Laymon v. Lobby House, Inc.Laymon v. Lobby House, Inc.
MEMORANDUM ORDER
Background
Plaintiff Shannon Laymon (“Laymon”) brought this action on March 2, 2007 against defendant, Lobby House, her former employer alleging two counts under Title VII, hostile environment sexual harassment and retaliation. Trial was held from September 8, 2008 through September 11, 2008. The jury returned a verdict on September 12, 2008 in favor of Laymon awarding her compensatory damages of $500 for her hostile environment sexual harassment claim, $1,000 for her retaliation claim and $100,000 in punitive damages. Lobby House now challenges the verdict, as well as, the award of punitive damages with a motion for judgment as a matter of law (“JMOL”) pursuant to Federal Rule of Civil Procedure (“Fed. R. Civ. P.”) 50 and for a new trial under Rule 59.
What occurred during trial is a primary area where the parties are disagree. Lobby House, in support of it motion, failed to provide the court with the relevant trial record. Without that record, the conflicting views of the trial evidence are difficult, if not impossible, to reconcile.
Lobby House is a family restaurant or pub where Laymon was employed as a waitress and bartender from late August 2005 through March 17, 2006, when she was terminated. She was originally hired by Rick Aníbal (“Aníbal”), the general manager of the facility. In its submissions, Lobby House maintains that the evidence showed that Laymon enjoyed working at the restaurant and often spent her free time there; 1 that she appreciated the income that she earned from Lobby House; and that she would frequently drink to the point of intoxication while working there. Further, Lobby House claims, which Laymon does not refute, that her boyfriend frequented the Lobby House when she worked.
Laymon appeared to have a friendly attitude toward Lobby House and its employees. She attended a Halloween party at the Lobby House in October 2005. She
On New Year’s Eve 2005, Laymon worked at the Lobby House. After hours, the employees celebrated the evening. During that partying, a co-employee, Amanda Potts, began dancing on the bar and disrobing. 3 Laymon maintains that management encouraged such behavior and that she pled with Potts to get off the bar.
While at work, Laymon admittedly displayed her vertical hood piercing 4 to two co-employees, bartenders Brian Doucette and Mary Anderson. 5
Laymon testified that she was accosted at work by Wilmot who dragged her into the bathroom and demanded to see her breasts. She related a sexually inappropriate comment made by Wilmot after another female employee, Sarah Geesaman, fell and spilled ranch dressing on herself. 6 Both Geesaman and Laymon testified observing body shots 7 and lap dances, which they claimed management encouraged the female employees to perform. Both testified that Anibal participated in the body shots. Laymon overheard sexually offensive comments made by Wilmot toward female customers. 8
Laymon was written up for accusing Lobby House management of stealing money out of her paycheck. The parties contest whether Laymon was written up for accusing management of stealing money from the bartenders’ tips. The fact that she accused Lobby House of such conduct is not disputed.
On March 3, 2006, Laymon was confronted by Anibal regarding her accusations to customers and employees that Lobby House was stealing money from her wages. Laymon responded by claiming that Ken Caudill, the owner of the Lobby House, made offensive remarks of a sexual nature about women. That was the first and only time Laymon reported to Lobby House management any sexually harassing conduct. Laymon testified that she did not complain previously for fear of losing her job.
Lobby House filed its motion for JMOL on September 26, 2008. In its motion, Lobby House argues that the punitive damages award is unreasonable and should be eliminated or, in the alternative, reduced, and that the verdict is not supported by sufficient evidence. Laymon filed her answering brief on October 9, 2008 followed by Lobby House’s reply on October 27, 2008. This memorandum order addresses Lobby House’s motion.
Judgment as a Matter of Law
Governed by
Under the standard of review for JMOL, the court is limited to the trial record and nothing else. In the present instance, Lobby House has not cited to the record at all in its submissions in support of its motion for JMOL.
Under a motion for JMOL, the moving party must contest the evidence which is “on the record.” At the appellate level, the Third Circuit has held that it will not review an appeal from a renewed motion for JMOL without the trial transcript.
16
Although the court’s analysis in
Preservation of Issues Pre-Verdict
Laymon initially argues that Lobby House cannot move for a renewed JMOL or a new trial on the jury’s award of punitive damages because it failed to preserve these issues at trial through a pre-verdict motion: “[a] motion under
Lobby House maintains that since it sought a pre-verdict JMOL on the grounds of inadequate evidence to support the hostile work environment and retaliation claims, that motion was sufficient to apprise Laymon that it was also contesting the award of punitive damages. In support of its position, Lobby House relies on
Browning v. President Riverboat Casino-Mo., Inc.
