Kerry D. Ogden, Plaintiff - Appellee, v. Wax Works, Inc., Defendant - Appellant.
No. 99-1643
United States Court of Appeals FOR THE EIGHTH CIRCUIT
Submitted: December 17, 1999; Filed: June 6, 2000
Before RICHARD S. ARNOLD, and LOKEN, Circuit Judges, and WEBB, District Judge.
I.
Wax Works, Inc. (Wax Works) appeals a post-trial order of the United States District Court for the Northern District of Iowa,2 denying its motion for JAML, or, alternatively, new trial, following a jury verdict in favor of plaintiff/appellee Kerry
On appeal, Wax Works argues there was insufficient evidence to support Ogden‘s sexual harassment, retaliation, constructive discharge, and punitive damages claims. Alternatively, Wax Works contends the district court abused its discretion by failing to grant a new trial. We affirm.
II.
Predictably, the testimony “varied wildly” according to whose witnesses were testifying. “We, of course, do not resolve these discordant accounts[] . . . .” Howard v. Burns Bros., Inc., 149 F.3d 835, 838 (8th Cir. 1998). Rather, we consider the evidence in the light most favorable to Ogden, assuming all conflicts were resolved in her favor, assuming all facts her evidence tended to
Wax Works owns and operates a chain of music stores under the name “Disc Jockey,” along with a small chain of video stores under the name “Reel Collections.” On May 3, 1987, Wax Works hired Ogden as the sales manager for a newly-opened Disc Jockey in a Sioux City, Iowa mall. Ogden remained in that position until she left Wax Works in September, 1995.
During her tenure, Ogden reported directly to a district manager, who was responsible for supervising several stores in a geographic region. Among the district manager‘s duties was the performance of yearly evaluations, the completion of which was a prerequisite to a sales manager‘s annual raise. The district manager, in turn, reported to a regional manager, who was responsible for overseeing several district managers and their respective stores. The regional manager reported to the Wax Works home office.
Ogden developed into an outstanding store manager by all accounts. Sales at her store increased throughout her tenure, and she routinely received bonuses and awards for her efforts.
A. The Harassment
Ogden alleged she was sexually harassed by her district manager, Robert Hudson, from late June-early July, 1994, until she left Wax Works in September, 1995. Hudson, who lived in Omaha, Nebraska, became Ogden‘s district manager in 1993.
Ogden described three occasions on which Hudson subjected her to unwelcome physical advances. In late June-early July, 1994, an intoxicated Hudson grabbed Ogden by the waist and asked her to his motel room as the two were leaving a restaurant. Ogden refused the invitation, pushed Hudson away, and told him not to touch her. On St. Patrick‘s Day, 1995, an intoxicated Hudson twice put his arm around Ogden while the two were in a Sioux City bar with a group of employees. Each time Ogden pushed Hudson away and told him to leave her alone. Hudson made a similar advance in April, 1995, which Ogden rebuffed with a physical threat.
In addition to these physical advances, Hudson propositioned Ogden incessantly. He constantly asked her to go for drinks after work. He asked her on several occasions to stay with him at his home in Omaha and “party.” He asked her to a motel room during a convention in October, 1994, and on another occasion asked her to attend a concert.
Hudson took an inappropriate interest in Ogden‘s personal life, as well. He once offered to stay at Ogden‘s home to “protect” her from her estranged ex-
When Ogden rebuffed these advances and propositions, Hudson responded by mistreating her at work. He constantly criticized her performance and routinely screamed at her over work matters shortly after she refused to go out with him.
Ogden‘s account was corroborated at trial. Ogden‘s former employee, Chris Shook, and friend, Holly Longwell, each recalled witnessing Hudson subject Ogden to unwelcome physical advances. Shook testified Hudson often asked whether Ogden had “somebody else in her life,” and expressed a desire to stay with Ogden to protect her from her ex-husband. Shook also testified Hudson yelled at Ogden in front of other employees, and treated her differently than others.
Ogden also alleged Hudson conditioned her 1995 evaluation, and thereby her raise, upon her willingness to submit to his advances; and subsequently refused to effectuate her 1995 raise in retaliation for her refusal to submit to him. In April, 1995, Ogden‘s regional manager, Jeff Klem, ordered Hudson to perform Ogden‘s evaluation immediately to effectuate her annual raise.4 Hudson did not do so, however, despite several subsequent requests by Ogden. Instead, he “held Ogden‘s evaluation over her head.” Finally, in late June, 1995, Hudson told Ogden he would
Ogden and others described the impact Hudson‘s mistreatment had upon her physical and mental health. On several occasions, Hudson‘s beratings caused Ogden to leave work in tears. Her personality changed completely, from outgoing to withdrawn. She became depressed and lost interest in doing anything outside of work. She was unable to sleep or eat, and lost some 40 pounds between January and August of 1995. She fell ill for days at a time and consequently missed more work. She began drinking and smoking to excess.
