Lust v. Sealy, Inc.

• Decision Date: 19 August 2003
• Docket Number: No. 02-C-50-C.,02-C-50-C.
• Citation: 277 F.Supp.2d 973
• Parties: Tracey LUST, Plaintiff, v. SEALY, INC., Defendant.
• Court: U.S. District Court — Western District of Wisconsin

277 F.Supp.2d 973

Tracey LUST, Plaintiff, v. SEALY, INC., Defendant.

No. 02-C-50-C.

United States District Court, W.D. Wisconsin.

August 19, 2003.

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Robert J. Gingras, Gingras, Cates & Luebke, S.C., Madison, WI, for Tracey Lust.

Lauri D. Morris, Quarles & Brady, Madison, WI, for Sealy, Inc.

OPINION AND ORDER

CRABB, District Judge.

This is a sex discrimination case brought pursuant to Title VII of the Civil Rights of Act of 1964, as amended, 42 U.S.C. § 2000e, and the Equal Pay Act, 29 U.S.C. § 206(d). Plaintiff Tracey Lust alleged that defendant Sealy, Inc. violated Title VII when it passed her over for a promotion in favor of a male. In addition, she alleged that defendant violated the Equal Pay Act by paying her less than males who performed equivalent work. In an opinion and order dated December 30, 2002, I granted defendant's motion for summary judgment in part and dismissed plaintiff's claim under the Equal Pay Act because she had failed to set forth specific facts showing that she and similarly situated males had received different rates of pay. However, I denied defendant's motion to dismiss plaintiff's Title VII claim because I concluded that a reasonable jury could find that defendant had discriminated against plaintiff on the basis of sex. A jury found defendant liable, awarding plaintiff $1500 in back pay, $100,000 for emotional distress and $1 million in punitive damages. In a judgment entered on February 25, 2003, I reduced the award to $301,500 pursuant to 42 U.S.C. § 1981a(b)(3). The statute limits punitive damages and certain types of compensatory damages to a total of $300,000, but the limitation does not include back pay. See Pals v. Schepel Buick & GMC Truck, Inc., 220 F.3d 495, 499 (7th Cir.2000).

Presently before the court are several motions filed by defendant to (1) enter judgment as a matter of law under Fed. R.Civ.P. 50(b) in favor of defendant on both liability and damages; (2) grant a new trial under Fed.R.Civ.P. 59(a) because the jury's verdict was against the greater weight of the evidence and because this court made erroneous evidentiary rulings that unfairly prejudiced defendant; and (3) amend the jury's verdict on both liability and damages under Fed.R.Civ.P. 59(e) and 60(b)(6). All of defendant's motions will be denied. First, I conclude that there was sufficient evidence for the jury to find that defendant's articulated reasons for not promoting plaintiff were pretextual and that defendant discriminated against plaintiff because of sex. Second, defendant has not shown that the jury's verdict was against the greater weight of the evidence or that the jury's decision was significantly influenced by any erroneous evidentiary rulings. Third, although the jury's damage awards were substantial, I cannot conclude that they must be reduced further than required under § 1981a(b)(3).

BACKGROUND

Defendant Sealy, Inc. hired plaintiff Tracey Lust as a sales coordinator in Madison, Wisconsin, in 1992. The following year defendant promoted her to territory manager 1. In 1995, it promoted her to territory manager 2. Plaintiff remained in Madison for both promotions.

After becoming a territory manager 2, plaintiff began telling her supervisor, Scott Penters, that she wanted to become a key account manager, which was the next level of promotion. Beginning in 1998, Penters began recommending to Al Boulden, the central region vice-president of sales, that plaintiff receive a promotion to key account manager. In fall 1999, Penters wrote a memo to Boulden, recommending plaintiff for a promotion again. Boulden did not promote plaintiff at this time.

In summer 2000, a key account manager position became available in Penters's sales district. The job was located in Chicago, Illinois and would service the account of a large retailer called Bedding Experts. Although plaintiff was initially on the list of candidates to fill the position, Penters's sole recommendation to Boulden for the promotion was Steve West, who had been a territory manager 2 since 1997. Boulden chose West.

After West was promoted in July 2000, Boulden and Penters transferred plaintiff to West's former territory, which was located in Madison and serviced the American TV account. Plaintiff remained a territory manager 2. When she received her evaluation from Penters in August 2000, she wrote in the employee comments section that she believed she had not been promoted because of gender discrimination. Plaintiff's comments were forwarded to Boulden, who spoke with plaintiff about her accusation on August 28, 2000. The following day, Boulden decided to promote plaintiff to key account manager. On September 26, 2000, Boulden gave plaintiff the option of being promoted on the American TV account or moving to Chicago on a different account. Plaintiff chose to stay with the American TV account.

