Lead Opinion
PREGERSON, Circuit Judge, delivered the opinion of the Court as to Parts I, II, III, IV, V, VI, and VII, in which THOMAS, Circuit Judge, joined. Judge THOMAS delivered the opinion of the Court as to Parts VIII and IX. Judge PREGERSON joined as to Part VIII and dissents specially from Part IX.
RONALD M. GOULD, Circuit Judge joined as to Parts I, II, III, IVA, IVB, V, VI, VII, VIII and IX and filed a dissenting opinion as to Part IVC.
This appeal arises out of a jury verdict in favor of two women who sued their
Tidyman’s appeals the jury verdict and damages award in favor of the plaintiffs on four grounds. First, Tidyman’s contends that the district court erred at trial by admitting into evidence improper statistical expert testimony. Second, Tidyman’s argues that the district court abused its discretion by denying Tidyman’s’ motion for a new trial on the grounds that the evidence was insufficient, that misconduct by the plaintiffs’ counsel permeated the trial and prejudiced the jury, and that the size of the jury verdict was excessive. Third, Tidyman’s challenges the district court’s ruling that the plaintiffs could seek “double damages” under a Washington state law that provides for the doubling of any wages willfully and intentionally withheld from employees. See RCW §§ 49.52.050, 49 .52.070. Tidyman’s argues that the district court erred by not applying the Title VII cap on compensatory damages to the plaintiffs’ damage awards for future losses and for violations of Washington state law. Finally, Tidy-man’s argues that the Washington state law is intended to cover only accrued wages that are not paid, rather than wages not paid because the employer paid a lower wage as a result of discrimination.
Hemmings and Lamphiear cross-appeal on the issue of punitive damages. After the jury awarded the plaintiffs punitive damages, the district court granted Tidy-man’s’ renewed motion for judgment as a matter of law on the basis that the evidence did not support punitive damages. The plaintiffs contend that the district court erred as a matter of law by applying the wrong standard to determine whether the evidence supported the punitive damages awards. The plaintiffs ask that we reinstate the punitive damages awards in full, arguing that we should not apply the Title VII damages cap to these awards because it is unconstitutional. Finally, the plaintiffs argue that the district court erred by excluding costs for depositions and the preparation of certain affidavits from the attorney fees award.
We have jurisdiction under 28 U.S.C. § 1291. We reverse the district court’s determination that the plaintiffs were not entitled to punitive damages, and we reverse the award of double damages under the Washington state statute. In all other respects, we affirm the district court. We conclude that Title VII’s cap on punitive damages is constitutional, direct the district court to reinstate the jury’s punitive damages award, and apply the Title VII cap to the punitive damages.
I.
Factual Background
A. Connie Hemmings.
In 1973, Connie Hemmings began working in the Billings, Montana office of Tidy-man’s, a chain of grocery stores in the Pacific Northwest. She started as an accounts payable clerk in the bookkeeping department, and was promoted to officer manager. In 1986, the Billings office closed, and Tidyman’s transferred its corporate headquarters to Spokane, Washington. Hemmings moved with her family to Spokane to work in the new office because of the opportunities it offered her for career advancement.
Hemmings oversaw a number of employees as part of her job. Hemmings was concerned about the lack of women in management positions at Tidyman’s and what she perceived as roadblocks to their promotions. Hemmings initiated conversations about this topic with various executives and managers of Tidy-man’s, including Jack Heuston, the President.
In May of 1996, Hemming’s supervisor, Davis, was promoted to Chief Operating Officer and the CFO position opened. Trial witnesses testified that Hemmings was well-qualified for the CFO position. She had experience overseeing financial statement reporting, supervising staff, working with internal audits, and working with banks and third-party administrators.
Hemmings was interviewed for the position along with another woman and one man. This was the first time Tidyman’s used an interview process to hire for an upper management position; previously, job openings were not posted and individuals were merely informed that they received the promotion. An all-male hiring committee interviewed Hemmings. The hiring committee concluded that Hem-mings demonstrated poor presentation skills during her interview, and hired the male candidate, Lee Clark. Davis told Hemmings that she was not hired because the board “did not want to work with an emotional woman.”
On July 1, 1996, Hemmings and the other plaintiff, Patty Lamphiear, served Tidyman’s with a demand letter outlining their claims of discrimination. Hemmings testified that the new CEO, John Maxwell, intimidated and harassed her in response to the demand letter, and attempted to discuss the possible lawsuit against Tidy-man’s in the absence of her attorney. When Hemmings suggested that she set up a meeting with her attorney present, Maxwell became angry and told Hem-mings that he would “sooner pay $5 million to fight the lawsuit than to pay [her] a penny.”
Hemmings and other Tidyman’s’ employees testified that Hemmings was denied admission to meetings and excluded from the chain of command pursuant to Maxwell’s instructions after the discrimination letter. She no longer had the power to hire and fire staff. Despite the company’s growth, Hemmings was not permitted to hire adequate staff for the expansion. Hemmings’ salary was frozen from 1996 until 1999. She received a raise in March of 1999, days before the trial began. A treating psychiatrist testified that Hemmings developed severe depression as a result of her work environment.
B. Patty Lamphiear.
Patty Lamphiear started working for Ti-dyman’s in 1984 as a part-time data entry clerk. She was promoted as the administrative assistant to Ken Ormsby, the manager of the Customer Prepaid Inventory (“CPI”) department. When Ormsby was
Tidyman’s created a new position, grocery supervisor, in 1993. Lamphiear was not given an opportunity to apply for the unposted position, despite her familiarity and experience with the requisite computer and merchandising skills. George Hau-serman was hired for the position, where he remained for one year, at an annual salary of $82,000. When Hauserman left, Lamphiear indicated her interest in the position to Jerry Streeter, the Chief Operating Officer. Streeter’s response was to laugh and tell Lamphiear “there is no way that you could get the position, because the men in the company would run right over you.” Another employee, Gregg Bab-bit, was promoted to the position and became Lamphiear’s supervisor, even though Lamphiear possessed relevant computer skills and experience that Babbit lacked.
In 1995, Lamphiear reported to Tidy-man’s’ management that Babbit had made inappropriate sexual remarks during a meeting.
An internal Tidyman’s’ wage study in August of 1995 indicated that Lamphiear had been underpaid by the company for the past four years and that she should have been paid between $38,000 and $45,000 per year. On August 31, 1995, Lamphiear’s pay was raised from $28,600 to $35,000 — $3000 below the minimum recommended salary.
Lamphiear testified that after she and Hemmings served Tidyman’s with the demand letter in July 1996, she also encountered threats and intimidation from male managers at Tidyman’s. She was threatened by CEO Maxwell and insulted by CFO Davis. Lamphiear experienced the most problems with her new supervisor, Babbit, who verbally abused Lamphiear
Lamphiear’s emotional health deteriorated rapidly. She began having nightmares and trouble sleeping. In 1997, Lamphiear attempted to set up a meeting with her supervisors related to a work project. After confirming that they would attend, none of the men came to the meeting. Lamphiear felt undermined and increasingly insecure at work. Her problems with Babbit continued to escalate. Although Lamphiear was working long
At the recommendation of her doctor, Lamphiear left her position on sick leave, due to job-related stress. While on sick leave, Lamphiear was informed by Tidy-man’s that her position had been eliminated. Lamphiear was offered only lower-paid positions, working again under the supervision of Babbit. Lamphiear declined to accept these positions. Although Tidyman’s eliminated Lamphiear’s former position, a new employee was hired for a very similar position, entitled “DSD Buyer,” which Babbit did not supervise.
II.
Procedural History
The plaintiffs brought suit against Tidy-man’s in federal court in February, 1997 for violations of the Civil Rights Act of 1964, Title VII, 42 U.S.C. § 2000(e) et seq., and the Washington Law Against Discrimination, Revised Code of Washington (“RCW”) § 49.60 et seq. The plaintiffs alleged that Tidyman’s discriminated against them under both disparate impact and disparate treatment theories.
At the close of the evidence, Tidyman’s filed a motion for judgment as a matter of law contending, inter alia, that the Washington statute authorizing double damages for the willful and intentional deprivation of wages was not intended to cover an employer’s failure to pay wages owed because of discrimination. The district court denied the defendant’s motion.
