Susan BRISTOW, Plaintiff-Counterdefendant, Appellant-Cross-Appellee,
v.
DRAKE STREET INCORPORATED, Drake Street/Chicago Shoes, John
Powers, et al., Defendants-Counterplaintiffs,
Appellees-Cross-Appellants.
Nos. 92-1381, 92-1409 and 92-1497.
United States Court of Appeals,
Seventh Circuit.
Argued Sept. 12, 1994.
Decided Dec. 1, 1994.
Rehearing Denied Feb. 1, 1995.
Nancy G. Lischer, Michael J. Leech (argued), D. Kendall Griffith, Hinshaw & Culbertson, Penny Nathan Kahan, Lori D. Ecker, Chicago, IL, for plaintiff-appellant.
Margaret M. Basch (argued), Schaumberg, IL, for defendants-appellees.
Before POSNER, Chief Judge, and GODBOLD* and FLAUM, Circuit Judges.
POSNER, Chief Judge.
John Powers is the author and producer of the play Do Black Patent Leather Shoes Really Reflect Up? After its initial run, he took the show on the road between 1984 and 1987. Susan Bristow, whom Powers employed as associate producer of the play throughout its second run but fired before the expiration of her contract, brought this suit against him and two companies that he controls (we can ignore the companies). Contending that he fired her because she refused to yield to his sexual importunings, Bristow charges sex discrimination in violation of Title VII of the Civil Rights Act of 1964, breach of contract, and tortious infliction of emotional distress. The jury awarded $30,000 on the tort claim but returned a verdict for Powers on the contract claim. The Title VII charge was tried to the judge, who found that Bristow had been fired not because of sex but because Powers had decided to close the show because it was losing money. The judge further found, however, that Powers had denied Bristow two weeks of post-closing employment (in which she would have been dealing with the odds and ends incident to shutting down the show) on sexual grounds. But the judge ruled that Bristow had waived any claim for damages arising out of that denial, and he therefore awarded her only $1--nominal damages--for the violation of her rights under Title VII.
The judge's ruling that Bristow had waived her claim for damages for the denial of employment after the show closed was error. She returned the check for two weeks' pay that Powers sent her because she was afraid that by cashing it she would be conceding that her termination was not a breach of contract. The fear was groundless; a creditor does not, merely by accepting partial payment of the amount that he claims is due him, waive his entitlement to the rest. Hepperly v. Bosch,
An amendment to Title VII made in 1991 allows the award of common law damages for sexual harassment of an employee, 42 U.S.C. Sec. 1981(a), thus enabling the employee to obtain monetary relief even if she was not fired on account of sex and therefore has no claim for back pay or reinstatement. Brooms v. Regal Tube Co.,
Bristow's appeal challenges not only the judge's refusal to award her damages for breach of the post-closing term of her employment contract, but also his admission of parol evidence concerning Powers's contractual right to fire her and his finding that sex was not a cause of the firing. Powers's appeal challenges not only the retroactive application of Title VII but also the jury's verdict on tortious infliction of emotional distress; and let us turn to that verdict. The evidence, construed favorably to Bristow as it has to be in view of the verdict, shows that between the early months of 1985, when she terminated a sexual relationship with Powers that had begun shortly after she was hired, and her firing by him in April of 1987, he subjected her to a protracted series of outrages that included firing her between 12 and 40 times--the record is unclear--and promptly rehiring her (all but the last time), yelling at her, following her around at work, stalking her in nonworking hours, banging on the door of her apartment late at night, calling her ten to thirty times a night, and leaving messages on her telephone answering machine that he hated her and wished her dead. No one should have to put up with such abuse, and it would be surprising if the law of Illinois did not provide a tort remedy for it, which plainly it does.
