Nos. 82-2444, 83-1073.United States Court of Appeals, Tenth Circuit.
May 28, 1985.
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Clark Waddoups, Salt Lake City, Utah (Stephen G. Crockett and Steven D. Smith, Salt Lake City, Utah, with him on the briefs), of Rooker, Larsen, Kimball Parr, Salt Lake City, Utah, for defendant-appellant.
Jeffrey C. Bannon, Atty. (David L. Slate, Gen. Counsel, Philip B. Sklover, Associate Gen. Counsel, and Vella M. Fink, Asst. Gen. Counsel, with him on the briefs; Johnny J. Butler, Acting Gen. Counsel, Vella M. Fink, Asst. Gen. Counsel, and Stephen P. O’Rourke, Atty., appearing on supplemental brief on remand), E.E.O.C., Washington, D.C., for plaintiff-appellee.
Appeal from the United States District Court for the District of Utah.
Before BARRETT, DOYLE and SEYMOUR, Circuit Judges.
SEYMOUR, Circuit Judge.
[1] The Equal Employment Opportunity Commission (EEOC) brought this action against Prudential Federal Savings and Loan (Prudential) alleging that Prudential violated the Age Discrimination in Employment Act (ADEA or the Act), 29 U.S.C. § 621 et seq. I. [4] CONCILIATION
[5] Prudential vigorously argues on appeal that the EEOC failed to satisfy its statutory
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duty to conciliate in good faith and consequently the trial court erred in failing to dismiss the action on this ground. The ADEA states that “[b]efore instituting any action under this section, the [EEOC] shall attempt to eliminate the discriminatory practice or practices alleged, and to effect voluntary compliance with the requirements of this chapter through informal methods of conciliation, conference, and persuasion.”29 U.S.C. § 626(b). This jurisdictional provision embodies “the congressional intent that enforcement be effected wherever possible without resorting to formal litigation.” Marshall v. Sun Oil Co., 592 F.2d 563, 565 (10th Cir.), cert. denied, 444 U.S. 826, 100 S.Ct. 49, 62 L.Ed.2d 33 (1979) (Sun Oil I).
[6] This court has recognized that the “ADEA is remedial and humanitarian legislation and should be liberally interpreted to effectuate the congressional purpose of ending age discrimination in employment.” Dartt v. Shell Oil Co., 539 F.2d 1256, 1260Page 1170
submitted by Prudential” regarding pretrial conciliation was misleading. Rec., supp. vol. I, 19-20. The court noted “Prudential’s almost intransigent resistance to any good faith negotiation and the efforts of the Commission attorney to at least open the door for meaningful conciliation.” Id. at 19. The court justifiably concluded that Prudential’s conduct at this meeting was an accurate reflection of its attitude in the earlier conciliation, and held that Prudential was in no position to object to a lack of good faith conciliation by the EEOC. We agree with this conclusion.
II. [10] THE PROPOSED PRETEXT INSTRUCTION
[11] Prudential requested the court to instruct the jury that if it found Prudential had offered reasonable factors other than age for the termination or demotion of the complaining employees, the jury had to find for Prudential unless it found that the EEOC had proven that Prudential’s explanation for the termination or demotion was a pretext for age discrimination. The court refused “on the theory that even though the jury finds that the explanation of financial difficulties and the necessity for reorganization or other explanations were not mere pretext, if they also find that age discrimination was a determinative factor, the jury could not be peremptorily instructed to decide for the defendant.” Rec., vol. VIII, at 956.
