Frazier v. Iowa Beef Processors Inc.

Decision Date13 December 1999
Docket NumberNo. 99-1630,CROSS-APPELLANT,CROSS-APPELLEE,99-1632,99-1630
Citation200 F.3d 1190
Parties(8th Cir. 2000) JAMES FRAZIER,/APPELLEE, v. IOWA BEEF PROCESSORS, INC., APPELLANT/ Submitted:
CourtU.S. Court of Appeals — Eighth Circuit

Appeal from the United States District Court for the Northern District of Iowa. [Copyrighted Material Omitted] Before Wollman, Chief Judge, McMILLIAN, Circuit Judge, and Battey,1 District Judge.

Battey, District Judge.

James Frazier (Frazier) sued his former employer, Iowa Beef Processors, Inc. (IBP) alleging a discharge in violation of the Family and Medical Leave Act, 29 U.S.C. §§ 2601et seq. (FMLA). Frazier also alleged retaliatory discharge in violation of public policy under Iowa law. A jury returned a $120,000 verdict on both claims consisting of $80,000 for back pay and $40,000 for emotional distress. Pursuant to IBP's post-trial motion, the trial court2 granted judgment as a matter of law (JAML) in favor of IBP on the FMLA claim. On the retaliatory discharge verdict, the court affirmed the $40,000 emotional distress award and remitted the back pay award from $80,000 to $69,832.57.

IBP appeals the district court's denial of its motion for JAML on the retaliatory discharge claim. It further appeals the district court's $40,000 award for emotional distress, and the award of prejudgment interest on the back pay. Frazier cross-appeals the dismissal of his FMLA claim and the district court's refusal to submit a punitive damages instruction. We affirm the verdict and remittitur. We dismiss Frazier's cross-appeal.

FACTS

Because IBP has appealed the denial of its motion for JAML on the state retaliatory discharge verdict, the facts are viewed in the light most favorable to the jury. See Cox v. Dubuque Bank & Trust Co., 163 F.3d 492, 496 (8 th Cir. 1998).

Frazier was a long-term employee in IBP's pork processing plant. He spent a short time as a supervisor for IBP before returning to an hourly position "on the line." Sometime in November 1994, he began to suffer from pain in his right shoulder. Although he was aware of IBP's policy that work-related injuries were to be immediately reported, he did not initially report his injury. By January 5, 1995, his pain had worsened to a point where he felt he should take some time off from work. Because he feared being stigmatized for having a reportable work-related injury, he again did not report his injury to IBP.

On January 11, 1995, Frazier went to a medical clinic to have his shoulder examined. The doctor conducting the examination diagnosed a possible rotator cuff injury and prescribed anti-inflammatory medication. Throughout this period, his work absences were recorded as "excused." By January 20, 1995, he realized his shoulder injury was not improving. He called Brad Myers, IBP's workers' compensation manager, to report that he was experiencing shoulder pain due to a work-related injury suffered in November 1994. Myers was upset that Frazier had not reported the work-related injury earlier as required by company policy, since it could result in a workers' compensation claim against the company. Frazier ultimately did file a claim in May 1995.

On February 2, 1995, IBP's personnel director, William LaMarr, terminated Frazier claiming excessive absenteeism. Although IBP denies that LaMarr had any knowledge of Frazier's work-related injury or of his intent to file a workers' compensation claim, this fact-sensitive issue was submitted to the jury which held by its verdict that the reason for Frazier's termination was his report of a work-related injury and intention to file a workers' compensation claim.

DISCUSSION
1. The Retaliatory Discharge Claim

We review de novo the denial of a motion for JAML and affirm the denial if the evidence presented would allow reasonable jurors to differ as to the conclusions that could be drawn. See Ballard v. River Fleets, Inc., 149 F.3d 829, 831 (8 th Cir. 1998).

IBP contends that the district court should have granted its motion for JAML on the retaliatory discharge verdict because it believes that Frazier failed to produce sufficient evidence that LaMarr knew of Frazier's work-related injury. To support the existence of IBP's knowledge of Frazier's work-related injury, the district court correctly pointed to the evidence of phone records and the testimony of Frazier's former wife regarding contacts between them and IBP's management team. Trial Transcript (Tr.) 467-69. The testimony also shows that Myers had expressed displeasure over work-related injuries and that IBP maintained an "unwritten policy" to be hard on those who reported such injuries. Tr. 200, 202. Having reviewed the record, we find sufficient evidence to support the jury's verdict and conclude that the district court properly denied IBP's motion for JAML.

