Tracey Lust sued her employer, Sealy, the mattress manufacturer, for sex discrimination in violation of Title VIL A jury returned a verdict in her favor, awarding her $100,000 in compensatory damages and $1 million in punitive damages. Pursuant to 42 U.S.C. § 1981a(b)(3)(D), which places a ceiling of $300,000 on the total damages that may be awarded in an employment discrimination case against the largest employers (a category that includes Sealy),
White v. Burlington Northern & Santa Fe Ry.,
Sealy attacks the judgment on a variety of grounds, not all of which require discussion given the very full opinion by the district judge turning down Sealy’s motion for reconsideration. The ground it presses hardest is that no reasonable jury could have found sex discrimination. But this misunderstands the function of appellate review of a jury verdict by treating as gospel self-serving testimony by Sealy managers (riven with inconsistencies, by the way) that the jury was free to disbelieve. Sealy’s contention that “the jury cannot be permitted to simply choose to disbelieve the evidence offered by Sealy” is a misleading half-truth. It is true that a plaintiff cannot prevail without offering any evidence of his own, simply by parading the defendant’s witnesses before the jury and asking it to disbelieve them. That would be “a no-evidence case, and
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[in] such a case a plaintiff must lose, because he has the burden of proof.”
Millbrook v. IBP, Inc.,
Lust was a sales representative who had been employed in Sealy’s Madison, Wisconsin office since 1992. Her supervisor, Scott Penters, regarded her highly. In 2000 an opportunity opened up for promotion to “Key Account Manager” in Chicago, the key account being a mattress retailer called Bedding Experts. The appointment would have represented a significant promotion for Lust, who had repeatedly expressed to Penters her avid desire to become a Key Account Manager. Instead the job went to a young man. Two months later, after Lust filed her discrimination claim with the EEOC, Sealy offered her and she accepted a Key Account Manager’s position in the Madison office. It is because of the short delay in her obtaining the promotion that the award of back pay was so small.
The jury’s finding that Lust was passed over because of being a woman cannot be said to be unreasonable, which, as Sealy fails to acknowledge, is the standard of appellate review of jury findings. Fed. R. of Civ. P. 50(a)(1);
Reynolds v. City of Chicago,
Most important, Penters admitted that he didn’t consider recommending Lust for the Chicago position because she had children and he didn’t think she’d want to relocate her family, though she hadn’t told him that. On the contrary, she had told him again and again how much she wanted to be promoted, even though there was no indication that a Key Account-Manager’s position would open up any time soon in Madison. Realism requires acknowledgment that the average mother is more sensitive than the average father to the possibly disruptive effect on children of moving to another city, but the antidiscrimination laws entitle individuals to be evaluated as individuals rather than as members of groups having certain average characteristics.
City of Los Angeles v. Manhart,
Penters, it is true, didn’t decide who would be promoted to Key Account Manager; his superior, A1 Boulden, did, and Boulden testified that he had passed over Lust for the Chicago position because he thought her deficient in interpersonal
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skills and unlikely to want to move to Chicago, given the number of “X” ’s in her relocation chart (see below). If Penters had had no input into the decision to turn down. Lust, his sexist attitudes would be irrelevant, for in that case they could have no causal relation to the discrimination of which she complains. E.g.,
Hoffman v. MCA Inc.,
We are mindful that
Hill v. Lockheed Martin Logistics Management, Inc.,
Lehnst [the ageist subordinate] did not fire Shager; the Career Path Committee did. If it did so for reasons untainted by any prejudice of Lehnst’s against older workers, the causal link between that prejudice and Shager’s discharge is severed, and Shager cannot maintain this suit even if Asgrow is fully liable for Lehnst’s wrongdoing. But if Shager’s evidence is believed, as in the present posture of the case it must be, the committee’s decision to fire him was tainted by Lehnst’s prejudice. Lehnst not only set up Shager to fail by assigning him an unpromising territory but influenced the committee’s deliberations by portraying Shager’s performance to the committee in the worst possible light. Lehnst’s influence may well have been decisive. The committee’s deliberations on the question whether to fire Shager were brief, perhaps perfunctory; no member who was deposed could remember having considered the issue. A committee of this sort, even if it is not just a liability shield invented by lawyers, is apt to defer to the judgment of the man on the spot. Lehnst was the district manager; he presented plausible evidence that one of his sales representatives should be discharged; the committee was not conversant with the possible age animus that may have motivated Lehnst’s recommendation.
