History
  • No items yet
midpage
Morris v. Clawson Tank Co.
587 N.W.2d 253
Mich.
1998
Check Treatment

*1 459 Mich 256 COMPANY MORRIS CLAWSONTANK Argued (Calendar 18). Docket No. 108659. October No. Decided post, Rehearing December 1998. 1234. denied eye employ- J. Matthew Morris lost an an unrelated his accident to general Company. ment as a laborer with the Clawson Tank Although physician certified that he was able to to return work later, discharged a month Tank him. Clawson Over the next three years, part-time jobs. a and half worked full- and Morris at various During time, grievance, panel he also filed a and an arbitration ordered his reinstatement. When Clawson Tank to refused reinstate him, claiming position available, brought no Morris an action Court, J., Langford-Morris, seeking in the Oakland Circuit Denise asserting of arbitration and enforcement the award cause of Handicappers’ Rights Act, action under the Civil MCL 37.1101 et seq. seq.-, 3.550(101) monetary MSA et He later moved to seek relief only, longer and the court ruled that reinstatement would no be ruling available and declared the the law of be the case. Clawson subsequently purported Tank the recall to work. Follow- trial, ing a bench the court the and awarded front pay. Corrigan Appeals, P.J., The Court of and and D. A Taylor, JJ., liability, finding affirmed the trial court’s of but Johnston, decision, vacated its and remanded for substantial reduction of back-pay front-pay the and of award elimination award. 221 (Docket (1997) 183374). plaintiff appeals. Mich No. opinion by joined by an Justice Chief Justice Brickley, Cavanagh Supreme and Justices Court held: Mallett, Kelly, legally The Court of utilized a erroneous standard in determining properly mitigated damages. whether the had properly It also failed to observe the erroneous standard in reviewing findings the factual court. the trial When evaluated in proper legal light standards, findings of the trial court’s were clearly erroneous, mandating judgment not reversal of Appeals. specifically determine, Court The circuit court did however, showing whether met its burden of rejected unreasonably employment. its conditional offer of required Remand is to determine whether defendant met this and, therefore, burden whether an award of front appropriate. Tank Co v Clawson contract, wrong- employment of an of a breach 1. In the context discriminatory firing, mitigation obli- discharge, ful or wrongdoing efforts to make reasonable gates the victim back-pay discharge. of a A award find in miti- earned the amount is then reduced at trial who succeeds *2 unemployed may purposefully plaintiff remain gation. not While a damages in underemployed maximize recoverable in order to or require inappropriate him to wages, to it would be of lost the form damages resulting from economic eliminate the make all efforts to only Rather, required to find to make efforts wrongdoing. he is the employment under the circumstances. that are reasonable accept, plaintiff obliges if mitigation to also the rule 2. The substantially that from which offered, employment similar to that is employment nature is plaintiff of a like If offered was fired. the pay. continuing plaintiff front The rejected, back and forfeits the plaintiff proving failed to that the the burden of defendant bears damages. mitigate to make reasonable efforts Appeals applied law in rule of an erroneous Court of 3. The plaintiff’s to own efforts holding showed that the evidence that collapsed employment It the reasonable. were not secure similar test: In order to aspects into one doctrine of two of the reasonable, good-faith damages, plaintiff mitigate must make a a employment defining employment,” as like “like effort to secure working hours, tenure, type, wages, conditions. and work similar employ- require plaintiff like a to search for to There is no reason mitigate Appeals, by ment, in an effort as defined courts, defendant, and the damages. the interest of the The sole plaintiff mitiga- employment sought public, type the in the of unnecessary parties avoiding eco- have in those tion is the interest may object Thus, to the reasonable- while loss. nomic jobs sought typical compensation of the ness of the amount of only type are relevant mitigation, of work work conditions plaintiff requirement find job that is no seeker. There job equivalent compensation of the lost. employment to that with given particularly inappropriate, is of standard The Court Act, Rights Rights Act Handicapper’s Civil like the Civil that the act, pri- Act, Rights a remedial is vii the federal Civil and title of mary was goal which is to end discrimination. of reasonably that he job to the one required similar find a that was question rather, defendant; is whether relevant held with the mitigate damages. The trial efforts to made reasonable proof, and judge properly of the burden the allocation stated that burden. failed to meet the defendant found that 459 Mich Appeals holding, plaintiff basically 4. The Court of after the that stopped looking back-pay award been work should have cut off, misapplication principles relies on a of the doctrine of mitigation. Determining the reasonableness of a search is a inquiry upon credibility fact-laden relies determinations of far competence more within the court the trial than within the com- petence appellate of an court. The extent to which a con- finding employment simply many tinues a search after is one of facts to be taken into consideration factfinder. A defendant honest, good-faith must show that the an failed to make employment; showing effort to secure that more exhaustive efforts case, could have been made is not trial sufficient. court’s finding, mitigate made reasonable efforts to dam- ages, was not erroneous. employer 5. Where an makes an offer of reinstatement to a plaintiff, the court first must determine whether the reinstatement step offer is conditional or unconditional. The second to assess rejection step question whether is reasonable. The first involves a court, question of law for the while the of reasonableness is one of error, The Court fact. statement the law was because implies acceptance way it of offered reinstatement is in some meaningfully acceptance from different of like from employer. another The defendant’s reinstatement offer condi- *3 case, Appeals ignored dispute tional in but the Court of the parties job legiti- the between over whether the offer in was fact or, mate, rather, merely a trial Because tactic. the trial court did findings regarding not document its the reasonableness of the rejection, required specific remand to circuit the court is a find- ing regard. in that findings. 6. There was no clear error in the trial court’s factual by joined concurring, Justice Justice stated that Weaver, Boyle, requires mitigation wrongdoing the doctrine of the victim of to mitigate damages right make reasonable to efforts or the forfeit to pursuant pay. Further, mitigation, back and to the doctrine of wrongdoing employ- where the victim of an refuses offer of like ment, right continuing pay pay the to back and front also is for- pay August feited. Because the trial court’s award back after clearly erroneous, 1990 was not it should be reinstated. plaintiff’s receipt disability September through The from February preclude pay, 1990 does not a concurrent award of back although correctly pay the trial court reduced award disability payments. necessary, however, amount is Remand plaintiffs rejection September to determine whether the of the October offers was If reasonable. demon- Tank Co v Clawson rejection unreasonable, plaintiff’s was states that pay pay nor front after October 1992. entitled to neither back correctly applied the whether the trial court It remains unclear The facts of the case to the front award. doctrine of plaintiff accepted may support of front a modified award February substantially position in While there is an similar 1993. damages, obligation mitigate ade- the record does not to future properly quately the miti- the trial court considered reflect whether respect damages. gation principles It remains to be to future with Thus, damages. the case should what constitutes future determined only was rea- determine whether the be remanded not September rejecting and October the defendant’s sonable pay. the issue of front offers but also to reexamine Reversed and remanded. part in the decision of this case. Taylor

