Gagliardo v. Connaught Laboratories, Inc.

• Decision Date: 22 November 2002
• Docket Number: No. 01-4045.,01-4045.
• Citation: 311 F.3d 565
• Parties: Jane A. GAGLIARDO; John Gagliardo v. CONNAUGHT LABORATORIES, INC., Appellant.
• Court: U.S. Court of Appeals — Third Circuit

Page 565

311 F.3d 565

Jane A. GAGLIARDO; John Gagliardo v. CONNAUGHT LABORATORIES, INC., Appellant.

No. 01-4045.

United States Court of Appeals, Third Circuit.

Submitted Under Third Circuit LAR 34.1(a) October 29, 2002.

Filed November 22, 2002.

COPYRIGHT MATERIAL OMITTED

Carl J. Greco, Scranton, PA, Counsel for Appellant.

Patrick J. Reilly, Gross McGinley LaBarre & Eaton, Allentown, PA, Counsel for Appellees.

Before: NYGAARD, GARTH and MICHEL,^* Circuit Judges.

OPINION OF THE COURT

MICHEL, Circuit Judge.

Plaintiff-appellee Jane Gagliardo ("Gagliardo") sued Connaught Laboratories, Inc. ("CLI") for employment discrimination in the United States District Court for the Middle District of Pennsylvania. After a trial, the jury found CLI's dismissal of Gagliardo violated both the Americans with Disabilities Act ("ADA"), 42 U.S.C. § 12101 et seq., and the Pennsylvania Human Relations Act ("PHRA"), 43 Pa.Stat. § 951 et seq., and awarded Gagliardo 2.5 million dollars. CLI appeals the district court's denial of its motion for judgment as a matter of law ("JMOL"), denial of its motion for a new trial or remittitur, and denial in part of its motion to alter or amend the judgment to comply with 42 U.S.C. § 1981a(b)(3)(D) (limiting the damage amount recoverable under the ADA).

We affirm the district court's judgment in all respects challenged before us.

I.

Gagliardo began working for CLI in 1987. In 1992 she became a customer account representative and continued in that capacity until her dismissal. Gagliardo's responsibilities in that position included receiving calls, handling accounts, answering customers' questions, and supporting the sales force. Gagliardo was also responsible for a special project — the handling of military orders. For most of her years with CLI, Gagliardo was by all accounts a capable employee.

Gagliardo's life began to change in 1992 or 1994 when she was diagnosed with Multiple Sclerosis ("MS").¹ Gagliardo's symptoms varied over time and included muscle spasms, fatigue, and numbness in her hands, back, and legs. The most severe of these symptoms was Gagliardo's fatigue. The fatigue affected her ability to think, focus, and remember. All of Gagliardo's symptoms were subject to being exacerbated by stress.

These symptoms began affecting her at work in 1995, after which she requested the lowering of the temperature in her workspace as an accommodation. Thereafter, Gagliardo began to make mistakes at work. In November of 1995 Gagliardo discussed the burden of her military orders project with her then-supervisor, Wayne Neveling, expressing concern that this burden was adversely affecting her ability to do other required work. After that conversation, Neveling endeavored to analyze the effect of the military orders on Gagliardo's performance — a task that was never completed.

Beginning in February 1996, Gagliardo's new supervisor, Judith Stout, took Gagliardo through the CLI disciplinary process for poor job performance. Getting first an oral warning, Gagliardo then received a written caution, retraining, probation, and ultimately dismissal. Throughout this process, Gagliardo continued to believe she could reduce her mistakes if the military orders responsibility was taken away from her, but this never happened. Also during this process, Gagliardo met with Christine Kirby, CLI's manager of employee communications and human resources information systems. It was Kirby's responsibility to counsel CLI employees and managers on the requirements of the ADA. In Gagliardo's conversations with Kirby, Gagliardo indicated that her MS was interfering with her job performance. Kirby, herself an MS sufferer, later acknowledged that removal of the military project would have been a reasonable accommodation, but also acknowledged that CLI had not provided that accommodation. CLI terminated Gagliardo's employment on May 29, 1996 because of her continued errors and failure to follow procedures.

In July of 1996 Gagliardo filed a complaint alleging disability and age discrimination with the Pennsylvania Human Relations Commission. Gagliardo later sued CLI in the United States District Court for the Middle District of Pennsylvania alleging discrimination under both the ADA and the PHRA. The case was tried to a jury in September 2000.

The jury returned a verdict in favor of Gagliardo on both the ADA and PHRA claims and awarded her $2,000,000 in compensatory damages and $500,000 in punitive damages. After trial CLI filed a motion to alter or amend judgment to comply with 42 U.S.C. § 1981a, motion for JMOL, and a motion for a new trial or remittitur. The district court granted in part and denied in part the motion to alter or amend (lowering the punitive damages award to $300,000), but denied CLI's other motions. The court's decisions were filed on September 28, 2001.