And in
Maarouf v. Walker Mfg. Co.,
In any event, the purity of Boulden’s own motives was placed in issue, though perhaps not very convincingly. Since inability to get along with customers couldn’t have been cured immediately, the speed with which Boulden reclassified an account as a key account in order to make Lust a Key Account Manager when she accused the company of sex discrimination and seemed (and in fact was) about to sue might seem powerful evidence that Boul-den didn’t really think that Lust lacked good interpersonal skills.. It’s actually weak evidence because the promotion may have been motivated by a desire, which would have been consistent with continued doubts about Lust’s suitability for promotion, to head off a lawsuit or mitigate the amount of back pay and damages that might be awarded.
Worse, the evidence violated the spirit, and probably the letter, of Rule 407 of the Federal Rules of Evidence.
Dennis v. County of Fairfax,
We attach no weight to Sealy’s statement in closing argument that- “Sealy rectified and corrected ... the decision that you found on the failure to promote her immediately, because-it responded immediately, as soon as it learned of her distress over not having been promoted.” This was not an admission of liability, but an attempt to mitigate damages after the jury had found liability. Lust could and did use the quick promotion to.impeach Boulden’s testimony about her inadequate interpersonal skills. But the jury was not instructed that it could consider the evidence of the promotion for that limited purpose only.
Sealy presented evidence intended to persuade the jury that Lust had been passed over for the Chicago position for innocent reasons. Some of the evidence was so weak that it probably strengthened Lust’s case by making Penters and Boul-den look like liars. Sealy’s sales represen *586 tatives are asked to fill out a chart that lists the company’s 21 sales districts, and to indicate which of these are their first, second, or third choices (“A,” “B,” or “C”) for being relocated to and which are out of the question (“X”). Lust marked “Chicago/Wisconsin District” with an “A” and Sealy argues that since she was already in that district, her marking it with an “A” shows that she didn’t want to move from Madison to Chicago. That is a non sequi-tur. What is true is that even if a sales rep didn’t want to move from Madison to Chicago, she wouldn’t mark “Chicago/Wisconsin District” with an “X,” as that would suggest she wanted to leave the district. But one couldn’t infer from her marking “A” that she was determined to remain in Madison. Lust indicated a willingness to relocate to three districts that are much farther from Madison than Chicago is— Arizona (“A”), Florida (“B”), and California (“C”). How her chart could have been interpreted to signify unwillingness to move 148 miles to Chicago baffles us, as it doubtless did the jury and may have been enough to convince it that Penters and Boulden were testifying untruthfully.
Sealy thinks it telling that when Boulden finally offered Lust a promotion to Key Account Manager, he gave her a choice between Madison and Chicago and she chose Madison. Of course, other things being equal, she preferred not to uproot her family, which included children as well as her husband. But it doesn’t follow that she wouldn’t have taken the Chicago position had there been no opening in Madison. She can hardly have been wedded to Madison when her first choice for relocation, family and all, was Arizona.
Another boomerang argument by Sealy is that the staff at Bedding Experts — the key account that Lust would have managed had she been given the Chicago position — consisted of foul-mouthed animals. There had been an incident several years earlier, with a different account, at which Lust’s effort to divert a customer from talking about his sexual activities with his ex-wife and about the strip bar that he owned so enraged the customer that he rolled up the agenda of their meeting and threw it at her, whereupon she left and the account was given to another sales rep, a man. One possible inference is that Lust is too prissy for Sealy’s roughest customers. But another is that Sealy merely assumes that women can’t deal with foul-talking men; and that is an impermissible assumption, another example of stereotypical thinking. No doubt more women than men would have trouble bonding with macho mattress dealers, but there are tough women (women now fly combat missions for the Air Force), and maybe Lust, who is at least brave enough to go by her husband’s last name, is one of them, notwithstanding the incident with the strip-bar owner — and his behavior was so egregious that it is merely a conjecture that a male Sealy rep could have pacified him, or that Lust’s male successor on the account did so. Penters or Boulden could have explained to Lust the character of the Bedding Experts staff and probed her ability to handle such people. Instead they merely assumed that she could not. They would not have assumed that about a man, even a man who had walked out of a customer’s office when the customer pelted him — or so at least a reasonable jury could find.
