Greenbaum v. Svenska Handelsbanken, Ny
Decision Date | 23 September 1997 |
Docket Number | No. 95 Civ. 3850(SS).,95 Civ. 3850(SS). |
Parties | Victoria GREENBAUM, Plaintiff, v. SVENSKA HANDELSBANKEN, NY, Defendant. |
Court | U.S. District Court — Southern District of New York |
Robert E. Sapir, Cooper, Sapir & Cohen Melville, New York, Donald L. Sapir, Sapir & Frumkin, LLP., White Plains, New York, Robert T. McGovern, Louis S. Santangelo, Steven R. Shapiro, of Counsel, for plaintiff.
Peter N. Hillman, Debra M. Patalkis, Chadbourne & Parke, LLP., New York City, Jonathan M. Sobel, Mitchell P. Hurley, Of Counsel, for defendant.
The above-referenced action was tried before a jury from April 28, 1997 to May 12, 1997. On May 16, 1997, the jury rendered a verdict in favor of plaintiff on her claims of gender discrimination and retaliation and against plaintiff on her claims of sexual harassment and age discrimination. The jury awarded plaintiff $320,000.00 in back pay and $1,250,000.00 in punitive damages. The parties then filed post-trial motions, including defendant's motion regarding the correct standard of proof for punitive damages under New York law and the appropriate cap on punitive damages under Title VII, and plaintiff's motions for prejudgment interest, front pay or reinstatement. Plaintiff has also filed a motion for reasonable attorneys' fees, which motion will be addressed at a later date.
Plaintiff Victoria Greenbaum, age 47, was formerly an assistant vice president in the trading room of defendant Svenska Handelsbanken, New York ("SNY"). SNY is the New York branch office of a much larger banking corporation known as Svenska Handelsbanken AB ("SHB"), headquartered in Stockholm, Sweden. After repeatedly being denied promotion to vice president at SNY, plaintiff brought an action in the Southern District claiming that the defendant violated her rights under Title VII and the equivalent provisions of the New York Human Rights Law and New York City Administrative Code. Plaintiff alleged that she was denied promotions and other benefits afforded other employees because of her gender and her age. She also claimed that she was subjected to a hostile work environment and that she was retaliated against because of her filing of an administrative complaint with the New York State Division of Human Rights.
The jury was charged on all of plaintiff's claims. Because the state of the law with respect to the appropriate burden of proof for establishing punitive damages under state law was unclear, the Court charged the jury with two evidentiary standards, charging punitive damages under a preponderance standard for plaintiff's Title VII claim and under a clear and convincing standard for plaintiff's claim under the New York City Administrative Code. As noted above, the jury found in favor of plaintiff on her gender discrimination and retaliation claims, but against her on all other claims. They awarded compensatory damages and punitive damages under the federal preponderance standard, but they declined to award punitive damages under the clear and convincing standard charged under state law. The instant post-trial motions followed.
One court has recently recognized that "New York law on burden of proof in deciding punitive damages is unclear." Geressy v. Digital Equipment Corp., 950 F.Supp. 519, 522 (E.D.N.Y.1997); see also Richard L. Blatt et al., Punitive Damages: A State-by-State Guide to Law and Practice § 8.42 (1993 & 1996 Supp.) (). The federal and state court cases on the question are mired in a morass of ambiguity. Often, both New York and federal courts applying New York law have invoked the wanton and malicious substantive standard of conduct relating to punitive damages, see, e.g., Geressy, 950 F.Supp. at 522 ( ), without discussing the evidentiary standard of proof applicable thereto. See, e.g., United States v. Merritt Meridian Construction Corp., 95 F.3d 153, 160 (2d Cir.1996) ( ); Cleveland v. Beltman North American Co., Inc., 30 F.3d 373, 376 (2d Cir.1994) (, )cert. denied, 513 U.S. 1110, 115 S.Ct. 901, 130 L.Ed.2d 785 (1995); Riordan v. Nationwide Mutual Fire Ins. Co., 977 F.2d 47, 56 (2d Cir.1992) ( ), certified question withdrawn due to mootness, 984 F.2d 69 (2d Cir.1993); MaGee v. Paul Revere Life Ins. Co., 954 F.Supp. 582, 588 (E.D.N.Y.1997) ( ); New York Univ. v. Continental Ins. Co., 87 N.Y.2d 308, 315-16, 639 N.Y.S.2d 283, 287, 662 N.E.2d 763, 767 (1995) ( ); Rocanova v. Equitable Life Assurance Soc'y of the United States, 83 N.Y.2d 603, 613, 612 N.Y.S.2d 339, 342-43, 634 N.E.2d 940, 943-44 (1994) ( ); Home Ins. Co. v. American Home Prods. Corp., 75 N.Y.2d 196, 201, 551 N.Y.S.2d 481, 484, 550 N.E.2d 930, 933 (1990) ( ); Mulder v. Donaldson, Lufkin & Jenrette, 208 A.D.2d 301, 308-09, 623 N.Y.S.2d 560, 564-65 (1st Dept.1995) ( ).
Adding to the confusion, the Second Circuit has tacitly endorsed both instructions that charge juries with preponderance of the evidence, see, e.g., Denny v. Ford Motor Co., 42 F.3d 106, 110 (2d Cir.1994) ( ); Vasbinder v. Ambach, 926 F.2d 1333 (2d Cir. 1991) ( ), and instructions that charge juries with the clear and convincing standard. See, e.g., Racich v. Celotex Corp., 887 F.2d 393, 397 (2d Cir.1989) ( ); Brink's, Inc. v. City of New York, 717 F.2d 700, 706 n. 4 (2d Cir.1983) ( ).
Where the cases do specify a particular burden of proof with respect to punitive damages — as opposed to merely quoting trial court jury instructions that charge either standard — the authorities are also in conflict. Some cases call for application of the preponderance standard. See Simpson v. Pittsburgh Corning Corp., 901 F.2d 277, 282-283 (2d Cir.) (, )cert. dismissed, 497 U.S. 1057, 111 S.Ct. 27, 111 L.Ed.2d 840 (1990); United States v. Hooker Chemicals & Plastics Corp., 850 F.Supp. 993, 1003 (W.D.N.Y.1994) (); Lawrence v. Cade & Saunders, 149 F.R.D. 14, 17 (N.D.N.Y. 1993) ( ); Corrigan v. Bobbs-Merrill Co., 228 N.Y. 58, 66-67, 126 N.E. 260, 264 (1920) ( ); In re Seventh Judicial District Asbestos Litig., 190 A.D.2d 1068, 1069, 593 N.Y.S.2d 685, 687 (4th Dept.1993) ( )(citing cases and contrary authority in Camillo); Frechette v. Special Magazines, 285 A.D. 174, 176, 136 N.Y.S.2d 448, 451 (3rd Dept.1954) ( ).
Other courts have applied a clear and convincing evidence standard for punitive damages under New York law. See Roginsky v. Richardson-Merrell, Inc., 378 F.2d 832, 850-51 (2d Cir.1967) (...
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