms. Hampton’s dismissed § 1981 claim, as well as Ms. Cooper’s dismissed claims, should not be awarded. We disagree.
If claims are related, failure on some claims should not preclude full recovery if plaintiff achieves success on a significant, interrelated claim. ‘Where a lawsuit consists of related claims, a plaintiff who has won substantial relief should not have his attorney’s fee reduced simply because the district court did not adopt each contention raised.”
Id. at 1512 (quoting Hensley v. Eckerhart,
Here, all of the claims in this case were very similar and stemmed from the same set of facts. “There was ... one bundle of evidence and there was substantial success for the Plaintiff.” Tidwell v. Fort Howard Corp.,
IV. CONCLUSION
For the reasons stated above we AFFIRM the district court’s denial of Dillard’s motion for judgment as a matter of law and motion for a new trial; we AFFIRM the district court’s award of
Notes
. Although our decision in Phelps predated the 1991 amendments to § 1981, these amendments do not alter the requirement of an actual loss of a contract interest. See, e.g., Wesley v. Don Stein Buick,
. Specifically, § 1981 provides:
(a) Statement of equal rights
All persons within the jurisdiction of the United States shall have the same right in every State and Territory to make and enforce contracts, to sue, be parties, give evidence, and to the full and equal benefit of all laws and proceedings for the security of persons and property as is enjoyed by white citizens, and shall be subject to like punishment, pains, penalties, taxes, licenses, and exactions of every kind, and to no other.
(b) "Make and enforce contracts” defined
For purposes of this section, the term "make and enforce contracts” includes the making, performance, modification, and termination of contracts, and the enjoyment of all benefits, privileges, temis, and conditions of the contractual relationship.
(c)Protection against impairment The rights protected by this section are protected against impairment by nongovernmental discrimination and impairment under color of State law.
. Although the dissent may be quite correct in observing that the timing of Mr. Wilson's interference was "purely fortuitous,” Mr. Wilson's inopportune timing neither alters the resulting interruption of an ongoing transaction nor defeats this
. Dillard's argues that the district court, in dismissing the plaintiffs’ state law claims, determined that Mr. Wilson was credible and that he had probable cause to stop the women; therefore Ms. Hampton is precluded from arguing that Mr. Wilson's probable cause was a pretext for discrimination. But, as the district court noted, "[i]n the instant case the Court did not grant Dillard’s summary judgment on plaintiff's
. We recognize that on summary judgment the district court found no reason to doubt Mr. Wilson's credibility, but the district court did not have the opportunity to weigh Ms. Chouteau’s testimony beyond that provided in her affidavit. As noted above, Ms. Chouteau’s conflicting testimony may veiy well have been the decisive factor that tipped the scales in favor of Ms. Hampton.
Dissenting Opinion
dissenting:
I agree with the majority opinion that the district court correctly dismissed Ms. Cooper’s claims against Dillard. However, because I believe that no
I realize that we do not lightly overturn jury verdicts. We may only do so if “there is no legally sufficient evidentiary basis ... with respect to a claim.” Harolds Stores, Inc. v. Dillard Dep’t Stores, Inc.,
I assume for the sake of argument that the coupon is a benefit or privilege of Ms. Hampton’s contractual relationship with Dillard. Bearing in mind that
Indeed, there is no evidence that, when Mr. Wilson approached Ms. Hampton and Ms. Cooper and asked to examine the shopping bag, he even knew that they were redeeming fragrance coupons. When questioned about the incident at trial, Mr. Wilson testified as follows:
Q: What did you think Paula Hampton and Demetria Cooper were doing when you approached them?
A: They were getting ready to exit the Dillard’s store to go out into the mall.
Q: Okay. Did you notice that they were speaking with a cosmetic associate or a fragrance consultant when you approached the two ladies?
A: No, I did not.
Q: Did you knowingly prevent Paula Hampton from receiving a free cologne • sample?
A: No, I did not.
Q: Did you intend to interfere with Paula Hampton obtaining a free sample of cologne on April 5th, 1996?
A: No.
Q: Did you have any desire to prevent Paula Hampton from obtaining a free sample of cologne on April 5th, 1996?
A: No, I did not.
Q: Did Ms. Hampton ever tell you that you interfered with her receiving a free sample of cologne on that date, April 5th, 1996?
A: No, she did not.
Wilson test., Dillard App. Vol. 3 at 634. Plaintiffs produced no — absolutely zero— evidence to refute Mr. Wilson’s testimony on that point and there is nothing in this record showing that he intended to interfere with their redemption of the fragrance coupons. And while the majority correctly notes that credibility determinations are within the jury’s province, I note that the district court, in concluding Mr. Wilson had probable cause to suspect plaintiffs of shoplifting, specifically stated that plaintiffs “cite no evidence which seriously calls into question ... Wilson’s credibility.” Hampton v. Dillard Dep’t Stores, Inc.,
My conclusion is further supported by the fact that there is no evidence that either Mr. Wilson’s or plaintiffs’ conduct, or Ms. Hampton’s damages arising from her encounter with Mr. Wilson, would have been different in any way had Ms. Hampton already received her fragrance sample. There is no evidence that anything at all in this case would have been different had Mr. Wilson intercepted plaintiffs before, during or after they redeemed their fragrance coupons. In other words, all the evidence indicates that it was the wrongful accusation of shoplifting, not the denial of her free fragrance sample, which caused Ms. Hampton’s alleged injuries. But
Further, the interference with the contract benefit (the fragrance coupon in this case) must be racially motivated. The majority acknowledges that discriminatory surveillance, while reprehensible, is not itself actionable under
Additionally, there was no evidence surrounding the particulars of the stop that suggests Mr. Wilson stopped and questioned plaintiffs on the basis of race. There is no evidence that Mr. Wilson made any racially derogatory remarks or acted or conducted himself in any way which suggested that he was preventing plaintiffs from redeeming their fragrance coupons because they were African-American. There is no evidence that he had ever said or done anything suggesting he was racist or treated African-Americans differently from white customers. Indeed, there is no evidence that he handled this particular investigation into shoplifting any differently from any other shoplifting investigation involving any other store patrons, of any racial background. Ms. Hampton herself testified that she had frequently shopped at Dillard, had made numerous purchases there without incident, and there was absolutely no evidence that Dillard in any way had ever discouraged her, or wished to discourage her, from patronizing its store.
In sum, Ms. Hampton’s
. Indeed, there is no evidence that Dillard security personnel, or Mr. Wilson, treated white customers about whom they had probable cause to suspect shoplifting any differently than they treated black customers.