The jury returned large verdicts for both Hemmings and Lamphiear. With respect to Hemmings, the jury found by special verdict that Tidyman’s discriminated against Hemmings under a disparate treatment theory by retaliating against her on the basis of her gender. The jury also found that Tidyman’s discriminated against her under a disparate impact theory by failing to promote her and by failing to provide adequate pay and benefits on the basis of her gender.
In Lamphiear’s case,
The district court, over Tidyman’s’ objections, sent the issue of punitive damages to the jury. The jury awarded each plaintiff $1 million in punitive damages.
After the jury returned the punitive damages awards, Tidyman’s submitted a renewed motion for judgment as a matter of law on the grounds that the double damages are not available under Washington law in a discrimination case and that the plaintiffs failed to present a sufficient evidentiary basis for the punitive damages awards. At the same time, Tidyman’s also filed a motion to alter or amend judgment in lieu of a new trial and a motion for a new trial. The district court denied the renewed motion concerning the double damages claim, the motion for a new trial, and the motion to alter or amend the judgment. However, the district court granted Tidyman’s’ renewed motion with regard to the punitive damages awards. The district court allocated the jury awards for non-economic damages to the plaintiffs’ state law claims, rather than the Title VII claims. Having done this, the district court concluded that the Title VII
III.
Admission of the Statistical Expert Testimony
Tidyman’s argues that the district court erred by admitting the testimony of the plaintiffs’ statistical expert, Dr. Polissar, because the prejudicial effect of the testimony outweighed its probative value. Tidyman’s also contends that the statistical evidence was insufficient to support the jury finding of disparate impact discrimination in either of the plaintiffs’ cases. We review a district court’s admissibility ruling on expert testimony for abuse of discretion. United States v. Cordoba,
A. Dr. Polissar’s Testimony.
The centerpiece of the plaintiffs’ disparate impact case was the expert testimony of Dr. Polissar. Dr. Polissar testified that statistical analysis of Tidyman’s’ management revealed gender disparities in promotions and wages. In its pretrial motion to exclude Dr. Polissar’s testimony, Tidy-man’s argued that Dr. Polissar’s analysis included improper comparisons, which lacked probative value and would improperly prejudice the jury. The district court denied the motion, and ruled that any flaws in the analysis could be addressed through cross-examination or impeachment. The district court also stated if it determined that portions of Dr. Polissar’s analysis were improper, it would give a limiting instruction to the jury.
Tidyman’s provided Dr. Polissar with information about the names, gender, starting salary and position, and ending salary and position of the employees in Tidyman’s’ management. Dr. Polissar testified about the statistical analysis he performed using this data.
Dr. Polissar also testified that he analyzed the progression of wages of women and men over time as a method of controlling for factors other than gender — such as experience — that might explain the initial wage differential. Dr. Polissar used regression analysis
Finally, Dr. Polissar analyzed the distribution of men and women in different job categories at Tidyman’s and concluded that the distribution reflected a pattern of segregation of men and women that was unlikely to be due to chance.
On cross-examination, Tidyman’s attempted to show that Dr. Polissar’s analysis was fundamentally flawed because it assumed that each individual was equally qualified. Tidyman’s elicited testimony from Dr. Polissar that his analysis failed to take into account individual qualifications, preferences, motivations, and individual fields.
B. The Standard for Admission of Expert Testimony.
Tidyman’s argues that Dr. Polissar’s testimony lacked probative value and prejudiced the jury. These arguments relate most directly to Federal Rules of Evidence 403 and 702. Rule 403 permits the exclusion of relevant evidence “if its probative value is substantially outweighed by the danger of unfair prejudice, confusion of the issues, or misleading the jury.” Fed. R.Evid. 403. In applying Rule 403, “[d]is-trict courts enjoy ‘wide latitude’.” Fireman’s Fund Ins. Co. v. Alaskan Pride P’ship,
Rule 702 governs the admissibility of expert testimony. Fed.R.Evid. 702. Under Rule 702, expert testimony is admissible if the testimony “will assist the trier of fact to understand the evidence or to determine a fact in issue.” Id. Whether testimony is helpful within the meaning of Rule 702 is in essence a relevancy inquiry. See Raskin v. Wyatt Co.,
C. Tidyman’s’ Challenges.
Tidyman’s attacks the probative value of the statistical evidence on two grounds: (1) that Dr. Polissar used an inappropriate comparison pool; and (2) that Dr. Polis-sar’s analysis did not account for variables such as individual skills and preferences. Both arguments lack merit.
1. The Appropriate Comparison Pool.
Courts have long recognized that statistical evidence may be used to establish a prima facie case of disparate impact discrimination. See, e.g., Hazelwood Sch. Dist. v. United States,
The plaintiffs’ expert in this case analyzed a data set comprised entirely of Ti-dyman’s’ management employees. Tidy-man’s contends that consideration of this pool was error because: (a) the data set did not included the “qualified” individuals for the at-issue jobs, and (b) the data set improperly included “store” management, instead of only “corporate” management. We reject both of these arguments.
a. Whether the Management Data Set Included the Qualified Individuals.
In support of its argument that the management data set failed to include the qualified individuals, Tidyman’s relies upon the Supreme Court’s opinion in Wards Cove Packing Co. v. Atonio,
The general principle of Wards Cove— that the appropriate comparison pool for statistical analysis is the group from which individuals will be chosen for the job action — is appropriately applied in the plaintiffs’ analysis, which uses a data set of Tidyman’s’ management. In Wards Cove, the plaintiffs challenged the hiring practices of the defendant. The appropriate comparison pool in Wards Cove was thus the pool of potential applicants seeking to be hired- — i.e., qualified individuals from the general population.
In the present case, the plaintiffs challenge the compensation and promotion practices of the defendant. “[I]n cases involving claims of promotion and wage discrimination, the employer’s own workforce (or a portion thereof) may be the best source for data on the qualified labor market.” BARBARA LINDEMAN & PAUL GROSSMAN, EMPLOYMENT DISCRIMINATION LAW 1714 (3d Ed.1996).
Use of a data set comprised of the employer’s entire management in a case challenging the failure to promote lower management to higher management and pay equal wages is consistent with the principle of Wards Cove, that the comparison pool for analysis should be the group from which individuals will be chosen for the job action, in this case promotion and payment of higher wages. In the instant case, Dr. Polissar testified to the existence of disparities between the percentages of female and male employees of Tidyman’s in terms of their movement from middle or lower management to upper management positions. We find that Dr. Polissar appropriately used the employer management data set for his statistical analysis.
b. Store Management versus Corporate Management.
Tidyman’s next attacks the plaintiffs’ statistical evidence on the ground that Dr. Polissar improperly included the management employees of the local stores within the management data pool- — rather than just the corporate management. Tidy-man’s contends that because the plaintiffs were not qualified for store management positions, the statistical analysis should not have included the store management employees.
Rather than argue that corporate positions and store management positions require entirely separate qualifications, Tidy-man’s asserts only that promotion to store management requires “special qualifications” that the two plaintiffs lacked. Tidy-man’s does not dispute that store management may be a career path to corporate management for some employees.
In sum, the district court did not abuse its discretion by admitting the expert testimony based on the analysis of the data set of Tidyman’s’ management employees.
Tidyman’s next argues that Dr. Polissar’s statistical analysis should have been excluded because it did not “eliminate all of the possible legitimate nondiseriminatory factors,” including the employee’s qualifications, level of education, and preferences. This argument also fails. We begin our analysis by noting that the law does not require the near-impossible standard of eliminating all possible nondiscriminatory factors. See Bazemore v. Friday,
In Bazemore, the Supreme Court addressed the precise question presented by Tidyman’s’ appeal: if a study fails to account for all variables, how should a court treat the study? Justice Brennan, writing for the court, explained that “[njormally, failure to include variables will affect the analysis’ probativeness, not its admissibility.”
