Tuesday, July 19, 2016

Sixth Circuit Affirms $170K Jury Verdict in Retaliation Lawsuit Where Wrong Entity Named as Defendant Employer


Earlier this month, the Sixth Circuit Court of Appeals affirmed a jury verdict of $170,250  in compensatory and punitive damages (and award of plaintiff attorney fees) in favor of a former female pilot who alleged that she had been unlawfully discharged under Ohio law for complaining about sexual harassment by other pilots.  Braun v. Ultimate Jetcharters LLC, No. 15-3462 (6th Cir. 7-8-16).   The Court found that the jury could reasonably rely on the plaintiff’s testimony about her verbal and email complaints and how she had been terminated shortly after the emailed complaint purportedly for engaging in conduct – which she denied – that was common among her co-workers but had never resulted in disciplinary action with them.  Finally, the Court affirmed the trial courts correction of the judgment to reflect the legal name of the defendant employer, which had litigated the case through a jury verdict without ever denying that the name in the caption was its legal name and then refused to pay the judgment on the grounds that the wrong entity had been named.

According to the Court’s opinion, the plaintiff was fired approximately three weeks after she complained about harassing behavior from her co-pilots. She had complained about her co-pilots giving her a hard time because she is a woman.  She followed up with an email referring to it as borderline harassment and asking that they be made to stop.  She was allegedly fired for using her cell phone in the cockpit, making steep altitude climbs, sending inappropriate emails and acting inappropriately while travelling (by dancing and drinking), etc.   She filed suit against her employer, but erroneously identified it as a corporation.  While her employer generally denied the allegations, it admitted that it had converted from a corporation to a limited liability company several years earlier.   The plaintiff did not amend her complaint and the defendant employer never sought judgment on the grounds that it had been inappropriately identified, but was successful in getting all claims dismissed except the retaliation claim under Ohio Revised Code 4112.02.  Even though the plaintiff was the only witness to testify on her own behalf and the employer proffered 14 witnesses (who apparently made damaging admissions on cross-examination), the jury found in her favor and she was also awarded attorney fees in an unspecified amount as the prevailing party.  When she attempted to collect her judgment, however, the defendant employer refused to pay on the grounds that she had named the wrong corporate entity.  Accordingly, she moved to conform the judgment to the evidence and her motion was granted.  This appeal was joined to the earlier appeal on liability.

The Court had no difficulty in finding that the plaintiff had engaged in protected “opposition” activity when she complained about the co-pilots harassment of her.  “Importantly, “[a] person opposing an apparently discriminatory practice does not bear the entire risk that it is in fact lawful; he or she must only have a good faith belief that the practice is unlawful.”  The Court also rejected the employer’s bizarre defense that it could not be liable for harassing conduct by her co-workers, that she was required to show that it was the cat’s paw of her co-workers and, therefore, her complaint about such harassment could not support a retaliation claim.  Although the employer argued that her complaints had been too vague to constitute a complaint about sexual discrimination, the Court found that she was specific enough in referring to harassment and mistreatment on the grounds her co-pilots objecting to working with a woman:

At trial, Plaintiff testified that during each of the four calls she made to Parsons, she explicitly relayed her belief that she was being mistreated by Rossi and Wells because she was female.  Indeed, Plaintiff testified that in the last of these calls, she told Parsons: “This is discrimination.  This is harassment.  [Rossi and Wells] are only doing this because they do not like to fly with women.”

Causation was easily shown by the temporal proximity of her emailed complaint and her termination: “this temporal proximity was coupled with Plaintiff’s testimony that she did not commit the errors for which she was purportedly terminated, or that some of those same errors were sometimes committed by non-terminated male coworkers.  Together, these facts were sufficient to establish the fourth element of Plaintiff’s prima facie case.”

The plaintiff was also able to demonstrate pretext by all three methods of proof:

“A plaintiff can demonstrate pretext by showing that the employer’s proffered reason for the adverse action (1) has no basis in fact, (2) did not actually motivate the defendant’s challenged conduct, or (3) was insufficient to warrant the challenged conduct.” 

In this case, the plaintiff

testified that many of her alleged wrongdoings had no basis in fact: she denied committing some of the procedural violations of which she was accused or explained that her actions did not actually deviate from standard procedures or violate regulations.  Plaintiff also testified that the alleged violations of procedures and regulations “did not actually motivate” her termination, id.; rather, Gordon told her that she was fired for sending “[i]nappropriate e-mails” and because her “[c]onduct while on the road while not performing job functions was not in line with [UJC’s] image.”  (R. 120, PageID 1666– 67.)  Finally, Plaintiff proffered evidence that, to the extent she may have violated procedures and regulations, such violations were “insufficient to warrant” her termination because they were commonplace among male employees who were not punished

The Court also affirmed the jury’s award of punitive damages.

“It is well-settled that [Ohio Rev. Code §] 4112.99 permits an award of punitive damages in a discrimination claim” brought under Ohio Rev. Code Chapter 4112.  Waddell v. Roxane Labs., Inc., No. 03AP-558, 2004 WL 1103710, at *13 (Ohio Ct. App. 2004).  To receive punitive damages, Ohio law requires a Plaintiff to prove by clear and convincing evidence, see Ohio Rev. Code § 2315.21(D)(4)), that the defendant possessed “actual malice.”  Preston v. Murty, 512 N.E.2d 1174, 1175 (Ohio 1987).  “[A]ctual malice . . . is (1) that state of mind under which a person’s conduct is characterized by hatred, ill will or a spirit of revenge, or (2) a conscious disregard for the rights and safety of other persons that has a great probability of causing substantial harm.”  Id. at 1176.

 Below, the district court held that Plaintiff adduced sufficient evidence of actual malice at trial because her evidence suggested that “UJC relied upon acceptable or routinely tolerated behavior to support its decision to terminate plaintiff’s employment, and . . . this decision came within weeks of plaintiff’s written report of alleged sexual harassment.”  (R. 163, PageID 2997.)  On review of the record, we agree with the district court that such evidence provided a sufficient basis on which the jury could find, by clear and convincing evidence, that UJC acted with actual malice when it terminated Plaintiffs’ employment.

Finally, the Court affirmed the Rule 60(a) decision to amend the judgment to identify the correct entity as the plaintiff’s employer in light of the evidence produced at trial by the employer, which never denied that it was the defendant in the lawsuit. “Indeed, in its motion for summary judgment, UJC referred to itself as “Ultimate Jetcharters, Inc.” and thereafter represented that that entity was Plaintiff’s former employer.”

NOTICE: This summary is designed merely to inform and alert you of recent legal developments. It does not constitute legal advice and does not apply to any particular situation because different facts could lead to different results. Information here can be changed or amended without notice. Readers should not act upon this information without legal advice. If you have any questions about anything you have read, you should consult with or retain an employment attorney.