[14] Perrell, 726 F.2d at 656. In the instant case the jury was properly and thoroughly instructed that the EEOC had to prove that “the age of the employee in question was a determinative factor in defendant’s decision to discharge him. That is . . . but for his age, he would not have been so treated.” Rec., vol. XV, at 1111. We conclude that the court’s instructions accurately set out the relevant legal standards. [15] Moreover, we agree with the trial judge’s reason for refusing Prudential’s pretext instruction. An ADEA plaintiff is not required to show that age was the sole motivating factor in the employment decision. Hagelthorn v. Kennecott Corp., 710 F.2d 76, 82 (2d Cir. 1983); Blackwell, 696 F.2d at 1181; Cancellier v. Federated Department Stores, 672 F.2d 1312, 1315-16 (9th Cir.), cert. denied, 459 U.S. 859, 103 S.Ct. 131, 74 L.Ed.2d 113 (1982); Smithers v. Bailar, 629 F.2d 892, 898 (3rd Cir. 1980). Thus a plaintiff need not prove that the reasons offered by the defendant are false if he proves that age was also a reason, and that age was the factor that made a difference Hagelthorn, 710 F.2d at 82; see Perrell, 726 F.2d at 656. The instruction requested by Prudential could have misled the jury into thinking that even though it found age to be the determinative factor, it nonetheless would be required to return a verdict for Prudential unless the EEOC also proved that Prudential’s reasons were invalid. Consequently, the trial court properly rejected it.“The essence of the correct formulation of the standard of proof is that it requires the jury to focus on the effect of the factor of age. The jury must understand that it is not enough that age discrimination figure in the decision to demote or discharge; age must `make a difference’ between termination and retention of the employee in the sense that, `but for’ the factor of age discrimination, the employee would not have been adversely affected.”
III. [16] SUFFICIENCY OF THE EVIDENCE
[17] Prudential argues that the evidence was insufficient to support the jury verdict
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in favor of Tanner. A judgment notwithstanding the verdict is appropriate only when “the evidence points but one way and is susceptible to no reasonable inferences which may sustain the position of the party against whom the motion is made.” Symons v. Mueller Co., 493 F.2d 972, 976 (10th Cir. 1974). In making this evaluation, the court must construe the evidence and inferences most favorably to the nonmoving party, id., and “cannot weigh the evidence, consider the credibility of witnesses or substitute its judgment for that of the jury.” Joyce v. Atlantic Richfield Co., 651 F.2d 676, 680 n. 2 (10th Cir. 1981). “[S]ince the grant of such a motion deprives the nonmoving party of a determination of the facts by a jury, judgment notwithstanding the verdict should be cautiously and sparingly granted.” Id. at 680. Upon review of the record under the above standards, we conclude that a judgment notwithstanding the verdict is unwarranted.
[18] When both parties have fully presented their evidence, the “central question is whether plaintiff has presented sufficient evidence to permit a reasonable fact-finder to conclude that age was a determinative factor in the employer’s decision.”Hagelthorn, 710 F.2d at 81; see also United States Postal Service Board of Governors v. Aikens, 460 U.S. 711, 103 S.Ct. 1478, 1482, 75 L.Ed.2d 403 (1983). In this case the EEOC offered statistical evidence of a significant association between age and discharge, as well as evidence of statements made by Prudential’s president and other management personnel, which the jury reasonably could construe as suggesting that age played a determinative role in the company’s selection of employees for termination. In addition, the EEOC’s evidence tended to prove that real estate foreclosure activity was substantial at this time due to the economic climate, and that several younger employees carried on Tanner’s work after his departure. Although this evidence was not undisputed, it obviously was accepted by the jury and clearly is sufficient to allow a reasonable factfinder to decide that age was a determinative factor in Tanner’s discharge.IV. [19] FUTURE DAMAGES
[20] In its entry of judgment on the jury verdict, the trial court awarded Tanner $17,000 “as lost retirement and pension benefits accruing through normal retirement, in lieu of reinstatement.” Rec., vol. II, at 477. On appeal, Prudential contends that an award of future damages is not authorized by the ADEA, and that even if such damages could be awarded, they were improper in this case because Tanner did not sincerely request reinstatement.