In some cases, however, the analysis may be “so incomplete as to be inadmissa-ble as irrelevant.” Bazemore,
First, Tidyman’s did not prove at trial that any of these factors were important to the subjective and undefined promotion process or compensation awards. We have recognized that a defendant may not rest an attack on an “unsubstantiated assertion of error.” Gen. Tel. Co.,
In this case, the plaintiffs’ expert “used the best available data, which [came] from the [defendant] itself.” Adams v. Ameritech Serv. Inc.,
We cannot say that the exclusion of preferences, individual qualifications, and education rendered the data set so incomplete “as to be irrelevant.” Bazemore,
In sum, the testimony of Dr. Polissar had probative value. The analysis could have helped the jury determine contested facts and evaluate whether the promotion and compensation practices of Tidyman’s had a disparate impact or reflected disparate treatment against women at the management level. Any inadequacies in the methodology were presented to the jury by the cross-examination of Dr. Polissar. We conclude that the district court did not abuse its discretion by failing to exclude the plaintiffs’ expert testimony.
IV.
Motion for a New Trial
Tidyman’s also appeals the district court’s denial of its motion for a new trial under Federal Rule of Civil Procedure 59 on the grounds that the great weight of the evidence is against the jury’s findings, the verdict was excessive, and that counsel misconduct deprived the defendant of a fair trial. A district court may grant a motion for a new trial based on the insufficiency of the evidence only if the verdict “is against the ‘great weight’ of the evidence or ‘it is quite clear that the jury has reached a seriously erroneous result.’ ” Ace v. Aetna Life Ins. Co.,
We review a district court’s denial of a motion for a new trial for an abuse of discretion. De Saracho v. Custom Food Mach., Inc.,
A. The Weight of the Evidence.
The district court found that the jury verdict was not “against the clear weight of the evidence,” and denied Tidyman’s’ motion for a new trial. Tidyman’s contends that the jury’s findings of: (1) disparate impact in both plaintiffs’ cases; (2) retaliation in both plaintiffs’ cases; (3) discriminatory intent against Lamphiear; and (4) the equal pay violation in Lamphiear’s case were against the great weight of the evidence. We conclude, however, that each of the jury’s findings is supported by sufficient evidence in the record and affirm the district court’s denial of the motion.
To establish a prima facie case of disparate impact under Title VII, the plaintiffs must: (1) show a significant disparate impact on a protected class or group; (2) identify the specific employment practices or selection criteria at issue; and (3) show a causal relationship between the challenged practices or criteria and the disparate impact. Atonio v. Wards Cove Packing Co., Inc.,
The plaintiffs also had to show three elements to establish a prima facie case of disparate treatment discrimination: (1) membership in a protected class; (2) qualification for the position at issue; and (3) an adverse employment action. See Morgan, at 1016. The jury only found disparate treatment of Lamphiear. The jury heard the testimony of a former store manager that Lamphiear’s gender affected the company’s treatment of her, and that she received significantly lower pay than her male counterparts. Tidyman’s’ own internal study found that Lamphiear was underpaid for her position. Multiple witnesses, including the plaintiffs, testified to gender-based discriminatory comments made by Tidyman’s’ male managers to, and about, the plaintiffs. This combined testimony is sufficient to support the jury finding of intentional discrimination against Lamphiear.
To meet their prima facie burden of establishing retaliation, Hemmings and Lamphiear needed to demonstrate: (1) they engaged in a protected activity; (2) they suffered an adverse employment action; and (3) the existence of a causal link between the activity and adverse action. See Morgan v. Nat'l R.R. Passenger Corp.,
Tidyman’s contends that the great weight of the evidence is against finding an equal pay violation in Lamphiear’s case because the plaintiffs failed to introduce sufficient evidence that Lamphiear’s work
In sum, we find that each of the contested jury findings was based on significant evidence in the record. Because evidence in the record supports the verdict, we conclude that the district court did not abuse its discretion by denying Tidyman’s’ motion for a new trial on the ground that the great weight of the evidence did not support the jury’s findings.
B. The Size of the Damages Award.
Tidyman’s next contends that the size of the damages awards meant that the jury must have been motivated by sympathy or sheer guesswork, and that the district court abused its discretion by not granting a new trial on this basis. We will not reverse a district court’s denial of a motion for a new trial unless the damages are “grossly excessive or monstrous.” Los Angeles Memorial Coliseum Com’n v. NFL,
The plaintiffs introduced testimony of a certified public accountant, Anson Avery (“Avery”), to support their request for damages. Avery testified that approximately $4.4 million in damages were due to the plaintiffs collectively for past lost wages and future lost wages. The jury returned a verdict of $3.3 million for past lost wages and future lost wages. The jury returned a slightly higher verdict for Lamphiear than the amount Avery recommended as due, and returned a significantly lower verdict for Hemmings.
The argument by Tidyman’s that the jury verdict is grossly excessive is principally based on quibbles with Avery’s calculations about the front and back pay awards. Avery testified that he calculated the “lost wages” amounts by comparing the salary and compensation packages for male executives in similar positions to the salary and compensation packages of the plaintiffs. In Hemmings’ case, Avery included in his calculation of the “lost wages” the difference between Hemmings’ salary had Tidyman’s promoted her to the position of CFO and her salary without the promotion. For both women, Avery factored inflation and interest rates in calculating the recommended award. The defendant cross-examined Avery about various assumptions in his calculations—
On appeal, Tidyman’s contends that the alleged problems with Avery’s calculations render the verdict “monstrous” because there is no evidence in the record to support the damage award. This argument clearly fails. As described above, the record supported conclusions of liability. Avery’s lengthy and detailed testimony provided a basis for the jury to translate the liability into dollar amounts. Moreover, the jury’s award was below the amount calculated by Avery. The fact that the jury may have agreed with Avery and rejected the defendant’s contentions, for example, that compensation such as vacation time and annuities should not be included, does not render the verdict “grossly excessive or monstrous.” The district court did not abuse its discretion by rejecting Tidyman’s’ motion for a new trial on this ground.
C. Counsel Misconduct.
Finally, Tidyman’s contends that the district court erred by denying the motion for a new trial because of alleged misconduct by the plaintiffs’ counsel. Recognizing that the district court is “in a superior position to gauge the prejudicial impact of counsel’s conduct during the trial,” we will not overrule a district court’s ruling about the impact of counsel’s alleged misconduct unless we have “a definite and firm conviction that the court committed a clear error of judgment.” Anheuser-Busch Inc. v. Natural Beverage Distribs.,
[1] Generally, misconduct by trial counsel results in a new trial if the “flavor of misconduct sufficiently permeate[s] an entire proceeding to provide conviction that the jury was influenced by passion and prejudice in reaching its verdict.” Kehr v. Smith Barney,
Tidyman’s complains of several comments by plaintiffs’ counsel during closing arguments.
[Tidyman’s has] not corrected any of these[discriminatory] policies and they knew that they should because this is not the first time they have been sued. I have sued them before in 199k, so they had subjective policies which had disparate impact on all women, including plaintiffs, and that proves our case because they did not have a business necessity for doing it, and there were ways to fix it.
(Emphasis supplied).
Tidyman’s failed to object to this statement or any other statement made by counsel during closing argument. Nor did Tidyman’s move for a mistrial on the basis of counsel’s misconduct. The first time Tidyman’s complained of the misconduct was in its motion for a new trial. The district court noted that it would have sustained an objection to the comment during closing argument: “I remember the comment and I thought I sua sponte corrected it, but maybe I just thought about it and would have sustained an objection had
The federal courts erect a “high threshold” to claims of improper closing arguments in civil cases raised for the first time after trial. Kaiser Steel Corp. v. Frank Coluccio Constr. Co., 785 F.2d 656, 658 (9th Cir.1986). The rationale for this high threshold is two-fold. First, raising an objection after the closing argument and before the jury begins deliberations “permit[s] the judge to examine the alleged prejudice and to admonish ... counsel or issue a curative instruction, if warranted.” Id. As noted above, the trial judge is in a superior position to evaluate the likely effect of the alleged misconduct and to fashion an appropriate remedy. The second rationale stems from courts’ concern that allowing a party to wait to raise the error until after the negative verdict encourages that party to sit silent in the face of claimed error.
“We will review for plain or fundamental error, absent a contemporaneous objection ..., where the integrity or fundamental fairness of the proceedings in the trial court is called into serious question.” Bird v. Glacier Electric Coop. Inc.,
Plain error review requires: (1) an error, (2) the error is plain or obvious, (3) the error was prejudicial or effects substantial rights, and (4) review is necessary to prevent a miscarriage of justice. See Smith v. Kmart Corp., 177 F.3d 19, 25 (1st Cir.1999) (describing the plain error standard in a civil counsel misconduct case). “Plain error is a rare species in civil litigation, encompassing only those errors that reach the pinnacle of fault envisioned by the standard set forth above.” Id. at 26 (internal citations and quotations omitted).
