Shireen A. WALSH, Appellee, v. NATIONAL COMPUTER SYSTEMS, INC., a Minnesota corporation, Appellant.
No. 02-2242.
United States Court of Appeals, Eighth Circuit.
Submitted: May 14, 2003. Filed: June 23, 2003.
Trial Lawyers for Public Justice, P.C.; Program on Gender, Work & Family, Amici on Behalf of Appellee.
James H. Kaster, argued, Minneapolis, MN (Diane M. Odeen, Minneapolis, MN, on the brief), for appellee.
Before BOWMAN, HEANEY, and BYE, Circuit Judges.
HEANEY, Circuit Judge.
National Computer Systems, Inc. (NCS) appeals from a judgment of the district court awarding Shireen A. Walsh compensatory damages, punitive damages, prejudgment interest, attorneys’ fees, and costs totaling $625,526. It argues the judgment should be set aside because all of Walsh‘s claims are barred by the applicable statute of limitations, and fail as a matter of law because there is no evidence to support the view that Walsh was discriminated against because of her pregnancy under either Title VII or the
I. Background
We review the facts in the light most favorable to the jury‘s verdict. Walsh worked as an account representative in the customer service division of NCS from May 1993 through October 30, 1998. She was a salaried (“exempt“) employee whose duties included selling and renewing service contracts on scanners sold to NCS customers. She was considered a “top performer.” Walsh received multiple promotions, regular raises, and consistently favorable performance evaluations throughout her employment at NCS.
In March 1997, Barbara Mickelson became Walsh‘s supervisor. Walsh was pregnant at the time and experienced medical complications related to her pregnancy, requiring frequent medical attention. NCS maintained a policy that entitled exempt employees to take unlimited sick leave for doctor appointments for themselves or their children, but Mickelson repeatedly asked Walsh for advance notification and documentation of Walsh‘s doctor appointments. Other account representatives were not required to provide the same information about their appointments.
Walsh took full-time medical leave from April 7, 1997 until the birth of her son on May 9, 1997. She returned to work on August 4, 1997 after her maternity leave, and immediately experienced hostility from Mickelson. When Walsh was showing co-workers pictures of her son on her first day back to work, Mickelson told her
In October 1997, Walsh reported to NCS‘s human resources representative, Mike McRath, that she was being treated differently than other account representatives and was required to make up time spent taking her son to the doctor. In the same month, Walsh‘s workload was increased without an increase in salary. McRath told her that if she was “accusing management of doing something unethical, she better have proof.” In June 1998, when Walsh confronted Mickelson about the way she treated account representatives at a meeting, Mickelson swore at Walsh and pounded on the table. The next day Walsh told Mickelson that she wanted to be treated fairly, and Mickelson responded that it was an issue of manager‘s discretion. When Walsh reported Mickelson‘s behavior to Bruce Haseley, human resources manager, he appeared disinterested and told Walsh he could not take sides in the matter. Soon, department changes increased Walsh‘s responsibilities, which required her to work overtime. Walsh protested and Mickelson yelled at her. They went to Haseley‘s office for mediation, and Haseley offered no assistance. No investigation occurred either before or after Walsh‘s departure.
Walsh believed she would not be treated fairly at NCS, so she began to search for another job in October 1998. She accepted employment with West Group and submitted a letter of resignation to NCS on October 19, 1998, effective October 31, 1998. On October 23, 1998, Walsh reconsidered her decision to resign and called Haseley to tell him that because she liked
On August 17, 1999, Walsh mailed a charge of gender discrimination against NCS to the Equal Opportunity Employment Commission (EEOC). The charge was cross-filed with the Minnesota Department of Human Rights (MDHR). A right-to-sue letter was issued on August 26, 1999.
On October 15, 1999, Walsh commenced an action and served NCS with a complaint, asserting claims under Title VII, MHRA, the
Following the close of discovery, NCS filed a motion for partial summary judgment, requesting that the following claims be dismissed: constructive discharge and failure to hire under Title VII, the MHRA, the MPLA, the Minnesota Sick or Injured Child Care Leave Act, and the FMLA; reprisal claims under Title VII and the MHRA; discrimination and denial of benefits under FMLA; retaliation under the MPLA, and denial of benefits under the Minnesota Sick or Injured Child Care Leave Act. NCS did not request that Walsh‘s hostile work environment claim under either the MHRA or Title VII be dismissed. The district court1 denied the motion, with the exception of Walsh‘s complaints under the FMLA and the Minnesota Sick or Injured Child Care Leave Act. Walsh voluntarily dismissed certain claims, including statutory wage violations, breach of contract, and defamation.
