MEMORANDUM OPINION AND ORDER
Plaintiff Joseph Jendusa (“Jendusa”) sues defendants Cancer Treatment Centers, of America Inc. (“CTCA”), Midwestern Regional Medical Center, Inc; (“Midwestern”), and Richard Stephenson (“Stephenson”) (collectively “defendants)”, alleging that defendants terminated his employment at CTCA and Midwestern on the basis of his disability in violation of the Americans With Disabilities Act (“ADA”). 42 U.S.C. § 12101 et seq. CTCA- and Midwestern have answered the complaint. Pursuant to Rule 12(b)(6), Stephenson moves to have the complaint against him dismissed, contending that liability under the ADA may attach only to a “covered entity” (i.e., an employer, employment agency, labor organization, or joint labor-management committee) and that he may not be held personally liable under the ADA.
BACKGROUND
Jendusa’s complaint alleges the following well-pleaded facts which are taken as true on a motion to dismiss.
See Canedy v.
In mid-March, 1993, Jendusa informed Robert Mayo, then President of CTCA, that he had multiple sclerosis. Id. ¶ 10. Thereafter, Jendusa informed Stephenson and R. Richard Wieland, President of CTCA’s corporate parent, that he had multiple sclerosis and requested that the company accommodate his disability by temporarily reducing his work week to 40 hours. Id. Two days later, Jendusa was terminated. Id. The company recruited a new Director of Human Resources to take over his duties, and Jendusa was not considered for the position. Id. Stephenson participated directly in Jendusa’s termination. Id. ¶ 7.
DISCUSSION
The ADA prohibits employers from discriminating, with respect to employment, against any qualified individual with a disability on the basis of that disability. See 42 U.S.C. §§ 12111(2), 12112(a). The ADA defines an employer as: “a person engaged in an industry affecting commerce who has [25] 1 or more employees ... and any agent of such person.” 42 U.S.C. § 12111(5)(A). 2 The question presented by defendant’s motion is whether the ADA’s “and any agent” language permits a finding of personal liability against such agents.
The Seventh Circuit has not directly addressed the issue of whether supervisors, managers, or other decisionmaking personnel may be held personally liable under Title VII, the ADEA, or the ADA.
3
In the absence of any clear guidance by the Court of Appeals, a split has developed with respect to this issue among the courts of the Northern District of Illinois.
Compare Haltek v. Village of Park Forest,
As the number of divergent opinions cited above reveals, the question of personal liability under these federal antidiscrimination statutes does not readily admit of any easy answers. The arguments on both sides of the issue have been amply articulated in the opinions cited above and there is little to be gained from rehashing them in detail yet another time. As set forth more fully below, this court concurs with what appears to be the minority view in this district and finds that Congress’ intent in enacting the ADA is best effectuated by holding that agents of an employer may be individually liable for engaging in unlawful discrimination. 6
In addressing this issue, the court begins, as it must, with the plain language of the statute.
United States v. Ron Pair Enters., Inc.,
In reaching the holding that an employer’s agents may be found personally liable for engaging in unlawful discrimination, this court is fundamentally persuaded that the prospect of individual liability is essential if the antidiscrimination statutes are to have their full deterrent effect.
See Strzelecki
Courts that have refused to recognize the prospect of individual liability have concluded that the imposition of such liability is unnecessary to accomplish the deterrent function of the antidiscrimination statutes. For instance, in
Miller v. Maxwell’s Int’l Inc.,
Although one court has determined that [holding that individual defendants cannot be held liable for damages] “would encourage supervisory personnel to believe that they may violate Title VII with impunity,” Hamilton [v. Rodgers], 791 F.2d [439] at 443 [(5th Cir.1986) ], the court’s reasoning is unsound. No employer will allow supervisory or other personnel to violate Title VII when the employer is liable for the Title VII violation. An employer that has incurred civil damages because one of its employees believes he can violate Title VII with impunity will quickly correct that employee’s erroneous belief.
This court cannot conclude that Congress intended to accomplish Title VII's deterrence function through indirect reliance on the marketplace assumptions concerning the actions of rational economic actors/employers after incurring a civil penalty based on the discriminatory conduct of one of their employees. It must not be forgotten that Title VII was enacted against the backdrop of employment activities — namely, discriminatory hiring, firing and promotion decisions— that, by their very nature, were not economically rational: 'Failure to hire or promote the most qualified candidate due to his or her race, gender, disability, etc., is not the conduct of a rational economic actor, yet it is the very conduct that motivated Title VII and the ADA. In light of this fact, it is inconceivable to this court that Congress intended to delegate the deterrence function of these statutes to the rational economic actors in the marketplace.