On October 29, 2001 CLI appealed to this court. We have jurisdiction pursuant to 28 U.S.C. § 1291.

II.

We have plenary review of a district court's order denying JMOL. Warren v. Reading Sch. Dist., 278 F.3d 163, 168 (3d Cir.2002). Accordingly, we apply those standards that the district court applied. JMOL under Fed.R.Civ.P. 50 is appropriate only where, "viewing the evidence in the light most favorable to the non-movant and giving it the advantage of every fair and reasonable inference, there is insufficient evidence from which a jury could reasonably find liability." Id. (quoting Fultz v. Dunn, 165 F.3d 215, 218 (3d Cir.1998)). On appeal, CLI asserts that JMOL as to liability was appropriate because, they argued, Gagliardo failed to make out a prima facie case under the ADA and PHRA.²

To establish a prima facie case under the ADA a plaintiff must show: (1) she is disabled within the meaning of the ADA; (2) she is otherwise qualified to perform the essential functions of the job; and (3) she has suffered an adverse employment decision because of discrimination. Taylor v. Phoenixville Sch. Dist., 184 F.3d 296, 306 (3d Cir.1999). CLI challenges only the first element, that being whether Gagliardo was disabled.

The ADA defines "disability" as: "(A) a physical or mental impairment that substantially limits one or more of the major life activities of such individual or (C) being regarded as having such an impairment." 42 U.S.C. §§ 12102(2)(A)(C) (2000). At trial, Gagliardo presented evidence relevant to both (A) and (C) above, and on appeal CLI challenges its sufficiency as to both claims. With regard to (A), the district court, in its order denying JMOL, determined that "[t]he chronic fatigue and resulting forgetfulness brought on by multiple sclerosis prevented Plaintiff from participating in major life activities of thinking and remembering." In addition, as to (C), the court concluded "[t]estimony of company representatives established that Plaintiff had a record of an impairment and was regarded as disabled." On appeal, CLI fails to persuade us that the district court erred in its determinations that sufficient evidence supported the jury's verdict.

CLI first argues that Gagliardo offered no proof she was limited in any major life activity. Gagliardo, however, submitted evidence she was limited in the major life activities of concentrating and remembering (more generally, cognitive function). Our court has held that such activities are major life activities. See Taylor, 184 F.3d at 307 (holding thinking is a major life activity); see also EEOC Guidelines, 29 C.F.R. § 1630.2(i), and Department of Health and Human Services Rehabilitation Act Regulations, 45 C.F.R. § 84.3(j)(2)(ii) (listing examples of major life activities, including learning and working).

CLI next argues that the testimony fails to show Gagliardo was "substantially limited" in the activities of concentrating and remembering. CLI cites the recent Supreme Court case of Toyota Motor Manufacturing, Kentucky, Inc. v. Williams, 534 U.S. 184, 122 S.Ct. 681, 151 L.Ed.2d 615 (2002), in which the Court held that "to be substantially limited in performing manual tasks, an individual must have an impairment that prevents or severely restricts the individual from doing activities that are of central importance to most people's daily lives. The impairment must also be permanent or long-term." Id. at 691 (citing 29 C.F.R. §§ 1630.2(j)(2)(ii)-(iii) (2001)). In the EEOC's regulations, "substantially limited" is defined as: "Significantly restricted as to the condition, manner or duration under which an individual can perform a particular major life activity as compared to the condition, manner or duration under which the average person in the general population can perform that same major life activity." 29 C.F.R. § 1630.2(j). The regulations list several factors for evaluating whether someone is "substantially limited": "(i) The nature and severity of the impairment; (ii) The duration or expected duration of the impairment; (iii) The permanent or long term impact, or the expected permanent or long term impact of or resulting from the impairment." Id. § 1630.2(j)(2).

Contrary to CLI's assertions, we hold that Gagliardo did present witnesses from whose testimony a jury could reasonably conclude she was substantially limited in her ability to concentrate and remember. First, Gagliardo's physician, Dr. Barbour, testified that there was no cure for MS and that the MS produced Gagliardo's fatigue. Dr. Barbour also expressed his opinion as an expert that Gagliardo was substantially limited in her ability to, among other things, learn, work, and think. Second, Gagliardo testified she experienced muscle spasms and fatigue. Third, four of Gagliardo's coworkers testified as to her fatigue and muscle spasms. Fourth, Gagliardo produced evidence that her supervisor recognized her memory and concentration problems, having provided Gagliardo with video and audio tapes to assist Gagliardo in overcoming her memory problems. Lastly, Gagliardo's son and her husband similarly testified that she was often...