Gentry v. E. W. Partners Club Mgmt. Co.

• Decision Date: 04 March 2016
• Docket Number: No. 14–2382.,14–2382.
• Citation: 816 F.3d 228
• Parties: Judith GENTRY, Plaintiff–Appellant, v. EAST WEST PARTNERS CLUB MANAGEMENT COMPANY, INC. ; Jay Manner, individually; Maggie Valley Resort Management, LLC, Defendants–Appellees.
• Court: U.S. Court of Appeals — Fourth Circuit

816 F.3d 228

Judith GENTRY, Plaintiff–Appellant,

v.EAST WEST PARTNERS CLUB MANAGEMENT COMPANY, INC. ; Jay Manner, individually; Maggie Valley Resort Management, LLC, Defendants–Appellees.

No. 14–2382.

United States Court of Appeals, Fourth Circuit.

Argued: Dec. 10, 2015.

Decided: March 4, 2016.

ARGUED:Glen Coile Shults, Jr., Law Office of Glen C. Shults, Asheville, North Carolina, for Appellant. Matthew J. Gilley, Ford Harrison, LLP, Spartanburg, South Carolina; Jonathan Woodward Yarbrough, Constangy, Brooks, Smith & Prophete, LLP, Asheville, North Carolina, for Appellees. ON BRIEF:Jule Seibels Northup, Northup McConnell & Sizemore, PLLC, Asheville, North Carolina, for Appellant.

Before AGEE, FLOYD, and THACKER, Circuit Judges.

Affirmed by published opinion. Judge FLOYD

wrote the opinion, in which Judge AGEE and Judge THACKER joined.

FLOYD

, Circuit Judge:

After her employment was terminated, Appellant Judith Gentry sued her former employers for disability discrimination under the Americans with Disabilities Act (ADA) and for other violations of state and federal law. A jury found in favor of Gentry on certain state law claims, for which it awarded her $20,000 in damages, and in favor of the employers on all other claims. On appeal, Gentry challenges the district court's jury instructions under the ADA and the damages award. Because we find no reversible error, we affirm the district court.

I.

The following facts were adduced at trial. Prior to her termination, Gentry was an executive housekeeper at the Maggie Valley Club and Resort (the Club), supervising a staff of eight to ten housekeepers at an annual salary of $39,381. The Club is owned by Appellee Maggie Valley Resort Management, LCC (Maggie Valley). In September 2008, Maggie Valley hired Appellee East West Partners Club Management Company, Inc. (East West) to operate the Club, and in October 2008, East West hired Appellee Jay Manner as the Club's general manager.

In July 2007, Gentry fell at work, injuring her left foot and ankle. She filed for workers' compensation benefits. Throughout the next year, Gentry received treatment from Dr. Peter Mangone, who performed surgery on Gentry's ankle in October 2008. Gentry returned to work in January 2009 with no restrictions, though she continued to experience pain and difficulty walking. In January 2010, Dr. Mangone determined that, under North Carolina's workers' compensation guidelines, Gentry had a 30 percent permanent physical impairment to her ankle. He noted that she could perform her full job duties but might require additional surgery in the future.

Soon thereafter, the Club's insurance carrier offered to settle Gentry's workers' compensation claim. Gentry declined, expressing concern that she might be terminated if she accepted, and instead pursued mediation. In October 2010, insurance adjuster Brenda Smith called Manner to discuss Gentry's claim. The accounts of that conversation vary. According to Smith, Manner expressed surprise at Gentry's concerns about being terminated and described her as a "great worker" who did "a great job." J.A. 183. He further indicated that while the Club was struggling financially and considering layoffs, no particular individuals had been identified for termination. Manner, however, generally denied making these statements. According to Manner, Smith stated that the insurance company felt extorted by Gentry and that it was only a matter of time before Gentry filed another claim against the Club. Smith denied making these statements. Manner then called the principals of Maggie Valley and East West and relayed his version of the conversation with Smith.

Manner and Gentry met to discuss the upcoming mediation of her workers' compensation claim. Gentry testified that Manner summoned her to his office and sternly interrogated her about her claim. Manner, however, testified that Gentry voluntarily approached him to discuss her claim and the ongoing problems with her foot, and that the meeting was not hostile. Gentry's workers' compensation claim was ultimately settled at mediation in November 2010.