Justice took no Underwood, Jr., plaintiff-appellant. M. for the Otis defendant-appellee. for the Karl Reibel determine the upon J. We are called Brickley, duty scope plaintiffs mitigate discriminatory under discharge suit the context of MCL 37.1101 et Handicappers’ Rights Civil Act. seq. seq.\ 3.550(101) MSA et

i employed general as a laborer stor- defendant, underground a manufacturer of eye lost an on and waste tanks. The age in an incident not related to his August 13, 1989, reported Tank. He back to Clawson work at Clawson physician with a note from his Tank one month later was able to return to work. At this stating that he by the defendant. point, however, discharged he was *4 of the defend- encouragement With the and assistance dis- payments under ant, plaintiff began receiving disability He continued to receive ability insurance. 459 Mich 256 payments following for about five months his discharge. plaintiff began to search for other work almost

immediately after he was fired. For six months in temporary job 1990, he held a at Cranbrook School, earning August $6 began an hour.1 In of 1990, he working Landscaping Company, for the Barkman earning working $5 an hour and often in excess of forty job, hours a week. This was a seasonal so the plaintiff was out of work in the winter, but was year rehired Barkman the next and in 1992 as a supervisor earning August $6 an hour. Between February approximately 1993, the made fifty job inquiries landscape companies, gas sta- employers. During period, tions, and similar jobs held several short-term, odd in addition already to those described. February plaintiff began working 1993, the in a permanent position

full-time, at Cranbrook School as janitor earning along $7.46 an hour, with health pension, care, and other benefits.

During period following discharge, pursuing legal plain- was also remedies. The grievance, seeking tiff filed a reinstatement at Claw- January Tank, son and, on 20, 1990, an arbitration panel long ordered that he be reinstated, as as his rehiring displace employees greater would not seniority. posi- The defendant claimed that no such tion was available, and refused to reinstate the plaintiff. hour, $7.42 along Plaintiff had pension earned an with health and ben efits, at Clawson Tank. The was a member of the Teamsters employed by