In
Browning,
although the defendant in a Title VII claim failed to assert in its
Notably, Lobby House never objected to either the jury instruction on punitive damages or the inclusion of punitive damages on the special verdict form.
Lobby House can not contest a post-verdict award for punitive damages because there is no evidence that it raised that issue in its pre-verdict
The court will now review the amount of punitive damages awarded.
Gore/Campbell Punitive Damages Analysis and Remittitur
The two Supreme Court decisions of
BMW of North America v.
Gore
30
and
State Farm Mutual Automobile Insurance Co. v.
Campbell
31
provide the analysis for determining the reasonableness of punitive damages. As a basic element of fairness in our constitutional jurisprudence, “a person is to be given fair notice of not only the conduct that will subject him to punishment, but also the severity of the penalty the state may impose.”
32
To ensure that a party is given adequate notice of the magnitude of the penalty a court may impose, the Court established three-pronged analysis for measuring the appropriateness of the amount of punitive damages: the degree of reprehensible behavior on the part of the defendant; the disparity between the harm or potential harm suffered by the plaintiff and the punitive damages awarded; and, the difference between the remedy awarded and the civil penalties
Degree of Reprehensible Conduct
The most important element is the degree of reprehensible conduct. 34 In analyzing this element, Campbell applies five factors: whether the harm caused was physical as opposed to economic; whether the tortious conduct evidenced an indifference to or a reckless disregard of the health or safety of others; was the target of the conduct financially vulnerable; did the conduct involve repeated actions or was it an isolated incident; and, was the harm the result of intentional malice, trickery, or deceit, or mere accident. 35 Laymon argues that those factors weigh in her favor because the jury determined that the conduct of Lobby House was sufficiently reprehensible to authorize an award of punitive damages. The degree of reprehensibility, however, is also directly relevant to what amount of punitive damages is reasonable.
In analyzing the five factors, the court does not find that the conduct of Lobby House was sufficiently offensive to warrant an award of $100,000 in punitive damages. Although Laymon was economically vulnerable in that she was employed by Lobby House who paid her wages, and the harassing environment complained of was not just an isolated incident and occurred over a brief period of time, there is no evidence of any physical contact or abuse and most of the appalling conduct happened during the 2005 New Year’s Eve party.
Furthermore, there is evidence which mitigates the severity of the reprehensible conduct, and indicates that Laymon participated in similar conduct. Laymon regularly socialized at Lobby House during her off work hours. She socialized with Wilmot outside of work. She even exposed her vertical hood piercing to co-employees. Laymon complained of sexual harassment on only one occasion during the entire time of her employment. 36 There are facts which show that Laymon was terminated after a number of customers complained about her behavior.
Moreover, the compensatory award of only $1,500 acknowledges the limited time that Laymon was exposed to the offensive conduct and the contributory nature of her behavior. It also suggests the degree of the severity of the discriminatory behavior.
Disparity between the Harm Done and Punitive Damages Awarded
The second guidepost, the difference between the harm suffered and the punitive damage award, is the heart of the present dispute. In analyzing this element, the court evaluates the ratio between the amount of punitive damages and the compensatory damages.
37
No bright line is established as to when the ratio
Laymon was awarded compensatory damages of $1,000 for her retaliation claim and $500 for her hostile work environment claim for a total of $1,500. She was also awarded punitive damages of $100,000. The ratio between the two is approximately 66 2/3:1. 41 Lobby House maintains that the punitive damages award is unreasonable. The court agrees. Laymon’s argument that the ratio between compensatory and punitive damages in the present matter is reasonable, is based on nominal awards where ratios greater than 9:1 have been upheld. Laymon cites a single case, Kemp v. AT & T, which allowed a ratio greater than 66 2/3:l. 42 That case is easily distinguishable from the instant matter. In Kemp, the Eleventh Circuit affirmed a ratio of 2,173:1 based on an award of $115.05 in compensatory damages and $250,000 in punitive damages. In that matter, AT & T was found to have used predatory billing practices by hiding “1-900” number fees within the regular long distance charges. 43 More than a single-digit ratio was necessary to adequately punish for the past deceitful conduct and prevent similar practices in the future against AT & T, a large, international company with significant assets. 44 Unlike AT & T, Lobby House is a small local pub or restaurant and bar in Dover, Delaware. Lobby House undoubtedly employs significantly fewer employees than AT & T. It is described as a small family-owned business. The amount of punitive damages appropriate to punish Lobby House in relation to the harm caused, is substantially less than AT & T.
Laymon further argues that in cases of nominal compensatory relief, a much higher ratio has been allowed. That argument ignores that $1,500 is not a nominal recovery and the cases cited by Laymon, with compensatory damages of one or two dollars, represent situations where larger ratios were necessary to punish past egregious behavior and to deter future similar conduct. In the only case cited from the Third Circuit,
Styers v. Pennsylvania,
nominal damages of a dollar resulted in an award of $20,000 in punitive damages.