This court respectfully rejects the Ninth Circuit’s suggestion that deterrence Will be adequately accomplished through the marketplace for additional reasons. First, although intuitively plausible, the Ninth Circuit’s account of the fate of discriminatory supervisory personnel is, at best, an empiri
In addition to the deterrence argument discussed above, this court finds many of the other arguments that have been advanced against recognizing personal liability to be less than compelling bases for ignoring the plain language of the statute and Congress’ broad remedial intent. First, we respectfully reject the Ninth Circuit’s assertion that the “obvious purpose” of the “agent” language “was to incorporate respondeat superior liability into the statute.”
Miller,
It does not require a congressional enactment to render a corporation or other institutional employer responsible for its employees’ actions taken on its behalf. And if that really were Congress’ limited intention, it surely chose an odd and roundabout way of doing so — why would it enact a provision that defined such employees as “agents” coming within the definition of “employer,” instead of including a direct statement of respondeat superior liability in the statute?
Cassano v. DeSoto,
In
Meritor Savings Bank v. Vinson,
The Restatement (Second) of Agency states that “Principal and agent can be joined in one action for a wrong resulting from the tortious conduct of an agent ... and a judgment can be rendered against each.” Rest. (2d) Agency § 359c(l) (1957). Thus, the law of agency recognizes personal liability for agents.
Id. at 806. Accordingly, Chief Judge Mihm held that Title VII permits suit against individual employees who qualify as employers under the statute. Id. This court concurs in both the reasoning and holding of Griffith. 10
Perhaps the most frequently advanced argument against allowing personal liability was also articulated by the Ninth Circuit in Miller as follows:
Title VII limits liability to employers with fifteen or more employees ... and the ADEA limits liability to employers with twenty or more employees ... in part because Congress did not want to burden small entities with the costs associated with litigating discrimination claims. If Congress decided to protect small entities with limited resources from liability, it is inconceivable that Congress intended to allow civil liability to run against individual employees.
A fair reading of Title VII’s legislative history suggests that the definition of “employer” was limited to those employing more than twenty-five employees not simply, or even predominantly, out of a concern for the litigation costs associated with defending a discrimination claim, but also to limit the federal government’s intrusive reach into the associational rights of small employers. The often quoted remarks of Senator Cotton, speaking in support of his ill-fated amendment to limit Title VII’s definition of “employer” to those employing 100 or more employees, are illustrative:
[T]he principal reason why title VII is so repugnant, at least to me, lies in the fact that in a small business which employs 30 or 40 persons, the personal relationship is predominant____ [W]hen a small businessman who employs 30 or 25 or 26 persons selects an employee, he comes very close to selecting a partner; and when a businessman selects a partner, he comes dangerously close to the situation he faces when he selects a wife____ [W]hen a manowns a business which he himself has built up, having borrowed the money, worked long hours, saved and scrimped, and when it is owned by himself, perhaps his wife and his son — a little family business or business of his own, in which Uncle Sam has not contributed 1 single cent — is there any real reason why that man, if he is employing fewer than 100 employees, should not be allowed to pick and choose employees congenial to himself?
110 Cong.Rec. 13085-86. In 1972, when Congress debated enlarging the definition of “employer” to those employing eight or more employees, this concern for the assoeiational rights of small businesspersons was voiced repeatedly. For instance, Senator Ervin, arguing against lowering the definitional limit from twenty-five to eight commented:
when we get below the coverage of 25, we run into the situation where most of the employment is done on the basis of friends of the employers. The businessman wants members of his own church. He wants members of his own race. He wants people of the same national origin.
... When we reduce the number below 25, we are taking away some of the most cherished liberties of Americans.
There are the most intimate relations between the small businessman and various of his employees. We are entitled to let the man invest his capital, his skills, and his talents in a business instead of having the Government tell him whom he shall hire, whom he shall promote, and whom he shall discharge in order to make his business a success.
Remarks of Senator Ervin, 118 Cong.Rec. 3171 (1972).