Union while the defendant. *5 Tank Co v Clawson

Opinion the Court to enforce lawsuit, seeking plaintiff The then filed September 11, 1991, the On arbitration award. the com- amend his the to trial court allowed Handicap- the of action under plaint to assert cause 1992, plain- the August Civil Act. On pers’ Rights of the hearing that, because tiff stated at a motion and the lack of hostility litigation, increasing only be seeking he parties, between the would trust monetary and wanted reinstatement relief, longer no that reinstate- Thus, Tank. the court ruled at Clawson remedy, on an available and longer ment was no this rul- 28, 1992, judge October the circuit declared law of the case. The did ing be the correspond ruling. with this complaint amend his 23, 1992, and September 18, 1992, On on October plaintiff, purport- mailed to the the defendant letters edly him work. The did not recalling parties dispute respond letters, to these the actually and, so, existed if whether the offered plaintiff. actually whether it was available to the began April A bench trial the circuit court testimony plain- regarding 1994. The court heard firing, find both from tiffs efforts to work his experts. The and from the defendant’s testimony from sides regarding court also heard both Septem- genuineness defendant’s plaintiff. plain- to the The ber/October 1992 offer expert evidence that amount presented tiff’s pay $46,729, and that lost plaintiff was lost the amount of front January the trial court ruled for the $76,516. In duty to miti- that he had fulfilled plaintiff, finding $130,439. him and awarded gate damages 459 Mich 256 The Court of the trial affirmed court’s find- ing liability, remanding decision, but vacated its plaintiff’s the case for a substantial reduction of the back-pay front-pay award, and elimination of his (1997). 280; award. Mich 561 NW2d reaching conclusion, articu- specific holdings. lated a number of panel held that the trial court’s award of back period *6 for the between October 1989 Febru- and ary clearly plaintiff 1990 was erroneous because the disability receiving “plaintiff was benefits; therefore, during period. admitted he was disabled” 221 Mich 287. Because was still disabled, yet there could not have been an “act of discrimina- justifying damages. tion” the defendant Id. period February August For the between 1990 and Appeals 1990, the Court of held the trial court’s pay award back was not erroneous, plaintiff’s “because the trial court found credible looking comparable claim that he also was for employment.” p citing 2.613(C). Id., 288, MCR Appeals

The Court further held that “the trial pay August court should have off cut job paying when $5 took a seasonal an hour company landscaping admittedly stopped at a and employment.” seeking p (emphasis other Id., original). according The trial count’saward of was, front Appeals, clearly to the Court of erroneous on two grounds. September/October First, the defendant’s 1992 offer of to the unrea- sonably plaintiff. refused Such a for- refusal plaintiff’s right pay. pp feits the Id., 290-291, front citing Chrysler Corp, Rasheed v 132; Mich v Clawson Tank Co Morris “the trial court’s award Second, 19 (1994). 517 NW2d February 1993, when period after of front for the clearly erro- employment, was obtained like damages incurred no because neous Id., p 291. that time.” Court,

Plaintiff to this appeal leave to sought Mich 853 (1998).2 leave. 457 granted we decision as reverse the Court We now set forth below.

n doctrine that seeks legal Mitigation from arising harm minimize economic wrongdoing. tort, person of con- committed a breach

“Where one has another, wrong against it tract, legal is incumbent or other upon reasonable under use such means as are the latter to damages. minimize the to avoid or the circumstances any damage person item of wronged cannot recover Company, 108659. The issues are v Clawson Tank No. reversing (1) the trial to: Did the Court of err limited *7 landscape company finding with that defendant’s court purposes reasonably job he held with defendant for similar to the Appeals mitigation damages? (2) in the Court of err of Did reasonably mitigated finding reversing that the trial court’s higher paying damages look for work because failed to landscape company? (3) Did he had a full-time with the while finding Appeals reversing trial court’s err in the Court of plaintiff attempt to return to as of and after his was not disabled September, (4) err in Did the Court of 1989? work damages reversing finding suffered the trial court’s pay?” meriting (5) err an award of “front Did plain position finding offered to fact that the that defendant as pre 1992, genuine position? (6) defendant fail to was a Did tiff findings relating in its whether the trial court erred serve issues post-judgment or motion for new trial when it did not file a of fact notwithstanding judgment the trial court? the verdict with 459 Mich which could thus have been avoided.” v Gibraltar [Shiffer Ed, School Dist Bd 197; 224 NW2d 255 (1974) (quoting McCormick, Damages, p33, 127).] § employment In the context of a breach of an con- wrongful discharge, discriminatory tract, firing, or damages obligates the victim of the wrongdoing to make reasonable efforts to find discharge. plaintiffs Id. The back- award, if he succeeds trial, at is then reduced mitigation. the amount that he earned in See EEOC v Harper Hospitals, Supp Grace (ED 689 F 708, 716 1988). plaintiff may purposefully Mich, Such a unemployed underemployed remain or in order to damages maximize recoverable in the form of lost wages.