We readily conclude that the plaintiffs’ counsel’s statement during closing argument was error. Counsel inappropriately referred to other cases that she herself had litigated. The fact that she personally had litigated the cases had no relevance to the lawsuit. Nor should she have suggested that this litigation “proved the ease.” We also find that the error was “plain.” Plaintiffs remarks were obviously improper and blatant enough for the trial judge to recall them easily.
We next must consider whether counsel’s error was prejudicial and fundamentally unfair. “[T]he burden of making a ‘concrete showing of prejudice’ resulting from improper closing argument falls upon appellant.” Moses v. Union Pac. R.R.,
We note, however, that this remedy is available only in “extraordinary cases.” Bird,
The misconduct in this case is substantially different from the misconduct in Bird. Here, the misconduct was an isolated, short comment during a closing statement that covered 66 pages when transcribed. Tidyman’s urges us to weigh other instances where the plaintiffs referred to prior lawsuits against Tidyman’s as evidence that the plaintiffs deliberately violated the district court’s ruling excluding such references. Tidyman’s first points to its testimony by Hemmings and contends that, in conjunction with her testimony, the “district court sustained defense counsel’s objections to testimony that Tidyman’s had been sued before.” A review of the record does not support this contention.
Hemmings testified about conversations that she had with the director of loss prevention, “the discussions that I had with him were that we [Tidyman’s] had been sued before and we lost and we need to get women in management positions.” The defense objected to this statement on hearsay grounds, and the trial court sustained the objection. Hemmings then testified as follows, without objection by defense counsel:
Q: Connie, what was your part of the conversation with Mr. Armstrong?
A: That we needed to get more management — women in management positions to prevent getting continually sued.
Q: And you indicated that the company has been sued before. Do you know who had sued the company; were they women?
A: There were two women and one— • actually two guys that I know of.
Q: And did those women sue the company for discrimination?
A: Yes.
Hemmings went on to describe the failure of the defendant to establish programs that would have supported the movement of women into management programs, despite corporate recognition of the need for such programs. Tidyman’s did not object to any portion of this testimony.
The jury also heard from the plaintiffs’ expert, Dr. Polissar, that Tidyman’s had been sued before by plaintiffs’ counsel:
Q: Have you ever — have you and I ever worked together before?
A: Yes, we have on one other case.
Q: And what case was that?
A: That was a case — a lawsuit against Tidyman’s and you were representing the plaintiff and you asked me to help out on that.
Q: And was our plaintiff a woman?
A: Yes.
Q: And what were you analyzing?
A: Well, at that point—
Defense Counsel: Objection, Your Hon- or, that is not this case.
The Court: I will sustain the objection.
That is enough.
The defense counsel did not move to strike the portion of Dr. Polissar’s testimony referring to the prior lawsuit against Tidyman’s. The jury thus learned, without objection by the defense counsel, that the plaintiffs’ counsel had sued Tidyman’s before, that Tidyman’s had lost gender discrimination cases in the past, and that the plaintiffs’ expert, Dr. Polissar, worked with plaintiffs’ counsel in another case against Tidyman’s.
The strength of the plaintiffs’ case is another factor that weighs against a finding of fundamental unfairness. The plaintiffs’ expert testimony went largely unrefuted. The plaintiffs introduced compelling testimony about a discriminatory culture and the disparate impact of the discrimination on women’s pay and promotion options. In the absence of counsel’s improper statements, we cannot say that we think a different verdict was likely. We conclude that the district court did not abuse its discretion by denying Tidyman’s’ motion for a new trial because of counsel misconduct during the closing statement.
V.
Tidyman’s’ Motion to Cap the Loss Award to $300,000
Title VII, as amended by the Civil Rights Act of 1991, limits compensatory and punitive damages based on the size of the defendant corporation. For a plaintiff suing a company with more than 500 employees, damages are capped at $300,000. 42 U.S.C. § 1981a(b)(3) (1998). The damages limit does not apply to back pay awards, or to relief authorized by 42 U.S.C. § 2000e-5(g). See 42 U.S.C. § 1981a(b)(2). Tidyman’s argues that the district court erred by not applying the § 1981a damages cap to: (1) the plaintiffs’ front pay awards; and (2) to the Washington state law discrimination claims. Both arguments lack merit.
Denial of a motion to amend the judgment is reviewed for abuse of discretion. Kingvision Pay-Per-View Ltd. v. Lake Alice Bar,
A. Front Pay.
Tidyman’s’ argument that the statutory cap under § 1981a(b)(3) should apply to front pay awards is foreclosed by the Supreme Court’s recent decision in Pollard v. E.I. du Pont de Nemours & Co.,
As the Supreme Court explained, the statutory cap was adopted in 1991 as part of the Civil Rights Act. Id.; Civil Rights Act of 1991, 105 Stat. 1071, § 2. The Civil Rights Act provisions expanded the remedies available to plaintiffs for intentional discrimination by providing that the plaintiff could recover “compensatory and punitive damages ... in addition to ” relief authorized under § 706(g) of the Civil Rights Act of 1964. 42 U.S.C. § 1981a(a)(1). The new remedies — -not authorized by § 706(g) — in turn are subject to the statutory cap. Pollard,
B. Application of the Statutory Cap to Washington State Law Claims.
Tidyman’s’ second argument is that the district court abused its discretion by failing to apply the Title VII damages cap to the state damages awards. Tidy-man’s contends that even if the awards were controlled entirely by state law, the federal damages cap applies because Washington courts look to federal law when interpreting their anti-discrimination statutes.
Tidyman’s does not challenge the district court’s allocation of the non-economic damages to the state law claims. The special verdict form in this case did not differentiate plaintiffs’ state and federal law claims. Any portion of the non-economic damages allocated to the federal Title VII claim would be subject to the $300,000 cap. In this case, Hemmings was awarded $230,000 in non-economic damages, an amount less than the federal cap. Tidyman’s’ argument thus potentially applies only to the $650,000 non-economic damages the jury awarded to Lamphiear, which the district court allocated to Lam-phiear’s state law claims.
Tidyman’s argues that we should apply the federal damages cap to the state law discrimination claim because Washington state courts, “in the absence of state authority,” will consider federal law “persuasive” when construing sections of the Washington anti-discrimination law that “parallel” the federal law. Xieng v. Peoples Nat’l Bank,
VI.
Punitive Damages
The plaintiffs cross-appeal the district court’s finding that punitive damages are not available as a matter of law. The plaintiffs contend that the district court applied the wrong standard in granting Tidyman’s’ renewed motion that, as a matter of law, the evidence was insufficient to support an award of punitive damages. Specifically, the plaintiffs allege that the district court failed to consider adequately the directives of the Supreme Court’s decision in Kolstad v. Am. Dental Ass’n,
“Judgment as a matter of law is appropriate when the evidence, construed in the light most favorable to the non-moving party, permits only one reasonable conclusion, which is contrary to the jury’s verdict.” Gilbrook v. City of Westminster,
The district court instructed the jury that the plaintiffs were entitled to punitive damages if they demonstrated that Tidyman’s’ conduct was willful and egregious, or displayed a reckless indifference towards the plaintiffs’ federal civil rights. The jury awarded each plaintiff $1 million in punitive damages. After the verdict, however, Tidyman’s made a renewed motion that the punitive damages were not supported by the evidence as a matter of law. The district court granted the defendant’s motion. The district court found that the plaintiffs “did not present a legally sufficient evidentiary basis for a reasonable jury to find by a preponderance of the evidence that Defendant’s conduct toward either Plaintiff was willful and egregious or displayed a reckless indifference to the Plaintiffs federal rights sufficient to justify an award of punitive damages.” (Emphasis supplied).
In the interim between the jury’s deliberations of the punitive damages award and the district court ruling on the motion for a judgment as a matter of law, the Supreme Court decided Kolstad. In Kolstad, the Supreme Court resolved a circuit split over the appropriate standard for determining the availability of punitive damages under Title VII by establishing a three-part inquiry to address when the evidence supports a punitive damages verdict.
