115 F.3d 400 | 6th Cir. | 1997
OPINION
Plaintiff Paula Wathen appeals from the district court’s grant of summary judgment to her former employer General Electric Company (“GE”) and three former employees, in this action involving allegations of sexual harassment. Wathen asserts claims under Title VII, and the Kentucky Civil Rights Act, as well as claims under Kentucky law for the intentional tort of outrageous conduct and for breach of contract. We affirm the district court, finding: (1) neither Title VII nor the Kentucky Civil Rights Act allows employees/supervisors to be sued in their individual capacities; (2) because GE took prompt and effective action after Wathen filed her complaint, it cannot be held liable for sexual harassment; and (3) Wathen’s state law claims are without merit.
I. STATEMENT OF THE FACTS
In reviewing a district court’s decision on a motion for summary judgment, we must consider the facts in the light most favorable to the non-moving party. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 1356, 89 L.Ed.2d 538 (1986). Accordingly, the following account of the employees’ and employer’s conduct is based on the allegations in Wathen’s complaint and depositions and on the undisputed evidence.
Plaintiff Paula Wathen was employed as a plant nurse at GE’s Kentucky Glass Plant from April 1993 until her resignation effective January 2, 1995. In June 1993, Wathen was provided with a copy of GE’s manual entitled Integrity: The Spirit & Letter of Our Commitment (“Integrity”), which pro-
Wathen signed and returned an acknowledgment form for the Integrity manual. The acknowledgment form describes the alternate channels by which an employee may report a GE policy violation.
GE also disseminated and posted a “Policy Against Sexual Harassment” (“Policy”), wMch addresses the company’s proMbitions against sexual harassment. The Policy provides specific procedures for reporting potential violations, including the steps to take when one’s supervisor is involved in the incident:
Any Employee who feels that she or he has been a victim of sexual harassment should report the incident as soon as possible after the occurrence through one of the following means:
— Use the local planVcomponent problem-solving procedure.
— Contact any supervisor, manager, or the local Human Resource Manager.
— Contact the Division Human Resource Manager.
— Consult with members of [GE’s] Professional Relations Staff (Joyce Raimer, 8*346-3048, or Roger Freibott, 8*346-6649).
If the employee’s supervisor is involved in the incident, the report should be made through one of the other alternatives described above.
The Policy was posted on the union bulletin boards and in the plant cafeteria. Wathen claims that she never saw the Policy because, as a salaried employee, she did not eat in the plant cafeteria and she had no reason to check the union bulletin boards.
Wathen claims that beginning in November 1993, the work environment at the Kentucky Plant became hostile and abusive toward women. She contends that upper-level management, including defendants Carl Murphy, Walt R. Nyzio and Jim Kerian, subjected her to sexual jokes, comments, and innuendos. Specifically, she lists a number of incidents which she claims constitute violations of Title VII by the defendants in their official and individual capacities. She further claims that these kinds of incidents permeated the sexually hostile environment at GE. Because we conclude, as we more fully discuss below, both that Title VII does not impose upon individual employees liability for sexually harassing conduct, regardless of how crude or offensive it may be, and that the facts as alleged by Wathen demonstrate that GE cannot be found to be liable under Title VII for the conduct of these employees, we decline to reproduce here the specific allegations of harassment alleged by Wathen. It suffices to say that the conduct alleged, particularly that of defendant Kerian, was crude and offensive, and not to be tolerated in the workplace.
On March 29, 1994, Wathen filed with GE a claim of sexual harassment using the re
On June 8, 1994, while still employed by GE, Wathen filed suit in state court against her employer and the three individuals — Carl Murphy, Jim Kerian, and Walt Nyzio — in their official and individual capacities, alleging sexual harassment under Title VII of the Civil Rights Act of 1964, 42 U.S.C. §§ 2000e to 2000e-17, and the Kentucky Civil Rights Act, Ky.Rev.Stat. ANN. §§ 344.010 to 344.500 (“KRS Chapter 344”), and state law claims for the tort of “outrage” and breach of contract. The defendants timely removed the action to the United States District Court.
Each of the defendants moved for summary judgment, and the district court granted those motions. The court first held that Title VII does not impose liability on individual employees. Alternatively, the court held that the individual employees could not be held liable because “the frequency and severity of the conduct alleged by plaintiff against the individuals is insufficient as a matter of law to support her cause of action.” With respect to GE’s motion for summary judgment, the district court held that the employer responded adequately and effectively once it had notice of the individual defendants’ actions, and therefore was insulated from liability. In rejecting Wathen’s state law tort claim for outrageous conduct, the court concluded that Wathen failed to produce evidence which would allow any reasonable jury to find that any of the employees’ conduct was “atrocious and utterly intolerable.” Finally, the court dismissed Wathen’s breach of contract claim, finding that GE’s clear disclaimer stating that the manual is not to be considered a contract of employment defeats the breach of contract claim. Wathen now appeals.
