Rau v. Apple-Rio Management Co., Inc.Rau v. Apple-Rio Management Co., Inc.
ORDER REGARDING ENTRY OF JUDGMENT
The jury trial of this case concluded on August 20, 1999'when the jury returned a verdict in plaintiffs favor on two counts. This action is currently before the court on this court’s August 24, 1999 order requiring the parties to brief the issue of how and in what amount judgment should be entered [Doc. 132], and on plaintiffs Motion for Entry of Judgment [Doc. 133].
On plaintiffs claim for sex discrimination, the jury awarded $17,000 in back pay, $50,000 in compensatory damages, and $1,200,000 in punitive damages. On plaintiffs claim for retaliation, the jury award
Plaintiff seeks entry of judgment in the full' amount of the jury award ($1,826,000). (Doc. 138 ¶ 1). Plaintiff concedes that this amount exceeds the cap on damages required by
Defendant opposes entry of judgment in the full amount of the verdict because it exceeds the
For reasons stated below, plaintiffs Motion for Entry of Judgment [Doc. 133] is DENIED IN PART and GRANTED IN PART. Judgement will be entered in the amount of $334,000 with the injunctive relief specified below.
I. MONETARY RELIEF
A. Jury Award
1. Jury award not permitted by statute should not be entered as judgment
Generally, entry of judgment is reserved for final resolution of an action, not, as'plaintiff suggests, as an intermediate procedure designed to aid final resolution.
See
As noted above, the parties do not dispute that
(a)(1) In an action brought by a complaining party under [Title VII] ... the complaining party may recover compensatory and punitive damages as allowed in subsection (b) of this section....
(b)(3) The sum of the amount of compensatory damages awarded under this section for future pecuniary losses, emotional pain, suffering, inconvenience, mental anguish, loss of enjoyment of life, and other nonpecuniary losses, and the amount of punitive damages awarded under this section, shall not exceed, for each complaining party ... (D) in the case of a respondent who has more than 500 employees ... $300,000....
(d) As used in this section: (1) The term “complaining party” means — (A) ... a person who may bring an action or proceeding under title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e et seq. )-
Plaintiff contends that the $300,000 cap should apply separately to each of her claims, for a total cap of $600,000. (Doc. 133, Brief at 3 n. 2). Defendant contends that the $300,000 cap applies to plaintiffs action as a whole. (Doc. 134 at 2-8). 3
The court agrees with defendant and with every other court that has addressed the issue, and finds that the plain language of
B. Prejudgment Interest
Plaintiff contends that she is entitled to prejudgment interest, at the rate of 12% from November 12, 1996 until the date of judgment, on the total back pay and compensatory damages awarded by the jury. (Doc. 133 ¶4). In response, defendant contends that this court has discretion to decline an award of prejudgment interest and that it should do so in this case. (Doc. 134 at 8-9). According to defendant,
The Court should exercise its discretion to deny Plaintiff prejudgment interest because the jury has already factored interest into its back pay award. In describing her monetary damages to the jury, Plaintiff included an amount for interest on her lost wages. Plaintiff asked for $83,995.36, including interest. The jury awarded Plaintiff $34,000, split evenly between the two claims.
(Doc. 134 at 8). Defendant also argues that, even if plaintiff were entitled to prejudgment interest, it would apply only to the award of back pay, not to compensatory damages. (Id. at 9). Finally, defendant disputes the beginning and ending dates for accrual of interest and the rate of interest suggested by plaintiff. (Id.).
1. Back pay
“The decision regarding whether to grant equitable relief and what equitable relief to grant lies in the discretion of the trial court."
Lengen v. Dep’t of Transportation,
Nevertheless, the court will not add interest to the $34,000 already awarded by the jury. As noted above, defendant contends that this figure includes interest on plaintiffs lost wages.. Though given an opportunity to dispute this contention, plaintiff did not respond. (See Doc. 135 at 2). The court, therefore, accepts it as true.
If plaintiff disagrees, she may file a motion to alter or amend judgment.
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2. Other compensatory damages
Plaintiff also contends that she is entitled to prejudgment interest.on the $92,-000 awarded by the jury for other compensatory damages. (Doc. 133, Brief at 4; Doc. 135 at 2). This award is for personal injuries plaintiff suffered because of defendants’ discriminatory actions, injuries such as emotional pain and suffering, inconvenience, mental anguish, and other nonpe-cuniary losses.
See
When damages are awarded pursuant to federal law, the general rule "is that in the absence of a statutory provision the
Exercise of this court’s discretion is guided by principles of common law. Under common law, prejudgment interest was generally allowed only for liquidated damages or, in some cases, for unliquidated damages that were "relatively certain and ascertainable by reference to established market values."