It must be remembered, however, that the wrongfully against here was discriminated when he was fired the defendant. 221 Mich 284-286.It inappropriate require would be him to make all efforts to resulting eliminate the economic wrongdoing. only from required Rather, he is make efforts that are reasonable under the circum- employment. supra, p stances to find Rasheed, 124.A plaintiff who does not make such efforts loses the right damages. to claim full back as Id. This required Court has noted that “a claimant to make mitigate damages reasonable efforts to is not held to highest diligence. standards of . . . ‘[T]he claim- ant’s require burden is not onerous, and does not him ” mitigation.’ to be supra, p successful in Rasheed, quoting Dep’t Rasimas v Mental Health, 714 *8 265 Co v Tank Clawson Opinion of the Court 950 den 466 US 1983), cert (CA 6, 624 F2d (1984).3 to the obliges rule also mitigation substantially offered, that

accept, employment if plaintiff was fired.4 See which the to that from similar 231-232; S Ct US 102 EEOC, 458 Ford Motor Co mitiga- This aspect 3057; (1982). 73 L Ed 2d of the interest rule balances the tion job in order unacceptable accept to an being forced pay, the interests right against to maintain to public avoiding unneces- the defendant and the Supreme States sary loss. As the United economic requirement can- explained, mitigation Court has accept employ- to a to not be construed force particularly demeaning, he or finds ment that she unacceptable. or inconvenient, otherwise unemployed underemployed claimant need not or [T]he demotion, accept work, or take a go into line of a another right backpay if position, demeaning he forfeits his [but] substantially equivalent job the one he was he refuses supra, pp Co, Motor denied. 231-232.] [Ford Thus, to mitigate damages, in order cir- are reasonable under the must make efforts that the economic harm caused to minimize cumstances employment of and, if offered wrongdoer; backpay/continued approach of state on the issue of “The courts Rasheed, harmony backpay with utilized the federal courts.” is in supra, p 123. “like- aspect rule is often referred as This proving test,” the burden because the defendant has “like are which fired and the from offered employment.” 459 Mich 256 *9 plaintiff back-pay nature,” “like the forfeits further by turning it awards down.5 question Significantly, employee “the an whether seeking accepting particular was reasonable in not or employment to is one be decided the trier of fact.” p supra, citing Rasheed, 124, Riethmiller v Blue Michigan, & Cross Blue Shield of (1986). 194-195;390 NW2d 227 The defendant bears plaintiff proving the burden of failed to make mitigate damages. reasonable efforts to supra, Rasheed, p plaintiff employ- 124.If the was offered “like proving ment” and it down, turned the of burden is likewise on the Id. defendant. light principles,

In of these we now the examine holdings Appeals. of the Court of

A isAs made evident from this discussion of doc- the mitigation damages, Appeals trine of of applied holding an erroneous law rule of in “the plaintiff’s evidence showed that own efforts to secure employment similar were not reasonable.” 221 Mich App 287. collapsing

The Court of erred in the two aspects mitigation of the doctrine of into one “In test: mitigate damages, to order must a make jury properly The standard instruction states this rule of law: seeking accepting Whether the reasonable or particular employment question you However, is a for to decide. obligated accept employment the is an offer of which is determining of “a like nature.” whether is of “a like nature,” you may consider, example, type work, for of worked, compensation, security, working hours condi- tions, employment. and other conditions of [SJI2d 105.41.] Tank Co v Clawson employ- ‘like’ effort to secure reasonable, good-faith defined “like of Id.6 The Court ment.” hours, type, “work that is similar employment” as Id. working conditions.” tenure, wages, to search require find no reason We of by the Court as defined employment,” “like The sole mitigate damages. in an effort Appeals, courts, public, and the defendant, interest of the employment sought type in the in avoid- parties have interest those is the mitigation supra, p Shiffer, loss. See unnecessary economic ing permeat- is a thread principle “The part ... it jurisprudence the entire ing ” consequences,’ ‘avoidable principle broader much *10 a Thus, while supra, pp 123-124. Rasheed, in quoted of object to the “reasonableness” may that the typical jobs of the compensation amount of the “work conditions” mitigation, in plaintiff seeks are relevant App 287, Mich work,” 221 “type no Furthermore, there is only to the seeker. with employment find that requirement lost.7 of the equivalent to that compensation 6 Inc, App Fabricating, Dep’t Rights Tube 148 Mich Civil v Horizon for 633, 639; (1986), the Court of the case cited 385 NW2d 685 only “diligence mitigating within proposition, that states every effort, require but employment does not discrimination context claimant, respondent, has only a who effort and it is a reasonable honest, establishing make an failed to the claimant the burden of employment." (Emphasis supplied.) There is no good faith effort to secure employment. obligation “like” to secure discussion of an only Appeals, Riethmiller, upon by states also relied “ by- mitigate damages obligated employee wrongfully discharged ‘[a] ’ ” Id., p 194, quoting Brewster employment accepting nature.” of a “like 641, 663; Sales, Inc, App NW2d 378 Aluminum Martin Marietta supplied). (1985) (emphasis 558 compensation” include all forms be understood to should “Amount of benefits, insurance, pension compensation: health or life subsidized monetary compensation. It would paid vacation, alternatives to and other promotion opportunities appropriate account take into also be 459 Mich “ ‘[T]he defendant must show that the course of con- plaintiff actually duct followed was so deficient as to employ- constitute an unreasonable failure to seek ” Dep’t Rights ment.’ Civil v Horizon Tube Fabricating, Inc, 148 Mich 633, 638-639; 385 (1986), quoting Reilly’s NW2d685 Thurber v Jack Inc, Supp (D 1981); 521 F 238, 242 Mass, see also Ford supra, p (discussing Co, Motor 232, ns 14-16 plaintiff’s duty extent of to seek in miti- gation litigation). in the context of title vn part employment”

