Debbie L. SMITH, Plaintiff-Appellee/Cross-Appellant, v. NORTHWEST FINANCIAL ACCEPTANCE, INC., an Iowa corporation; Curtis Mangus; Norwest Financial Wyoming, Inc., a Wyoming corporation; and Norwest Financial, Inc., an Iowa corporation, Defendants-Appellants/Cross-Appellees.
Nos. 96-8103, 96-8111.
United States Court of Appeals, Tenth Circuit.
Dec. 3, 1997.
129 F.3d 1408
Here, Defendant offered to present evidence directly related to the issues posed by the district court‘s evaluation of whether to admit the polygraph results under
For these reasons, I respectfully dissent. I would hold that the district court abused its discretion by refusing to hold an evidentiary hearing on the admissibility of polygraph evidence under
Les Bowron (Frank R. Chapman with him on the brief) of Beech Street Law Offices, Casper, WY, for Plaintiff-Appellee/Cross-Appellant.
Before BRORBY, BARRETT and McKAY, Circuit Judges.
McKAY, Circuit Judge.
Plaintiff Debbie Smith brought a sexual harassment hostile work environment claim pursuant to Title VII of the Civil Rights Act of 1964,
I.
This case arises out of the employment of Plaintiff by Norwest Financial Wyoming, Inc. and Norwest Financial, Inc. (Norwest) from February 1993 to January 1995. While at Norwest, Plaintiff worked as an accounts service representative under the supervision of Defendant Mr. Mangus. The Casper, Wyoming, office employed one part time female employee and only five full-time employees, namely Plaintiff, Mr. Mangus, and three other men. The employees shared a small open space without partitions or privacy. Plaintiff alleged that she was subjected to a hostile work environment based on offensive and sexually harassing comments made by Mr. Mangus during her employment. Plaintiff‘s claim rested primarily on six statements directed at her and frequently made within earshot of her co-workers. In October 1994, Plaintiff complained to her district manager about Mr. Mangus’ harassing statements. Plaintiff resigned from Norwest in January 1995 and began work as a bookkeeper with a Casper furniture company. She filed this action after pursuing her claim with the Equal Employment Opportunity Commission.
II.
Defendants appeal the district court‘s denial of their Motion for Judgment as a Matter of Law on Plaintiff‘s hostile work environment claim. They argue that the statements made to Plaintiff over the course of her employment were neither sufficiently severe nor pervasive to create a hostile work environment. We review de novo the district court‘s legal conclusion that the conduct was sufficiently severe or pervasive to constitute a hostile work environment. Mason v. Oklahoma Turnpike Auth., 115 F.3d 1442, 1450 (10th Cir.), aff‘d, 124 F.3d 217 (10th Cir. 1997). Applying that standard, we must view the evidence most favorably to the nonmoving party and will reverse only “if ‘there is no legally sufficient evidentiary basis ... with respect to a claim or defense ... under the controlling law.‘” Id. (citing Harolds Stores, Inc. v. Dillard Dep‘t Stores, Inc., 82 F.3d 1533, 1546-47 (10th Cir.)), cert. denied, ___ U.S. ___, 117 S.Ct. 297, 136 L.Ed.2d 216 (1996).
Title VII prohibits an employer from discriminating against an employee on the basis of sex “with respect to [her] compensation, terms, conditions, or privileges of employment.”
Harris v. Forklift Systems, Inc., 510 U.S. 17 (1993),
The Meritor test is a disjunctive one, requiring that the harassing conduct be sufficiently pervasive or sufficiently severe to alter the terms, conditions, or privileges of Plaintiff‘s employment. We address the severity of the harassing conduct in this case first. Plaintiff must demonstrate that the harassment is severe under both the subjective and objective requirements of Harris. See id. at 21-22. First, Plaintiff must subjectively believe that Mr. Mangus’ conduct was so severe that it created an abusive or hostile environment. We review for clear error the court‘s factual finding that this subjective test was met. Trotter v. Todd, 719 F.2d 346, 348 (10th Cir. 1983).