B. Wax Works’ Response
On August 9, 1995, a confrontation arose between Ogden and Hudson over Hudson‘s desire to promote Shook to manage a store in Sioux Falls, South Dakota. Ogden initially called Klem to protest the move, but Klem told her to address her concerns directly to Hudson. Ogden balked at first, telling Klem she feared Hudson. When Ogden ultimately confronted Hudson, he “exploded,” threatening to block
Two days later, Ogden called Klem and described the confrontation. She also reported to Klem that Hudson yelled at her because she would not go out with him. According to Ogden, Klem responded “I know exactly what you‘re telling me. I know about [Hudson‘s affairs with other employees], and [Hudson‘s] been warned before[] . . . .”5 Ogden threatened to quit should Hudson remain her supervisor, but Klem urged her not to do so, and told her he would address her complaints to the home office.
When the two spoke a few days later, however, Klem told Ogden he had been assured by Hudson that the matter was merely a personality conflict, which had since been resolved. Ogden insisted this was not the case; rather, Hudson had been “treating her like a dog” because she refused to go out with him. She also
Klem visited Sioux City as promised August 21-24, 1995, but Ogden was unable to meet with him due to illness.6 Klem interviewed several of Ogden‘s employees during his visit, but one of them, Shook, testified his questions focused upon Ogden‘s performance, rather than Hudson‘s conduct.
For her part, Ogden called Klem after he left Sioux City and offered to discuss her complaints over the phone. Klem refused, stating “You didn‘t come in. You missed your chance.” Klem told Ogden that Wax Works viewed Hudson as an “asset” to the company and saw no reason to fire him. Ogden then asked whether, in the wake of her allegations, she could continue to work for Hudson. Klem replied, “No, you can‘t.” Ogden left Wax Works on September 9, 1995. She twice called the home office in an attempt to address her complaints to a vice president prior to her departure, but her calls went unreturned.
Ogden was physically and emotionally devastated by Hudson‘s harassment and the loss of her position. Her psychotherapist testified she suffered from
During Ogden‘s tenure, Wax Works distributed to all store managers an employee handbook containing the following summary of its sexual harassment policy:
* Sexual Harassment
Unwelcome sexual advances, request[s] for sexual favors and other verbal or physical conduct of a sexual nature constitutes sexual harassment. Sexual harassment exists if this type of conduct becomes a condition of an individual‘s employment, or it is used as a basis for employment decision[s]. Also, sexual harassment constitutes conduct which interferes with an individual‘s work performance or creates an intimidating work environment.
Employees are encouraged to report any alleged violations of this policy immediately to a member of management or directly to the Director of Human Resources. All such complaints will be held in confidence and will be investigated thoroughly. Appropriate action will be taken.
Additionally, Wax Works posted signs in stores encouraging employees with
Hudson testified to his familiarity with the policy, and stated that he had received “extensive training on sexual harassment issues” in conjunction with his M.B.A.
III.
We review the denial of a motion for judgment as a matter of law de novo, using the same standards as the district court.7 Douglas County Bank & Trust Co. v. United Fin. Inc., 207 F.3d 473, 477 (8th Cir. 2000). “Because the law places a high standard on overturning a jury verdict, JAML is proper only when there is a complete absence of probative facts to support the conclusion reached so that no reasonable juror could have found for the nonmoving party.” Blackmon v. Pinkerton Sec. & Investigative Serv., 182 F.3d 629, 635 (8th Cir. 1999). Our review is extremely deferential; to prevail on its motion for JAML, Wax Works faces the difficult task of demonstrating all the evidence points in its direction and is
Wax Works first argues there was insufficient evidence to support Ogden‘s quid pro quo8 and hostile environment9 sexual harassment claims. We disagree, and we find these arguments merit little discussion. Ogden‘s testimony supported the jury‘s conclusion that her submission to Hudson‘s unwelcome advances was a condition for receiving her 1995 raise, and her refusal to submit to his advances resulted in the denial of the same. See Cram v. Lamson & Sessions Co., 49 F.3d 466, 473 (8th Cir. 1995). Moreover, the jury reasonably concluded the drumbeat of
Of course, in “supervisor harassment” cases such as this, the terms “quid pro quo” and “hostile environment” remain relevant only to the extent they illustrate the evidentiary distinction between cases involving threats which are carried out and those featuring offensive conduct in general. Burlington Indus., Inc. v. Ellerth, 524 U.S. 742, 751-54 (1998). Once a plaintiff proves discrimination under either theory, we turn to the standards announced by the Supreme Court in Ellerth and Faragher to determine whether the employer may be held liable for the supervisor‘s conduct. In Ellerth and Faragher, the Supreme Court established that under Title VII, employers are vicariously liable for hostile environment sexual harassment perpetrated by a supervisor. Ellerth, 524 U.S. at 764-65; Faragher v. City of Boca Raton, 524 U.S. 775, 807-08 (1998). Where the plaintiff suffers no tangible employment action, however, the employer is entitled to establish by a preponderance of the evidence an affirmative defense consisting of two elements: (a) the employer exercised reasonable care to prevent and correct promptly any sexually harassing behavior, and (b) the plaintiff employee unreasonably failed to take advantage of any preventive or corrective opportunities provided by the employer or to avoid harm otherwise. Ellerth, 524 U.S. at 764-65; Faragher, 524 U.S. at 807-08.