II. DISCUSSION
A. Standard of Review
We review de novo the grant of summary judgment, using the same standard applied by the district court. Terry Barr Sales Agency, Inc. v. All-Lock Co., 96 F.3d 174, 178 (6th Cir.1996). Summary judgment is appropriate “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed. R. Crv. P. 56(c). In assessing the record to determine whether there is any genuine issue of material fact, the court must resolve all ambiguities and draw all factual inferences in favor of the non-moving party. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255, 106 S.Ct. 2505, 2513-14, 91 L.Ed.2d 202 (1986). Summary judgment is not appropriate if the evidence is such that a reasonable jury could return a verdict for the non-moving party. Id. at 248, 106 S.Ct. at 2510. With these familiar principles in mind, we turn to Wathen’s claims on appeal.
B. Individual Liability
Wathen claims and, for purposes of this appeal, we assume that Murphy, Nyzio and Kerian were employed in supervisory positions and were thus the agents of GE. She therefore sued each of them in his individual capacity for the alleged violations of Title VII and KRS Chapter 344.
A majority of our sister circuits that have addressed this issue have held that an employee/supervisor, who does not otherwise qualify as an “employer,” cannot be held individually liable under Title VII and similar statutory schemes.
Similarly, the majority of the district courts within the Sixth Circuit that have addressed the issue have also rejected the concept of individual liability under Title VII.
1. The Language of Title VII
Title VII provides that “it shall be an unlawful employment practice for an employer” to discriminate on the basis of race, color, religion, sex, or national origin. 42 U.S.C. § 2000e-2(a). A person aggrieved by such discrimination may bring a civil action against the “employer.” 42 U.S.C. § 2000e-5(b). “Employer” is defined to mean “a person engaged in an industry affecting commerce who has fifteen or more employees ... and any agent of such person.” 42 U.S.C. § 2000e(b) (emphasis added). “Agent” is not defined by Title VII but has been interpreted as “an individual who ‘serves in a supervisory position and exercises significant control over the plaintiffs hiring, firing or conditions of employment.’” Pierce v. Commonwealth Life Ins. Co., 40 F.3d 796, 803 (6th Cir.1994) (quoting Sauers v. Salt Lake County, 1 F.3d 1122, 1125 (10th Cir.1993)).
Wathen argues that the use of the term “agent” in the statute allows her to sue defendants Murphy, Nyzio and Kerian in their individual capacities as agents of GE. She contends that by its plain terms, the language of the statute imposes liability on individuals for their violations of Title VII. We concede that “a narrow, literal reading of the agent clause in § 2000e(b) does imply that an employer’s agent is a statutory employer for purposes of liability.” Tomka v. Seiler Corp., 66 F.3d 1295, 1314 (2d Cir.1995). However, it is well-settled that “in expounding a statute, we must not be guided by a single sentence or member of a sentence, but look to the provisions of the whole law, and to its object and policy.” See Pilot Life Ins. Co. v. Dedeaux, 481 U.S. 41, 51, 107 S.Ct. 1549, 1555, 95 L.Ed.2d 39 (1987) (citations and internal quotations omitted). This is particularly significant where, as in the present case, the narrow and literal reading of the statute will produce a result clearly at odds with the express intent of Congress. Accord Tomka, 66 F.3d at 1314 (recognizing that the agent clause found in § 2000e(b) presents the rare case in which the literal application of the statute will produce a result demonstrably at odds with the intentions of its drafters); Gary v. Long, 59 F.3d 1391, 1399 (D.C.Cir.), cert. denied, (1995) (rejecting plain language argument). E.E.O.C. v. AIC Security Investigations, Ltd., 55 F.3d 1276, 1281-82 (7th Cir.1995) (same); Miller v. Maxwell’s Int’l, Inc., 991 F.2d 583, 587 (same). An examination of the statutory scheme and remedial provisions of Title VII, convinces us that Congress did not intend to provide for individual employee/supervisor liability under Title VII.
2. Statutory Scheme and Remedial Provisions
The majority of courts addressing this issue have concluded that “[t]he obvious pur
Moreover, the statutory scheme itself indicates that Congress did not intend to impose individual liability on employees. Title VII limits liability to employers with fifteen or more employees, 42 U.S.C. § 2000e(b), “in part because Congress did not want to burden small entities with the costs associated with litigating discrimination claims.”