The remaining claims were tried before a jury in January 2002. The jury found for NCS on Walsh‘s failure to rehire claim, but found that Walsh: had been subjected to a hostile work environment; had been constructively discharged on the basis of pregnancy or gender discrimination and because she had taken leave; and had been retaliated against on the basis of pregnancy or gender discrimination and leave discrimination. The jury awarded Walsh $11,000 for wage and benefit loss, $45,000 for other damages, and $382,145 in punitive damages. On January 30, 2002, the court ordered judgment entered in Walsh‘s favor for $438,145.40.
NCS filed a motion for judgment as a matter of law, or, in the alternative, a new trial or remittitur of the punitive damages portion of the jury‘s award. Walsh filed a motion for attorneys’ fees and costs, for a multiplication of her compensatory damages award under the MHRA, for liquidated damages under the FMLA, for prejudgment interest, and to amend the complaint for punitive damages under Minnesota law. The district court adopted the magistrate‘s2 report and rec-
II. Discussion
A. Statute of Limitations
Walsh submitted a written notice of resignation on October 19, 1998, effective on October 31, 1998. However, on October 23, 1998, Walsh informed the human resources office that she would be willing to remain on the job if NCS took steps to end the harassment and discriminatory actions of Mickelson. NCS stated there was nothing it would do to remedy the situation and that Mickelson wanted to proceed with the termination. The district court found that Walsh filed a charge of discrimination with the EEOC on August 18, 1999, 300 days after NCS informed her that it would not attempt to modify Mickelson‘s conduct. We agree with the district court that the statute of limitations started to run on August 18, 1999, and that there was no violation of
With regard to Walsh‘s claims of pregnancy discrimination, harassment based on pregnancy, and retaliation under the MHRA, she was required to file a charge or lawsuit within one year of the alleged discrimination and retaliation.
Finally, NCS argues in the alternative that Walsh‘s Title VII and MHRA claims are time-barred because Walsh filed a federal action 141 days after she received the right-to-sue letter, well beyond the 90-day limit for the Title VII claims and the 45-day limit for the MHRA claims. The district court correctly determined that NCS‘s attorney‘s actions “lulled” Walsh into delaying the refiling of her complaint in federal court, and tolled the statute of limitations on the Title VII claims. With regard to the MHRA 45-day statute of limitations period, NCS alleges it never received proper service for the federal claim, and therefore did not receive timely notice of the MHRA claim. The district court determined that although service of the federal claim was defective because the clerk did not sign and seal the summons, NCS suffered no resulting prejudice. It knew the MHRA claim was attached to the federal claim. We affirm the district court on this matter as well, and proceed to the merits of the case.
B. Judgment as a Matter of Law Claims
We turn to the question of whether the district court erred in refusing to grant NCS‘s motion for judgment notwithstanding the verdict. We review the district court‘s decision as to whether to grant a motion for a judgment as a matter of law de novo. Kipp v. Missouri Highway & Transp. Comm‘n, 280 F.3d 893, 896 (8th Cir. 2002). The court draws “all reasonable inferences in favor of the nonmoving party, and [does] not make credibility determinations or weigh the evidence.” Id. (quoting Reeves v. Sanderson Plumbing Prods., Inc., 530 U.S. 133, 150 (2000)). We must “assume that the jury resolved all conflicts of evidence in favor of [the nonmoving] party, assume as true all facts which the prevailing party‘s evidence tended to prove, ... and deny the motion, if in light of the foregoing, reasonable jurors could differ as to the conclusion that could be drawn from the evidence.” Minneapolis Cmty. Dev. Agency v. Lake Calhoun Assoc., 928 F.2d 299, 301 (8th Cir. 1991) (quotation omitted). A jury verdict will not be set aside unless “there is a complete absence of probative facts to support the verdict.” Browning v. President Riverboat Casino-Missouri, Inc., 139 F.3d 631, 634 (8th Cir. 1998).