In the first step, the Supreme Court clarified the requisite mental state of employers, the analysis primarily at issue in this case. Under Title VII, the jury may award punitive damages if the moving party demonstrates that “the respondent engaged in a discriminatory practice or discriminatory practices with malice or with reckless indifference to the federally protected rights of an aggrieved individual.” 42 U.S.C. § 1981a(b)(l). Interpreting this section, the Supreme Court concluded that Congress intended to impose a heightened standard of liability for the award of punitive damages, but rejected the argument that the heightened standard requires that an employer’s behavior be “egregious.” Kolstad,
The Court found that the questions of malice and reckless indifference are subjective questions concerning the employer’s motive or intent, rather than an objective inquiry into whether the employer’s behavior is “egregious.” Id. at 535-38,
The Supreme Court also held that the plaintiff must “impute liability for punitive damages to respondent.” Id. at 539,
Finally, the Supreme Court clarified that the defendant employer may raise as an affirmative defense its good faith efforts to comply with Title VII, if such efforts were contrary to the actions of its
Although the district court was aware of Kolstad,
Both parties urge us to review the rec- ord to determine if the evidence was legal- ly sufficient to support an award of puni- tive damages by a reasonable jury.
Under Koistad, we must begtn by asking whether Tidyman's acted with malice or reckless indifference-whether Tidyman's "acted in the face of a perceived risk that its actions will violate federal law." Kolstad,
[11] We noted in Passantino that after Kolstad, “in general, intentional discrimi- nation is enough to establish punitive dam- ages liability.”
In Passantino, we found that the mental state element was satisfied because the jury could have concluded that the defen- dant acted with reckless disregard for plaintiffs rights based on evidence that the defendant’s employees lied to the plaintiff to conceal their discriminatory actions. Id. at 516. Other circuits have found puni- tive damage awards appropriate under the Kolstad framework where the plaintiff demonstrated that the defendants were aware of anti-discrimination principles. See, e.g., Bruso v. United Airlines Inc.,
The record contains substantial evidence from which a reasonable juror could conclude that Tidyman’s was aware of anti-discrimination laws and acted in the face of this awareness. The plaintiffs introduced testimony that Tidyman’s hired additional women in store management positions, in part because of its concern about legal exposure for discriminatory practices. The plaintiffs also introduced testimony that the defendants excluded plaintiffs from decision making processes and harassed the plaintiffs after they sent their discrimination complaint. The jury could have easily concluded from this testimony that Tidyman’s intentionally discriminated against the plaintiffs in face of the risk that it was violating the law.
Based on the record, there is no doubt that discriminatory actions by Tidyman’s’ management officers can be imputed to Tidyman’s. The plaintiffs’ claims of intentional discrimination were based on the conduct of Jerry Streeter, the Chief Operating Officer; John Maxwell, the Chief Executive Officer; Mike Davis, the Chief Financial Officer; and Gregg Babbit, the grocery supervisor, among others. Tidy-man’s does not argue that the actions of management were contrary to the good faith non-discriminatory policies of the company, probably because on appeal Ti-dyman’s continues to assert that the actions themselves were non-discriminatory.
Based on our review of the record, we cannot say that the only reasonable conclusion is contrary to the jury’s verdict awarding punitive damages. Testimony and trial evidence support a determination by a reasonable jurist that Tidyman’s acted in the face of a perceived risk that its actions would violate federal law. We therefore reverse the district court’s ruling that, as a matter of law, the evidence was insufficient to support the jury’s awards of punitive damages.
VII.
Attorneys Costs
The district court awarded $62,638.16 in attorneys fees and costs, adopting in whole the plaintiffs’ cost affidavit with the exception of deposition costs and the costs for assembling the affidavit in support of attorneys fees. The plaintiffs contend that the district court abused its discretion by excluding the costs for depositions, $18,060.65, and the costs for preparing the
Both deposition costs and costs for preparation of attorneys fees motions are recoverable under Title VII in certain circumstances. See Harris v. Marhoefer,
In this case, the district court could have determined within its discretion that the hours preparing some of the witnesses or taking the depositions were overinflated or unnecessary. See Van Germen v. Guarantee Mutual Life Co.,
THOMAS, Circuit Judge, in which Judges PREGERSON and RONALD M. GOULD joined:
VIII.
The Constitutionality of the Title VII Cap on Punitive Damages
The statutory limitation on damages contained in 42 U.S.C. § 1981a(b)(3), which imposes a $300,000 cap on compensatory and punitive damages in Title VII suits against employers with more than 500 employees, does not violate the doctrine of separation of powers or the Seventh Amendment.
The § 1981a damages cap does not represent an impermissible intrusion by the legislature into the province of the judiciary. Whether Congress may reopen a final judgment of an Article III court is not in question; the law is clear that Congress may not do so. Plaut v. Spendthrift Farm, Inc.,
when Congress creates a statutory right, it clearly has the discretion, in defining that right, to create presumptions, or assign burdens of proof, or prescribe remedies.... Such provisions do, in a sense, affect the exercise of judicial power, but they are also incidental to Congress’s power to define the right that it has created.
Northern Pipeline Constr. Co. v. Marathon Pipe Line Co.,
In 1991, Congress determined that victims of employment discrimination were entitled to additional remedies. Pollard v. E.I. du Pont de Nemours & Co.,
[ujnfortunately, the political process forced Congress to leave its task unfinished. The 1991 Act contained a number of important and controversial provisions. When a compromise was finally reached, it included § 1981a’s restrictions of damages. In the interest of seeming prompt passage of the Civil Rights Act of 1991, including the portion guaranteeing the right to damages, Congress accepted the restrictions on damages, and left to 1992 the task of providing full, fair, and equal remedies for victims of discrimination.
S. Rep. 102-286 at *2 (May 21,'1992). As the Sixth Circuit has observed, “[t]he fact that the judicial branch is limited in the amount of damages which it may award does not mean that its ability to decide cases is being impaired by Congress.” Pollard v. E.I. DuPont de Nemours Co.,
Plaintiffs further argue that, even if the damages cap does not violate separation of powers, it unconstitutionally infringes on the province of the jury as defined in the Seventh Amendment. Essentially, Plaintiffs claim that, once Congress in 1991 provided for a jury trial in Title VII cases, it could not then circumscribe the ability of that jury to make factual findings, including a finding of the proper amount of punitive damages. Again, we disagree.
The Supreme Court has not specifically addressed this question, although it has noted that courts of appeals have upheld such caps against Seventh Amendment challenges. Gasperini v. Ctr. for Humanities,
it is well settled that jury verdicts are not binding on either trial judges or appellate courts if they are unauthorized by law. A verdict may be insupportable as a matter of law either because of deficiencies in the evidence or because an award of damages is larger than permitted by law.
Id. at 2227 (Stevens, J., concurring).
The Supreme Court’s recent ruling in Pollard impliedly affirms Justice Stevens’ conclusion. Pollard did not disturb the Sixth Circuit’s holding that the Title VII damages cap is constitutional: The Court held only that front-pay awards are not an element of compensatory damages, and thus are not subject to the cap. Id. at 1949. In fact, in defining the ambit of the Title VII damages cap, the Court seemingly sanctioned the Sixth Circuit’s conclusion. See id. at 1951 (“However, compensatory and punitive damages awarded under
The Seventh Amendment does not provide unlimited protection to jury determinations. For example, when a punitive damage jury verdict “can fairly be categorized as ‘grossly excessive’ in relation to [legitimate state] interests,” the Due Process Clause requires judicial intervention. BMW of North Am. v. Gore,
Congress created the Title VII cause of action and has the power to set limits for recovery under it. The statute does not violate the Seventh Amendment because it does not impinge upon the jury’s fact finding function. In applying a provision, a court does not ‘reexamine’ the jury’s verdict or impose its own factual determination as to what a proper award might be. Rather, it implements the legislative policy decision by reducing the amount recoverable to that deemed to be a reasonable maximum by Congress.
