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.
Dirk W. deRoos (Jo Frances Walsh with him on the briefs) of Faegre & Benson LLP, Denver, CO, for Defendants-Appellants/Cross-Appellees.
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 1994, 42 U.S.C. § 2000e, et seq., against Defendants Norwest Financial Wyoming, Inc., a Wyoming Corporation; Norwest Financial, Inc., an Iowa corporation; and Mr. Curtis Mangus, an individual (Defendants). The advisory jury returned a verdict for Plaintiff, and the district court entered a judgment for Plaintiff for $270,000 in compensatory damages for emotional distress and $89,000 in lost future fringe benefits, totaling $359,000. The district court then granted Defendants' Motion to Alter or Amend Judgment, reducing the compensatory damages award to $200,000, the statutory cap under 42 U.S.C. § 1981(a), and setting aside the advisory jury verdict for $89,000 in fringe benefits. The district court denied Defendants' Motion for Judgment as a Matter of Law, or in the Alternative, a New Trial, and their Motion for Remittitur, and awarded Plaintiff $93,507.31 in combined costs and attorney's fees pursuant to 42 U.S.C. § 2000e-5(k). Defendants appeal the denial of their post-trial motions and the district court's order for damages and attorney's fees and costs. Plaintiff cross-appeals the district court's denial of her Motion for Sanctions against Defendants' conduct at the pretrial settlement conference.
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.,
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." 42 U.S.C. § 2000e-2(a)(1). This prohibition proscribes sexual harassment in the workplace. See Harrison v. Eddy Potash, Inc.,
Harris v. Forklift Systems, Inc.,
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,
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,
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.,
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.,
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,
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.,
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. Federal Rule of Civil Procedure 50(a) requires that a motion for judgment as a matter of law state specific grounds upon which the moving party is entitled to judgment. See 9 James Wm. Moore et al., Moore's Federal Practice § 50.03 (3d ed.1997). This is to ensure that the motion is sufficiently precise to afford the opposing party and the judge the opportunity to properly respond. See Lightning Lube, Inc. v. Witco Corp.,
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.,
The record reflects that the district court adopted the jury's damage figure and reduced it to the statutory maximum under 42 U.S.C. § 1981a(b)(3). The district court then analyzed the evidence of damages in light of the factors considered in our prior cases, Fitzgerald,
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,
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,
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,
Third, the context of the discriminatory behavior was also relevant to the award of damages in this case. See Fitzgerald,
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.,
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. The district court determined Plaintiff was a "prevailing party" in her Title VII action, and awarded Plaintiff $75,493.75 in attorney's fees. We review the district court's award for an abuse of discretion. Hensley v. Eckerhart,
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,
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 Daniel v. Loveridge,
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,
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.
Federal Rule of Civil Procedure 16(a) & (f) authorizes the district court to impose just sanctions "if a party or party's attorney fails to participate [in a settlement conference] in good faith." Fed.R.Civ.P. 16(f). The District Court for the District of Wyoming is authorized, but not required, to impose sanctions for the failure of a party to participate in a settlement conference in accordance with the local rules. See U.S.D.C.L.R. 101(c). Moreover, a federal court possesses the authority "to impose ... sanctions on 'its inherent power to control and supervise its own proceedings.' " United States v. Evans & Assocs. Constr. Co.,
AFFIRMED.
Notes
The record indicates that while some of the other employees found Mr. Mangus' management style intimidating, they were not personally subjected to any sexual or racial abuse
In its order on Defendants' Motion for Summary Judgment, the district court judge found three of six statements proffered by Plaintiff not actionable because they were not gender-based. Appellants' App., Vol. I at 42-43. The judge also found in this order that the three actionable statements did not constitute pervasive harassment under Title VII. Id. at 43
However, the same judge, without objection, allowed testimony on all six statements at trial, and concluded that a jury could find the "three [actionable] comments ... coupled with the use of the F word" pervasive. Id., Vol. III at 800-801. The judge, also without objection, considered five of the statements relevant in finding that the jury's compensatory damage award to Plaintiff was reasonable and supported by the evidence. Id., Vol. I at 166-67.
We note that there are differing views among the circuits about what constitutes a hostile work environment. Compare Winsor,
The record reflects that Defendants specifically raised and briefed the prompt remedial action issue in their Motion for Summary Judgment filed April 5, 1996, prior to the commencement of trial. The district court denied the motion for summary judgment on the Title VII claim, finding questions of fact existed. However, "[f]ailure to renew a summary judgment argument--when denial was based on factual disputes--in a motion for judgment as a matter of law ... is considered a waiver of the issue on appeal." Wolfgang v. Mid-America Motorsports, Inc.,
The trial judge and counsel for both parties addressed the issue of prompt remedial action at the instructions conference. Defendants objected neither to the content of the instructions on prompt remedial action nor to their submission to the jury. Appellants' App., Vol. III at 834-36. Defendants' failure to object at this opportunity further supports our discretionary decision not to review an issue not properly preserved for appeal
The findings of an advisory jury are merely advisory. The district court therefore followed the requirement of Federal Rule of Civil Procedure 52(a) and made its own findings and conclusions as to Plaintiff's claims. See Fed.R.Civ.P. 52(a); Trotter,
Although this standard was articulated in a 42 U.S.C. § 1988 case, we have held that it applies to fee awards under 42 U.S.C. § 2000e-5(k) as well. See Griffith v. Colorado, Div. of Youth Servs.,
In its order on summary judgment, the district court did not dismiss the punitive damages claim but prevented the parties from mentioning it until the close of all evidence. The record reflects no further reference to the punitive damages claim
