Bryant v. Jeffrey Sand Co.

Facts

1. 12 Compensatory equitable punitive and fee remedies satisfied proved

   The evidence at trial revealed that Skaggs, Bryant's direct supervisor, engaged in a pattern of racially-motivated abuse. Skaggs taunted Bryant with racial slurs, calling him "nigger," "Kunte Kinte," "spear chucker," "monkey," "bitch," "porch monkey," and "boy," among other names. On at least some occasions, he uttered these epithets in the presence of other employees. Skaggs would give Bryant difficult tasks that he would not assign to the Cora 's white employees. Lambert testified that "a number of times," Skaggs would "get up in [Bryant's] face and use his chest to push [Bryant] around trying to get [Bryant] to fight him."

2. 12 Compensatory equitable punitive and fee remedies satisfied proved

   Bryant complained to his plant manager, Ken Bolton, twice and to the then-president of the company, Joe Wickliffe, four times regarding Skaggs's behavior. He testified that he received no response to his complaints. Bolton testified that, in response to a complaint from Bryant on May 4, 2012, he sent another employee, Randy Marshall, to the Cora for a few days in an attempt to corroborate Bryant's allegation that Skaggs was using racial slurs. After Marshall reported back that he had not heard any slurs, Bolton did no further investigation. Bolton did not attempt to interview Bryant or any other employees. Jeffrey Sand has no written anti-harassment or anti-discrimination policy and no human resources personnel.

3. 12 Compensatory equitable punitive and fee remedies satisfied proved

   On January 30, 2013, Clay McGeorge, then the sales director (and now the president) of Jeffrey Sand, received an anonymous email stating: "Hi Clay I want to remain anonymous but I would like to inform you about the racist comments I've overheard the foreman on dredge Cora make." McGeorge alerted Wickliffe and Bolton to the email and Bolton interviewed several employees. Lambert corroborated that Skaggs had made racist comments toward Bryant, but Bolton discounted Lambert as merely a disgruntled employee. Several other employees told Bolton that they had heard second-hand about Skaggs using racial slurs. Bateman, the other deckhand, later admitted that he had authored the anonymous email. He testified that he had not heard Skaggs make racist comments personally, but had heard Bryant complaining about it and believed Bryant's accusations. Bolton did not interview Bryant as part of his investigation. The company took no disciplinary action against Skaggs.

4. 12 Compensatory equitable punitive and fee remedies satisfied law

   The jury found in Bryant's favor and awarded him $ 1.00 in compensatory damages and $ 250,000 in punitive damages.

5. 12 Compensatory equitable punitive and fee remedies satisfied proved

   Under either Title VII or § 1981, an award of punitive damages requires the plaintiff to show that his employer engaged in a discriminatory practice with "malice" or "reckless indifference" to his federally protected rights. 42 U.S.C. § 1981a(b)(1) ; Kim v. Nash Finch Co., 123 F.3d 1046, 1063 (8th Cir. 1997). This standard may be satisfied when an employer exhibits reckless indifference toward discriminatory actions taken by those serving in a managerial capacity, MacGregor v. Mallinckrodt, Inc., 373 F.3d 923, 931 (8th Cir. 2004), or when a supervisor's "sufficiently abusive" behavior manifests malice, Ogden v. Wax Works, Inc., 214 F.3d 999, 1009-10 (8th Cir. 2000) (quoting Kimbrough v. Loma Linda Dev., Inc., 183 F.3d 782, 785 (8th Cir. 1999) ).

6. 12 Compensatory equitable punitive and fee remedies satisfied proved

   The award of punitive damages is supported by the record. Bryant repeatedly complained to supervisors that his manager, Skaggs, was using racial slurs. Those supervisors never interviewed Bryant in response to his complaints, even though Skaggs's comments evidenced a "clear intent" to discriminate against Bryant based on race. MacGregor, 373 F.3d at 932. Even when another employee corroborated Bryant's allegations, the company did not take any action to discipline Skaggs or prevent further harassment. Jeffrey Sand also lacked any formal or informal policy prohibiting workplace discrimination. The jury could have reasonably concluded from these facts that Jeffrey Sand exhibited reckless indifference to Bryant's rights. See Williams v. ConAgra Poultry Co., 378 F.3d 790, 796 (8th Cir. 2004) ("[W]hen the victim of harassment repeatedly complains to various supervisors of harassment and the harassment is not stopped, a submissible case on punitive damages has been made.").

7. 12 Compensatory equitable punitive and fee remedies satisfied law

   The next guidepost for our consideration is proportionality. While punitive damage awards are ordinarily within a single-digit multiple of the compensatory damage award, this ratio's usefulness diminishes when the jury awards only nominal damages. The Supreme Court has "consistently rejected the notion that the constitutional line is marked by a simple mathematical formula" comparing compensatory and punitive damages. Gore, 517 U.S. at 582, 116 S.Ct. 1589. "Punitive damages may withstand constitutional scrutiny when only nominal or a small amount of compensatory damages have been assigned, even though the ratio between the two will necessarily be large." JCB, Inc. v. Union Planters Bank, NA, 539 F.3d 862, 876 (8th Cir. 2008).

8. 12 Compensatory equitable punitive and fee remedies satisfied law

   The final factor for consideration is how the award compares to penalties authorized for similar misconduct. Jeffrey Sand emphasizes that, had Bryant brought his hostile-work-environment claim under Title VII, any award of punitive damages would be statutorily capped at $ 50,000 because the company has fewer than 101 employees. 42 U.S.C. § 1981a(b)(3)(A). But Bryant brought his claim under § 1981, so Jeffrey Sand was on fair notice that the jury's award could exceed the Title VII cap. See Williams, 378 F.3d at 798-99 (declining to find any "constitutionally required ratio between § 1981 damages awards and the Title VII cap"). Considering the egregiousness of Jeffrey Sand's conduct, the company should have been aware that the trial could result in a substantial monetary award if the jury concluded that one was "necessary to deter future misconduct." Gore, 517 U.S. at 584, 116 S.Ct. 1589. We conclude that the jury's punitive damages award was constitutionally sound.

9. 12 Compensatory equitable punitive and fee remedies satisfied law

   A prevailing party in a § 1981 action may be awarded a reasonable attorney's fee. 42 U.S.C. § 1988(b).

10. 12 Compensatory equitable punitive and fee remedies satisfied law

    Jeffrey Sand does not dispute that Bryant was the prevailing party at trial and that the hours expended by Bryant's counsel were reasonable. Instead, it argues only that the district court erroneously accepted the lodestar rate of $ 350 per hour based solely on Bryant's counsel's representation that he had been awarded fees at this rate in similar recent cases. Jeffrey Sand argues that the district court should have demanded a sworn affidavit attesting that this was his counsel's "normal" hourly rate.

11. 12 Compensatory equitable punitive and fee remedies satisfied law

    The law imposes no such requirement. Bryant's counsel averred that his requested rate was "reasonable and commensurate" with his qualifications and extensive experience. He supported that statement by providing a list of recent fee awards he had obtained, including one from only a few months prior in which the same district court had concluded his $ 350 rate was reasonable. Jeffrey Sand has produced no evidence undermining the reasonableness of the rate. The district court's decision to accept the rate as reasonable, in light of its own experience and knowledge, was not an abuse of discretion.