General Motors Corp. v. Devex Corp.,
Here, plaintiff seeks interest on damages intended to compensate her for personal injuries, the value of which could not have been readily ascertained prior to trial. These are precisely the type of damages for which prejudgment interest has traditionally been denied. Moreover, interest is not needed to fully compensate plaintiff for her injuries. In addition to the substantial jury award for compensatory damages ($92,000), plaintiff is the beneficiary of a large punitive-damages award.
II. EQUITABLE AND DECLARATORY RELIEF
In addition to monetary relief, plaintiff seeks a declaratory judgment and a wide array of injunctive relief, including: (1) removal of documents related to her demotion and non-promotion from her personnel file, (2) a positive letter of reference from defendants regarding plaintiffs performance as a general manager, (3) a prohibition against further discrimination by defendants with annual reporting requirements, (4) posting of the injunction at defendants’ places of business, and (5) a requirement that defendants provide “appropriate discipline” for the relevant decision makers and that defendants’ management-level employees engage in “diversity/sensitivity” training. (Doc. 133 ¶¶ 6-11).
A. Plaintiff’s failure to mention equitable and declaratory relief in the pretrial order is not controlling
Defendants contend that plaintiff is barred from requesting declaratory or equitable relief because she did not mention it in the pretrial order. (Doc. 134 at 9).
In plaintiffs complaint, she requested relief in the form of a declaratory judgment and an injunction permanently enjoining defendants “from engaging in any employment policy, practice or custom which discriminates against any employee on the basis of gender, pregnancy and/or in retaliation for engaging in protected activity.” (Doc. 1 at 19-20). Plaintiff also requested “such other and further relief as the Court deems proper and just.” (Id. at 20).
The local rules of this court require parties to submit a joint proposed pretrial order. See L.R. 16.4, N.D.Ga. Among other things, that order must include the following:
A separate statement for each item of damage claimed containing a brief description of the item of damage, dollar amount claimed, and citation to the law, rule, regulation, or any decision authorizing recovery for that particular item of damage. Items of damage not identified in this manner shall not be recoverable.
L.R. 16.4B(14)(d), N.D.Ga. In response to this' requirement, plaintiff listed only her requests for compensatory and punitive damages, back and front pay, and attorney’s fees. (See Consolidated Pretrial Order, Attachment C at 20).
Plaintiffs interpretation of L.R. 16.4 is correct; that rule required her to list only monetary damages. Rule 16.4 uses the term “damage” and specifically refers to the “dollar amount claimed.” This is not language typically associated with requests for declaratory and equitable relief.
Moreover, the Federal Rules of Civil Procedure state that “every final judgment shall grant the relief to which the party in whose favor it is rendered is entitled, even if the party has not demanded such relief in the party’s pleadings.”
The court finds, at least with respect to the modest injunctive relief ordered below, that defendants received sufficient notice of plaintiffs desire for non-monetary relief to avoid prejudice.
B. Plaintiff is entitled to limited in-junctive relief
Congress granted courts broad discretion to fashion remedies in Title VII cases.
See Moseley v. Goodyear Tire Co.,
If the court finds that the respondent has intentionally engaged in or is intentionally engaging in an unlawful employment practice charged in the complaint, the court may enjoin the respondent from engaging in such unlawful employment practice, and order such affirmative action as may be appropriate, which may include, but is not limited to, reinstatement or hiring of employees, with or without back pay ... or any other equitable relief as the court deems appropriate.
Plaintiff contends that injunctive relief is needed in this case to make her whole. (Doc. 135 at 3). She emphasizes that, “having been constructively discharged by Defendants, [she] now finds herself in a position of having to seek other employment.” (Id.).
The injunctive relief requested by plaintiff can be divided into two general categories — (1) relief related directly to plaintiffs future employment and (2) relief related to the prevention of future discrimination against defendants’ employees generally. The court will address each of these categories separately.
1. Personal relief
In this category, plaintiff seeks an order requiring removal of documents related to her demotion and non-promotion from her personnel file and a positive letter of reference from defendants. (See Doc. 133 ¶¶ 6-8).
The court finds that the extensive relief requested by plaintiff is not needed to make her whole, but concludes that a modified form of injunctive relief is necessary. Specifically, the court finds that defendants should be enjoined from providing a negative evaluation of plaintiffs performance to any prospective employer. Without this relief, plaintiff, who no longer works for defendants, could be prevented from obtaining a job equivalent to the one she held before her discriminatory demotion, thereby perpetuating its discriminatory effect.