Plaintiff testified that she felt humiliated and upset by the hostile nature of her supervisor‘s statements. Although her claim of constructive discharge did not proceed past the stage of summary judgment, Plaintiff presented evidence that she left her job at Norwest because she found the working environment hostile and was unhappy and uncomfortable in that environment. Further, contrary to Defendants’ assertion, Plaintiff is not required to prove that her tangible productivity or work performance declined or that her ability to do her job was impaired by Mr. Mangus’ behavior. See Harris, 510 U.S. at 23 (stating that no single factor is required as long as the environment is hostile or abusive); Dey v. Colt Constr. & Dev. Co., 28 F.3d 1446, 1454-55 (7th Cir. 1994); Davis v. Monsanto Chem. Co., 858 F.2d 345, 349 (6th Cir. 1988), cert. denied, 490 U.S. 1110 (1989). It is sufficient that Plaintiff‘s testimony reflects that Mr. Mangus’ comments were intolerable, publicly made, and caused humiliation and a loss of self-respect. In Plaintiff‘s mind, Mr. Mangus’ conduct created a hostile work environment and altered the conditions or privileges of her employment. Our review of the record indicates that the district court did not err; the subjective component was established.
Second, the harassing conduct must be sufficiently severe that a reasonable person would find the work environment hostile or abusive. We review this objective test, a legal conclusion, de novo. E.E.O.C. v. Wiltel, Inc., 81 F.3d 1508, 1513 (10th Cir. 1996). We conclude that the record evidence supports this element. Two of Plaintiff‘s male co-workers testified that Mr. Mangus’ conduct was “sexually inappropriate,” “offensive,” and “intimidating.” Appellants’ App., Vol. I at 271; Vol. II at 414. One witness also testified that Mr. Mangus’ conduct had an impact on the office, and that when Mr. Mangus would make one of his remarks, “[i]t was obvious in [Plaintiff‘s] work. Her numbers would drop off and that type of thing.” Id., Vol. I at 258. This evidence supports the court‘s conclusion that a reasonable person would find the sexual harassment severe and the work environment therefore hostile or abusive.
Additionally, we can aggregate evidence of racial hostility with evidence of sexual hostility to establish a hostile work environment. See Hicks v. Gates Rubber Co., 833 F.2d 1406, 1416-17 (10th Cir. 1987) [Hicks I]. At least three of Mr. Mangus’ sexually disparaging remarks directed at Plaintiff were severe enough to affect a rea-
The law also requires us to consider all the circumstances relevant to the discrimination to determine if the conduct was sufficiently severe to constitute a hostile work environment. See Harris, 510 U.S. at 23; Hicks I, 833 F.2d at 1416. Therefore, we examine the setting and context in which the discriminatory behavior occurred. The record indicates that Plaintiff was subjected to Mr. Mangus’ comments in the intimate setting of her Casper, Wyoming, office. Because the office was a relatively small, open space without partitions or walls, Plaintiff‘s co-workers could hear Mr. Mangus’ remarks and occasionally witness his treatment of Plaintiff. This public setting only increased the humiliation, and, therefore, the severity of the discriminatory conduct. That Plaintiff herself engaged in casual joking in the office does not negate the harshness of the harassing treatment doled out by Mr. Mangus. This is not a factual scenario like that in Gross v. Burggraf Construction Co., 53 F.3d 1531, 1538 (10th Cir. 1995), where the rough and tumble surroundings of the construction industry can make vulgarity and sexual epithets common and reasonable conduct. See also Sauers v. Salt Lake County, 1 F.3d 1122, 1126 (10th Cir. 1993) (affirming district court finding that plaintiff “accepted” the “unusually rough, sexually explicit and raw atmosphere” of the Salt Lake County Attorney‘s Office) (citation omitted). Additionally, the invective imposed by Mr. Mangus was directed solely at Plaintiff.1 This may be a relevant factor in determining a hostile work environment. See Winsor v. Hinckley Dodge, Inc., 79 F.3d 996, 1000-01 (10th Cir. 1996) (sexual statements not made to plaintiff‘s co-workers). Upon a careful review of the record, we conclude that when construed in the light most favorably to Plaintiff, the evidence provides a legally sufficient basis for a finding of severe sexual harassment that translated into a hostile work environment. The district court did not err by concluding that Mr. Mangus’ conduct was sufficiently severe to create a hostile work environment.