As I, noted the “like test exists largely protection plaintiff, shielding for the having accept unacceptable job him from an preserve right back-pay order to ato award. Ford supra, pp Co, Motor 231-232.The Court of restatement of the doctrine converts it into heightening, legiti- sword for the defendant, to no requirements end, mate must meet in successfully mitigate damages. order to Such a heightened particularly inappropriate standard is given Handicappers’ Rights Civil Act, like the Rights seq.-, Civil 3.548(101) Act, MCL 37.2101et MSA seq., Rights et and title VHof the federal Civil Act, is a primary goal remedial act, the of which “is to end dis- supra, p (emphasis crimination.” Ford Co, Motor original); supra, pp in the see Rasheed, 118-119. *11 particular job plaintiff and advancement within a if the remained that job protracted period. example, for a might For a factfinder find it “rea- job sonable” salary for a to remain in a with a much lower than job, great opportunity the advancement, earlier if there is for whereas the might factfinder not find it reasonable for the to remain in such a long time, for a if there is little or no chance for advancement. If the long, however, does not remain in opportunity for the for plaintiff’s advancement has little relevance to the reasonableness in seek- ing job. accepting and that 269 Co v Tank Clawson joba was required to find that was he with the “reasonably to the one that held similar” whether question is Rather, the relevant defendant. mitigate efforts” to plaintiff made “reasonable the noted pp 123-124. As Rasheed, supra, damages. efforts plaintiff’s whether the above, question the fact,8 of and the is one for the trier were reasonable plain- the proving the burden of that defendant has Id. were unreasonable. efforts at tiff’s the properly the allocation of judge The trial stated “ has that the proof, of found burden [defendant for applied this burden. Plaintiff failed to meet was various areas and able to obtain employment ”9 To the was of a ‘like nature.’ employment that miti- plaintiff’s found that Court of extent the plaintiff’s unreasonable because the efforts gation of a and Clawson Tank were not jobs at Barlarían must be nature,” Court was error and “like reversed.

B “plain- The Court held that because the of basically work stopped looking August for tiff case, judge fact her Because the sat as the finder of in this circuit appli findings the “In the are reviewed under erroneous standard. special opportunity principle, regard given to the of this shall be cation credibility appeared judge the who trial court witnesses 2.613(C). it.” before MCR necessary thought trial that it It is unclear whether the court was nature,” employment committing plaintiff to “like find thus legal Appeals, error Court of or whether the trial court same as the simply characterizing that the in fact obtained. supports case, finding failed conclusion defendant either mitigate plaintiffs were “Una show that the efforts “unreasonable.” 186, 191, error,” Korneffel, 5; Flynn n NW2d 249 Mich ble to find uphold (1996), did not court’s we the trial conclusion proof. its burden meet *12 270 256 459 Mich

Opinion of the Court 1990,” App 288, back-pay award should off” this have been “cut as of date. Id. This holding upon misapplication relies of principles doctrine of discussed above. Appeals of opined

The Court that the trial “even basically court acknowledged stopped work,”10 trial looking id., observing for court’s finding plaintiff accepted landscaping job,

that once he had no obligation employment. making look for “like” statement, implicitly acknowledged trial court virtually stopped seeking employment had but that authority he was to do entitled so. There is no for such a p proposition. [Id., n 2.] We reiterate that obligation had no employment” seek “like as defined Appeals. Rasheed, supra, p 123; see Mich 287. question plaintiff’s The whether efforts to miti- gate were reasonable under the circum- stances is for the of Rasheed, one trier fact. supra, p 124. 10We note that the evidence the trial before court did not show that the

plaintiff stopped looking August for as work 1990. Court of Appeals “[p]laintiff apparently stated that did look work for some in the landscaping, off-season from because the evidence showed that he took a temporary job Id., p off-season.” 288. The Court of February spring plaintiff] also noted “that from only applied to the [the approximately fifty at . businesses . . .” Id. parties stipula- The Court of also stated that “the into entered sought employment beginning tion that had no further at all landscaping spring Id., p in the season 1992.” 288. As we hold below, “the to which a extent continues his search once he simply many has found one factors” that the finder of may determining plaintiff’s fact consider in the reasonableness of the miti- gation efforts. Tank Co Clawson of a search is Determining the “reasonableness” of, inquiry requiring thorough evaluation a fact-laden plaintiffs of a motiva- example, the earnestness and the circumstances and condi- to find work tion job search, as well as the surrounding his tions *13 plaintiff which a continues of it. The extent results has found is sim- job search once he many factors in this fact-laden determina- ply one of depends inquiry Much of this tion of reasonableness. far credibility, determinations which are upon competence within the of the trial court than more competence appellate judges reading within the dry 2.613(C). records. See MCR case,