See Albemarle Paper Co. v. Moody,
Plaintiff, in contrast, seeks a letter of reference stating that, once promoted, she remained in the position of general manager until her employment ended; that she was a “valued and valuable employee”; and that she “demonstrated laudable team building skills, was a leader who set expectations in her unit by good example, and achieved solid financial results throughout her tenure, consistently making a profit every month.” (Doc. 133, Exh. B). The court will not require a letter of reference that misstates historical facts. Moreover, the jury’s finding in plaintiffs favor in this case is not necessarily equivalent to a finding that plaintiffs job performance was in every respect commendable. Much of the evidence at trial demonstrated that male employees with performance problems similar to plaintiff’s had been treated more favorably. For these reasons, the court finds that an injunction prohibiting a negative evaluation is sufficient to make plaintiff whole.
The court also finds that an injunction requiring removal of documents from plaintiffs personnel file is not needed and would unnecessarily interfere with defendants’ business operations. Plaintiff is no longer employed by defendants. Thus, what matters for her future employment is the information defendants provide to prospective employers, not the information defendants maintain in their internal files. 4
2. Prevention of future discrimination
In this category, plaintiff seeks an order prohibiting defendants from committing additional acts of discrimination against other employees (with annual reporting re
Courts have recognized that, in Title VII cases, “once the judicial machinery has been set in train, the proceeding takes on a public character in which remedies are devised to vindicate the policies of the Act, not merely to afford private relief to the employee.”
Hutchings v. United States Indus., Inc.,
This court’s authority to grant in-junctive relief benefitting individuals other than the plaintiff, however, is limited by the requirement that “the class benefitted by the injunction must include the plaintiff. Otherwise, the injunctive relief is unnecessary to the ‘just disposition of the action.’ ”
Carmichael,
C. Declaratory judgment is not needed
Entry of a declaratory judgment is a remedy permitted by statute when, as here, an actual controversy is present.
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The court finds that entry of a declaratory judgment is not needed here. The jury’s finding in plaintiffs favor provides adequate vindication of plaintiffs rights and an adequate statement of its findings regarding discrimination. A declaratory judgment would be unnecessarily repetitive.
III. CONCLUSION
For the reasons stated, plaintiffs Motion for Entry of Judgment [Doc. 133] is DENIED IN PART and GRANTED IN PART. The Clerk of the Court is DIRECTED to enter the attached judgment.
FINAL JUDGMENT
This action came before the court on a motion for summary judgment and for a trial by jury. The issues have been heard and/or tried and a decision has been rendered.
IT IS ORDERED AND ADJUDGED that the plaintiff, Janet M. Rau, recover from defendants Apple Rio Management Co., Inc., Café Ventures, Inc., and Apple Restaurants, Inc. the sum of $334,000, with post-judgment interest thereon as provided by28 U.S.C. § 1961 , and that plaintiff also recover the costs of this action necessary for pursuit of plaintiffsclaims against defendants Apple Rio Management Co., Inc., Café Ventures, Inc., and Apple Restaurants, Inc.
IT IS FURTHER ORDERED AND ADJUDGED that plaintiff take nothing from defendant Steve Smith and that defendant Smith recover from plaintiff his costs of defending against this action.
IT IS FURTHER ORDERED AND DECREED that defendants Apple Rio Management Co., Inc., Café Ventures, Inc., and Apple Restaurants, Inc. are permanently enjoined from providing any potential employer of plaintiff with a negative evaluation of plaintiffs job performance while she was an employee of these defendants.
Notes
. Plaintiff cites three cases from other districts in support of her argument.
(See
Doc. 133 at 2-3). One of those cases,
Burney v. Intermare K.G., K.S. Kuhlschiff K.m.b.H. and Co.,
The two remaining cases, although they both involve § 1981a, are also unpersuasive. Neither case directly addresses the issue presented here: whether the court should enter judgment in an amount it knows
in advance
is contrary to law.
See Jefferson v. Milvets System Technology, Inc.,
. The term "compensatory damages" as used in § 1981a does not include back pay or interest on back pay.
See
. As noted above, plaintiff argues that this dispute should not be resolved at this time and declines to address its merit. (See Doc. 135 at 1-2 & n. 2). Because the parties have not fully briefed this and other issues addressed in this order, the court will carefully consider any post-judgment motions seeking reconsideration of these matters, provided new information is presented.
. Plaintiff notes that she has an outstanding claim against defendants for constructive discharge and that, if she is successful with that claim, she "may indeed find herself reinstated. ...” (Doc. 135 at 3). This is too speculative a reason to grant the relief requested by plaintiff as part of this litigation. For purposes of the instant action, plaintiff did not contend that she was constructively discharged and did not seek damages for any period after her termination. Plaintiff also states that, “[p]ost-judgment, [she] will move the Court for a determination of the appropriateness of reinstatement to the position of General Manager, or in lieu thereof, an award of front pay.” (Id.). The court will address any issues related to such a motion when, and if, plaintiff files it.
. The court also finds that the large verdict in plaintiff’s favor and the threat of future lawsuits is sufficient to deter defendants from future violations of Title VII.