We further note the paradoxical implications of Plaintiffs’ claim: If a judge cannot limit damages found by a jury in accordance with a statute, how can a judge impose statutorily mandated double or treble damages without also imposing on the jury’s province as sole factfinder? And yet “[ajwards of double or treble damages authorized by statute date back to the 13th century ... and the doctrine was expressly recognized in cases as early as 1763.” Browning-Ferris Ind. of Vermont, Inc. v. Kelco Disposal Inc.,
In sum, what Congress can create, Congress can define. Title VII’s damages cap does not interfere with the proper exercise of authority by the judicial branch, nor does it offend the Seventh Amendment. Because Title VII’s damages limitation passes constitutional muster, we affirm the district court’s judgment applying it.
THOMAS, Circuit Judge, in which Judge RONALD M. GOULD joined:
IX.
Double Damages Under Washington State Law
The Plaintiffs are not eligible to receive double damages under RCW § 49.52.070, which provides that:
Any employer and any officer, vice principal or agent of any employer who shall violate any of the provisions of subdivisions (1) and (2) of RCW 49.52.050 shall be liable in a civil action by the aggrieved employee or his assignee to judgment for twice the amount of the wages unlawfully rebated or withheld by way of exemplary damages, together with costs of suit and a reasonable sum for attorney’s fees: PROVIDED, HOWEVER, That the benefits of this section shall not be available to any employee*1203 who has knowingly submitted to such violations.
Plaintiffs argued that an award of double damages pursuant to RCW § 49.52.070 was justified pursuant to RCW § 49.52.050(2), which provides in relevant part that:
Any employer or officer, vice principal or agent of any employer, whether said employer be in private business or an elected public official, who
Hs Hí H< H* H*
(2) Wilfully and with intent to deprive the employee of any part of his wages, shall pay any employee a lower wage than the wage such employer is obligated to pay such employee by any statute, ordinance, or contract;
Hi Hi ❖ Hi * ❖
Shall be guilty of a misdemeanor.
In short, the Plaintiffs argue that because the jury found that the Defendant willfully and intentionally violated federal and state anti-discrimination statutes, RCW § 49.52.050(2) was violated as a matter of law, entitling Plaintiffs double damages under RCW § 49.52 .070.
In interpreting state law, federal courts are bound by the pronouncements of the state’s highest court. Davis v. Metro Prods., Inc.,
The Washington legislature enacted the statute at issue with a group of related provisions in 1939. Ellerman v. Centerpoint Prepress, Inc.,
Washington courts have not extended RCW § 49.52.050 to situations where employers violate anti-discrimination statutes. Rather, violations of § 49.52.050 have been upheld where an employer consciously withholds a quantifiable and undisputed amount of accrued pay. See, e.g., Ellerman,
The language of the statute does not support the expansive interpretation urged by the Plaintiffs. In ascertaining legislative intent, “the language at issue must be evaluated in the context of the entire statute.” Ellerman,
Further, the Washington Supreme Court has not extended the reach of RCW § 49.52.050 to instances, such as the one at bar, in which there is a bona fide dispute as to whether the employer is obligated to
Pursuant to these provisions, double damages may be awarded for a willful withholding of wages due under a statute, ordinance, or contract. Nonpayment of wages is willful in this context when it is the result of knowing and intentional action and not the result of a bona fide dispute as to the obligation of payment.
Id. at 11.
Thus, the. Plaintiffs were not entitled to double damages pursuant to RCW § 49.52.070.
CONCLUSION
We affirm the district court’s admission of the plaintiffs’ expert testimony and the district court’s denial of Tidyman’s’ motion for a new trial. We also affirm the district court’s ruling that the Title VII cap on compensatory and punitive damages does not apply to front pay awards or the Washington state law claims.
We reverse the district court’s judgment as a matter of law that double damages were available to Lamphiear under the Washington statute, RCW 49.52.070. We also reverse the district court’s judgment as a matter of law that punitive damages were not available in this case. Finally, we uphold the constitutionality of the Title VII cap on compensatory and punitive damages.
Accordingly, we AFFIRM in part, REVERSE in part, and REMAND to the district court to reduce the back pay damages to Lamphiear, reinstate the punitive damage awards to Lamphiear and Ham-mings, and apply the Title VII damages cap to the punitive damages awards.
Each side to bear its own costs on appeal.
Notes
. Hemmings also discussed with Jim Armstrong, the director of risk management, the need to hire more women in management to avoid liability in future lawsuits.
. Jack Rippee, a Tidyman’s' store director who was present at the meeting, testified for die defense that his memory of the analogy was that Lamphiear "wouldn't recognize a good deal if it was three naked guys for a dollar."
. Lamphiear's therapist testified that Lam-phiear was upset during visits because of Babbit’s increasing use of inappropriate sexual innuendos, including references to naked men and women and cutting off a penis.
. " ‘Disparate treatment’... is the most easily understood type of discrimination: The employer simply treats some people less favorably than others because of their race, color, religion, sex, or national origin.... Claims of 'disparate impact’ ... involve employment practices that are facially neutral in their treatment of different groups but that in fact fall more harshly on one group than another and cannot be justified by business necessity.” Int'l Bhd. of Teamsters v. United States,
. The following questions and answers are excerpted from the special jury verdict form for Connie Hemmings:
Question No. 1: Did Defendant Tidyman’s violate the law against disparate treatment discrimination by:
(A) Not promoting Connie Hemmings on the basis of her gender?
Answer: No.
(B) Retaliating against Connie Hemmings on the basis of her gender?
Answer: Yes.
(C) Paying different compensation to Connie Hemmings on the basis of her gender?
Answer: No.
Question No. 2: Did Tidyman’s violate the law against disparate impact discrimination by:
(A) Not promoting Connie Hemmings on the basis of her gender?
*1182 Answer: Yes.
(B) Not providing greater pay and benefits to Connie Hemmings on the basis of her gender?
Answer: Yes.
Special Jmy Verdict form for Connie Hem-mings, April 13, 1999.
. The following questions and answers are excerpted from the special jury verdict form for Patty Lamphiear:
Question No. 1: Did Defendant Tidyman’s violate the law against disparate treatment discrimination by:
(A) Not promoting Patty Lamphiear on the basis of her gender?
Answer: Yes.
(B) Retaliating against Patty Lamphiear on the basis of her gender?
Answer: Yes.
(C) Paying different compensation to Patty Lamphiear on the basis of her gender?
Answer: Yes.
Question No. 2: Did Tidyman's violate the law against disparate impact discrimination by:
(A) Not promoting Patty Lamphiear on the basis of her gender?
Answer: Yes.
(B) Not providing greater pay and benefits to Patty Lamphiear on the basis of her gender?
Answer: Yes.
Question No. 3: Did Tidyman’s willfully and with intent to deprive Patty Lamphiear of any part of her past wages or other compensation, because of her gender, pay Patty Lamphiear a lower wage or compensation than Defendant Tidyman’s was obligated to pay her?
Answer: Yes.
IF YOUR ANSWER TO QUESTION NO. 3 IS "YES”, YOU MUST DOUBLE THE PORTION OF ANY AWARD FOR WAGES WILLFULLY AND INTENTIONALLY DEPRIVED PATTY LAMPHIEAR BY DEFENDANT WHEN CONSIDERING QUESTION NO. 4.
Special Jury Verdict form for Patty Lam-phiear, April 13, 1999.
. Tidyman’s did not renew its objection to Dr. Polissar’s testimony at trial and no limiting instruction was given.
. At trial, Dr. Polissar testified that he had a masters and a doctoral degree in statistics from Princeton University, and that he had been a faculty member in the Department of Bio-statistics at the University of Washington for fifteen years before becoming a full-time consultant. Tidyman's did not object at any point on the ground that Dr. Polissar was unqualified, or that the statistical analysis he presented was outside of his area of expertise.
."A regression analysis is a common statistical tool ... designed to isolate the influence of one particular factor — e.g. sex — on a dependent variable — e.g. salary.” Equal Employment Opportunity Comm’n v. Gen. Tel. Co. of Northwest, Inc.,
. Polissar testified to the following percentages of women and men employees by department: grocery, 100% men; meat, 83% men; produce, 94% men; floral, 100% women; pharmacy, 73% men; bakery, mixed; expres-so, 93% women; store support, mixed; store management, 86.2% men; bookkeepers, 100% women.
. See generally Kevin Gilmartin, Identifying Similarly Situated Employees In Employment Discrimination Cases, 31 JURIMETRICS J. 429 (1991).
