Filed: Jan. 26, 2012
Latest Update: Feb. 22, 2020
Summary: JOSé ALFONSO SERRANO MU OL DE AUXILIO MUTUO DE PUERTO RICO, INC.; See Reeves, 530 U.S. at 179-49.hospital or in any other hospital in Puerto Rico. See, e.g., Gonzalez v. El Dia, Inc., 304 F.3d 63, 69 (1st, Cir.instructions issued to the jury warrant a new trial.Court case; is a negligence, claim .
United States Court of Appeals
For the First Circuit
No. 08-1887
JOSÉ ALFONSO SERRANO MUÑOZ,
Plaintiff, Appellee,
v.
SOCIEDAD ESPAÑOLA DE AUXILIO MUTUO Y BENEFICIENCIA DE PUERTO
RICO; HOSPITAL ESPAÑOL DE AUXILIO MUTUO DE PUERTO RICO, INC.;
ÁNGEL COCERO-SANCHÉZ; URBANO RICO-MOLINERO; RAMÓN DELGADO-RUIBAL;
MOISÉS SUÁREZ; VALENTÍN VALDERRÁBANO; MIGUEL ECHENIQUE;
ALFREDO HERES; EMILIO TORRES ANTUÑANO,
Defendants, Appellants,
IVÁN COLÓN; ENRIQUE FIERRES; JOSÉ ISADO,
Defendants.
APPEAL FROM THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF PUERTO RICO
[Hon. Gustavo A. Gelpí, U.S. District Judge]
Before
Lipez, Baldock* and Howard,
Circuit Judges.
Gregory T. Usera, with whom Pedro E. Giner-Dapena and Usera
Morell Bauzá Dapena & Cartagena were on brief, for appellants.
Enrique J. Mendoza Méndez, with whom Cesar T. Andreu Megwinoff
and Alvaro R. Calderon, Jr. were on brief, for appellees.
January 26, 2012
*
Of the Tenth Circuit, sitting by designation.
HOWARD, Circuit Judge. This is a retaliation case under
the Age Discrimination in Employment Act of 1967 (ADEA), 29 U.S.C.
§ 623(d) (2006), and Puerto Rico's general tort statute known as
Article 1802, P.R. Laws Ann. tit. 31, § 5141 (2008). In 1998, Dr.
José Alfonso Serrano Muñoz sued his employer Auxilio Mutuo Hospital
in a Puerto Rico court, alleging that the hospital had
discriminated against him because of his age. In 2004, one day
after Serrano was deposed in connection with that lawsuit, the
hospital terminated his employment. Serrano then brought the
present action in federal court, alleging that he was terminated in
retaliation for his pending lawsuit and related 2004 deposition
testimony. A jury agreed with Serrano and he was awarded nearly $2
million. On appeal, the defendants challenge the denial of their
renewed motion for judgment as a matter of law (JMOL) and several
other rulings. Although our reasoning differs in certain respects
from that of the court below, we affirm.
I. BACKGROUND1
The hospital is a leading medical facility in San Juan,
Puerto Rico. It is owned and operated by defendants Sociedad
Española de Auxilio Mutuo y Beneficiencia de Puerto Rico, Inc.
(SEAM) and Hospital Español de Auxilio Mutuo de Puerto Rico, Inc.
1
We state the facts in the light most favorable to the jury
verdict. Whitfield v. Meléndez-Rivera,
431 F.3d 1, 3 (1st Cir.
2005).
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(HEAM).2 In 1978, the hospital hired Serrano as a cardiologist.
He rose to become director of the hospital's Noninvasive
Cardiovascular Laboratory (NICL) and its Invasive Cardiovascular
Laboratory (ICL), both of which he had helped establish. Beginning
in 1979, Serrano also engaged in private practice in leased office
space on the hospital's grounds.
In 1997, the hospital relieved Serrano of his
directorship of ICL, although his position in NICL remained intact.
According to the hospital, it was expanding and modernizing and
wanted Serrano to focus on his responsibilities as director of
NICL. Serrano concluded that this decision was the result of age
discrimination. In 1998, he sued the hospital in local court, but
he continued to serve as director of NICL and maintain his private
practice.
Previously, Serrano had requested permission from the
hospital to acquire an electrocardiography machine for use in his
private practice. Miguel Echenique, SEAM's executive director,
sent Serrano a letter denying that request. According to the
letter, the hospital's policy, set forth in its lease contracts
with doctors, was not to allow individual doctors to keep
"expensive equipment which [the hospital] already had and where
2
SEAM both owned and operated the hospital until 1992, when
HEAM took over hospital operations, including human resources.
SEAM, however, continued to retain title to the hospital's real
estate. The two entities are run independently by separate boards.