Defendants also contend that the evidence was insufficient to establish pervasive harassment because Plaintiff did not produce evidence of a steady barrage of sexual comments. Defendants are correct in their assertion that isolated incidents of harassment, while inappropriate and boorish, do not constitute pervasive conduct. See Bolden v. PRC Inc., 43 F.3d 545, 551 (10th Cir. 1994), cert. denied, 516 U.S. 826, 116 S.Ct. 92, 133 L.Ed.2d 48 (1995). However, Defendants’ reliance on Bolden is misplaced because this case involves more than isolated incidents of sexual harassment. In Bolden, we held that only two overtly racial comments and one arguably racial remark over the course of the plaintiff‘s eight years of employment did not constitute pervasive conduct. Id. at 551. Similarly, we held in Lowe v. Angelo‘s Italian Foods, Inc., 87 F.3d 1170 (10th Cir. 1996), that one isolated comment and the use of the term “girlie,” “although regrettable, do not demonstrate that the work environment ... was ‘permeated with discriminatory intimidation, ridicule, and insult.‘” Id. at 1175 (citation omitted); see also Creamer v. Laidlaw Transit, Inc., 86 F.3d 167, 170 (10th Cir.) (holding single incident of sexual harassment was neither sufficiently pervasive nor severe to constitute a hostile work environment), cert. denied, 519 U.S. 983, 117 S.Ct. 437, 136 L.Ed.2d 335 (1996); Gross, 53 F.3d at 1547
III.
Defendants attempt to argue on appeal that they cannot be held liable under Title VII because they took prompt remedial action after Plaintiff complained. We reject Defendants’ assertion that they raised and argued the issue of prompt remedial action in the district court and therefore properly preserved the issue for appeal. Therefore, we decline to consider the merits of the prompt remedial action issue.
Defendants characterize their Motion for Judgment as a Matter of Law and Renewed Motion for Judgment as a Matter of Law or in the Alternative, a New Trial as encompassing the prompt remedial action issue.
IV.
Defendants further contend that the trial court abused its discretion by failing to grant their Motion for Remittitur. Defendants argue the jury award was excessive, even when reduced to the $200,000 statutory cap, and was the result of bias, passion, or prejudice. They assert that the evidence presented by Plaintiff cannot support the verdict, in light of the injury suffered by Plaintiff. We review the district court‘s denial of a motion for remittitur for an abuse of discretion. Fitzgerald v. Mountain States Tel. & Tel. Co., 68 F.3d 1257, 1261 (10th Cir. 1995). We believe the damages, as reduced, are proper.
The record reflects that the district court adopted the jury‘s damage figure and reduced it to the statutory maximum under
Second, the court examined the nature of the harm suffered by Plaintiff, citing nausea, migraines, humiliation, degradation, loss of self-respect, sleeplessness, consumption of sleeping pills, frequent crying, loss of a loan officer career, and stress in Plaintiff‘s relationship with her daughter. Although, as in Wulf, Plaintiff‘s testimony about her emotional suffering was not exceedingly graphic or detailed, it could constitute substantial evidence when considered in conjunction with the totality of circumstances surrounding Plaintiff‘s claim. The record reveals that Plaintiff‘s testimony was, in part, corroborated by independent, objective testimony. At least two of Plaintiff‘s co-workers testified from personal knowledge she was hurt, visibly shaken, and on the verge of tears. Appellants’ App., Vol. I at 252, 258; Vol. II at 417-18. The plaintiffs in Fitzgerald and Wulf did not present such independent corroborative evidence. See Fitzgerald, 68 F.3d at
Defendants’ argument that there was no evidence of “physical abusiveness, contact, or sexual intimidation” is neither accurate nor relevant. Appellants’ Opening Br. at 30. Without restating them here, it is clear that some of the statements in question were sexually intimidating and offensive. See Appellants’ App., Vol. I at 166. More importantly, Plaintiff is not required to produce evidence of physical abuse or contact to establish a hostile work environment claim. See Meritor, 477 U.S. at 65 (holding sexual harassment includes “verbal or physical conduct of a sexual nature“) (quoting 29 C.F.R. § 1604.11(a) (1985)) (emphasis added); Harris, 510 U.S. at 21-23 (holding gender-based insults and unwanted sexual innuendoes could be sufficient to constitute a hostile work environment without proof of concrete physiological injury); Black, 104 F.3d at 826-27 (confirming defendant‘s concession that verbal conduct alone can create a successful hostile work environment claim if it is objectively hostile or abusive).
