WILLIAM H. STEELE, Chief District Judge.
This matter comes before the Court for award of damages and entry of default judgment against defendant, TMI Management Systems, Inc.
Plaintiffs, Teneace Johnson and Teresa Johnson, brought this action against defendant, TMI Management Systems, Inc. ("TMI"), alleging employment discrimination on the basis of race and gender, as well as retaliation, all in violation of Title VII of the Civil Rights Act of 1964, 42 U.S.C. §§ 2000e et seq., as amended, and 42 U.S.C. § 1981. Although TMI initially appeared and defended against the Johnsons' claims, TMI abruptly ceased all efforts to participate in this action late in 2011. Defendant's counsel of record requested and received leave to withdraw, after which TMI failed to comply with multiple orders from Magistrate Judge Milling requiring it to retain new counsel to represent it herein. Although it has received multiple opportunities and invitations to do so, TMI has made no discernible effort to appear or defend in this action since January 2012.
In light of these facts and circumstances, the Clerk of Court entered a Clerk's Entry of Default (doc. 32) against TMI on March 1, 2012. TMI was given notice of the default, yet it did nothing. When defendant continued to ignore these proceedings, the undersigned entered an Order (doc. 34) granting plaintiffs' Motion for Default Judgment on April 18, 2012. All that remained was for the Court to fix damages, inasmuch as even in the default judgment context, "[a] court has an obligation to assure that there is a legitimate basis for any damages award it enters." Anheuser Busch, Inc. v. Philpot, 317 F.3d 1264, 1266 (11
To prove up their damages in this case, plaintiffs filed a supplemental evidentiary submission and memorandum (doc. 37) on July 18, 2012, plus additional affidavits (doc. 38) on August 1, 2012. Also, the Court held an evidentiary hearing on damages on July 25, 2012, at which time both plaintiffs testified as to their emotional distress, mental anguish, and other nonpecuniary compensatory damages. After careful consideration of all of this evidence, as well as the materials appended to plaintiffs' initial Motion for Default Judgment (doc. 33), the Court now makes the necessary factual and legal determinations for each category of damages as to which plaintiffs seek an award.
The record is clear that the only remedies plaintiffs are seeking consist of back pay, compensatory damages for nonpecuniary losses, and punitive damages.
With regard to back pay, the statute provides that, where an employer engages in an unlawful employment practice, the award may include "back pay (payable by the employer ... responsible for the unlawful employment practice)," but that "[i]nterim earnings or amounts earnable with reasonable diligence by the person or persons discriminated against shall operate to reduce the back pay otherwise allowable." 42 U.S.C. § 2000e-5(g)(1). By statute, a prevailing plaintiff may also be awarded compensatory damages (not including back pay or interest on back pay) for "future pecuniary losses, emotional pain, suffering, inconvenience, mental anguish, loss of enjoyment of life and other nonpecuniary losses." 42 U.S.C. § 1981a(b)(3). And a Title VII plaintiff may also "recover punitive damages ... if the complaining party demonstrates that the respondent engaged in a discriminatory practice or discriminatory practices with malice or with reckless indifference to the federally protected rights of an aggrieved individual." 42 U.S.C. § 1981a(b)(1). The latter two categories of damages (compensatory damages other than back pay, and punitive damages) are subject to a combined statutory cap of $300,000 per plaintiff. See 42 U.S.C. § 1981a(b)(3)(D).
This statutory language informs the Court's findings as to the Johnsons' entitlement to back pay, compensatory damages and punitive damages in this action.
"Successful Title VII claimants ... are presumptively entitled to back pay." Lathem v. Department of Children and Youth Services, 172 F.3d 786, 794 (11
In this Circuit, the appropriate calculation methodology for back pay awards in a Title VII case calls for computation on a quarter-by-quarter basis, as follows: "Loss of pay shall be determined by deducting from a sum equal to that which [the employee] would normally have earned for each such quarter or portion thereof, [her] net earnings, if any, in other employment during that period. Earnings in one particular quarter shall have no effect upon the back-pay liability for any other quarter." Kendrick v. Jefferson County Bd. of Educ., 13 F.3d 1510, 1512 (11
Teresa Johnson seeks back pay for the period of January 28, 2010 (the date on which TMI discharged her in violation of Title VII) through the present. Her evidence shows that, in the absence of unlawful discrimination, she would have been working 40 hours per week for TMI as a material handler, earning $11.22 per hour ($448.80 per week, or $5,834.40 per quarter). (Doc. 38, Exh. 1, ¶¶ 2-4.) Offset from those amounts are the wages Teresa Johnson actually earned during this time period, which included $80.00 for one day's work in late 2010; $4,080.00 for temporary work she performed for the U.S. Census Bureau in the second quarter of 2011; $5,262.40 in wages earned in each of the third and fourth quarters of 2011 ($10.12 per hour at 40 hours per week and 13 weeks per quarter); and $5,621.20 in wages earned each quarter in 2012 ($10.81 per hour at 40 hours per week and 13 weeks per quarter). After performing the necessary arithmetic, and adding in prejudgment interest at the rates specified by the NLRB, the Court finds that Teresa Johnson's total back pay award through today's date is
Teneace Johnson seeks back pay for the period of January 28, 2010 (the date on which TMI discharged her in violation of Title VII) through the present. Her evidence shows that, in the absence of unlawful discrimination, she would have been working 40 hours per week for TMI as a material handler, earning $11.22 per week ($448.80 per week, or $5,834.40 per quarter). (Doc. 38, Exh. 2, ¶¶ 2-4.) Offset from those amounts are the wages Teneace Johnson actually earned during this time period, which included $3,200.00 for temporary work she performed for the U.S. Department of Commerce in the second quarter of 2010 and $1,270.00 in monthly wages for Payne Elementary School from December 2011 through July 2012.