Finally, we find that Title VU’s remedial provisions are incompatible with the imposition of liability on individual employees for violations of the Act. Before Congress enacted the Civil Rights Act of 1991, 42 U.S.C. § 1981a (“CRA of 1991”), a successful Title VII plaintiff was limited to reinstatement and back pay — remedies available only from an employer. See Tomka, 66 F.3d at 1314; AIC Security, 55 F.3d at 1281. This limitation on the available remedies suggests that Congress did not intend to allow recoveries against individual employees under Title VII prior to its 1991 amendment. When Congress enacted the CRA of 1991, it added compensatory and punitive damages for intentional discrimination under Title VII. However, Congress calibrated the amounts of compensatory and punitive damages recoverable to the size of the employer, beginning with employers having at least fifteen employees. See 42 U.S.C. § 1981a.
In sum, we find that the statute as a whole, the legislative history and the case law support the conclusion that Congress did not intend individuals to face liability under the definition of “employer” it selected for Title VII. Accordingly, summary judgment in favor of the defendants Murphy, Nyzio and Kerian in their individual capacities under Title VII and KRS Chapter 344 is affirmed.
C. Liability Of Employer GE
Wathen next claims that GE is liable under Title VII and Kentucky law for the
In Kauffman v. Allied Signal, Inc., 970 F.2d 178, 184 (6th Cir.1992), this court held that “agency liability is not strict and can be negated if the employer responds adequately and effectively once it has notice of the actions.” See also Vinson, 477 U.S. at 72, 106 S.Ct. at 2408. We held that the employer in that case was not hable even though the plaintiff was unaware of the employer’s sexual harassment policy, and the employer had neither established guidelines for dealing with sexual harassment claims, nor done any sexual harassment training of its employees.
Whatever one may think about the adequacy of [the employer’s] sexual harassment policy ex ante, it worked and was adequate in this situation. [The employer] immediately fired the offending supervisor to correct the hostile working environment which he created.
Kauffman, 970 F.2d at 185.
Kauffman is dispositive of this case. Wathen admits that there were no incidents of sexual harassment after she made her complaint in March 1994. GE’s response put an end to the behavior of which she complained. Moreover, unlike the situation in Kauffman, GE implemented and enforced policies explicitly prohibiting sexual harassment in the workplace and procedures designed to deal with violations of those policies. Wathen and other staff members were trained under these policies and were instructed to report suspected policy violations through any one of a number of different channels. Wathen admits that she failed to report any of the conduct alleged until four months after its occurrence. Once Wathen reported her complaint to GE, GE made a thorough investigation of the claims and took prompt and adequate action, which included the termination of Kerian, severe discipline of another employee, and public apologies to Wathen. The district court properly granted summary judgment in favor of GE.
D. Tort of Outrageous Conduct
With respect to Wathen’s claims of outrageous conduct against the individual defendants, the district court found that the plaintiff failed to produce evidence which would allow any reasonable jury to find that the conduct alleged by the plaintiff was “atrocious and utterly intolerable,” as required by Kentucky law. We agree.
In Humana v. Seitz, 796 S.W.2d 1, 4 (Ky.1990), the Kentucky Supreme Court held that in order to prove outrageous conduct, the plaintiff must show that the defendant’s conduct “has been so outrageous in character, and so extreme in degree, as to go beyond all possible bounds of decency, and to be regarded as atrocious, and utterly intolerable in a civilized community.” Id. at 3 (quoting Restatement (Seoond) of ToRts § 46, comment d); see also Pierce v. Commonwealth Life Ins. Co., 825 F.Supp. 788 (E.D.Ky.1993), aff'd, 40 F.3d 796 (6th Cir.1994); Kroger Co. v. Willgruber, 920 S.W.2d 61, 65 (Ky.1996) (emphasizing that Kentucky still takes a restrictive/limited approach to the tort of outrageous conduct, which covers “only outrageous and intolerable conduct”).
Applying Kentucky’s very restrictive standard, we conclude that the district court properly granted summary judgment on this claim. The conduct of which Wathen complains, while crude and wholly inappropriate, does not rise to the level of the “atrocious and utterly intolerable” as a matter of law.
E. Breach of Contract Claim
Finally, Wathen claims that GE’s Integrity manual constitutes a contract between herself and GE. Specifically, she claims that the “making of unwelcome sexual advances to another employee, or any other conduct with sexual overtones, is prohibited behavior as set forth in said [Integrity ] Manual,” and GE, through the conduct of the individual defendants as well as through its own conduct, has breached that contract.
The Integrity manual contains a clear and specific disclaimer, stating that “[t]hese
CONCLUSION
For the foregoing reasons, the judgment of the district court is in all respects AFFIRMED.