In review of the record in this we cannot our with the Court of that the trial court’s agree plaintiff that the made reasonable efforts finding, August 1990, erro- mitigate damages plaintiff often worked far in excess of neous. Barkman He held forty Landscaping. hours a week at job while he was laid off from at least one short-term have during Barkman the off-season. He also would from Barkman in eligible been to receive benefits 1993, had he not to work at Cranbrook instead. gone opinion, n 7. As the trial court noted in its See “[a] plaintiff must show that the failed to make ‘honest, employment,’ faith effort to secure good an that more exhaustive efforts could have been showing Tube, Quoting made is not sufficient.”11 Horizon supra, p 639. well in his review of the record indicates that the did Our search, considering which it was carried out. the circumstances under very job expe Notably, tenth-grade little had a education money time, gas to search out he had no car or with which rience. For properly employment. considered the trial These circumstances were Shiffer, supra, p determining plaintiffs reasonableness. court 459 Mich

c The Court of held that it was unreasonable ignore employer’s purported for the September and, offer in and October of 1992 thus, any was not entitled to back or front following this refusal.12221 Mich 289-291. duty Rasheed, this Court discussed of a discriminatory discharge accept in a suit to an unconditional offer of recall from the defendant. p employer Id., that, 130. We determined where the plaintiff, makes an offer of reinstatement to the court must first determine whether reinstatement p offer is Id., conditional or unconditional. 129. “The step rejection second is to assess whether a is reason- part question able.” Id. The first of this test involves a question court, of law for the while “the of reasona- bleness is one of fact that must take into account the particular circumstances of each case.” Id.

In case, the instant the Court of stated: ways mitigate damages. There are two a can He accept, offered, employment can seek and if that is of “like [Riethmiller, supra.] Or, accept nature.” he can reinstate- (“ upon [plaintiff] is incumbent ‘[I]t to use such means as are reasona- ” ble under the circumstances to avoid or minimize the damages.’ Quoting McCormick, Damages, 33, p 127) (emphasis supplied). § recognized Federal and state cases have a trial court’s discretion to remedy, particularly imprac award front as a where “reinstatement is impossible.” Riethmiller, supra, p (setting ticable or forth the stan recognizing dard and that “the trial court should have discretion in decid ing, case, based on circumstances of each whether to award future dam Express Corp, ages”); Shore v Federal 6, (CA 1994) 42 F3d 377-378 (finding ‘simply compensation post-judgment that “front is for the ” past discrimination,’ “flexibility effects of and that and wide discretion especially important are when a court’s remedies for a Title vn violation Express Corp, pay.” Quoting Shore v Federal include front 777 F2d (CA 6, 1985). Clawson Tank Co [Rasheed, supra, p

ment of if it is offered. 120.] instances, accept obligated In some is an offer of reinstatement or his are cut off. Id. Mich [221 App 286.] law

This statement of the is error both because it imposes a burden on the that is more rigor- duty ous than his to use to mitigate reasonable efforts damages, part I, implies see and because it that acceptance way of offered reinstatement is in some meaningfully acceptance different from of “like employment” employer. from another employment,”

Whenever a is offered “like accept he is it or lose his obligated right contin- pay. back and uing defendant, however, front still proving employ- has the burden of the offered ment was, indeed, employment,” “like and that plaintiff was “unreasonable” in rejecting it. We recog- nized in rejection Rasheed that of an unconditional “may offer of proof reinstatement be used as of an rejection unreasonable satisfaction employer’s Id., p important burden.” 129. It is to note, however, that any previ-

if there are differences between the offer employment position, exception backpay, ous with the employee’s discharged rejection, then a act of if based in part condition, precludes peremp- on that difference or tory Rather, question ruling. court of reasonableness particular one of fact that must take into account cir- cumstances of each case. [Id.] case, the instant recognized conditional, defendant’s reinstatement offer was *15 apparently and that trial court found that the “[t]he patently offer was unreasonable because it was made 459 Mich plain- years after the termination more than two employment. Timing alone, however, does tiff’s . . .” unreasonable . make an offer of reinstatement dispute ignores This statement the 290. parties offer in between the over whether the question legitimate offer, or, rather, was fact merely a trial tactic. question of fact

“[T]he of reasonableness is one particular take into account the circum- that must supra, p Rasheed, stances of each case.” 129. The did not its trial court the instant case document Septem- findings regarding legitimacy and whether the offer, ber/October 1992 rejecting findings was reasonable in it. Such are nec- essary proper appellate review of whether the trial determining erred in that the failed court showing meet its burden of was mitigate damages. unreasonable in his efforts to See 2.517(A)(2) (“Brief, pertinent definite, MCR find- ings and conclusions on the matters axe contested partic- sufficient, without over elaboration of or detail facts”). ularization of