-3-
services were being rendered." The letter added, however, that the
hospital would allow "doctors to have their own equipment for the
practice of each speciality in the medical office building which is
currently under construction." In 2001, Serrano moved his practice
to the new medical office building, known as Torre Médica. In
August 2003, he acquired an electrocardiography machine for use at
Torre Médica and began conducting a majority of echocardiograms
there rather than referring patients to NICL. By performing the
tests at his office, Serrano could bill patients' insurance
companies for test production fees that the hospital otherwise
would have collected.
Soon after Serrano acquired the machine, the hospital
noticed a decline in the number of outpatient diagnostic tests
conducted by NICL. An annual productivity report using statistics
prepared by hospital staff revealed that the lab conducted five
percent fewer such tests from October 2002 to September 2003 than
it had from October 2001 to September 2002, and that, during the
2002–2003 fiscal year, it conducted progressively lower numbers of
echocardiograms. HEAM's administrator, Iván Colón, ordered a
breakdown of the number of echocardiograms performed by each of the
hospital's cardiologists. Colón concluded that Serrano's hospital
lab numbers had dropped by the largest percentage, and that the
decline correlated with Serrano's purchase of the
electrocardiography machine for his private practice.
-4-
On December 29, 2003, Colón presented his findings at
HEAM's monthly board meeting. According to the minutes, board
members expressed their dissatisfaction that Serrano was competing
directly with the hospital by producing his own echocardiograms.
The board was further dissatisfied that Serrano had indicated --
during a previous deposition in yet another litigation pertaining
to an unrelated property dispute with the hospital -- that he was
not concerned about whether he was diverting production fees from
the hospital. During the meeting, Ángel Cocero Sanchéz, the
chairman of HEAM's board of directors, added that "Dr. Serrano
show[ed] a constant dissatisfaction with the services rendered by
the Hospital, and is opposed and openly criticizes -- verbally and
in writing -- all the Hospital's initiatives." The board then
voted unanimously to terminate Serrano's employment "in order not
to continue and [sic] putting the Hospital at risk and damaging its
best interests." It designated Colón to deliver the news to
Serrano "at the moment he consider[ed] to be best."
On January 19, 2004, still unaware of the board's
decision to terminate him, Serrano gave a deposition in connection
with the 1998 lawsuit. Among other things, he detailed the
hospital's alleged acts underlying his discrimination claim.
According to Serrano, the deposition was far from cordial and ended
in a "heated fashion" over scheduling. The next day Serrano
received a terse letter from Colón notifying him that his
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employment was terminated immediately; the letter did not offer any
reason for his termination. At trial Colón explained that he
waited to inform Serrano of the board's decision because of his own
prescheduled vacation soon after the December 29 board meeting.
Colón returned in mid January and, unaware of Serrano's deposition,
chose January 20 to deliver the news based on Serrano's light
schedule that day.
In 2005, Serrano brought the present action against SEAM,
HEAM, and the individual members of HEAM's board. During trial the
defendants moved orally for JMOL, without success. See Fed. R.
Civ. P. 50(a). The jury returned a verdict in favor of Serrano on
both his ADEA and Article 1802 claims. It awarded Serrano
$1,000,000 in compensatory damages, $267,400 in back pay, and
$267,400 in liquidated damages. The defendants then renewed their
motion for JMOL and, in the alternative, moved for a new trial.
See Fed. R. Civ. P. 50(b), 59(a). The court denied those motions
as well. Later the court awarded Serrano $250,979.41 in front pay
and $139,906.25 in attorney's fees, bringing his total award to
nearly $2 million. This appeal followed.
II. DISCUSSION
We begin with the ADEA claim, turn next to Article 1802,
and conclude by briefly addressing a few remaining issues.
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A. Retaliation under the ADEA
The defendants first argue that their renewed motion for
JMOL should have been granted with respect to Serrano's retaliation
claim under the ADEA. They say that Serrano failed to establish
even a prima facie case of retaliation, because there was no
evidence of any causal connection between his conduct and his
termination. In particular, they observe that the board's decision
to terminate Serrano predated his 2004 deposition, and contend that
the filing of the 1998 lawsuit itself was far too temporally
remote. According to the defendants, that conduct could not have
contributed to the board's decision as a matter of law.