See also,
Remarks of Senator Fannin, 118 Cong.Rec. 2411 (1972) (noting that many small businesspersons “desire to employ their neighbors, their friends, their relatives”). Another significant justification for limiting the definition of “employer” to those employing more than twenty-five employees was to avoid over-burdening small employers with the administrative expenses of complying with the centralized government’s bureaucratic regulations and “red-tape.”
See
Remarks of Senator Fannin 118 Cong.Rec. 2410 (1972) (“Men and women who are very able and eager to run small businesses find that they are overwhelmed by paperwork and regulations and redtape.”). Plainly, many factors entered into Congress’ determination that Title VII’s definition of an “employer” would be limited to those employing more than twenty-five employees. In
Miller,
the Ninth Circuit seized on one such
factor
— viz., a desire to protect small businesses from the costs of defending against a charge of discrimination — and used it as a central justification for holding that individual defendants could not be held personally liable for discrimination under the ADEA. However, after reviewing the legislative history of Title VII, this court cannot conclude that the desire to protect small businesses from the costs of defending against a charge of discrimination was of paramount importance in defining the term “employer” and hence the Ninth Circuit’s reliance on that factor in refusing to recognize personal liability strikes this court as the tail wagging the dog. Once it is recognized that other factors were as, if not more, important in arriving at Title VII’s definition of “employer,” the Ninth Circuit’s argument loses much of its force. Given that Congress may have been concerned principally with protecting the ássociational rights of “mom and pop” or neighborhood businesses, or with not overburdening small businesses with administrative expenses, it does not seem
that
“inconceivable that Congress intended to allow civil liability to run against individual employees.”
See Lamirande v. RTC,
Moreover, even if it were true that Congress’ desire to protect small businesses from the costs of defending a discrimination suit was a determinative factor in the definition of “employer,” it does not necessarily follow that Congress did not intend personal liability to attach to those decisionmakers, falling within the statute’s definition of employer, who unlawfully discriminate. Congress’ desire to protect small business enterprises employing fewer than twenty-five employees cannot be directly translated, as the Ninth Circuit suggests, into a desire “to protect small entities with limited resources” such as individual actors. At the time Title VII was
Courts have also concluded that Congress did not intend to authorize personal liability under the antidiscrimination statutes based on the remedial scheme provided by Title VII. In particular, it has been argued that since “the remedies available under Title VII (prior to the 1991 amendment) are remedies which an employer, not an individual, would generally
provide
— ie., back-pay, reinstatement and other equitable relief if warranted,”
Pommier v. James L. Edelstein Enters.,
Finally, even in the wake of the Civil Rights Act of 1991’s amendments authorizing compensatory and punitive damages, Pub.L. No. 102-166, § 102, 105 Stat. 1071, 1072-73, courts rejecting the prospect of personal liability have argued that the damages scheme set out in the 1991 amendments, in fact, further evidences Congress’ intent not to recognize personal liability. The Ninth Circuit articulated the argument as follows:
[I]n drafting [the amendment authorizing compensatory and punitive damages], Congress specifically limited the damages available depending upon the size of the respondent employer. [W]e think that if Congress had envisioned individual liability under Title VII for compensatory or punitive damages, it would have included individuals in this litany of limitations____
Miller,
The court agrees that Congress’ failure to incorporate any reference to individual liability in the compensatory and punitive damage scheme established by the 1991 Act provides fair fodder for the argument that Congress did not contemplate individual liability under the antidiscrimination statutes. Indeed, if this omission rendered application or enforcement of the statutes incoherent or unworkable, the court might be inclined to accept the argument that individual liability was not envisioned. However, the omission of provisions governing individual liability from the 1991 damages scheme does no such
The 1991 damage scheme accomplishes precisely what it purports to do — notwithstanding the omission of provisions concerning the personal liability of decisionmaking personnel: It sets caps on the compensatory and punitive damages that may be recovered by victims of discrimination as a function of the number of employees employed by the institutional employer. No statutory gap or incoherence is introduced into the remedial scheme by virtue of the omission. Regardless of whether the plaintiff names only the institutional employer or, instead, joins individuals as defendants along with the institutional employer, the maximum amount of compensatory and punitive damages to which the plaintiff is entitled is clear. Indeed, even in the virtually unknown case in which the defendant names only individual defendants the application of the damage scheme is clear. The only problem confronted by the court in the case where individuals have been joined along with the institutional employer arises with respect to apportioning the damage award, if any, between the institutional employer and the individually named defendants. This problem of apportioning damages is not unique to actions brought under the antidiscrimination statutes and is usually resolved by appropriate jury instructions and verdict forms. Thus, this factor is hardly a justification for eschewing individual liability.
