Jackson v. Bunge Corp.

• Decision Date: 18 November 1994
• Docket Number: Nos. 93-2022,93-2068 and 94-1144,s. 93-2022
• Citation: 40 F.3d 239
• Parties: 41 Fed. R. Evid. Serv. 672 Clarence JACKSON, Plaintiff-Appellee/Cross-Appellant, v. BUNGE CORPORATION, Defendant-Appellant/Cross-Appellee.
• Court: U.S. Court of Appeals — Seventh Circuit

Page 239

40 F.3d 239

41 Fed. R. Evid. Serv. 672

Clarence JACKSON, Plaintiff-Appellee/Cross-Appellant, v. BUNGE CORPORATION, Defendant-Appellant/Cross-Appellee.

Nos. 93-2022, 93-2068 and 94-1144.

United States Court of Appeals, Seventh Circuit.

Argued Sept. 22, 1994.

Decided Nov. 18, 1994.

John P. Womick, Mark A. Atkins, Womick & Associates, Gene Turk, Carbondale, IL (argued), for Clarence B. Jackson, in No. 93-2022.

Randall J. Rodewald, Mark A. Atkins, Womick & Associates, Gene Turk, Carbondale, IL (argued), for Clarence B. Jackson, in No. 93-2068.

John P. Womick, Womick & Associates, Gene A. Turk, Jr. (argued), Carbondale, IL, for Clarence B. Jackson in No. 94-1144.

Allan Goodloe, Jr. (argued), William A. Schmitt, Karen A. Carr, Thompson & Mitchell, Belleville, IL, for Bunge Corp.

Before CUMMINGS, ESCHBACH, and MANION, Circuit Judges.

ESCHBACH, Circuit Judge.

Defendant Bunge Corporation ("Bunge") appeals from final judgment entered after a jury verdict awarded $75,000 in compensatory damages to the plaintiff, Clarence Jackson. Bunge claims that the district court erred in denying its motions for judgment as a matter of law and its alternative motion for a new trial because Jackson failed to establish a prima facie case of retaliatory discharge for filing a workers' compensation claim under Illinois law. Bunge also argues that the district court erred in the following: admitting evidence of Bunge's net worth; excluding evidence of the arbitrator's decision; and refusing to grant Bunge's motion for summary judgment based on the arbitrator's decision. In addition, Jackson cross-appeals from the district court's decision to grant Bunge's motion for judgment as a matter of law on the issue of punitive damages. For the reasons stated below, we will affirm the district court on all grounds.

I.

Clarence Jackson had been employed as a boiler operator at Bunge's soybean processing plant since September, 1977. Both parties agree that the job of a boiler operator is a strenuous one that requires significant lifting, shoveling, bending and twisting. In slightly over ten years as a boiler operator with Bunge, Jackson suffered an on-the-job back injury on at least six separate occasions. His last injury, which is the injury in question, occurred on May 25, 1988. Jackson filed a workers' compensation claim on July 26, 1988. Prior to this last injury, Jackson had never filed a workers' compensation claim while employed at Bunge.

On May 25, 1988, Jackson was shoveling coal in the ordinary course of his job duties when he experienced lower back pain. He went to a local doctor, Dr. Gordon Eller, for treatment. Dr. Eller treated him and released him with a restriction to light duty during the summer of 1988. Bunge agreed to find light duty work for Jackson and first assigned him to mowing duty, riding on a tractor. This work actually aggravated Jackson's low back problem, so Bunge assigned him more passive light duty activities such as dusting machines and cleaning windows. Jackson continued such restricted light duty for almost eight months. On January 24, 1989, Jackson's supervisors determined that there was no productive work for him to do, and they sent him home without pay. Bunge had not fired Jackson at this point; but instead, the company had asked him to stay home until he recovered from his injury.

On June 1, 1989, Jackson presented Bunge with a note from Dr. Eller clearing Jackson to return to work without restrictions. In response to this return-to-work slip, Bunge's plant manager, Claude Rose, sent a letter to Dr. Eller outlining Jackson's normal job functions and asking whether Dr. Eller would still recommend an unrestricted release. Dr. Eller responded by letter on June 13, 1989 and reconfirmed Jackson's full medical clearance, even though he acknowledged the possibility that Jackson might have a recurrence of back pain. Bunge refused to allow Jackson to return to work.

On February 7, 1990, Dr. Eller issued another return-to-work slip on Jackson's behalf. Still, Bunge did not allow Jackson to return to work. On February 28, 1990, Jackson filed a grievance pursuant to his union's collective bargaining agreement. Jackson alleged that he was being prevented from working in violation of union rules. An arbitration hearing was held, and on April 14, 1991, an arbitrator ruled against Jackson. On April 24, 1991, Bunge officially fired Jackson.

On February 10, 1992, Jackson filed suit against Bunge Corporation in Illinois state court alleging that Bunge had terminated his employment in retaliation for the exercising of his rights under the Illinois Workers' Compensation Act. Ill.Rev.Stat. ch. 48, paras. 138.1-138.30 (1989). Jackson's complaint sought both compensatory and punitive damages. Bunge was able to remove the action to the United States District Court for the Southern District of Illinois because there was diversity jurisdiction under 28 U.S.C. Sec. 1332. ¹ A jury trial commenced on March 8, 1993.

