Bailey v. Container Corp. of America

• Decision Date: 23 January 1986
• Docket Number: Civ. A. No. C-1-84-878.
• Citation: 660 F. Supp. 1048
• Parties: Ralph BAILEY, Plaintiff, v. CONTAINER CORPORATION OF AMERICA, Defendant.
• Court: U.S. District Court — Southern District of Ohio

660 F. Supp. 1048

Ralph BAILEY, Plaintiff, v. CONTAINER CORPORATION OF AMERICA, Defendant.

Civ. A. No. C-1-84-878.

United States District Court, S.D. Ohio, W.D.

January 23, 1986.

COPYRIGHT MATERIAL OMITTED

James B. Helmer, Jr., Cincinnati, Ohio, for Ralph Bailey.

James A. Moore, Lindhorst & Dreidame, Cincinnati, Ohio, for Container Corp. of America.

Robert J. Brown, Smith & Schnacke, Dayton, Ohio, for Appeal and Motion for Fees.

MEMORANDUM

DAVID S. PORTER, Senior District Judge.

This age discrimination case is before the Court on the parties' cross-motions for post-trial relief. On May 23, 1985, a jury returned a verdict against the defendant in this case finding that plaintiff had been wrongfully discharged in willful violation of the Age Discrimination in Employment Act (ADEA), 29 U.S.C. § 623. The jury also found that the defendants had violated Ohio Revised Code § 4101.17 by discharging plaintiff. By judgment entered May 28, 1985, the Court awarded plaintiff $43,411.69 in back pay, lost pension, insurance and other benefits; $43,411.69 in liquidated damages, and $175,000 in punitive damages. The parties have filed timely motions for the following post-trial relief.

Plaintiff, by way of equitable relief seeks an order of reinstatement into the defendants' pension plan, and an award of front pay. By way of legal relief, plaintiff seeks an award of prejudgment interest on his state law claim.

Defendant seeks an order pursuant to Fed.R.Civ.P. 50(b) for judgment notwithstanding the verdict, or, in the alternative, for a new trial on the grounds that the jury's verdict awarding plaintiff liquidated damages under the ADEA and punitive damages under the state claim are without substantial support in the evidence and are, as well, contrary to the clear weight of the evidence; for a new trial pursuant to Fed. R.Civ.P. 59 on grounds that the trial court erred to the substantial prejudice of the defendant in excluding exhibits proffered as Defendant's Exhibits D and E; and for a new trial, or in the alternative, for an order of remittitur, pursuant to Fed.R.Civ.P. 59 on grounds that the jury's verdict awarding liquidated damages is excessive, without substantial support in the evidence, and was the result of passion and prejudice.

A hearing was held October 3, 1985 on the parties' motions. At that time, plaintiff presented witnesses and submitted exhibits on the issue of prejudgment interest. An additional hearing was subsequently scheduled for December 30, 1985. At that time, the parties were again permitted to present evidence on the issue of prejudgment interest, in conformity with the strictures set forth in Whittington v. New Jersey Zinc, 775 F.2d 698 (6th Cir.1985).

The Court has carefully reviewed the parties' post-trial submissions (docs. 48-54) and the applicable law. For reasons that follow, defendant's motion for a remittitur is partially granted, and the remainder of its motions denied. Plaintiff's motion for prejudgment interest is partially granted, and its motion for reinstatement into the pension plan interest is granted, and the remainder of his motions denied.

We will discuss the defendant's motions first. Initially, defendant has filed a motion pursuant to Fed.R.Civ.P. 50(b) for judgment notwithstanding the verdict, or in the alternative, for a new trial. In passing on this motion, we view the evidence in a light most favorable to the plaintiff. Only if reasonable minds could arrive at but one conclusion should the motion be granted. Pike v. Benchmaster Manufacturing Co., 696 F.2d 38, 40 (6th Cir.1983); Price v. Firestone Tire & Rubber Co., 321 F.2d 725, 726 (6th Cir.1963); Vance v. Billingsly, 487 F.Supp. 439, 441 (E.D.Tenn.1980) ("The question is purely one of law and may properly be determined on a Rule 50(b) motion.")

A motion for a new trial should only be granted when the verdict is against the clear weight of the evidence. National Polymer Products v. Borg-Warner Corp., 660 F.2d 171, 178 (6th Cir.1981).

In support of its motion, defendant argues that an award of liquidated damages under the ADEA requires proof of willful misconduct by the employer, and that punitive damages under plaintiff's state claim requires proof of malice.

Defendant concedes that under the rule of Trans World Air Lines, Inc. v. Thurston, 469 U.S. 111, 105 S.Ct. 613, 83 L.Ed.2d 523 (1985), an employer is guilty of a willful violation of the ADEA if the defendant acts with reckless disregard of the requirements of the ADEA. Id., 105 S.Ct. at 624. In this case, the jury was instructed explicitly as to this standard. Jury Instructions at 12. Moreover, we find that there existed sufficient evidence for a reasonable jury to find that the defendant indeed acted with "reckless disregard" for the requirements of the ADEA, and that this is an appropriate case for liquidated damages.