[22] 29 U.S.C. § 626(b) (emphasis added). The FLSA provides the district courts with power to restrain violations of the act Id. § 217. The most pertinent provision, section 216(b), provides:“The provisions of [the ADEA] shall be enforced in accordance with the powers, remedies, and procedures provided in sections 211(b), 216 (except for subsection (a) thereof), and 217 of [the FLSA], and subsection (c) of this section . . . . Amounts owing to a person as a result of a violation of this chapter shall be deemed to be unpaid minimum wages or unpaid overtime compensation for purposes of sections 216 and 217 of this title. . . .“
[23] Id. § 216(b). However, the ADEA makes a significant addition to the FLSA remedies by providing that“Any employer who violates the provisions of [the Act] shall be liable to the employee or employees affected in the amount of their unpaid minimum wages, or their unpaid overtime compensation, as the case may be, and in an additional equal amount as liquidated damages.”
[24] Id. § 626(b) (emphasis added). [25] The courts disagree on whether future damages in lieu of reinstatement are available under the ADEA. See, e.g., O’Donnell v. Georgia Osteopathic Hospital, Inc., 574 F. Supp. 214, 216-19“In any action brought to enforce this chapter the court shall have jurisdiction to grant such legal or equitable relief as may be appropriate to effectuate the purposes of this chapter, including
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without limitation judgments compelling employment, reinstatement or promotion, or enforcing the liability for amounts deemed to be unpaid minimum wages or unpaid overtime compensation under this section.”
[29] 560 F. Supp. at 1168 (footnotes omitted). We agree. The power to grant equitable relief provided in the ADEA clearly stands in addition to the monetary relief available under the FLSA sections and is expressly stated to be without limitation. When we read this section as a whole and construe it liberally, as we must see Dartt, 539 F.2d at 1260, we conclude that the legal and equitable remedies available under the ADEA are not limited either to those specifically listed or to those available under the FLSA, so long as the relief is “appropriate to effectuate the purposes of [the Act].” 29 U.S.C. § 626(b). [30] We held in Blim that reinstatement is the preferred remedy under the ADEA and should be ordered whenever it is appropriate. 731 F.2d at 1479; see also Gibson, 695 F.2d at 1101 Cancellier, 672 F.2d at 1319. Reinstatement may not be appropriate, however, when the employer has exhibited such extreme hostility that, as a practical matter, a productive and amicable working relationship would be impossible.“The manifest purpose of this broad grant of legal and equitable power is to enable the courts to fashion whatever remedy is required to fully compensate an employee for the economic injury sustained by him. The power so granted is sufficient to authorize an award of future loss of earnings in appropriate cases. To deny that authority would defeat a purpose of the Act to make a victim of discrimination `whole’ and to restore him to the economic position he would have occupied but for the unlawful conduct of his employer. To deny such authority would remove a deterrent force against future violations.”
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See, e.g., Dickerson v. Deluxe Check Printers, Inc., 703 F.2d 276, 281 (8th Cir. 1983); Cancellier, 672 F.2d at 1319-20; Whittlesey v. Union Carbide Corp., 567 F. Supp. 1320, 1330 (S.D.N.Y. 1983); Hoffman v. Nissan Motor Corp., 511 F. Supp. 352, 355 (D.N.H. 1981). Under such circumstances, an award of future damages in lieu of reinstatement furthers the remedial purposes of the ADEA by assuring that the aggrieved party is returned as nearly as possible to the economic situation he would have enjoyed but for the defendant’s illegal conduct. See Ventura v. Federal Life Insurance Co., 571 F. Supp. 48, 50 (N.D.Ill. 1983). If this were not the case, an employer could avoid the purpose of the Act simply by making reinstatement so unattractive and infeasible that the wronged employee would not want to return.[2] See, e.g., Cancellier, 672 F.2d at 1319-20.