45
The reasoning therein followed the
Gore/Campbell
analysis, refuted a strict mathematical test, and evaluated the puni
Finally, Laymon contends that attorney’s fees should be added to the compensatory damage amount, thereby lowering the ratio to approximately 1.65:1.
47
Laymon relies on two cases from the Third Circuit,
Gallatin Fuels, Inc. v. Westchester Fire Ins.
Co.,
48
and
Willow Inn, Inc. v. Public Service Mut. Ins. Co.
49
Both of those matters, however, involve breach of contract and bad faith claims against insurers under
The holdings in
Willow Inn
and
Gallatin Fuels
do not address damages in cases of intentional discrimination in employment. Further, Laymon’s argument on the inclusion of attorneys fees and costs are inconsistent with the plain language of
Comparison of Award to Civil Penalties Authorized
The third principle is the difference between the remedy and the civil penalties authorized or imposed in comparable cases.
In applying the Gore/Campbell principals to the present case, Laymon offered evidence which suggests that Lobby House intentionally retaliated against her for complaining about sexual harassment. The evidence further shows that the work environment was, at least, sexually provocative. The evidence also indicates that management participated in and encouraged the offensive activities. Balanced against that evidence is testimony that Laymon participated in inappropriate conduct; that she accused Lobby House of stealing from her wages and expressed her complaints to customers; and, that Laymon only complained of sexual harassment after she was confronted by management regarding her negative behavior. In balancing the Gore/Campbell factors, the court believes that reducing the amount of the punitive damages award is warranted, particularly in light of the conduct of both Laymon and Lobby House. As a result, the court will reduce the jury’s punitive damages award from $100,000 to $25,000 which it believes is appropriate to adequately punish Lobby House under the circumstances.
Motion for JMOL, or in the Alternative, a New Trial
To reiterate, the standard of review for JMOL requires the moving party to show that the jury’s findings are not supported by substantial evidence or, that the legal conclusions implied by the jury’s verdict cannot be supported. 57 All logical inferences and conflicts of evidence are construed in favor of the non-moving party, and generally, the record is to viewed in the light most favorable to it. 58
A motion for a new trial pursuant to
Hostile Environment Sexual Harassment Claim
In support of its motion, Lobby House attacks the purported hearsay testimony of Laymon’s witness Sarah Geesaman. Her statements are alleged to be inadmissible hearsay and unduly prejudicial. The objections, however, voiced by Lobby House are based on Geesaman’s affidavit and not her in court testimony. 63 Further, Lobby House failed to raise admissibility objections at trial, and as a result, has waived such objections for post-trial consideration. 64 Therefore, the hearsay contentions do not support either a motion for JMOL or for a new trial.
To make a prima facie case for hostile environment sexual harassment, five elements must be shown: the plaintiff suffered intentional discrimination because of gender; the harassing conduct was pervasive and regular; the discrimination detrimentally affected the plaintiff; the discrimination would detrimentally affect a reasonable person of the same gender in that position; and respondeat superior liability. 65 The evidence at trial of a generally hostile work environment is sufficient for a determination of liability and for a reasonable jury to conclude such conduct occurred. The evidence presented included: a crude remark from a supervisor after a female employee fell and became covered with ranch dressing; a male supervisor advising female employees to wear more revealing tops to get better tips; female employees being encouraged to do body shots, perform lap dances, and disrobe and dance topless; the general manager pouring liquor into the mouths of female employees from the fly of his pants; a male supervisor asking Laymon to expose her breasts; and, inappropriate sexually demeaning comments being expressed by management, such as, women are only good for sex. Such evidence is enough to satisfy the first prong.
The second element is met because the evidence suggests that the sexually harassing conduct was not an isolate occurrence, but occurred more frequently. Laymon was employed by the Lobby House from late August 2005 until March 17, 2006, and she was subject, within that time period, to the incidents enumerated herein. A reasonable jury could determine that those episodes within that limited time span created a pervasive and regular environment of sexual harassment.
Laymon testified that such conduct was subjectively detrimental to her, thus satisfying the third prong. Further, a reasonable jury was justified to believe that, in light of such evidence, an objective reasonable woman would also find the environ
Retaliation Claim
The elements of a prima facie retaliation case are: the employee engaged in a protected activity; the employer took an adverse employment action after or contemporaneous with the employee’s protected activity; and, there is a causal link between the employee’s protected activity and the employer’s action. 66 At trial, Laymon showed that she was terminated only nine days after complaining to management about sexual harassment at Lobby House. The temporal proximity of the complaint with termination is significant circumstantial evidence that Lobby House retaliated against her. The verdict is sufficiently justified by that evidence. Therefore, Lobby House’s motion for JMOL or a new trial is denied.
