Hall v. Consolidated Freightways Corp. of Delaware

• Court: U.S. Court of Appeals — Sixth Circuit
• Writing for the Court: Clay
• Citation: Hall v. Consolidated Freightways Corp. of Delaware, 337 F.3d 669 (6th Cir. 2003)
• Decision Date: 25 July 2003
• Docket Number: No. 00-4316.,No. 00-4431.,00-4316.,00-4431.
• Parties: James HALL, Plaintiff-Appellant/Cross-Appellee, v. CONSOLIDATED FREIGHTWAYS CORPORATION OF DELAWARE, Defendant-Appellee/Cross-Appellant.

337 F.3d 669

James HALL, Plaintiff-Appellant/Cross-Appellee, v. CONSOLIDATED FREIGHTWAYS CORPORATION OF DELAWARE, Defendant-Appellee/Cross-Appellant.

No. 00-4316.

No. 00-4431.

United States Court of Appeals, Sixth Circuit.

Argued June 14, 2002.

Decided and Filed July 25, 2003.

Edward L. Gilbert (argued and briefed), Slater, Zurz & Gilbert, Akron, OH, for Appellant.

Todd H. Lebowitz (argued and briefed), Jose C. Feliciano, Sr. (briefed), Baker & Hostetler, Cleveland, OH, for Appellee.

Before: DAUGHTREY and CLAY, Circuit Judges; WILLIAMS, Senior District Judge.^*

CLAY, J., delivered the opinion of the court, in which WILLIAMS, D.J., joined. DAUGHTREY, J. (p. 680), delivered a separate concurring opinion.

OPINION

CLAY, Circuit Judge.

In Case No. 00-4316, Plaintiff-Appellant/Cross-Appellee, James Hall, appeals from the district court's order granting in part the motion brought by Defendant-Appellee/Cross-Appellant, Consolidated Freightways Corporation of Delaware, under Federal Rule of Civil Procedure 50 for partial judgment as a matter of law or, in the alternative, to alter judgment, grant remittitur, or grant a new trial, following the jury verdict awarding Plaintiff $50,000 in compensatory damages and $750,000 in punitive damages in this case alleging race discrimination, wrongful termination, hostile work environment, and retaliation under state and federal law. Specifically, Plaintiff challenges the district court's order granting Defendant's Rule 50 motion as it relates to reducing Plaintiff's jury award from a total of $800,000 to $302,400 in order to comply with the federal statutory cap.

In Case No. 00-4431, Defendant cross appeals from the district court's order denying its Rule 50 motion as it relates to Plaintiff receiving punitive damages in any amount. Specifically, Defendant maintains that the evidence in this case did not support an award of punitive damages under federal or state law.

For the reasons set forth below, in Case No. 00-4316, we REVERSE the district court's order remitting plaintiff's jury award on punitive damages and REMAND with instructions for the court to reinstate the full jury award; in Case No. 00-4431, we AFFIRM the district court's order denying Defendant's Rule 50 motion for judgment as a matter of law regarding the award of punitive damages to Plaintiff.

STATEMENT OF FACTS

Procedural History

Plaintiff, a truck driver employed by Defendant since 1984, filed suit against Defendant on November 6, 1998, alleging race discrimination, racially hostile work environment, wrongful termination based on race, and retaliation in violation of Title VII of the 1964 Civil Rights Act, 42 U.S.C. § 2000e et seq., and in violation of Ohio Revised Code § 4112 et seq. The case was tried before a jury beginning on May 9, 2000. Ten days later, on May 19, 2000, the jury returned a verdict in favor of Plaintiff on all counts, and awarded Plaintiff$50,000 in compensatory damages and $750,000 in punitive damages.

Defendant filed a Rule 50 motion for partial judgment as a matter of law or, in the alternative, to alter judgment, grant remittitur, or grant a new trial. The district court granted Defendant's motion in part, by remitting the award of punitive damages to the federal statutory cap ($750,000 to $252,400). Plaintiff then filed this timely appeal, challenging the district court's order remitting the award of punitive damages. Defendant filed this timely cross-appeal challenging the district court's order denying partial judgment as a matter of law with respect to the award of punitive damages to Plaintiff in any amount.

Facts

Plaintiff began his employment as a truck driver at Defendant's facility located in Richfield, Ohio, in February of 1984. Plaintiff had an excellent work record, having missed only one day of employment in approximately fifteen years of service. Plaintiff claimed, however, that during the course of his employment, he had to endure numerous incidents of racist graffiti on company property, and numerous incidents of racial slurs such as having his supervisors profess to Plaintiff that he was a problem because of his race — African American. In addition, Plaintiff claimed that he was demeaned and harassed by co-workers without objection from supervisors.

After several years of enduring these racial attacks, Plaintiff filed a complaint with the Ohio Civil Rights Commission and the Equal Employment Opportunity Commission("EEOC") on December 27, 1996. Thereafter, according to Plaintiff, the incidences of racial harassment increased. For example a Klu Klux Klan symbol and membership card solicitation were placed on Plaintiff's locker. This escalated racial harassment led Plaintiff to file a second complaint of discrimination and retaliation on August 8, 1997.