. See also Julie Lee & Caitlin Lui, Measuring Discrimination in the Workplace: Strategies for Lawyers and Policymakers, 6 U. CHI. L. SCH. ROUNDTABLE 195, 198 (1999) ("If promotions or terminations within an organization are being examined, an internal benchmark would likely be used: the affected' pool of employees who seem to have differential rates of promotion or termination might be compared against benchmark pool of employees who are not ‘affected.’ ”); Stender v. Lucky Stores,
. Tidyman's' attack involves disputed facts concerning the store management — namely, whether the two plaintiffs were qualified for store management positions and whether store experience was a prerequisite to store management positions. For example, Lam-phiear testified that she was qualified to be a store manager. Ron Bashaw, a former Tidy-man's' store manager, also testified that Lam-phiear was qualified for a store management position. The plaintiffs introduced testimony that no objective criteria were used in awarding store promotions. Tidyman's presented testimony that the individuals actually promoted to store manager and assistant manager positions all had store experience, which Lamphiear and Hemmings lacked.
. There is evidence that Tidyman’s itself treated the corporate and store management employees as a group. For example, Tidy-man's treated corporate staff and store management in the same group for the purpose of its salary policy. Tidyman’s' internal corporate management flow charts include store director and manager positions.
. Even assuming that the two individual plaintiffs were unqualified for store management positions, the inclusion of the store management employees in the management data set was proper given the fluid movement of employees between the store and corporate management. In Aiken v. City of Memphis,
. Moore v. Hughes Helicopters,
The instant case is easily distinguishable: here, no one disputes that Hemmings and Lamphiear were qualified for upper level management jobs. Rather, Tidyman's challenges whether the plaintiffs were qualified for each of the management positions, including positions below their positions as controller and senior buyer. Tidyman's’ organizational diagrams indicate that Hem-mings' position as controller was higher in Tidyman's' hierarchy than the store management positions. Lamphiear's position as senior buyer was below the highest level of store management, on an even level with some of the store management positions, and above others.
Moore is distinguishable on other grounds as well. The statistical analysis used by Hem-mings and Lamphiear involved interpretative statistical tools such as regression analysis rather than the straight percentage used in Moore. Additionally, in Moore the plaintiffs attempted to use statistics from an employer data set when the higher positions were filled from outside rather than internal applicants. In this case, Tidyman’s promoted from within, and the use of the employer management data set is thus appropriate.
.An additional line of case law supports rejecting Tidyman's' argument that the store management employees should have been excluded from the data set. Federal courts have rejected defendant's arguments that statistical analysis should be limited to a pool of "qualified applicants" where the job qualification standards are themselves discriminatory. Failure to post vacancies and the use of subjective promotion practices — both practices of Tidyman's prior to the plaintiffs' lawsuit in 1996 — may be evidence of discrimination. Paxton v. Union Nat’l Bank,
Courts should adopt the benchmark which most accurately reflects the pool of workers from which promotions are granted unless that pool has been skewed by other discriminatory hiring practices. Where, as here, no application is required for most promotions, it makes no sense to compare the percentage of ... applicants ... to the percentage of .. . appointees.
Forehand v. Florida State Hosp.,
In the instant case, the plaintiffs introduced testimony that one of the informal requirements to a store management position was prior experience in a night crew position. A former store manager of Tidyman’s testified that women were directed away from such positions.
. "Litigation generally is not fussy about evidence; much eyewitness and other nonquan-titative evidence is subject to significant possibility of error, yet no effort is made to exclude it if it doesn’t satisfy [a particular] statistic test.” Kadas v. MCI Systemhouse Corp.,
. Tidyman's cites Ottaviani v. State Univ. of New York,
. In Lamphiear’s case, Aveiy recommended an award of $1,405,865, and the jury returned an award of $1,620,500. The special verdict form instructed the jury to double the back pay award if it found that Tidyman’s willfully deprived the plaintiff of wages. The jury concluded that Tidyman’s did willfully deprive Lamphiear of wages, and presumably doubled the amount to reach a back pay award of $616,000. Without the doubling, the total jury award for front and back pay damages in Lamphiear's case would have been $1,311,500, an amount smaller than the amount Avery recommended. In Hemmings' case, the jury awarded $1,700,000 in front pay and back pay damages, although Avery recommended $3,004,497.
. Tidyman's also complains that the plaintiffs' attorney referred to the defendant’s case as a "jack rabbit defense,” that a verbal assault on Lamphiear by one of the defendant’s employees was a rape of her mind, that a female board member and a paralegal sitting at the counsel table were mere "tokens.” While in poor taste, these comments do not rise to the level of misconduct. Tidyman's itself made similar remarks in its closing arguments. For example, it referred to the plaintiffs case as "a whole big bag of rabbits the plaintiffs brought in, [because] their case has no merit and they want to distract you.”
. Plaintiffs' counsel addressed the Kolstad opinion at oral argument on the defendant’s motion for judgment as a matter of law.
. We agree with other circuits that the rul- ing in Kolstad was not so novel as to require a remand to provide the defendant an opportu- nity to supplement the record. See Rubinstein v. Adm'r of the Tulane Educ. Fund,
. Tidyman's does appear to concede that the sexually inappropriate joke by Babbit could be evidence of discrimination towards women. Tidyman’s contends that management swiftly responded by directing Babbit towards counseling after learning of this remark. Certainly, this type of evidence might establish a defense under Kolstad. However, we must review the evidence in the light most favorable to the plaintiffs. The plaintiffs introduced contrary evidence that Tidyman's' management permitted Babbit to forgo the recommended counseling. More importantly, the plaintiffs’ cases of intentional discrimination were based on the actions of multiple senior officers, not just Babbit.
Dissenting Opinion
dissenting specially in part:
Because I believe that the district court correctly construed Washington state law to permit double damages in a discrimination suit where an employer willfully withholds wages, I respectfully dissent from Part IX.
I.
Double Damages are Recoverable Under State Law
In addition to violations of state and federal anti-discrimination laws, Plaintiffs alleged that Tidyman’s violated a Washington statute prohibiting employers from willfully depriving employees of any wages due under statute, ordinance, or contract obligations. See RCW § 49.52.050.
The majority disagrees with the district court and concludes that: (1) the statutory scheme, RCW § 49.52.050 (the willful deprivation of wages statute) and RCW § 49.52.070 (the double damages provision) does not authorize a doubling of past lost wages for a discrimination victim; and (2) even if the statutory scheme applied, the doubling statute is inappropriate because a “bona fide dispute” existed over whether past wages were due, which is a recognized defense to the doubling statute. I disagree with both of these contentions.
The majority opinion concludes that the double damages provision is not available in cases, like this one, in which the employer failed to pay an equal wage in violation of anti-discrimination laws. Rather, the majority asserts that the double damages provision should only apply in cases where the employer failed to pay an accrued wage that he was obligated to pay. The majority contends that the term “obligated” in § 49.52.050 precludes the application of the double damages provision in this case because Tidyman’s had no “obligation” to pay the plaintiffs. The majority argues that the wages owed to the plaintiffs “did not stem from a ‘statute, ordinance, or contract’; rather, it resulted from a retrospective jury verdict.”
This conclusion ignores the plain terms of Washington state law. Washington law obligates employers to pay equal wages and compensate workers whose wages have been paid in a discriminatory manner. Section 49.12.175 of the RCW, which prohibits wage discrimination based on gender, provides that a female employee is “entitled to recover in a civil action the full amount of compensation that she would have received had she not been discriminated against.” Thus, RCW § 49.12.175, read in conjunction with RCW § 49.52.050 and RCW § 49.52.070, establishes the right to double damages for wages withheld from Lamphiear on account of her gender.
Applying the state’s double damages statute in cases like Lamphiear’s, where wages are withheld because of employment discrimination, is consistent with the Supreme Court of Washington’s interpretation of § 49.52.050, the state’s willful deprivation of wages statute. In interpreting § 49.52.050, the Supreme Court of Washington held that the “statute must be liberally construed to advance the Legislature’s intent to protect employee wages and assure payment.” Schilling,
The case for applying § 49.52.070 to discrimination cases is further strengthened by Washington’s anti-discrimination law. RCW § 49.60.020 provides that “the provisions of this chapter shall be construed liberally for the accomplishment of the purposes thereof.” Contrary to the defendant’s argument, nothing in either the Washington statutes or case law describes RCW § 49.60, the anti-discrimination statute, as an exclusive remedy. The failure to pay equal wages in violation of state and federal anti-discrimination laws may, therefore, fall within the type of conduct prohibited by RCW § 49.52.050.