Defendants further contend that because Plaintiff failed to provide the testimony of a treating physician or psychologist, the evidence supporting her compensatory damages is insubstantial. This argument is also without merit. Fitzgerald does not stand for the proposition that a plaintiff must have the testimony of a treating physician to prove her compensatory damages. Such testimony is one suggested method of proving emotional damages but is not the sole dispositive requirement. See Fitzgerald, 68 F.3d at 1265; see also Harris, 510 U.S. at 23 (holding proof of psychological harm is one relevant factor but is not required). Considering the cumulative evidence of Plaintiff‘s emotional harm, the absence of testimony by a treating physician does not necessarily mean her claim is devoid of substantial evidence.
Third, the context of the discriminatory behavior was also relevant to the award of damages in this case. See Fitzgerald, 68 F.3d at 1265 (finding context of diversity training session significant). The court found that Mr. Mangus’ “comments to and treatment of [Plaintiff were] even more damaging considering ... [the] intimate office setting” in which Plaintiff‘s co-workers could hear or occasionally see the abuse. Appellants’ App., Vol. I at 167; see id. at 249-56, 309-24. Although there may have been a joking and casual atmosphere in the office, two of Plaintiff‘s co-workers testified that they found Mr. Mangus’ behavior “sexually inappropriate,” “offensive,” and “intimidating.” Appellants’ App., Vol. I at 271; Vol. II at 414.
Finally, our review of the record reveals that the court considered several convenience and economic factors relevant to Plaintiff‘s compensatory damages award. The court believed that setting aside the front pay (fringe benefit) award was germane because it did so “in light of the sizeable compensatory damage award.” Id. Vol. I at 159-60, 167 & n. 10. Plaintiff‘s benefits at her new job were not comparable to those at Norwest. Moreover, unlike the plaintiffs in Fitzgerald, Plaintiff did not continue to work in her chosen field of consumer credit after the discriminatory conduct. The court found that the compensatory award was appropriate in light of the cumulative evidence. The amount of the award did not “shock the [district court‘s] judicial conscience,” and it does not shock ours. Appellants’ App., Vol. I at 166 (internal quotation marks omitted); see Malandris v. Merrill Lynch, Pierce, Fenner & Smith Inc., 703 F.2d 1152, 1168 (10th Cir. 1981), cert. denied, 464 U.S. 824 (1983). We cannot conclude that the district court abused its discretion by denying the motion for remittitur.
V.
Finally, Defendants argue that the trial court abused its discretion by awarding Plaintiff attorney‘s fees at an excessive rate for an unreasonably high number of hours.
Defendants challenge the district court‘s application of the law in this matter. Plaintiff is permitted to recover a reasonable fee, represented by “the number of hours reasonably expended on the litigation multiplied by a reasonable hourly rate.”7 Hensley, 461 U.S. at 433. This is commonly referred to as the “lodestar” amount. Lucero v. City of Trinidad, 815 F.2d 1384, 1385 (10th Cir. 1987). In support of her application for attorney‘s fees, Plaintiff submitted the affidavits of Mr. Les Bowron and Mr. Frank R. Chapman and an accounting of all expenses. She requested an award for 735 hours of fees at rates of $125 and $150 per hour for her attorneys. The court calculated the reasonable rate by examining “the prevailing market rates in the relevant community.” Blum v. Stenson, 465 U.S. 886, 895 (1984). The judge looked at a published survey of Wyoming lawyers for guidance, and relied on his own knowledge for further analysis. He found that although $125 per hour was in the top ten percent of rates charged in Wyoming, that rate prevailed in the relevant community of Casper and was therefore reasonable. The trial judge “is uniquely qualified to establish the reasonable hourly rate multiplier” because he is familiar with the case and the prevailing rates in the community. Lucero, 815 F.2d at 1385-86; see Gurule v. Wilson, 635 F.2d 782, 794 (10th Cir. 1980), overruled on other grounds, Cox v. Flood, 683 F.2d 330, 331 (10th Cir. 1982). We cannot say that the court‘s analysis or partial reliance on his own knowledge amounts to an abuse of discretion. The court properly relied “on all relevant factors known to it in establishing the reasonable rate ... to derive the ‘lodestar’ figure.” Lucero, 815 F.2d at 1385.