But it is not enough that the defendant's conduct was outrageous; the emotional distress that it inflicted must be severe. It is true that the plaintiff is not required to prove that the defendant's conduct provoked a physical reaction, Corgan v. Muehling,
There is no fixed threshold of severity that purely emotional or psychological distress must cross in order to make the defendant's conduct actionable. But McGrath v. Fahey,
Bristow did not consult a psychiatrist, but if that were a requirement for liability the only effect would be to increase psychiatrists' incomes. She did present medical evidence, though that was not required either. See Corgan v. Muehling, supra,
We turn to Bristow's appeal. In March 1987 she and Powers signed an employment contract; until then she had been an employee at will. In the contract, Powers agreed to employ Bristow as associate producer of the show for a period of two years ending on January 5, 1989 (so actually less than two years, since the contract, though retroactive to January 5, 1987, was not signed until March). The contract goes on to provide that "During the term of this Agreement, as payment for all services rendered hereunder, Employer shall pay to Employee no less than the salary of Thirteen Hundred Dollars ($1,300.00) per week plus one-half per cent ( 1/2%) of the total of the gross weekly box office receipts.... The salary defined herein shall be earned weekly and shall be payable in periodic installments no less frequently than twice monthly for the preceding two week period during the term of this Agreement." The contract authorizes Bristow to terminate the contract, before its scheduled expiration in January 1989, upon thirty days prior written notice or (again by written notice, but with no waiting period) if "employer shall cease conducting its business" or become insolvent. But the only ground on which Powers can terminate the contract without liability is if Bristow is convicted of a crime. "If the Employee is terminated by Employer for any reason other than a conviction of illegal acts in connection with the performance of her duties under this Employment Agreement then such termination shall be deemed a breach of this Agreement." Finally, the contract contains a standard integration clause, reciting that it is the complete agreement of the parties and supersedes all previous representations or agreements, written or oral.
The month after the signing of the contract Powers closed the show and fired Bristow. Her contract claim is to the salary that she would have received between then and the scheduled expiration of the contract. She argued in the district court that the language of the contract is clear and unequivocal and that the submission to the jury of evidence to explain what the parties really intended by that language was barred by the parol evidence rule. The judge disagreed, and allowed testimony, and Powers convinced the jury that the payment of Bristow's salary was contingent on the show's remaining open, notwithstanding Bristow's testimony that she had insisted on an ironclad contract precisely because of the incessant if transient firings to which Powers had subjected her. She feared that he would close the show just to hurt her; her theory of the principal Title VII violation that she alleged was that he had done precisely that.
We agree that the contract is clear "on its face"; a reader having a normal command of English but not knowing anything about the circumstances of this contract or the class of contracts that it instantiates would think it obvious that Powers could not fire Bristow merely because he was closing the show. The contract is a term contract, not an at-will contract, and specifies in meticulous detail the circumstances in which the contract can be terminated by either party without liability before the expiration of the term. The contract is explicit that Bristow can be fired only for a criminal act.
If a contract so drafted can be upended by the self-serving oral testimony of one party to it that his duty to perform was actually dependent on a condition nowhere expressed in the contract and flatly contradicted by what is expressed in the contract ("If the Employee is terminated by Employer for any reason other ... [than a criminal act relating to the performance of her duties] then such termination shall be deemed a breach of the Agreement"), the parol evidence rule is dead and integration clauses ineffectual. The rule is not dead in Illinois, Kendall v. Kendall,
The possibility that a theatrical production will close is ever-present to the minds of people involved in the theater. If Powers wanted to make Bristow's continued entitlement to salary contingent on such a foreseeable eventuality, he could easily have written such a condition into the contract.