We move on to Sealy’s objections to the district judge’s evidentiary rulings. One is that Penters should have been allowed to explain what he meant when he said “we probably all would not be here today” had he asked Lust whether she was willing to move to Chicago. Lust’s interpretation is that Penters was admitting that he was to blame for the lawsuit, since
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he admitted feeling “mostly responsible” for it because her desire to be a Key Account Manager was “a deeper desire than [he had] ever realized.” Sealy’s complaint is that Penters’ explanation of the comment — “because if Tracey and I had ever had a discussion about her wanting to move to Chicago, she would have told me no” — should not have been stricken from the evidence. The judge struck the comment (after it had been made, however, so that it is doubtful that the jury was much affected by the ruling) on the ground that it was “not really relevant.” We don’t see that. A district court is certainly allowed (indeed in clear cases required) to permit a witness to explain on redirect examination what he meant by his answer to a question that had been put to him on cross-examination. E.g.,
United States v. Chaimson,
Penters’ “blonde” and “just like a woman” comments occurred too long before Lust sued to be actionable under Title VII. But she was not suing over those comments, and could not have done so regardless of when they were made, because they were too trivial to constitute sexual harassment. She was merely using them to cast light on Penters’ mindset; and regarding
that
use the question is merely whether they were so stale as to lack any probative value.
Schuster v. Lucent Technologies, Inc.,
In order to show that Penters’ sexist attitudes had not influenced Sealy’s decision to offer the Chicago position to a man, Boulden was asked by Sealy’s lawyer whether he would have given the position to Lust had Penters recommended her for it, and an objection to his answer was sustained. (The answer would have been “no.”)' The judge thought the question asked for speculation. Some hypothetical questions are so framed as to be incapable of eliciting answers of even minimum' reliability.
Gierlinger v. Gleason,
Sealy also complains about the exclusion of three memos that Boulden wrote when Lust complained to him that
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she was being passed over for discriminatory reasons. In the memos he said that he hadn’t promoted her because of deficiencies in her interpersonal skills and— inconsistently — that he was planning to promote her soon. A memo normally is hearsay,
Bracey v. Herringa,
Even when contemporaneous with the events narrated in them, they fall outside the spontaneity exceptions in Fed.R.Evid. 803(1)-(3). The rationale for these exceptions is that spontaneous utterances, especially in emotional circumstances, are unlikely to be fabricated, because fabrication requires an opportunity for conscious reflection.
United States v. Santos,
Sealy argues that the memos were alternatively admissible as “records of regularly conducted activities.” Fed.R.Evid. 803(6). They were business records in the literal sense, or perhaps
a
literal sense, of being documents created for a business purpose — namely to create evidence of nonliability! They were not the kind of business record to which the business-records exception to the hearsay rule refers, as is apparent from the requirement that it be “the regular practice of that business activity to make” the record. Because a business depends on the accuracy of its recordkeeping, its records, although of course not sworn, are likely to be at least reasonably accurate, or at least not contrived for the purpose of making the business look better if it is sued.
United States v. Blackburn,
We move on to the remedy issues. Remember that the jury awarded Lust $100,000 in compensatory damages and $1 million in punitive damages and that the judge had to cut these amounts down to a total of $300,000. Since $100,000 is 1/11th of the total damages awarded by the jury, she allocated 1/11th, or $27,000, of the $300,000 cut-down damages award to compensation for the emotional distress that Lust claims to have experienced as a result of being passed over for the Chicago job. This computation was not an inevitable entailment of the judge’s having to bring the jury’s verdict within the statutory ceiling. The statute does not prescribe a method for making this adjustment and we have upheld a decision that took the entire cut out of the award of punitive damages and another that took the' entire cut out of the award of compensatory damages.