2. Emotional Distress Damages

IBP argues that Frazier failed to produce sufficient evidence of severe emotional harm because he did not establish that he was treated for medical, psychological, or emotional problems following his termination. We disagree.

In the case of Niblo v. Parr Manufacturing, Inc., 445 N.W.2d 351, 355 (Iowa 1989), the Supreme Court of Iowa observed: "We see no logical reason to require a plaintiff to prove that the emotional distress was severe when the tort is retaliatory discharge in violation of public policy." In addition, it is well settled that awards for pain and suffering are highly subjective and should be committed to the sound discretion of the jury, especially when the jury is being asked to determine injuries not easily calculated in economic terms. See, e.g., Jenkins v. McLean Hotels, Inc., 859 F.2d 598, 600 (8 th Cir. 1988); Morrissey v. Welsh Co., 821 F.2d 1294, 1299 n.3 (8 th Cir. 1987); Stafford v. Neurological Medicine, Inc., 811 F.2d 470, 475 (8 th Cir. 1987); Vanskike v. Union Pac. R.R., 725 F.2d 1146, 1150 (8 th Cir. 1984).

At trial both Frazier and his ex-wife, Joyce Taylor, testified regarding the emotional havoc Frazier suffered as a result of his termination. Frazier testified that he had always been gainfully employed and that he felt all of his dignity and self esteem were taken away when he was improperly terminated. Tr. 280-82. He also stated that he felt empty and lost. Tr. 281. To deal with these feelings, he frequently went to bible study group and spent extra time alone. Tr. 282. Taylor testified that Frazier appeared to be a "broken man" and that his spirit was broken. Tr. 469. While the $40,000 verdict appears to be generous, we do not feel that it was excessive.

3. Back Pay Damages

IBP contends that the district court erred in failing to properly instruct the jury on the defense of mitigation of damages and as a result the jury improperly awarded Frazier $80,000 in back pay -- subsequently remitted by the district court to $69,832.57.

A district court's refusal to give a proposed jury instruction is reviewed for an abuse of discretion. See Cox, 163 F.3d at 496. On appeal, this Court must determine whether the instructions, taken as a whole and viewed in light of the evidence and applicable law, fairly and adequately submitted the issue of mitigation to the jury. See Martin v. Wal-Mart Stores, Inc., 183 F.3d 770, 773 (8 th Cir. 1999). Even if an error occurred, we reverse only if the error affected the substantial rights of the parties. See id.

In this case, the district court submitted the following instruction on mitigation of damages:

Jury Instruction No. 5, Damages

You are instructed that the plaintiff has a duty under the law to "mitigate" his damages - that is, to exercise reasonable diligence under the circumstances to minimize his damages. Therefore, if you find by the preponderance of the evidence that the plaintiff failed to seek out or take advantage of an opportunity that was reasonably available to him, you must reduce his damages by the amount he reasonably could have avoided if he had sought out or taken advantage of such an opportunity.

This instruction adequately submitted the issue of mitigation to the jury.

4. Prejudgment Interest

IBP argues that the lower court abused its discretion in granting Frazier prejudgment interest on his back pay award because the lost income occurred at various times during Frazier's discharge and thus each pay day would have a different interest associated with it.

A decision granting prejudgment interest is reviewed on appeal under the abuse of discretion standard. See Val-U Constr. Co. of South Dakota v. Rosebud Sioux Tribe, 146 F.3d 573, 582 (8 th Cir. 1998); Smith v. World Ins. Co., 38 F.3d 1456, 1467 (8 th Cir. 1994). Stroh Container Co. v. Delphi Indus., Inc., 783 F.2d 743, 752 (8 th Cir. 1986) provides that:

[a]s a general rule, prejudgment interest is to be awarded when the amount of the underlying liability is reasonably capable of ascertainment and the relief granted would otherwise fall short of making the claimant whole because he or she has been denied the use of money which was legally due.

Generally, prejudgment interest should be awarded "unless exceptional or unusual circumstances exist making the award of interest inequitable." Id. (citations omitted). IBP fails to cite to an authority in support of its position that prejudgment interest cannot be awarded on back pay awards. Accordingly, the district court's award of prejudgment interest as computed under Iowa Code § 535.3 and postjudgment interest as computed pursuant to 28 U.S.C. § 1961 was not an abuse of discretion.

5. The FMLA Claim

On cross-appeal, Frazier argues that the district court should not have granted IBP's motion for JAML as to his claim under the FMLA. The FMLA provides in pertinent part:

[A]n eligible employee shall be entitled to a total of 12 workweeks of leave during any 12-month period . . . [b]ecause of a serious health condition that makes the employee unable to perform the functions of the position of such employee.

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