. The Integrity Manual’s Policy 20.2 specifically states, "[t]his policy clearly prohibits any form of harassment which creates a hostile, intimidating or offensive work environment for any employee which is based on his or her sex, race or any other diverse human characteristic. Anyone violating this policy is subject to disciplinary action up to and including discharge.” The Policy further states that employees are responsible for reporting suspected violations:
Any employee who feels he or she is a victim of such harassment is urged — indeed, is required — to report it as a potential violation of this policy. GE businesses provide internal problem-solving procedures for this purpose which are sensitive to privacy concerns. The leaders of your business need your cooperation and help if we Eire to rid the workplace of all such barriers to our mutual respect, teamwork, productivity and success.
. The acknowledgment form provides in part:
Your Personal Commitment To Integrity
I acknowledge that I have received the guide to GE policies, Integrity: The Spirit & the Letter of Our Commitment.
I understand that every employee is required to comply with the policies described in the guide.
When I have a concern about a possible violation of GE policy, I will report the concern to a manager, a compliance resource within my business, company legal counsel, an ombud-sperson or another contact listed in the employee guide.
. Kerian’s May 6, 1994, letter of termination was not effective until the completion of the glass furnace rebuild on or about September 1, 1994.
. Although David Six was named as a defendant in this action, on June 29, 1994, the district court granted defendant Six's Motion to Dismiss. Wathen does not challenge the district court's order with respect to Six in the instant appeal.
. Like Title VII, KRS Chapter 344 proscribes certain unlawful employment practices. Indeed, the general purpose of the Kentucky Act is to provide a means for implementing within the state the policies embodied in Title VII, as well
. The issue of an employee/supervisor's individual liability has been raised not only within the context of Title VII but also in its close counterparts, the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. §§ 621-634, and the American with Disabilities Act (ADA), 42 U.S.C. §§ 12101-12117. The liability schemes under Title VII, the ADEA, and the ADA are essentially the same in aspects relevant to this issue; they limit liability to the employer and use the term "agent” in defining employer. See 42 U.S.C. §§ 2000e-5(b), 2000e(b) (Title VII); 29 U.S.C. §§ 626(b), 630(b) (ADEA); 42 U.S.C. §§ 12112(a), 12111(5)(A)(ADA). Because Title VII, the ADEA, and the ADA define "employer” essentially the same way, an analysis based on Title VII, the ADEA, and the ADA case law is appropriate. See E.E.O.C. v. AIC Security Investigations, Ltd.., 55 F.3d 1276, 1279-80 (7th Cir.1995). Hence, we refer to and rely on case law under Title VII, ADEA, and the ADA throughout our opinion.
. See, e.g., Lococo v. Barger, 958 F.Supp. 290, 294-95 (E.D.Ky.1997) (holding that Tide VII does not give rise to individual liability of an agent/supervisor of the employer); Burnett v. Tyco Corp., 932 F.Supp. 1039, 1043 (W.D.Tenn.1996) (finding that neither Title VII nor the Tennessee Human Rights Act allows employees or supervisors to be sued as individuals); Czupih v. Card Pak Inc., 916 F.Supp. 687, 690 (N.D.Ohio 1996) (following the majority of the courts in this country which have held that individual defendants with supervisory control may not be held personally liable under Title VII); Frizzell v. Southwest Motor Freight, Inc., 906 F.Supp. 441,
. At least two of our district courts, Kramer, 943 F.Supp. at 850 and Johnson, 871 F.Supp. at 986, have cited to our decision in Jones v. Continental Corp., 789 F.2d 1225, 1231 (6th Cir.1986) (stating in dicta "the law is clear that individuals may be held liable for violations of Section 1981, ... and as ‘agents' of an employer under Title VII"), as indicating our approval of personal liability of a co-employee supervisor. We find the district courts' reliance on Jones misplaced. In Jones, the issue was whether, for the purpose of assessing attorneys fees under 28 U.S.C. § 1927, it was “unreasonable and vexatious” to sue an individual defendant under Title VII. 789 F.2d at 1231. Our statement that individuals may be held liable as “agents” of the employer, and therefore, the individuals were properly sued, id., merely recognized that an employee may be liable as a representative/agent of the employer; it did not address the issue of whether under Title VII an individual may be personally liable.
. As noted in Tomka, 66 F.3d at 1314, Congress considered other factors in enacting § 2000e(b), including potential effects on competition and the economy and the constitutionality of Title VII under the Commerce Clause. See, e.g., 110 Cong. Rec. 7088 (1964) (Remarks of Sen. Stennis); 110 Cong. Rec. S. 7207-17 (Remarks of Sen. Clark).
. The 1991 law allows a maximum of $50,000 in damages against respondents with 15 to 100 employees, $100,000 in damages against respondents with 101 to 200 employees, $200,000 in damages against respondents with 201 to 500 employees and $300,000 in damages against respondents with more than 500 employees. 42 U.S.C. § 1981a(b)(3).