Punitive damages under the state law claim may be awarded where a party intentionally and with actual malice injures another. Actual malice means anger, hatred, ill-will, hostility against another, a spirit of revenge or wanton or reckless disregard of the legal rights of another. Leichtamer v. American Motors Corp., 67 Ohio St.2d 456, 471, 424 N.E.2d 568 (1981); Columbus Finance, Inc. v. Howard, 42 Ohio St.2d 178, 325 N.E.2d 654 (1975).

The jury was instructed accordingly on the law. Jury Instructions at 13. Moreover, there was sufficient evidence upon which the jury could predicate a punitive damages award. Also, neither the liquidated damage award, nor the punitive damage award is against the clear weight of the evidence. Defendant's Rule 50(b) motion is thus without merit, and is hereby denied.

Defendant next moves this Court for a new trial pursuant to Rule 59 on grounds that the Court erred in excluding defendant's proffered Exhibits D and E. Our starting point in consideration of defendant's motion is Fed.R.Civ.P. 61, which states:

No error in either the admission or the exclusion of evidence and no error or defect in any ruling or order or in anything done or omitted by the court or by any of the parties is ground for granting a new trial or setting aside the verdict or for vacating, modifying or otherwise disturbing a judgment or order, unless refusal to take such action appears to the court inconsistent with substantial justice. The court at every stage of the proceeding must disregard any error or defect in the proceeding which does not affect the substantial rights of the parties.

Defendant's proffered Exhibits D and E were excluded by the Court pursuant to Fed.R.Civ.P. 37(b)(2), which states in pertinent part:

(2) If a party ... fails to obey an order to provide or permit discovery ... the Court in which the action is pending may make such orders in regard to the failure as are just, and among others the following:

. . . . .

(B) An order ... prohibiting the disobedient party from introducing designated matters in evidence.

Proffered Exhibits D and E were personnel documents relating to two other former employees of defendants. On February 27, 1985 this Court ordered defendant to produce documents requested by plaintiff. Exhibits D and E were within the scope of the Court's Order, but were not produced until plaintiff, on April 25, 1985, specifically requested them. Even then, the files were not produced until May 18, 1985, the Saturday before the trial. Plaintiff's counsel timely objected to the introduction of this evidence, and upon consideration, the Court excluded the files. We do not now find that the Court's earlier determination was "inconsistent with substantial justice."

Moreover, the exclusion of the documents in question did not harm the defendant. Mr. Booth, who made the files, was permitted to review the files and to testify as to the contents of the files.

We thus find defendant's second motion to be without merit, and therefore it is denied.

Defendant finally moves for an order of remittitur, pursuant to Rule 59 on grounds that the jury's verdict awarding liquidated damages and punitive damages is excessive, without substantial support in the evidence, and was the result of passion and prejudice. Defendant submits that a remittitur is an appropriate remedy in the event we deny its motion for a new trial. Alternatively, defendant argues that plaintiff's claim for back pay reflected certain wage increases that should not have been included. Defendant's arguments for a remittitur are without merit. We dismissed its arguments for a new trial above, upon which the instant motion is partially based, and moreover, we find that the back pay award was not "contrary to all reason." Manning v. Altec, Inc., 488 F.2d 127, 133 (6th Cir.1973), quoting Taylor v. Washington Terminal Company, 409 F.2d 145, 148 (D.C.Cir.), cert. denied, 396 U.S. 835, 90 S.Ct. 93, 24 L.Ed.2d 85 (1969).

However, we are inclined to grant defendant's motion for remittitur on another ground. It is clear to us that the jury's verdict awarding to the plaintiff liquidated damages on his federal ADEA claim, and the award of punitive damages on his state law claim constitutes a double recovery.

Liquidated damages, despite being characterized by some courts as compensatory in nature, Merkel v. Scovill, Inc., 570 F.Supp. 141 (S.D.Ohio 1983); see also Heiar v. Crawford County, 746 F.2d 1190 (7th Cir.1984), cert. denied, 472 U.S. 1027, 105 S.Ct. 3500, 87 L.Ed.2d 631 (1985), are actually intended to have a punitive effect. Trans World Air Lines, Inc. v. Thurston, 469 U.S. 111, 105 S.Ct. 613, 83 L.Ed.2d 523 (1985). In Trans World Air Lines, the Supreme Court determined that the proper standard of willfulness required to support an award of liquidated damages is "reckless disregard" of the requirements of the ADEA. The court reached its conclusion by reasoning first that "the legislative history of the ADEA indicates that Congress intended for liquidated damages to be punitive in nature." Id., 105 S.Ct. at 624. Because of various problems...