We review de novo a district court's denial of a motion
for JMOL. Che v. Mass. Bay Transp. Auth.,
342 F.3d 31, 37–38 (1st
Cir. 2003). Such review encompasses all of the evidence in the
record, but not "evidence favorable to the moving party that the
jury is not required to believe." Reeves v. Sanderson Plumbing
Prods., Inc.,
530 U.S. 133, 151 (2000). That is, we must disregard
evidence supporting the moving party unless it is both
uncontradicted and unimpeached. Id.; see generally 9B Charles Alan
Wright and Arthur R. Miller, Federal Practice and Procedure § 2529
(3d ed. 2008) (collecting cases and discussing Reeves). In
performing this examination, we draw all reasonable inferences in
favor of the nonmoving party and "resist the temptation to weigh
the evidence or make our own credibility determinations." Zachar
-7-
v. Lee,
363 F.3d 70, 73 (1st Cir. 2004). We may reverse the denial
of such a motion "only if reasonable persons could not have reached
the conclusion that the jury embraced." Sanchez v. P.R. Oil Co.,
37 F.3d 712, 716 (1st Cir. 1994).
We begin with the basics. In addition to prohibiting age
discrimination, the ADEA protects individuals who invoke the
statute's protections. See 29 U.S.C. § 623(d). Where there is no
direct evidence of retaliation, we, as do other courts, often
follow the familiar McDonnell Douglas framework.3 Under that
framework, the plaintiff must first make "a prima facie showing
that (i) he engaged in ADEA-protected conduct, (ii) he was
thereafter subjected to an adverse employment action, and (iii) a
causal connection existed between the protected conduct and the
adverse action."4 Mesnick v. Gen. Elec. Co.,
950 F.2d 816, 827
(1st Cir. 1991). If the plaintiff makes out a prima facie case of
retaliation, "the burden shifts to the defendant to articulate a
legitimate, nondiscriminatory reason for its employment decision."
Id. If the defendant presents such a reason, then "the ultimate
burden falls on the plaintiff to show that the employer's proffered
3
See McDonnell Douglas Corp. v. Green,
411 U.S. 792 (1973);
see also Vélez v. Thermo King de P.R., Inc.,
585 F.3d 441, 447 &
n.2 (1st Cir. 2009) (discussing the application of the McDonnell
Douglas framework in ADEA cases).
4
The defendants conceded at trial that the first two elements
were met.
-8-
reason is a pretext masking retaliation for the employee's
opposition to a practice cast into doubt by the ADEA."
Id.
Although the defendants cast their argument in terms of
Serrano's failure to make out a prima facie case, that is not the
correct focus at this juncture. The McDonnell Douglas framework is
not a religious rite; it is "merely a sensible, orderly way to
evaluate the evidence in light of common experience as it bears on
the critical question of [retaliation]." Furnco Constr. Corp. v.
Waters,
438 U.S. 567, 577 (1978). Once that question "has been
submitted to a jury, the burden-shifting framework has fulfilled
its function, and backtracking serves no useful purpose."
Sanchez,
37 F.3d at 720; see also U.S. Postal Serv. Bd. of Govs. v. Aikens,
460 U.S. 711, 715 (1983) ("Where the defendant has done everything
that would be required of him if the plaintiff had properly made
out a prima facie case, whether the plaintiff really did so is no
longer relevant."). Cf. Cumpiano v. Banco Santander P.R.,
902 F.2d
148, 155 (1st Cir. 1990) (noting the "essential pointlessness" of
such backtracking in comparable circumstances). The focus then
becomes whether a jury reasonably could have inferred, by a
preponderance of the evidence, that Serrano was terminated because
of his protected conduct. See 29 U.S.C. § 623(d);
Reeves, 530 U.S.
at 149-51.
The defendants are right that Serrano's 2004 deposition
cannot support an inference of causality. Absent special
-9-
circumstances not present here, an adverse employment decision that
predates a protected activity cannot be caused by that activity.
E.g., Sabinson v. Trs. of Dartmouth Coll.,
542 F.3d 1, 5 (1st Cir.
2008) (no causality when adverse employment decision was made two
months before the plaintiff filed a complaint). This is also true
-- again, there are exceptions -- when the adverse employment
decision was contemplated but "not yet definitively determined"
before the protected activity took place. See Clark Cnty. Sch.
Dist. v. Breeden,
532 U.S. 268, 272 (2001) ("Employers need not
suspend previously planned transfers upon discovering that a Title
VII suit has been filed, and their proceeding along lines
previously contemplated, though not yet definitively determined, is
no evidence whatever of causality.").
Here, the board decided to terminate Serrano about three
weeks before his deposition. The board was unaware of that
deposition when it decided to terminate him, and so was Colón when
he eventually delivered the news to Serrano. All this was
uncontroverted at trial and Serrano does not claim otherwise on
appeal. To be sure, Colón's dispatch the day after a heated
deposition in a lawsuit about the hospital's alleged discrimination
turned out to be incredibly poor timing. But it is not evidence of
retaliation.