In addition to back pay, plaintiffs seek an award of nonpecuniary compensatory damages, to encompass emotional pain, suffering, inconvenience, mental anguish, loss of enjoyment of life, and other factors, as prescribed by 42 U.S.C. § 1981a(b)(3). At the damages hearing conducted on July 25, 2012, the undersigned heard testimony from both Teresa Johnson and Teneace Johnson bearing on this category of damages. In particular, Teresa Johnson testified as to how upset she was at having been passed over the material handler job in favor of less experienced white and/or male employees; that she felt embarrassed and hurt that TMI treated her "like she was nothing;" that she cried and was upset when TMI fired her; that she incurred stress and financial and emotional hardship because TMI had discharged her; and that it was difficult for her to obtain alternative employment because of unfavorable local economic conditions in Selma. Teneace Johnson's testimony at the hearing was quite similar, as she indicated that she was hurt and upset when TMI passed over her for material handler jobs in favor of less qualified white and/or male employees, that she cried when TMI fired her, that she had to borrow money from the bank and from family members to pay her bills, that she would sit home and cry because of the financial strain resulting from having been fired by TMI and being unable to find another job, and that she felt betrayed by TMI.
On the strength of this and other evidence presented at the July 25 damages hearing, and after careful analysis of the plaintiffs' testimony and demeanor, the Court finds that plaintiffs have made a showing that warrants an award of compensatory damages for emotional pain, suffering, inconvenience, mental anguish, and loss of enjoyment of life they incurred because of TMI's Title VII and § 1981 violations. Based on this evidence, the Court awards the sum of
The Johnsons also request an award of punitive damages. By statute, plaintiffs are eligible for an award of punitive damages only if they demonstrate that TMI "engaged in a discriminatory practice ... with malice or with reckless indifference to the federally protected rights of an aggrieved individual." 42 U.S.C. § 1981a(b)(1). In this context, "[m]alice means an intent to harm and recklessness means serious disregard for the consequences of one's actions." Ash v. Tyson Foods, Inc., 664 F.3d 883, 900 (11
In support of their claim for punitive damages, the Johnsons do not suggest that the wrongful conduct culminating in their discharge was performed by or known to upper management at TMI.
Plaintiffs characterize this policy as one "which made any complaint of discrimination a violation of company policy." (Doc. 37, at 3.) But such a sweeping generalization does not find support in the record. Plaintiffs were not fired for reporting discrimination to the EEOC, and they offer no evidence that TMI would have viewed such conduct as a violation of the policy. Nor did TMI contend that plaintiffs violated the "no contact" policy by complaining of discrimination internally. And plaintiffs do not maintain that their efforts to complain of unlawful discrimination (either within TMI or to the EEOC) were in any way impaired or stymied by the existence of TMI's "no contact" policy. Rather, taking the well-pleaded allegations of the pleadings as true, TMI's position was that plaintiffs were fired for conferring with FEMA site manager Ron Parten about their dissatisfactions with TMI's employment decisions. Contrary to plaintiffs' contentions, this "no contact" policy — whether on its face or as applied — does not evince malice or reckless indifference on the part of TMI to plaintiffs' rights to engage in protected activity under applicable provisions of Title VII and Section 1981. The Court can readily envision many applications of this policy that would in no way implicate the statutory proscription on retaliation. Moreover, the circumstances of this case do not reflect that plaintiffs complained to Parten because they were not comfortable voicing their dissatisfactions internally (on the contrary, they did just that by complaining directly to Tamara Todd), or that the policy was or would have been construed by TMI to bar them from complaining to the EEOC.
For these reasons, the Court finds that plaintiffs have not met their burden of establishing a right to an award of punitive damages in this case pursuant to 42 U.S.C. § 1981a(b)(1). No punitive damages will be awarded.
For all of the foregoing reasons, it is
Any petition for attorney's fees that plaintiffs may wish to present must be filed on or before