At the close of plaintiff's evidence, Bunge filed two separate motions for judgment as a matter of law pursuant to Rule 50 of the Federal Rules of Civil Procedure. First, Bunge argued that Jackson had failed to establish a prima facie case of retaliatory discharge because he presented no evidence of Bunge's improper motive in terminating his employment. The district court denied this motion. Second, Bunge moved for a judgment as a matter of law on the issue of punitive damages. The district court granted this motion, and thus the jury was only allowed to award compensatory damages. At the close of all evidence, Bunge renewed its first motion for judgment as a matter of law. The court again denied the motion, and the case went to the jury.

The jury returned a verdict in favor of the plaintiff, awarding Jackson the stipulated compensatory damage amount of $75,000. Bunge filed a post-trial motion for judgment as a matter of law or, in the alternative, a new trial. The district court denied this motion in its entirety, and Bunge filed a timely notice of appeal. Jackson also filed a timely cross-appeal on the issue of punitive damages. We have jurisdiction pursuant to 28 U.S.C. Sec. 1291.

II.

A.

Bunge contends that it should have been granted judgment as a matter of law because the plaintiff failed to establish a prima facie case of retaliatory discharge. Thus, Bunge appeals the district court's denial of its motions for directed verdict at the close of the plaintiff's evidence and at the close of all the evidence, as well as the denial of its post-trial motion for judgment notwithstanding the verdict ("JNOV"). Bunge also appeals the district court's denial of its alternative motion for a new trial.

In diversity cases, state law supplies the standard to be applied to motions for directed verdict and JNOV. Krist v. Eli Lilly & Co., 897 F.2d 293, 297 (7th Cir.1990); Horton v. Miller Chemical Co., 776 F.2d 1351, 1355 (7th Cir.1985), cert. denied, 475 U.S. 1122, 106 S.Ct. 1641, 90 L.Ed.2d 186 (1986). According to Illinois law, which is the state law governing this case, a motion for directed verdict or JNOV should be granted only if "all of the evidence, when viewed in its aspect most favorable to the opponent, so overwhelmingly favors [the] movant that no contrary verdict based on that evidence could ever stand." Pedrick v. Peoria & Eastern R.R., 37 Ill.2d 494, 229 N.E.2d 504, 513-14 (1967). We review the district court's decision de novo and apply for ourselves the Pedrick standard to the evidence in the record. Trzcinski v. American Casualty Co., 953 F.2d 307, 313 (7th Cir.1992) (citing Eastman v. Chicago, Cent. & Pac. R.R., 930 F.2d 1173, 1176 (7th Cir.1991)).

It is well settled that Illinois law recognizes the tort of retaliatory discharge in cases in which an employee is terminated for filing a workers' compensation claim. Kelsay v. Motorola, Inc., 74 Ill.2d 172, 23 Ill.Dec. 559, 564, 384 N.E.2d 353, 358 (1978). Although the discharged employee in Kelsay was an "at-will" employee, Illinois case law has extended the scope of this tort action to apply to union workers as well. See Midgett v. Sackett-Chicago, Inc., 105 Ill.2d 143, 85 Ill.Dec. 475, 479, 473 N.E.2d 1280, 1284 (1984), cert. denied, 474 U.S. 909, 106 S.Ct. 278, 88 L.Ed.2d 243 (1985). In order to establish a claim of retaliatory discharge under Illinois law, Jackson must prove the following three elements: (1) he was an employee of Bunge prior to the injury; (2) he exercised a right granted by the Workers' Compensation Act; and (3) his discharge was causally related to the filing of a claim under the Act. Gonzalez v. Prestress Engineering Corp., 194 Ill.App.3d 819, 141 Ill.Dec. 606, 609, 551 N.E.2d 793, 796, appeal denied, 132 Ill.2d 544, 144 Ill.Dec. 257, 555 N.E.2d 376 (1990); Slover v. Brown, 140 Ill.App.3d 618, 94 Ill.Dec. 856, 858, 488 N.E.2d 1103, 1105 (1986). Moreover, under Illinois law, the element of causality is not satisfied if the employer has a valid basis for discharge which is not merely a pretext. Hartlein v. Illinois Power Co., 151 Ill.2d 142, 176 Ill.Dec. 22, 30, 601 N.E.2d 720, 728 (1992) (citations omitted).

Bunge's contention focuses solely on the third element, the element of "causality" or "improper motive." Specifically, Bunge argues that Jackson failed to show that Bunge's motive for discharging him was to retaliate against his filing of a workers' compensation claim. Bunge claims that its reason for discharging Jackson was because of medical concerns regarding his low back problem, and it relies on the decisions of Horton, 776 F.2d at 1359; Slover, 94 Ill.Dec. at 858, 488 N.E.2d at 1105; and La Porte v. Jostens, Inc., 213 Ill.App.3d 1089, 157 Ill.Dec. 745, 748, 572 N.E.2d 1209, 1212, appeal denied, 141 Ill.2d 543, 162 Ill.Dec. 491, 580 N.E.2d 117 (1991) for the proposition that termination of employment based on a plaintiff's physical condition is a valid basis for discharge and does not constitute retaliatory...