About three months later, on November 7, 1997, Plaintiff was abruptly and in appropriately terminated for what Plaintiff characterized as minor and false reasons. Plaintiff claimed that the termination was actually in retaliation for his filing of the discrimination complaints, and because of his race. Plaintiff filed a third complaint of racial discrimination, and the Ohio Civil Rights Commission found probable cause to sue. In the meantime, through the union contract, it was ruled that Plaintiff's termination was improper and he was ordered reinstated to his job. Plaintiff was issued his right to sue letter on September 22, 1998, and this case ensued.

DISCUSSION

Case No. 00-4431—Cross-Appeal by Defendant¹

This Court reviews de novo a district court's decision to grant judgment as a matter of law pursuant to Rule 50(a) of the Federal Rules of Civil Procedure. See Monday v. Oullette, 118 F.3d 1099, 1101-102 (6th Cir.1997). In reviewing the decision, we must consider the evidence in the light most favorable to the nonmovant, giving that party the benefit of all reasonable inferences. See Tuck v. HCA Health Servs. of Tenn., 7 F.3d 465, 469(6th Cir. 1993). Accordingly, when faced with a Rule 50(a) motion, a district court may not weigh the evidence or make credibility determinations, as these are jury functions. See Lytle v. Household Mfg., Inc., 494 U.S. 545, 554-55, 110 S.Ct. 1331, 108 L.Ed.2d 504 (1990). A dismissal pursuant to Rule 50(a) is improper where the nonmovant presented sufficient evidence to raise a material issue of fact for the jury. See Sawchik v. E.I. DuPont Denemours & Co., 783 F.2d 635, 636 (6th Cir.1986) (citing O'Neill v. Kiledjian, 511 F.2d 511, 513 (6th Cir.1975)). In other words, the decision to grant judgment as a matter of law or to take the case away from the jury is appropriate "whenever there is a complete absence of pleading or proof on an issue material to the cause of action or when no disputed issues of fact exist such that reasonable minds would not differ." Id. Judgment as a matter of law pursuant to Rule 50(a) is appropriate only where "a party has been fully heard with respect to an issue and there is no legally sufficient evidentiary basis for a reasonable jury to have found for that party with respect to that issue." Fed.R.Civ.P. 50(a)(1).

For plaintiffs who did not obtain compensatory or punitive damages under 42 U.S.C. § 1981, but prevailed in a Title VII case other than one relying on a disparate impact theory of discrimination, § 1981a permits but limits such awards. See 42 U.S.C. §§ 1981(a)(1), 1981a(b)(3)(D) (capping compensatory and punitive damages, exclusive of any backpay award, at $300,000 for those defendants employing more than 500 employees). In adopting this provision, "Congress sought to expand the available remedies by permitting the recovery of compensatory and punitive damages in addition to previously available remedies, such as front pay." Pollard v. E.I. du Pont de Nemours & Co., 532 U.S. 843, 854, 121 S.Ct. 1946, 150 L.Ed.2d 62 (2001). To recover punitive damages under the statute, a plaintiff must demonstrate that his employer engaged in a discriminatory practice "`with malice or with reckless indifference to the [plaintiff's] federally protected rights.'" Kolstad v. Am. Dental Ass'n, 527 U.S. 526, 535, 119 S.Ct. 2118, 144 L.Ed.2d 494 (1999) (quoting 42 U.S.C. § 1981a(b)(1)and resolving circuit spilt by rejecting the argument that a defendant's conduct must be egregious to support an award of punitive damages). "Malice" and "reckless indifference" under the statute refer to "the employer's knowledge that it may be acting in violation of federal law, not its awareness that it is engaging in discrimination." Id. at 535, 119 S.Ct. 2118. That is, "in the context of § 1981a, an employer must at least discriminate in the face of a perceived risk that its actions will violate federal law to be liable in punitive damages." Id. at 536, 119 S.Ct. 2118.

In considering Defendant's Rule 50 motion with respect to the jury's award of punitive damages, the district court recognized that the Supreme Court's decision in Kolstad v. American Dental Ass'n, 527 U.S. 526, 119 S.Ct. 2118, 144 L.Ed.2d 494 (1999) was controlling, inasmuch as in Kolstad the Supreme Court clarified that standards to be applied when determining the appropriateness of punitive damages in a Title VII case. Specifically, the district court recognized that under Kolstad, "malice or reckless disregard for federally protected rights is sufficient to support a punitive damages award." (J.A. at 72.) In light of this, the district court opined:

The jury for this case was not a "runaway" jury in any sense of the word. It was an all white jury that heard the evidence as it was presented to them by both sides. There were numerous instances throughout the trial where the two parties to a conversation or meeting testified in a diametrically opposing fashion and the testimony could not be reconciled. The jurors had to conclude that one witness or the other was not telling the truth. They weighed the credibility of the witnesses and found Plaintiff and his witnesses to be more credible than Defendant...