Moreover, the court finds Miller’s suggestion that the 102nd Congress did not “envision” individual liability implausible in view of the legislative history of the 1991 Act and the express purpose underlying the amendments. In setting out its findings regarding the inadequacy of the pre-1991 remedies available to victims of discrimination, Congress provided several accounts of the experiences of such victims including that of Carol Zabkowicz — with a citation to the district court’s published opinion in her Title VII lawsuit.
See
H.R.Rep. 40(1), 102nd Cong., 1st Sess. 67,
reprinted in
1991 U.S.C.C.A.N. 549, 605. That opinion explicitly held that the corporate employer
and its officers
had violated Zabkowicz’s rights under Title VII and entered a judgment awarding back pay “against the corporate defendant and its officers.”
Zabkowicz v. West Bend Co.,
More significantly, in interpreting the antidiscrimination statutes, including the 1991 amendments, the court is guided by the 102nd Congress’ express purpose in enacting the 1991 amendments to those statutes: “to strengthen existing remedies to provide more effective deterrence and ensure compensation commensurate with the harms suffered by victims of intentional discrimination.” H.R.Rep. 40(1), 102nd Cong., 1st Sess. 18,
reprinted in
1991 U.S.C.C.A.N. 549, 556.
14
CONCLUSION
Defendant Richard Stephenson’s motion to dismiss the complaint [17-1] is denied. Stephenson is directed to answer the Complaint on or before November 23, 1994.
Notes
. Jendusa was terminated on April 21, 1993. See Compl. ¶ 10. At that time the ADA's definition of "employer” was limited to "a person engaged in an industry affecting commerce, who has 25 or more employees ... and any agent of such person.” 42 U.S.C. § 12111(5)(A). Effective July 26, 1990, the definition of employer was enlarged to cover those with 15 or more employees and their agents. 42 U.S.C. § 12111(5)(A).
. As many courts have noted, the ADA's definition of "employer” mirrors that of Title VII of the Civil Rights Act of 1964 ("Title VII”), 42 U.S.C. § 2000e(b), and the Age Discrimination in Employment Act ("ADEA”), 29 U.S.C. § 630(b).
See, e.g., Deluca v. Winer Indus., Inc.,
. However, in
Price v. Marshall Erdman &
As
socs., Inc.,
. Another of Judge Shadur's opinions,
Zakutansky v. Bionetics Corp.,
. Recently, Chief Judge Mihm of the Central District of Illinois, quoting
Raiser
with approval, observed that "[cjases holding that the agents of an employer may not be held personally liable
. As explained in
Deluca v. Winer Indus., Inc.,
. As both Chief Judge Moran and Judge Shadur have recognized, permitting recovery against individual defendants, as a practical matter, may be the only means available for redressing the injuries of discrimination victims whose institutional employers are unable to satisfy the judgment.
Vakharia,
. While it might be argued that termination arid the threat of a sizeable monetary penalty are economically equivalent, this is not true, for example, in the case of a supervisory employee near retirement who will have left the workforce long before his or her victim’s employment discrimination case goes to trial and results in a verdict.
. Significantly, in
Meritor,
the Court was considering Title VII's definition of "employer” and specifically the significance of the “agent” language.
. Of course, the agent may, or may not, be entitled to indemnification by the employer under the law of agency. But that is a matter between the agent and the employer and does not affect the determination of whether the agent may be held liable in the first instance.
. Although Miller contains no citation to Title VII’s legislative history on this point, that history does provide some support the assertion that Title VII’s limits on the size of employers covered under the Act reflected, in part, a concern about the ability of small businesses to bear the costs associated with litigating a discrimination claim. See, e.g., Remarks of Senator Cotton, 110 Cong. Rec. 13092 (1964). Senator Cotton's sentiments were echoed in the 1972 debates when Congress was considering expanding the definition of 'employer.' See Remarks of Senator Stennis, 118 Cong Rec 2388-89.
. Indeed, in
Hangebrauck v. Deloitte & Touche,
. Published opinions were also issued with respect to other victims discussed in the legislative history and, although the opinions were not explicitly cited by Congress, it is also instructive to note that in one,
Morris v. American Nat’l Can Corp.,
. Indeed, consistent with Congress’ determination that the existing remedies provided insuffi