[31] We recognize that future damages have been criticized as uncertain and speculative. See, e.g., Foit v. Suburban Bancorp, 549 F. Supp. 264, 267 (D.Md. 1982). However, given our conclusion that they are available under the ADEA, “[t]he mere fact that damages may be difficult of computation should not exonerate a wrongdoer from liability. `The most elementary conceptions of justice and public policy require that the wrongdoer shall bear the risk of the uncertainty which his own wrong has created.'”Koyen, 560 F. Supp. at 1169 (quoting Bigelow v. RKO Radio Pictures, 327 U.S. 251, 265, 66 S.Ct. 574, 580, 90 L.Ed. 652[34] Rec., vol. II, at 452. The record contains evidence to support this contention.[3] However, the district judge did not state why future damages are more appropriate than reinstatement. The trial court must make this assessment in the first instance. Accordingly, we remand for the court to reconsider its award of future pension benefits in light of our decision in Blim and the analysis set forth above, and to articulate the evidence and rationale underlying its decision.“Front pay is requested in lieu of reinstatement in that the defendant has steadfastly refused to consider reinstatement as a remedy since the date of receipt of Mr. Tanner’s charge of discrimination. It has been two and one-half (2 1/2) years since Mr. Tanner’s discharge and defendant’s expressed hostile attitude toward its former employees, both during conciliation attempts and at trial, makes reinstatement a virtual impossibility as a remedy.”
V. [35] THE WILLFULNESS INSTRUCTION
[36] The ADEA, 29 U.S.C. § 626(b), provides that amounts owing to a person as
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a result of a violation of the Act are deemed unpaid minimum wages or unpaid overtime compensation for purposes of section 216 of the FLSA. Under section 216, an employer who violates the FLSA is liable for these amounts plus “an additional equal amount as liquidated damages.”[4] Id. § 216(b). However, the ADEA provides that “liquidated damages shall be payable only in cases of willful violations of this chapter.” Id. § 626(b).
[37] In this case the trial court instructed the jury that[38] Rec., vol. XV, at 1121-22. On appeal the EEOC contends that this instruction erroneously imposed too strict a standard by requiring proof that the employer specifically intended to violate the law. We agree.[5] The Supreme Court recently considered the standard for ascertaining willful violations of the ADEA in Trans World Airlines, Inc. v. Thurston,“A willful violation occurs when a person acts with specific intent to violate the law, where with knowledge of the law he proceeds, or it proceeds to violate the law knowingly and intentionally.
“In other words, you can find willful discrimination for age, or willful violation of the law, only if you find both that Prudential violated the law by discharging or reassigning complaining employees because of their age, and that Prudential knew, or should have known at the time that it decided to discharge or reassign the complaining employees, that such decisions and actions were in violation of the law and were intentionally and knowingly done in violation thereof.”
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company was willful as a matter of law. Upon reconsideration of the record before us in light of the definition adopted i Thurston, we conclude that we cannot resolve the issue of willfulness as a matter of law. Accordingly, we remand so that this determination may be made by the finder of fact under th Thurston standard.
VI. [41] CONCLUSION
[42] The judgment is affirmed insofar as it awards plaintiff $34,200 in lost wages. It is reversed for improper jury instructions on the issue of liquidated damages, and the case is remanded for further proceedings in light of Thurston. The judgment is also reversed insofar as it awards plaintiff $17,000 in future pension and retirement benefits, and the case is remanded for reconsideration of this relief in light of this opinion.
[46] In Plyler v. Doe, 457 U.S. 202, 242, 102 S.Ct. 2382, 2408, 72 L.Ed.2d 786 (1982) the Supreme Court observed that “[T]he Constitution does not constitute us [the Justices of the Supreme Court of the United States] as `Platonic Guardians’ nor does it vest in this Court the authority to strike down laws because they do not meet our standards of desirable social policy, `wisdom,’ or `common sense.'” In like manner the court should be ever cautious not to play the role of a superlegislature.The front pay damages are too uncertain to be considered “lost wages” or “lost earned benefits.” The possibilities of promotions, legitimate demotions, terminations, or death inject too many unknowns. In these circumstances the award of front pay is too speculative to be considered pecuniary damages under the statute. The enforcement section of the ADEA was specifically constructed to limit the type of available damages. As mentioned, although the statute grants broad equitable powers those powers cannot be used to expand the legal remedies specifically detailed in the statute. Id. at 1481.
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