OPINION

I. LIABILITY

A. Rule 50(b) Motion

Defendant argues first that no reasonable jury could find that defendant discriminated against plaintiff because of her sex and it is therefore entitled to judgment as a matter of law. Defendant brings its motion under Fed.R.Civ.P. 50(b), which provides:

If, for any reason, the court does not grant a motion for judgment as a matter of law made at the close of all the evidence, the court is considered to have submitted the action to the jury subject to the court's later deciding legal questions raised by the motion. The movant may renew its request for judgment as a matter of law by filing a motion no later than 10 days after entry of judgment— and may alternatively request a new trial under Rule 59.

A potential problem raised by this rule is that defendant never moved for judgment as a matter of law "at the close of all the evidence." Although defendant did make such a motion after plaintiff rested, the court of appeals has stated repeatedly that this is insufficient to satisfy the requirements of Rule 50. Rather, a party must move for judgment as a matter of law at the close of evidence or it waives the right to file a renewed motion after the jury returns its verdict, even if the party's failure does not prejudice the other side. Laborers' Pension Fund v. A & C Environmental, Inc., 301 F.3d 768 (7th Cir.2002); Mid-America Tablewares, Inc. v. Mogi Trading Co., 100 F.3d 1353, 1363-64 (7th Cir.1996); Downes v. Volkswagen of America, Inc., 41 F.3d 1132, 1139-40 (7th Cir.1994). The court of appeals has continued to adhere to this rule even while recognizing that other circuits "have taken a more forgiving view of harmless violations of the renewal requirement." Szmaj v. American Telephone & Telegraph Co., 291 F.3d 955, 957 (7th Cir.2002).

Defendant's failure to move for judgment as a matter of law would appear to require a denial of its Rule 50 motion, except for one thing. Plaintiff did not raise this argument in its brief with respect to liability. The requirements for preserving a Rule 50 motion are not self-enforcing; they are there to protect the non-moving party from a surprise motion that is not filed until it is too late to put in more evidence. Id. Thus, plaintiff's failure to assert its right means that it has waived the issue. See Collins v. State of Illinois, 830 F.2d 692, 698 (7th Cir.1987) (non-moving party waived requirement of Rule 50(b) when it failed to raise argument in trial court). I will address defendant's motion on its merits.

1. Rule 50 standard

In many ways, a motion for judgment as a matter of law is a replay of a motion for summary judgment. The fundamental question in deciding either motion is the same: on the basis of all the evidence presented, could a reasonable jury find in favor of the non-moving party? Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). The only difference is that, in deciding a Rule 50 motion, the court has the benefit of viewing the evidence as it has developed since summary judgment. Massey v. Blue Cross-Blue Shield of Illinois, 226 F.3d 922, 924 (7th Cir.2000).

In determining whether there is sufficient evidence to sustain the jury's verdict, I must view the evidence in the light most favorable to plaintiff. David v. Caterpillar, 324 F.3d 851 (7th Cir. 2003). Furthermore, in reviewing the jury's verdict, I may not assess whether the defendant's witnesses were more credible or persuasive. Massey, 226 F.3d at 924. Although a court must view the record as a whole, "it must disregard all evidence favorable to the moving party that the jury is not required to believe." Reeves v. Sanderson Plumbing Products, Inc., 530 U.S. 133, 151, 120 S.Ct. 2097, 147 L.Ed.2d 105 (2000) (quoting 9A Charles Alan Wright & Arthur R. Miller, Federal Practice & Procedure § 2529, at 300 (2d ed.1995)). The court should "give credence to the evidence favoring the nonmovant as well as that `evidence supporting the moving party that is uncontradicted and unimpeached, at least to the extent that that evidence comes from disinterested witnesses.'" Id. Therefore, I may not substitute my judgment for the jury's, even if I believe the jury's verdict is incorrect. Plaintiff's evidence need not be "overwhelming." David, 324 F.3d at 858. So long as a reasonable view of the evidence (not necessarily the most reasonable) supports the jury's findings, then defendant's motion for judgment as a matter of law must be denied.

Before addressing the merits of defendant's motion, it is important to take note of the Supreme Court's recent decision, Desert Palace, Inc. v. Costa, ___ U.S. ___, 123 S.Ct. 2148, 156 L.Ed.2d 84 (2003), which was decided after the trial in this case. In Desert Palace, the Court clarified what a plaintiff must do to prove that an employer "discriminate[d]" against her "because of" sex (or race, etc.). Under 42 U.S.C. § 2000e-2(m), which was enacted as part of the Civil Rights Act of 1991, to establish liability in a sex discrimination case, a...