1. Failure to Comply with Federal Rule of Civil Procedure 50(a)
Under
NCS filed a motion for a directed verdict when Walsh closed her case, and again at the close of all evidence. Both motions were denied by the district court. On neither occasion did NCS submit a memorandum detailing the law and facts upon which it requested judgment in its favor, nor did colloquy between counsel and the court sufficiently explain NCS‘s legal reasoning.3 After the jury returned
We typically do not review the sufficiency of the evidence if the trial court denied a motion that does not state specific grounds as required by Rule 50(a) with which NCS failed to comply. NCS did not support its request for directed verdict with specific legal grounds at the time of its motions. It did not specify the grounds upon which it requested a directed verdict until it filed its renewed motion for judgment as a matter of law following the jury‘s verdict. We conclude, however, that NCS clarified its position as to some of the causes of action in its memorandum supporting its motion for partial summary judgment. The memorandum provided the plaintiff and the court with notice of its legal position with regard to Walsh‘s constructive discharge, failure to hire, and retaliation claims under Title VII and the MHRA. It did not, however, request summary judgment on Walsh‘s hostile work environment claim. Because NCS did not legally challenge the issue below, it is precluded from raising the issue on appeal.
In sum, NCS requested summary judgment on all issues that were ultimately submitted to the jury, with the exception of the hostile work environment claim. The jury returned verdicts for Walsh on several claims, including hostile work environment, and returned general damage awards of $11,000 and $45,000.4 This court has made it very clear that where the court submits a single damage question for multiple claims and where the evidence supports the actual damage award on any of the claims, the award will not be set aside. LeSueur Creamery, Inc. v. Haskon, Inc., 660 F.2d 342, 346 n. 7 (8th Cir. 1981); Hinkle v. Christensen, 733 F.2d 74, 76 (8th Cir. 1984). Here the damage awards are clearly supported by the hostile work environment claim.
Furthermore, although NCS indicates it objected to the court‘s proposed jury instructions and offered its own set of instructions off the record in chambers, it failed to comply with
2. The Merits of the Case: Gender Discrimination on the Basis of Pregnancy
Even if NCS had preserved its right to appeal the jury‘s verdict on the hostile work environment claim, the facts of the case support Walsh‘s claim that she was a member of a protected class and was discriminated against on the basis of her pregnancy. Congress amended Title VII to incorporate pregnancy discrimination within the purview of Title VII‘s protection against gender discrimination. The amended statute provides in part:
[t]he terms “because of sex” or “on the basis of sex” include, but are not limited to, because of or on the basis of pregnancy, childbirth, or related medical conditions; and women affected by pregnancy, childbirth, or related medical conditions shall be treated the same for all employment-related purposes, including receipt of benefits under fringe benefit programs, as others persons not so affected but similar in their ability or inability to work, and nothing in section 2000e-2(h) of this title shall be interpreted to permit otherwise.
Once Walsh returned to work from her maternity leave, Mickelson made several discriminatory remarks to her. During a discussion about Walsh‘s co-worker‘s pregnancy, Mickelson sarcastically commented to Walsh, “I suppose you‘ll be next.” On another day, Walsh took a half-day vacation to go on a boat trip with her husband. After she returned, Mickelson stated, “[w]ell, I suppose now we‘ll have another little Garrett5 running around.” On April 23, 1998, Walsh fainted at work and had to go to the hospital. The following day Mickelson stopped by Walsh‘s cubicle and said, “You better not be pregnant again!” Furthermore, when Walsh was pregnant, Mickelson asked Walsh for advanced notification and documentation of her doctor appointments, while other account representatives were not required to provide the same information concerning their appointments. Mickelson‘s comments, combined with the conduct detailed above in Section I of this opinion, provide ample support for the jury‘s finding that Walsh was discriminated against on the basis of her pregnancy.6
C. Punitive Damages
Title VII allows for an award of punitive damages if the defendant committed illegal discrimination “with malice or with reckless indifference to the federally protected rights of an aggrieved individual.”
The record shows that NCS had knowledge that it may have been acting in violation of federal law by not investigating Walsh‘s complaints that she was being treated unfairly. Mickelson testified that she had received training on NCS‘s non-discrimination corporate policies.7 She indicated she understood that harassment on the basis of sex was inclusive of discriminating against someone for being pregnant. Bruce Haseley and Michael Sherck testified that NCS has a policy prohibiting the harassment of women on the basis of pregnancy and requiring a prompt investigation of any allegation of a policy violation.8 Haseley also testified that he would take very seriously a complaint that a manager was making derogatory remarks about people getting or possibly being pregnant. He claimed, however, that there were never allegations to investigate because Walsh had never complained that she was being discriminated against on the basis of sex.