In December 2010, Gentry was terminated. According to Appellees, the termination was part of a restructuring plan designed to cut the Club's costs. Appellees presented evidence that the Club had been losing money since its inception and was particularly hard hit during the recession, operating at a net loss of approximately $2 million in both 2008 and 2009. In the spring and summer of 2010, Appellees developed a plan to eliminate certain managerial positions, including Gentry's, and consolidate their responsibilities among fewer managers. The plan was put into effect in December, when Gentry and two other department heads were terminated and eight other employees were either terminated or had their hours reduced. Further layoffs occurred the following year. At the time of trial, the housekeeping department had only three full-time equivalent employees and the new housekeeping director, Richard Smith, performed the duties previously performed by Gentry and two other employees while continuing to perform some of his prior maintenance duties. According to Appellees, the restructuring improved the Club's financial condition and helped reduce its losses to approximately $1.5 million in 2011 and $1 million in 2012. Appellees maintained that Gentry's position was eliminated solely to reduce costs.

Gentry, however, testified that after her termination, she met with Maggie Valley executive Ray Hobby, who informed her that Manner had admitted to terminating Gentry because of the "issues with [her] ankle" and because she "could be a liability to the club." J.A. 137. Gentry also presented the testimony of Equal Employment Opportunity Commission (EEOC) investigator John Brigman, who had interviewed Hobby while investigating Gentry's EEOC charge. According to Brigman, Hobby confirmed that Manner had told him that Gentry was "let go due to her disability and her liability to the club." J.A. 861. Hobby denied making these statements and further denied that Manner had made any such statements to him.

Gentry also presented evidence to undercut Appellees' cost-saving rationale, including evidence indicating that Richard Smith, who had assumed Gentry's responsibilities, performed only minimal maintenance duties and that his pay eventually increased to be only $4,000 to $5,000 less than Gentry's. Gentry also established that there was no memorialization of the spring and summer 2010 meetings at which the restructuring plan, including her termination, was allegedly discussed. Additionally, Maggie Valley executive Purser McLeod testified that he only learned of Gentry's impending termination in the fall of 2010, when Manner called to inform him of Gentry's workers' compensation claim. No one contended that Gentry was terminated for reasons related to her work performance; no one at Maggie Valley or East West had ever criticized or complained about her performance, and Hobby described her as an "outstanding" employee who "did an excellent job." J.A. 209.

Gentry sued Maggie Valley and East West for (1) disability discrimination under the ADA and North Carolina common law; (2) sex discrimination under Title VII and North Carolina common law; and (3) retaliation against Gentry for pursuing a workers' compensation claim, in violation of North Carolina common law. She also sued East West and Manner for tortiously interfering with her employment contract with Maggie Valley. After a weeklong trial, the jury found East West liable for workers' compensation retaliation and awarded Gentry $10,000. The jury also found East West and Manner liable for tortiously interfering with Gentry's employment, and awarded separate damages of $5,000 each against East West and Manner. The jury found in favor of Appellees on all other claims. After the district court entered judgment, Gentry moved for a new trial, which the district court denied. This appeal followed.

On appeal, Gentry argues that the district court incorrectly instructed the jury on the causation standard for disability discrimination claims under the ADA and on the ADA's definitions of disability. She further argues that the district court erred in refusing to admit evidence of Appellees' liability insurance and indemnification. Finally, she contends that she is entitled to a new trial on damages for the claims on which she prevailed. Each contention is discussed in turn.

II.

We review challenges to jury instructions for abuse of discretion, bearing in mind that "a trial court has broad discretion in framing its instructions to a jury." Volvo Trademark Holding Aktiebolaget v. Clark Mach. Co., 510 F.3d 474, 484 (4th Cir.2007)

. "Instructions will be considered adequate if construed as a whole, and in light of the whole record, they adequately informed the jury of the controlling legal principles without misleading or confusing the jury to the prejudice of the [objecting] party." Bunn v. Oldendorff Carriers GmbH & Co. KG, 723 F.3d 454, 468 (4th Cir.2013) (quotation omitted). "We review de novo whether the district court's instructions to the jury were correct statements of law." Emergency One, Inc. v. Am. FireEagle, Ltd., 228 F.3d 531, 538 (4th Cir.2000). "Even if a jury was erroneously instructed, however, we will not set aside a resulting verdict unless the erroneous instruction seriously prejudiced the challenging party's case." Bunn, 723 F.3d at 468 (emphasis in original) (quotation omitted).

III.

Title I of the ADA prohibits employers from "discriminat[ing] against a qualified individual on the basis of disability in regard to ... the hiring, advancement, or discharge of employees." 42 U.S.C. § 12112(a)

. The district court instructed the jury that Gentry had to demonstrate that her disability was the "but-for" cause of her termination. Gentry argues that this was in error, as the court should instead have adopted Title VII's "motivating factor" causation standard.

Title VII...