This case must be remanded to the circuit court for specific finding regarding plaintiff’s reasonable- purported job rejecting ness in the defendant’s offer September If, remand, and October of 1992. on plaintiff unreasonably circuit court finds that rejected employment, the defendant’s offer of then pay Septem- is not entitled to back after pay If, ber and to no front whatsoever. on the plaintiff’s hand, other circuit court finds that the rejection original reasonable, award of front September and the award of should both be in full. reinstated *16 275 Clawson Tank Co questions The before this Court remaining involve reversal of the trial court’s find- ings on factual issues.13 We are unable to find clear error the trial court’s See MCR findings. 2.613(C) (“[R]egard given special shall be to the opportunity of the trial judge credibility court to of the witnesses appeared who it”). before

A The Court of ruled, sponte, sua plaintiff admitted that he was disabled and “[b]ecause disability collected February benefits until 1990, the trial court’s award of back 1, 1989, from October as opposed February was erroneous. Indeed, the act of discrimination did not occur until was no longer disabled.” 221 Mich App 287. There is no basis in the evidence for holding.14 13 plaintiff argued preserve The that the defendant failed to issues relat ing findings fact, to -whether the trial court erred its because it did proper postjudgment preclude not file the motions. The court rules plaintiff’s argument point: exception on this “No need be taken to a [trial finding 2:517(A)(7). or decision.” MCR court] potential holding equitable Another basis of this is the doctrine of

judicial estoppel, properly applied but that doctrine cannot be to the facts Industries, 502; of this case. See Paschke v Retool 445 Mich 519 NW2d 441 (1994). Furthermore, there is substantial evidence in the record that Clawson Tank, person personnel manager, suggested in the of its apply disability helped necessary insurance and him fill out forms. equity The defendant cannot benefit from when it comes before the court “ hands, improper may with unclean ‘however have been the behavior of ” plaintiff].’ Mudge Co, 87, 109, 23; v Macomb 458 Mich n 580 NW2d [the (1998), quoting Winkel, 375, 382; Stachnik v 230 NW2d 529 (1975). 459 Mich

Opinion the Court disabil- he had received admitted that February ity 1989, and October benefits between undoubtedly “act of discrimination” 1990, but the date was fired. The latest when the occurred Septem- happened might have which this on gave 1989,when the defendant ber stating decision recommendation, that “the letter of return to work. not to allow Mr. Morris to was made eye put remaining simply in . . . We cannot danger.” *17 plaintiffs inappropriate to infer from the

It is disability dining period, receipt insurance this yet had not and, therefore, unable to work he was against. noted that This Court has been discriminated “ disability possibility may there is ‘the exist where physical capacity for work which is thwarted of some ” inability get physical reasons.’ to for Industries, 502, 513; v Retool Paschke quoting (1994), Larson, 1C Workmen’s NW2d p Compensation § Law, 57.65, 10-492.50. may honestly injured represent to the claimant

“[An] Security Employment office that he is able to do some honesty work, equal Compensation tell the Board and with totally during period he disabled the same later that was since, although work, he have done some kinds of no could physical give one would him a because of his handi- caps.” [Id., pp 513-514.] precisely was the situation in the instant case:

This plaintiff’s physical handicap, because despite work, denied him a chance to App ability willingness and to do so. 221 Mich 284- 286. v Clawson Tank Co Appeals agree

We cannot with the Court of that the finding judge trial erred in was dis- against before October 1989. criminated

B Appeals The Court of stated that “the trial court’s period February award of front after employment, clearly when obtained like was erroneous because incurred no support that time.” Mich 291. No further is despite spe- given statement, for this the trial court’s finding cific on the basis of evidence in the record plaintiff’s front-pay damages amount to judge, making ruling, $75,814.The trial this had the testimony expert reports benefit of and the of those experts. respect obligated The Court of finding it is determined to be unless erro- 2.613(C). reasoning neous. MCR There must be some support such a determination. The amount the circuit award of court’s front fully supported by to the the record discretionary authority grant. and well within its supra, pp Riethmiller, See 200-201. The Court of reversing front-pay erred award on this *18 If, remand, basis. on the circuit court determines that rejecting was reasonable in the defend- September/October front-pay offer, ant’s award should be reinstated.