We are mindful of the dangers involved in using the parol evidence rule or the closely related "four corners" doctrine, Riney v. Weiss & Neuman Shoe Co.,
Second, evidence of "trade usage," more broadly of meanings that members of the trade or calling out of which the contract arose would attach to apparently clear words, phrases, or sentences, meanings that may be different from the meaning that these "clear" terms bear in ordinary discourse, is admissible to interpret a seemingly clear contract. Latex Glove Co. v. Gruen,
So: evidence of what Powers and Bristow "really" meant when they chose a form of words that points to an utterly different meaning was barred by the parol evidence rule. Evidence of trade usage--evidence for example that of course it is understood in the theater world that term contracts are contingent on the show's remaining open, so well understood that parties don't bother to write such a condition into their contracts--might have been admissible, too (though cases like Bean give us pause), but Powers made no effort to present such evidence. Nor did he ask the judge to consider other extrinsic evidence that might reveal an ambiguity in the contract; nor does he defend the submission of that evidence to the jury by reference to the doctrine of extrinsic ambiguity. None of that evidence should have gone to the jury, therefore, and without it or evidence of trade usage the contract was clear and Bristow entitled to judgment.
Since the damages to which she is entitled by virtue of Powers's breach of contract and the back pay to which she would be entitled if she proved that she was fired before the contract's expiration because of her resistance to Powers's sexual importunings are almost certainly the same amount, our resolution of the contract appeal may appear to render the Title VII issue moot. Not so. Bristow cannot obtain attorney's fees for breach of contract, and it is exceedingly unlikely that she can obtain attorney's fees if the only relief to which she is entitled under Title VII is nominal damages. Although the award of nominal damages made her the prevailing party in the Title VII phase of this litigation, entitling her to an award of reasonable attorney's fees, Farrar v. Hobby, --- U.S. ----, ----,
A dictum in Farrar casts doubt on whether a plaintiff can ever be a prevailing party within the meaning of statutes entitling a prevailing party to an award of attorney's fees unless the plaintiff obtains "an enforceable judgment ... or comparable relief through a consent decree or settlement." --- U.S. at ----,
Was she? Price Waterhouse v. Hopkins,
This error does not justify reversal, however. Burdens of persuasion affect the outcomes only of cases in which the trier of fact thinks the plaintiff's and the defendant's positions equiprobable. Burdens of persuasion are, in other words, tie-breakers. If the trier of fact, having heard all the evidence, comes to a definite conclusion, he has no occasion to invoke a burden of persuasion. Judge Zagel thought that Powers would not have closed the show for nonfinancial reasons. For Powers was not only the producer; he was the playwright. Vanity alone would have made it unlikely that he would close his own show merely to get back at Bristow. He would be cutting off his nose to spite his face, as Judge Zagel put it. If this is what the judge believed, he would have believed it whether or not he had ever heard of Price Waterhouse. The doctrine of that case, we repeat, is designed for the situation in which the trier of fact cannot figure out what would have happened had the unlawful motive been absent.
Bristow fastens on the following passage in the judge's oral opinion as proof that the judge would have reached a different result had he applied the rule of Price Waterhouse: "I have found that the quid pro quo did not exist, or more importantly I have--more correctly I found that the evidence is evenly balanced, and I believe that the plaintiff has the burden of showing that there was a quid pro quo; and I think under those circumstances the plaintiff loses." "Quid pro quo" is a term of art in the law of sex discrimination. Beware terms of art in law; they are potent sources of confusion. We must attend to what Judge Zagel meant by his use of the term. From an earlier passage in his oral opinion it is apparent that what he meant was that Powers had not in fact conditioned Bristow's continued employment on her having sex with him. But this means that sex was not a motive in her firing. If Powers had fired her because she refused to continue having sex with him after the early months of 1985--if that refusal had been a cause or the cause of the firing--then there would have been an unlawful motive for her firing and the question would be whether she would have been fired anyway; and then the burden would have been on Powers to prove that he would have fired her anyway. But if the district judge believed that sex was not the "quid" for the "quo" of continued employment, this means that sex played no role in her being fired and the Price Waterhouse issue does not arise.