In fact, there were at least ten separate reports to human resources that Walsh was being treated unfairly. Walsh reported Mickelson‘s conduct at least six times. Amy Elmer, a co-worker, testified that when she was pregnant she reported Mickelson‘s abusive conduct toward Walsh and herself to Haseley and Michael Sherck,
In spite of the NCS supervisors’ knowledge of alleged harassment on the basis of pregnancy, NCS did not investigate the reported complaints. Haseley admitted NCS conducted an investigation of the high turnover rate in Mickelson‘s department, but denied there had been specific, gender-based complaints that would prompt an investigation into Mickelson‘s discriminatory conduct. Walsh testified she talked to Haseley about her having to report her absences to Mickelson and the way Mickelson treated her. Haseley responded that he could not take sides on the matter. Walsh told Haseley she would consider staying with NCS if he could assure her that her working conditions under Mickelson would improve. Haseley refused. Although Walsh may not have specifically stated to management that Mickelson‘s conduct rose to the level of a federal violation, she need not have made such a specific complaint. Mickelson, Haseley, Sherck and McRath were aware that NCS‘s nondiscrimination policy, consistent with federal law, prohibited comments and conduct that disparaged pregnancy and potential pregnancy. In light of these facts, we hold there is sufficient evidence that NCS demonstrated reckless indifference to the numerous allegations of pregnancy discrimination reported by several women, including Walsh. We affirm the jury‘s verdict that NCS acted with the requisite reckless indifference that gives rise to an award of punitive damages.
Finally, we reject NCS‘s contention that the punitive damages award must be vacated because it is excessive and unconstitutional. In determining whether an award of punitive damages is excessive, we must consider “the degree of reprehensibility of the defendant‘s conduct and the ratio between the actual harm inflicted on the plaintiff and the punitive damages award.” Beard, 266 F.3d at 804 (quotation omitted). Initially, it is important to note that NCS did not argue before the jury that punitive damages should not be awarded. The district court reduced the punitive damages award from $382,145.40 to $300,000 and increased the compensatory damages award from $56,000 to $112,000. The ratio of statutorily modified punitive damages to compensatory damages is 3 to 1. The ratio of unmodified damages is 6.8 to 1.
Either way, the punitive damages award is not grossly excessive, either numerically or in relationship to the hostile environment in which Walsh worked. See Ogden v. Wax Works, Inc., 214 F.3d 999, 1011 (8th Cir. 2000) (rejecting argument that ratio to compensatory damages of 6.5 to 1 was excessive); Kimbrough v. Loma Linda Dev., Inc., 183 F.3d 782, 785 (8th Cir. 1999) (upholding a punitive damages award with a 10 to 1 ratio to compensatory damages). Additionally, as detailed above, NCS‘s conduct was reprehensible. It failed to take any action to investigate Walsh‘s complaints about the discriminatory working conditions under Mickelson‘s direction, and management repeatedly told Walsh that it did not want to get involved in the dispute. Failing to take action on repeated complaints of mistreatment and misconduct is precisely the type of conduct punitive damage awards are intended to deter. We therefore affirm the award of punitive damages.
III. Conclusion
For the reasons cited above, we affirm the jury‘s verdict and award of damages.
Notes
- We, the jury, find plaintiff‘s lost wages and benefits through the date of this verdict to be: $11,000.
- We, the jury, find plaintiff‘s other damages, excluding lost wages and benefits, to be: $45,000.
Q. NCS has a policy that it will not discriminate, is that correct?
A. That‘s correct.
Q. And not subject people to harassment either, is that right?
A. That‘s correct.
Q. Is it your understanding that harassment includes more than sexual harassment, can include harassment based upon gender, for example?
A. That‘s correct.
Q. And gender can include such things as pregnancy and the conditions of being a woman, right?
* * * * *
A. Yes, that‘s correct.
Q. And so NCS has a policy that it won‘t discriminate or harass women on the basis of pregnancy or pregnancy leave, maternity leave, is that correct?
A. That‘s correct.
(Tr. at 162-63.)