Even assuming Wax Works was entitled to raise the defense, it was reasonably rejected by the jury. There was substantial evidence indicating that Wax Works neither conducted the “thorough investigation” nor took the “appropriate action” promised by its sexual harassment policy, belying its claim to have exercised reasonable care to “prevent and correct promptly . . . sexually harassing behavior.” According to the testimony of Ogden and others, Wax Works “minimized” her complaints; performed a cursory investigation which focused upon her performance, rather than Hudson‘s conduct; and forced her to resign while imposing no discipline upon Hudson for his behavior. See Baty v. Willamette Indus., Inc., 172 F.3d 1232, 1242-43 (10th Cir. 1999)(finding the lack of disciplinary action against a harassing employee relevant to an analysis of the employer‘s response). Moreover, the jury could have reasonably concluded Ogden took advantage of the “opportunities” afforded by Wax Works and/or attempted to “avoid harm otherwise.” She complained to a member of Wax Works management (Klem), arguably in
Wax Works next argues Ogden‘s retaliation claim11 must fail because she did not engage in the “protected activity” requisite for this theory of liability. Ogden maintains she engaged in “the most basic form of protected activity” when she told her supervisor, Hudson, to stop his offensive conduct. See Quarles v. McDuffie County, 949 F.Supp. 846, 853 (S.D. Ga. 1996). We agree with Ogden. Employers may not retaliate against employees who “oppose discriminatory conduct,” see
In Kolstad, the United States Supreme Court clarified “[t]he precise burden a plaintiff must carry to prove malice or recklessness for purposes of
“Recognizing Title VII as an effort to promote prevention as well as remediation, and observing the . . . limits on vicarious liability for punitive damages,” the Court created an exception to the Restatement rule whereby an
Because Wax Works did not object to the punitive damages instruction in the district court or on appeal, we apply Kolstad to the record before us, asking whether a reasonable jury could find Wax Works liable for punitive damages.16 We hold
Concerning Hudson‘s malice or recklessness, Wax Works can scarcely dispute that, based on the record as discussed above, a reasonable jury could have found Hudson‘s behavior “sufficiently abusive” to manifest the requisite malice or reckless disregard for Ogden‘s rights.17 See Kimbrough v. Loma Linda Dev., Inc., 183 F.3d 782, 785 (8th Cir. 1999). Moreover, Wax Works’ sexual harassment policy forbade “[u]nwelcome sexual advances, request[s] for sexual favors and other verbal or physical conduct of a sexual nature[,]” as well as “conduct which interferes with an individual‘s work performance or creates an intimidating work
Concerning Wax Works’ vicarious liability under the Restatement (Second) Agency §217C, there is substantial evidence that Hudson served in a managerial capacity and acted within the scope of his employ. Hudson undisputedly supervised several stores, and possessed the authority to schedule and conduct performance evaluations, and thereby to effectuate employee raises. These duties were the kind he was employed to perform; his abusive conduct occurred for the most part during working hours on Wax Works premises; and his conduct was “actuated in part to serve Wax Works.” Lowery, 206 F.3d at 444-45; E.E.O.C., 187 F.3d at 1248. See Kolstad, 119 S. Ct. 2128-29.
Concerning its purported “good faith efforts to comply with Title VII,” Wax Works points to its written sexual harassment policy, and policy of encouraging employees with grievances to contact the home office. “Plainly, such evidence does not suffice, as a matter of law,” to establish “good faith efforts” in the face of substantial evidence that the company “minimized” Ogden‘s complaints; performed a cursory investigation which focused upon Ogden‘s performance, rather than Hudson‘s conduct; and forced Ogden to resign while imposing no discipline upon
IV.
A motion for a new trial should only be granted if the jury‘s verdict was against the great weight of the evidence so as to constitute a miscarriage of justice. Denesha v. Farmers Ins. Exch., 161 F.3d 491, 497 (8th Cir. 1998). We review the denial of a motion for a new trial for abuse of discretion. Bevan v. Honeywell, Inc., 118 F.3d 603, 612 (8th Cir. 1997).
Wax Works’ request for a new trial centers largely upon its contention that the district court abused its discretion when it admitted into evidence a five-minute videotape depicting the lewd activities which took place during a 1987 company convention. Wax Works maintains the videotape incited the passion and prejudice of the jury, as reflected in the verdict and damages awarded. We disagree. The admission of evidence is committed to the sound discretion of the district court, and we review these decisions only for a clear abuse of discretion. Id. Here, the district court allowed the videotape into evidence during rebuttal after a Wax Works witness disputed Ogden‘s account of the 1987 convention, and subsequently instructed the jury to consider Wax Works’ pre-1994 conduct only as “relevant
We further find, for the reasons set forth above, that the jury‘s verdict was not against the weight of the evidence. See id. (“A district court‘s determination that the verdict is not against the weight of the evidence is virtually unassailable.“).
Finally, we reject Wax Works’ argument that the jury‘s $500,000.00 punitive damages award was excessive. The district court reduced the award to $260,000.00 pursuant to
Affirmed.
Attest:
CLERK, U.S. COURT OF APPEALS, EIGHTH CIRCUIT.