The court reduced the hours billed by 80.35 hours for duplicative attorney work, 20 hours for unproductive travel time, and 25 hours for time spent on claims dismissed by the pretrial summary judgment. Defendants contend that the court did not sufficiently reduce the billable hours calculated for the award because Plaintiff “lost on 80% of her claims.” Appellants’ Opening Br. at 34. Defendants’ reliance on Jane L. v. Bangerter, 61 F.3d 1505, 1512 (10th Cir. 1995) is misplaced. The defendants in Jane L. argued that the plaintiff should receive only one-sixth of her requested attorney‘s fees because she lost five out of six claims. We affirmed the award of 60% of the plaintiff‘s fees because the district court found plaintiff prevailed on the “central portion” of her claim. Id. at 1512. Notably, the district court in Jane L. awarded the plaintiff 60% of her requested fees even though she lost on four of five claims that proceeded to trial. Id. In this case, the record reflects that Plaintiff not only prevailed on the central portion of her claim, but she succeeded on the only claim that proceeded to trial. Moreover, the Title VII sexual harassment claim was Plaintiff‘s principal claim from the outset. Hensley held that “the extent of a plaintiff‘s success is a crucial factor in determining the proper amount of an award of attorney‘s fees.” Hensley, 461 U.S. at 440. Hensley further stated that “[w]here a lawsuit consists of related claims, a plaintiff who has won substantial relief should not have his attorney‘s fee reduced simply because the district court did not adopt each contention raised.” Id. The critical issue, therefore, is whether the claims dismissed on summary judgment were “related claims” within the meaning of Hensley or “distinct in all respects” from the Title VII claim. See id.; see also Jane L. v. Bangerter, 61 F.3d 1505, 1512 (10th Cir. 1995) (holding plaintiff‘s successful due process claim precludes reduction of the lodestar amount
We conclude that Plaintiff‘s original claims—breach of Wyoming and national public policy against sexual harassment; constructive discharge from the harassment; intentional infliction of emotional distress caused by the harassment; and punitive damages—are all intimately related to the Title VII hostile work environment claim on which Plaintiff prevailed. Each of these substantive claims are related because they were based on “a common core of facts.” Hensley, 461 U.S. at 435; see Jane L., 61 F.3d at 1512. Additionally, Plaintiff successfully achieved her goal by raising related claims with different legal theories. See Hensley, 461 U.S. at 435. By succeeding on her Title VII claim, Plaintiff effectively enforced the state and national public policy against sexual harassment and received compensation for her emotional suffering. Also, the jury instructions for the Title VII claim referred to constructive discharge as relevant to Plaintiff‘s emotional damages, even though that specific claim had been dismissed.8 After reviewing the record, we hold that the district court did not abuse its discretion by awarding Plaintiff 80% of her requested fees. We also cannot say that the district court abused its discretion for the selected hours he withdrew for duplicative time and unproductive travel time. See Mares v. Credit Bureau of Raton, 801 F.2d 1197, 1202 (10th Cir. 1986) (concluding that the district court is not required to “identify and justify each disallowed hour” or “announce what hours are permitted for each legal task“). Because Defendants do not object to the district court‘s award of costs, we will not disturb the court‘s award of $18,013.56 in costs.
VI.
On cross-appeal Plaintiff contends the trial court abused its discretion by denying her Motion for Sanctions based on Defendants’ conduct at the settlement conference. Plaintiff asserts that Defendants’ conduct at the May 20, 1996 settlement conference was improper and violated the United States District Court for the District of Wyoming‘s Local Rule 101. Plaintiff also pleads for sanctions in order to prevent future litigants from abusing the federal court settlement process. Defendants reply that the local rule does not require sanctions and the district court did not abuse its discretion. The magistrate judge found that Defendants’ counsel, Mr. Michael T. Bates in particular, did not attend the conference with the requisite full authority to settle; was unwilling to negotiate and act in good faith; unnecessarily caused the conference to take place; and wasted the court‘s, plaintiff‘s, and her counsel‘s time. Appellee‘s App. at 25-30. The magistrate judge, however, did not enter an order to this effect in order to keep the proceedings confidential until the conclusion of the trial. Id. at 31-32.
AFFIRMED.