IT IS ORDERED, ADJUDGED and DECREED that defendant, Lobby House’s motion for JMOL, or in the alternative for a new trial (D.I. 90) is granted in part only on remittitur and the punitive damages award is reduced to $25,000. The remainder of its arguments are denied.
Notes
. Laymon contends that while she enjoyed some aspects of her job, she "detested the constant sexual harassment, including sexually offensive language and conduct both directed at her and more generally present in the environment.”
. Wilmot was accused of making sexist remarks about women and encouraging the female employees to wear suggestive tops. Wilmot, along with Anibal and other managers, were accused of promoting sexual behavior by female employees, such as stripping or flashing their breasts.
. The parties agree that Potts was dancing topless, and that there were other incidents of crude behavior, as described herein, during the after hours party.
. A vertical hood piercing is a piercing in the clitoral area.
. Laymon maintains that she only exposed that piercing after being "repeatedly harassed and pressured by Doucette to do so.” Anderson, a friend of Laymon, testified that Laymon willingly revealed the piercing between her legs. Anderson also claimed that she would never allow a man to force a woman to engage in such conduct. However, Anderson further admitted to flashing her breasts while at work.
. Geesaman was a witness called by Laymon. Geesaman, as well as a witness called by the defense, Kristina Sells, confirmed the offensive comment.
. Body shots were described as putting alcohol between a female's breasts, in or on her navel, on her pubic area or between her legs and having a male drink or lick the alcohol from that area. Body shots were also performed by the male employees, which would include having a liquor bottle protrude from their pants and pouring alcohol into a woman's mouth.
. Lobby House witnesses, including its management, disputed Laymon and Geesaman’s testimony.
. Specifically, Lobby House notes that Laymon would regularly “bad-mouth” it to customers. Two customers, James Satterfield and Robert Reed, who were part of the group which complained about Laymon's behavior, testified at trial that they would not return to Lobby House if Laymon continued working on Friday nights.
.
.
Pannu v. Iolab Corp.,
.
Power Integrations, Inc. v. Fairchild Semiconductor Inter., Inc.,
.
Price v. Delaware Dept. of Correction,
.
Dawn Equip. Co. v. Kentucky Farms, Inc.,
.
Johnson v. Campbell,
.
Veanus v. Northampton County Prison,
.
Exxon Shipping Co. v.
Baker,-U.S.-,
.
.
Duro-Last, Inc. v. Custom Seal, Inc.,
.
.
TruePosition Inc. v. Andrew Corp.,
.
.
Kolstad v. American Dental Ass'n.,
. Id. at 2124.
.
Lafate v. Chase Manhattan Bank,
.
. Specifically the defendant advised that it had "other detailed motions” which would demonstrate why there was a failure of proof on certain claim terms, including the failure by the plaintiff to meet the court's claim construction. Defendant, in essence, made a general pre-verdict JMOL.
.
. Id. at 513.
.
.
. Gore,
.
Gore,
.
Gore,
.
Campbell,
. The evidence also suggests that the sexually offensive behavior permeated the working environment, and that management did nothing to discourage such conduct. Further, there was no evidence which demonstrated that Lobby House had any sexual harassment policy or training in that regard which it provided to its employees.
. See Gore,
.
Campbell,
. Id.
. Id.
. 100,000/1,500 = 66.666
.
.
Kemp,
.
Id.
at 1365;
see Gore,
.
Styers v. Pennsylvania,
No. 05-2127,
. Id. at *4.
. $59, 037.50 + $1500 = $60,537, when compared to the punitive award, 100,000/60,-537 = 1.65
.
.
. Id. at 227.
. Id. at 230.
. Id. at 233.
. Emphasis added.
.
. Id. at (b)(3)(A-D) ($50,000 for more than 14 and fewer than 101 employees; $100,000 for more than 100 and fewer than 201 employees; $200,000 for more than 200 and fewer than 501 employees; $300,000 for more than 500 employees)
. Though the court suspects that Lobby House falls within
.
Power Integrations, Inc. v. Fairchild Semiconductor Inter., Inc.,
. Id. at 508.
.
Allied Chemical Corp. v. Daiflon, Inc.,
.
Power Integrations,
. Id.
.
See Zarow-Smith v. N.J. Transit Rail Operations,
. To note again, Lobby House has not provided relevant portions of the record.
.
Boston Scientific Scimed, Inc. v. Cordis Corp.,
. Weston v. Pennsylvania,
.
Farrell v. Planters Lifesavers Co.,