The majority concludes in the alternative that, regardless of the reach of
Because applying double damages in this case is consistent with the remedial purposes of the Washington law and because there is no bona fide dispute as to Tidyman’s’ obligation to pay equal wages, I would affirm the district court’s decision denying Tidyman’s’ motion to disallow double damages.
. Section 49.52.050 provides that "any employer ... who ... (2) willfully and with intent to deprive the employee of any part of his wages, shall pay any employee a lower wage than the wage such employer is obligated to pay such employee by any statute, ordinance, or contract” is guilty of a misdemean- or.
. Section 49.52.070 requires any employer in violation of § 49.52 ,050(l)-(2) to pay the employee “twice the amount of the wages unlawfully rebated or withheld by way of exemplary damages.”
Concurrence in Part
Concurring in part and Dissenting in part:
I respectfully dissent from the majority’s view in part IVC that the misconduct of plaintiffs’ counsel during a part of closing argument by Ms. Price Sadich did not prejudice defendant. I would hold that counsel’s statements that she had sued defendant before and that defendant’s failure to change its practices after that prior suit “proves our case”
Accordingly, I respectfully dissent from part IVC of the majority’s opinion. However, because I agree with the majority’s analysis of the other issues in the case and believe that, if a new trial were granted, it would be preferable to resolve those issues to guide the trial court, I concur in the majority’s analysis with respect to parts I, II, III, IVA, IVB, V, VI, VII, VIII, and IX.
Because defense counsel did not object to counsel’s statements during closing argument, we “review for plain or fundamental error, ... where the integrity or fundamental fairness of the proceedings in the trial court is called into serious question.” Bird v. Glacier Elec. Coop., Inc.,
The egregiousness of counsel’s misconduct here by arguing that counsel had sued Tidyman’s for discrimination before and the potential prejudicial effect of that misconduct are similar to that which occurred in Bird. Here, counsel put herself in the role of a testifying witness during the rebuttal portion of plaintiffs’ closing argument and thereby flouted multiple procedural, evidentiary, and ethical constraints.
First of all, it is well-settled that the scope of closing argument must be limited to the evidence that was introduced in the case-in-chief; new evidence must not be introduced during closing argument. See, e.g., United States v. Barron,
Secondly, the law recognizes an entrenched proscription against counsel’s testifying in a case which she is trying, absent limited exceptions not at issue here. Among other interests, this proscription serves to avoid undue prejudice resulting from the jury’s attributing increased credibility to the statements of counsel because she is an officer of the court, and it prevents counsel from simultaneously subjecting herself to the conflicting roles of advocate and neutral witness. See, e.g., United States v. Birdman,
Finally, in this case, much of the evidence referred to in closing argument regarding a prior discrimination suit against Tidyman’s had already been excluded by the trial court during the case-in-chief. Thus, there should have been no question in counsel’s mind that a discussion of that excluded evidence would be improper. See Hales,
There is no question in my mind that counsel’s outrageous behavior asserting prejudicial facts outside the record in the final moments of closing argument was very prejudicial. Although, as the majority points out, plaintiffs’ counsel attempted to question Dr. Polissar, plaintiffs’ statistical expert, about the prior suit against
The majority also relies on the fact that one of the plaintiffs, Hemmings, was asked on direct about prior lawsuits against Ti-dymaris. However, what the majority fails to acknowledge is that, like the testimony of Dr. Polissar, Hemmings’ discussion of the lawsuits was limited. She noted that Tidymaris had been sued by two women and two men and that the women had sued the company for “discrimination.”
By contrast to the testimony in the casein-chief, the unadmitted evidence slipped in during closing argument implied that the plaintiffs’ claim in the prior suit was similar to the plaintiffs’ claim here, involved the very same allegedly discriminatory policies, and was resolved favorably to the plaintiffs. It is axiomatic that the potential prejudicial effect of prior bad acts evidence increases with the degree of similarity between the charged act and the prior acts.
I am sorry to say that the apparent goals of the improper closing argument were transparent: 1) to make defendant’s conduct seem more egregious because of its allegedly long-standing character and the fact that defendant was on notice of its wrongfulness, 2) to encourage the jury not to hold back in punishing defendant for that conduct, and 3) to encourage the jury to give the same type of “impassioned sanction” that was wrongly sought by improper argument in Bird. No evidence of similar scope had been admitted in the
. Counsel's statements were as follows:
Unless you are a man starting in the night crew, you don't get ahead. That policy is what we object to. There is no business necessity for it.
Now, could Tidyman’s have fixed that policy? Easily. Write up objective criteria, write up job descriptions, ... do job evaluations, ... provide equal opportunity for people who apply for these positions.... They have not corrected any of these policies and they knew that they should because this is not the first time they have been sued. I have sued them before in 1994, so they had subjective policies which had a disparate impact on all women, including plaintiffs, and that proves our case because they did not have a business necessity for doing it, and there were ways to fix it.
(Emphasis supplied.)
. Tidyman's also objects to statements during closing made by another of plaintiffs' counsel, Mr. Eymann. His challenged statements in argument included comparing a disciplinary meeting with Lamphiear to a "rape in the alley,” suggesting that a female Board member on defendant’s Board of Directors was a token woman, and insinuating that defendant’s counsel had a female paralegal seated with them in order to give the impression of being fair to women. I consider all but the last of those statements to be within the realm of permissible rhetorical flourish. The jury could readily comprehend that Lamphiear was not actually raped and it could decide for itself whether to view the female Board member as a token. The rape argument is a metaphor supporting plaintiffs’ case, and the characterization of the Board member as a token was merely argument favorable to plaintiffs' view of the evidence that was before the jury.
On the other hand, the characterization of a paralegal on the defense team in my view is
But, as explained above, the closing argument of Ms. Price Sadich, suggesting that her prior suit against defendant proves the plaintiffs' case, is of a very different character. Counsel has a duty during argument to state the client's case in the most advantageous light based on the evidence that was admitted. There is nothing wrong with proper uses of rhetoric and persuasive skills to characterize evidence admitted at trial. But it is a wholly different thing, and entirely improper, for counsel to argue facts to the jury that were not admitted.
. Although evidence of prior discriminatory acts by employers may be admissible in rare and narrow circumstances in discrimination cases to show an employer's state of mind with respect to the protected class, see Becker,
. Although defense counsel in theory could have objected to the statements during closing argument, that is easier said than done at trial. For doing so at that stage would have created considerable risk of losing credibility with a jury listening intently to each side's close, especially if the trial court did not sustain the objection, and perhaps even if objection was sustained. And under Bird, the failure to object does not wholly jettison the ground for relief if the argument to which no objection was made is so improper as to challenge the integrity or fundamental fairness of the proceeding.
. Although Dr. Polissar testified that the plaintiff was a woman, he did not testify that the case involved a sex discrimination claim. Women can be plaintiffs in any type of case, including all of the various types of discrimination cases; the fact that a woman had previously sued Tidymaris does not, by itself, raise an inference that a sex discrimination claim was involved.
. Although Hemmings also initially stated that the company had lost a discrimination lawsuit or lawsuits, that testimony was objected to on hearsay grounds, and the objection was sustained.
In context, Hemmings' allusion to the fact that the female plaintiffs had sued Tidymaris for discrimination does permit an inference that the plaintiffs in the prior case or cases sued for sex discrimination. However, unlike counsel’s statement during closing argument, Hemmings’ testimony did not imply that the practices or policies challenged by the prior plaintiffs were identical to those challenged by the current plaintiffs.
. Doubtless the majority shies away from requiring a new trial consuming more than a week of judicial and litigant resources, without including preparation time, over a mistake in argument of a few seconds in closing. But the length of the improper argument is not the measure of its power to work injustice. It would be better to try the case again to ensure that the parties' dispute is resolved by fair procedure.
.This is so because the temptation to view the charged act as consistent with a defendant’s prior conduct becomes stronger if the charged act is very similar to the prior conduct.