There are other indications that Judge Zagel believed that sex had played no role in Bristow's being fired; had been in other words no motive at all. He said, "I do not believe finally that he discharged her ... for her refusal to have sex with him. I think the argument that this show closed for some other reason than it was a loser is not valid." After noting that the play had lost money in city after city, the judge added, "I think on the basis of the evidence I've heard in this case the question is not why it [the show] closed May 3rd. The question is why it didn't close earlier.... I believed Powers when he said that he didn't close it for any other reason than finances.... I frankly believe that if Powers could have kept the show open at a break even basis, he would have been willing to do so." If the judge was right--and there is no argument that if he was wrong, he was clearly wrong--then sex played no role whatever in the decision to close the show and fire Bristow. And if sex played no role, it was not a mixed-motives case after all, and Price Waterhouse has no place in it.
"[C]lose the show and fire Bristow." But these are distinct acts. One can imagine Powers's closing the show only because it was losing, but breaking his contract with Bristow because of her refusal to have sex with him. (After all, she recorded a phone conversation, six months before her last firing, in which he told her, "I'm firing you for not fucking me, period.") But she has not tried to separate these issues, save as regards the post-closing employment. She seems to concede that if Powers closed the show purely for financial reasons, he fired her for the same reasons. Which makes sense. If he was unwilling to pay to keep the show open, he was unlikely to be willing to pay her $1,300 a week for another twenty months, which would come to more than $100,000, especially if he believed that the contract entitled him to terminate her in these circumstances without liability. He might well have fired her even if he had not closed the show; but under Price Waterhouse, a plaintiff cannot obtain damages if the trier of fact is convinced that even if sex had played no role in the decision to fire her (however large a role it played in fact), she would have been fired; for she has suffered no harm by reason of sex that she would not have suffered anyway. The 1991 amendments to Title VII authorize the award of attorney's fees in such a situation, see 42 U.S.C. Sec. 2000e-5(g)(2)(B)(i), but the amendments are not applicable to this case.
We have been quoting from the district judge's oral opinion. Later he rendered a written opinion, in which he adhered to his conclusion that Powers had not discharged Bristow because of sex. The written opinion makes a little clearer that this is not a Price Waterhouse case, even if it also suggests a less confident assessment of the evidence concerning the reasons behind the decision to close the show. "She was discharged," the written opinion states, "because the show closed and the decision to close the show was motivated by money not sex. Did sex have any role in the decision to close the show? On this point the evidence is, at best, in equipoise. Therefore, on the question of whether defendants extracted a quid pro quo from plaintiff, I find in favor of defendants because plaintiff has the burden of proof." Bristow had the burden of persuading the judge that sex was a, not necessarily the, motive for closing the show (had "any role in the decision to close the show"). Because she had the burden of persuasion on the question whether sex was a motive, the determination that the evidence was in equipoise doomed her case. Only if she had shown that sex was a motive would the burden have shifted to the defendant to show that, even so, she was not harmed, because she would have been fired even if the unlawful motive had been absent. If the evidence on that issue had been in equipoise, she would have been entitled to a judgment; but that issue could not even arise unless and until she showed that sex was one motive; the judge held that it was no motive. So this is not even a mixed-motives case, and the issue of causality does not arise.
The judgment for the plaintiff on the tortious claim of intentional infliction of emotional distress is affirmed. The judgment for the defendant on the breach of contract claim is reversed and the matter remanded with directions to enter judgment on liability for the plaintiff and proceed to the assessment of damages. The determination that the defendant violated the plaintiff's rights under the 1991 amendments to Title VII is also reversed, together with the determination that the plaintiff suffered only nominal damages for the violation of her rights under the pre-1991 version of Title VII to post-closing employment. On remand the district judge will have to recompute the plaintiff's monetary relief for the loss of her post-closing employment and redetermine her entitlement to attorney's fees under Title VII. As should be clear from our discussion of the Price Waterhouse issue, the only basis for an award of attorney's fees is the denial of Bristow's right to post-closing employment. With damages for that denial limited to two weeks' pay, only a modest award of attorney's fees seems indicated; but we leave that matter to be determined by the district judge in the first instance.
AFFIRMED IN PART, REVERSED IN PART, AND REMANDED.
Notes
Hon. John C. Godbold of the Eleventh Circuit