Gile v. United Airlines, Inc.,
The amount does seem high (and therefore we reject Lust’s argument that if we cut the punitive-damages award, we should increase the award of compensatory damages); Boulden offered her the replacement position only two months after she was passed over. But she testified and the jury was entitled to believe that she experienced nontrivial symptoms of anxiety and other forms of emotional distress that the belated promotion did not completely dispel (let alone retroactively). Her reactions may- have been abnormal, but the tortfea-sor takes his victim as he finds him (or in this case her),
Brackett v. Peters,
The punitive damages' awarded, after the judge’s reduction, were $273,000, and Sealy makes several argumfents for reducing them further. One, which would entail reduction to zero if we accepted it, is based on the Supreme Court’s ruling in
Kolstad v. American Dental Ass’n,
Maybe what Sealy is trying to say is that the evidence demonstrated its good faith as a matter of law, so there was no issue for the jury, but it hasn’t said it clearly enough to preserve the issue for appellate review. Nor would the argument succeed if it had been preserved, since the principal evidence of good faith on which Sealy relies — namely Boulden’s own testimony — the jury was free to, and doubtless did, disbelieve. So this is another example of Sealy’s failure to grasp the limitations on appellate review of a jury’s verdict. We do not make our own assessment of the witnesses’ credibility.
Sealy argues that in any event the award of punitive damages was excessive. One reason it gives is that to award more than ten times compensatory damages offends due process. The point of the argument is obscure, since if accepted it would imply only a $3,000 reduction in the punitive damages awarded against Sealy. It is also the argument that we rejected in
Mathias v. Accor Economy Lodging, Inc.,
But there is a more fundamental objection to the argument. When Congress sets a limit, and a low one, on the total amount of damages that may be awarded, the ratio of punitive to compensatory damages in a particular award ceases to be an issue of constitutional dignity,
EEOC v. Wal-Mart Stores, Inc.,
The purpose of placing a constitutional ceiling on punitive damages is to protect defendants against outlandish awards, awards that are not only irrational in themselves because out of whack with any plausible conception of the social function of punitive damages but potentially catastrophic for the defendants subjected to them and, in prospect, a means of coercing *591 settlement. That purpose falls out of the picture when the legislature has placed a tight cap on total, including punitive, damages and the courts honor the cap.
As we emphasized in Mathias, moreover, capping the ratio of compensatory and punitive damages makes sense only when the compensatory damages are large, which the statutory cap on total damages in employment discrimination cases precludes. Suppose Lust had been emotionally sturdier and incurred only $10 in emotional injury from the delay in her promotion to Key Account Manager. Would Sealy argue that in that case the maximum award of punitive damages would be $100? So meager an award would accomplish none of the purposes, discussed in Mathias, for which punitive damages are validly awarded.
A more promising argument is that $273,000 is excessive given the prompt steps that Sealy took to correct the discriminatory denial of promotion. In
Ramsey v. American Air Filter Co.,
We are concerned that to uphold the award of the maximum damages allowed by the statute in a case of relatively slight, because quickly rectified, discrimination would impair marginal deterrence. If Sealy must pay the maximum damages for a relatively minor discriminatory act, it has no monetary disincentive (setting aside liability for back pay) to escalate minor into major discrimination. It’s as if the punishment for robbery were death; then a robber would be more inclined to kill his victim in order to eliminate a witness and thus reduce the probability of being caught and punished, because if the murdering robber were caught he wouldn’t be punished any more severely than if he had spared his victim. See
Lorenzen v. Employees Retirement Plan of the Sperry & Hutchinson Co.,
To summarize, the judgment is affirmed except with respect to the award of punitive damages, as to which Sealy is entitled to a new trial unless the plaintiff accepts a remittitur of the excess of those damages over $150,000.
Modified and Affirmed.