IV legally The Court of utilized a erroneous determining in whether the had standard properly damages. mitigated Furthermore, the Court 459 Mich 256 Opinion by Weaver, J. properly observe the erro- failed findings reviewing the factual

neous standard proper light the trial court. When evaluated legal was sufficient evidence in the standards, there support findings of the trial court. record to judgment reasons, these of the Court of For Appeals is and this case is remanded to the reversed, whether the defend- circuit court for a determination showing its unrea- ant met burden of sonably rejected employment, its conditional offer and, therefore, whether the awards of front and back pay September appropriate. Otherwise, after are rulings are of the circuit court reinstated full. and C.J., JJ., and con- Cavanagh Mallett, Kelly, curred with J. Brickley, majority (concurring). agree J. I with the Weaver, mitigation requires that the doctrine of the victim of wrongdoing mitigate to make reasonable efforts to pay. right or forfeit the to back Further, pursuant mitigation, to the doctrine of where the vic- wrongdoing employ- tim of refuses an offer of “like e.g., employment substantially ment,” is equivalent by wrongdoing, to the lost right continuing victim also forfeits the pay. and front bears the burden of proving mitigate damages that the victim’s efforts to majority agree was unreasonable.1 Because I with the August that the trial court’s award of back unconditional, Where an offer of reinstatement the burden shifts to rejection the victim to demonstrate of the offer was reasonable. Corp, Chrysler 109, 132; (19943; Raskeed 517 NW2d 19 SJI2d 105.41. *19 Clawson Tank Co by Opinion Weaver, J. 1990 was not I erroneous, concur award should be reinstated.

Further, majority’s I concur with the result sec- plaintiff’s receipt disability tion from m(A). September February through pre- 1990 does not a pay, although clude concurrent award of back correctly pay by trial court reduced back award disability payments. the amount of necessary I also concur that remand is to deter- plaintiff’s rejection Septem- mine whether the of the ber and October offers was reasonable. If plaintiff’s rejection defendant demonstrates unreasonable, plaintiff to neither entitled pay nor front pay However, after October 1992. it remains unclear whether the trial court correctly applied the doctrine pay to the front award. yet pay

This Court has to define the limits of front awards, Legislature and the has offered the courts no direction, despite potential effect of such awards. Even lacking specific guidance, the facts of this case may support pay a modified of front award plaintiff accepted substantially position a similar February 1993. twenty-two years

Plaintiff in this case was old discriminatorily when he was discharged. He had only been for Clawson Tank working nine months. The front award of $75,814 assumes would have continued for Clawson Tank working sixty-two. until he retired at the age The award using percent was calculated rate of 5.26 growth year present value of the between difference earnings his future at defendant Clawson Tank and Cranbrook Schools. 459 Mich 256

Opinion J. Weaver, speculative nature. The awards are Front expressed regarding concern Circuit has Sixth *20 uncertainty pay potential effect of front awards and pay gov- cautioning of front must be that “an award the trial court and the sound discretion of erned may appropriate in all cases.” Davis v Com- not be (CA Engineering, 6, F2d 923 Inc, 916, bustion 742 example, 1984). stated: Davis, for discriminatorily discharged pay front to a award of [T]he qualifies year employee 41 old until such time as he for pension hand, might the other the fail- be unwarranted. On employee 63, age ure to make such an award for an like- discriminatorily discharged, might be an of dis- wise abuse cretion. [Id.]

Michigan recognized courts also have the uncer- tainty pay v Blue front awards. Riethmiller Michigan, App 188, Cross & Blue Shield (1986), 201; 390 NW2d 227 wisely pay represents possibil- warned that front “the ity monetary liability employ- of substantial for some ers.” Riethmiller also enumerated relevant considera- pay tions in the determination whether to award front including: “(1) whether reinstatement would be a fea- remedy, (2) employee’s prospects sible employment, for other years (3) remaining

and number employee mandatory before the would be faced with Implicit pp Id., retirement.” 200-201. in the second regarding plaintiff’s prospects consideration other is the relevance to the award of plaintiff’s actually obtaining front of a other employment.

Beyond those enumerated in considerations supra, Riethmiller, the Sixth Circuit considers the pay: following factors relevant to the award of front Co Tank Clawson Opinion J. Weaver, employee’s position from which she (1) future expectancy; (3) her terminated; (2) work and life her availability (4) mitigate damages; her obligation to opportunities reason- comparable employment time employment; (5) required the dis- ably find substitute present value of future dam- determine count tables to pertinent prospective (6) factors that are ages; and “other Manage- [Suggs Ed Food damage v ServiceMaster awards.” 6, (CA 1996).] ment, F3d obli- plaintiffs are recognize thus The federal courts as well as mitigate their future gated Express Corp, 42 v Federal damages. See Shore 6, 1994). (CA F3d mitigate damages. future obligation There is an adequately reflect case, the record does In this miti- considered the properly the trial court whether *21 respect damages. future It with principles gation future determined what constitutes be remains only to I remand not result, As a would damages. plaintiff was reasonable determine whether September October rejecting defendant’s reexamine the issue front but also to offers opinion. set forth in this principles light with J. Boyle, J., concurred Weaver, J., case. part no in the decision of this took Taylor,

Case Details

Case Name: Morris v. Clawson Tank Co.
Court Name: Michigan Supreme Court
Date Published: Dec 28, 1998
Citation: 587 N.W.2d 253
Docket Number: 108659, Calendar No. 18
Court Abbreviation: Mich.
AI-generated responses must be verified and are not legal advice.