Removing that piece of evidence makes this case a much
closer call. The defendants say that filing a complaint more than
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five years before an adverse employment decision, as Serrano did
here, is too remote to establish causality. That is true as far as
it goes, and if that were the only remaining evidence of
retaliation Serrano would have a problem. See
id. at 273
(recognizing that temporal proximity, standing alone, must be "very
close"); Rodríguez v. Boehringer Ingelheim Pharm., Inc.,
425 F.3d
67, 84 (1st Cir. 2005) (two-month gap too remote);
Mesnick, 950
F.2d at 828 (nine-month gap too remote); Oliver v. Digital Equip.
Corp.,
846 F.2d 103, 110–11 (1st Cir. 1988) (thirty-four–month gap
too remote). Yet the 1998 filing itself was but one of several
pieces of evidence that Serrano presented at trial. When all of
these pieces are viewed together and in Serrano's favor, they form
a mosaic that is enough to support the jury's finding of
retaliation.
For example, consider Echenique's letter concerning the
use of specialized equipment. Although it denied Serrano's request
to have his own electrocardiography machine on hospital grounds,
the letter did state in general terms that doctors would be allowed
to have their own equipment at Torre Médica. Serrano testified
that he later purchased the machine based on his understanding that
the letter authorized him to do so once he moved his practice, and
the jury was free to interpret the letter in the same way. Yet
Echenique himself voted with the rest of the board in favor of
Serrano's termination, purportedly on the basis that Serrano was
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competing with the hospital. The jury conceivably could have
rejected that non-discriminatory explanation and inferred
retaliatory motive. See
Reeves, 530 U.S. at 179-49. And that
inference appears reasonable in light of other evidence that at
least four doctors associated with the hospital had similar
equipment in their offices. Although these doctors may not have
been situated exactly as Serrano, the fact that he alone was
disciplined for common conduct could have suggested to the jury
that Serrano was singled out.
The evidence also showed that Serrano had an impeccable
reputation earned over more than two decades at the hospital.
Serrano said so at trial, and the chairman and sole member of the
board to testify, Cocero, agreed with Serrano's characterization.
Despite that reputation, however, the board terminated Serrano
without giving him an opportunity to defend himself. Serrano
suggested that this was a departure from the usual practice,
although he made little effort to substantiate that assertion. In
all events, the jury was not required to believe that doctors like
Serrano were usually terminated so abruptly, and it could have
viewed the lapse as further evidence of retaliation. See
id.
Moreover, it became apparent at trial that some of the statistics
introduced by the defendants to justify the board's decision were
created within a few months after that decision had been made. The
defendants responded that those statistics were based on figures
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originally presented to the board, but they did not provide an
indisputably convincing explanation for the timing. Although one
could search for legitimate reasons, the irregular timing could
have suggested to the jury that a cover-up was afoot.
Other circumstantial evidence points in a similar
direction. Serrano testified at trial that, before he filed the
1998 lawsuit, Echenique told him that if he were to sue the
hospital he "would no longer be allowed to work either in that
hospital or in any other hospital in Puerto Rico." Although this
was an isolated remark made more than five years before Serrano's
termination, Echenique was part of the collective that ultimately
carried out the threat. See
Mesnick, 950 F.2d at 828
(circumstantial evidence includes "comments by the employer which
intimate a retaliatory mindset").5 Serrano further testified that,
after he filed the 1998 lawsuit, there was "a record of hostility"
and "every month the relations [between the hospital and him] would
get colder and colder." This testimony was vague and Serrano
5
The defendants contend that it was actually Enrique Fierres,
the chairman of SEAM's board at the time, who made this statement.
If true, the statement would be less indicative of retaliatory
animus because Fierres was not a member of HEAM's board and there
is no evidence that he was involved in the decision to terminate
Serrano. See, e.g., Gonzalez v. El Dia, Inc.,
304 F.3d 63, 69 (1st
Cir. 2002) ("[S]tatements made either by nondecisionmakers or by
decisionmakers not involved in the decisional process, normally are
insufficient, standing alone, to establish either pretext or the
requisite discriminatory animus."). But the defendants offer no
basis whatsoever to support their contention (e.g., transcription
error), and we see no reason to believe that Serrano misspoke.
-13-
offered little by way of example (one such example was a suggestion
that he received an onslaught of "letters" from the hospital
administration that interfered with his practice). Still, the jury
was free to consider that testimony, for what it was worth, as part
of the total package.
All told, the evidence presented at trial was enough to
support the jury's finding of retaliation. Although that finding
was not inevitable on this record, we are not permitted to second-
guess the jury's assessment.
B. Fault/Negligence under Article 1802
The appellants next contend that the district court
should have granted their post-trial motion for JMOL as to
Serrano's Article 1802 cause of action. See Article 1802, P.R.
Laws Ann. tit. 31, § 5141. Specifically, they advance the
following five claims of error: that (1) the cause of action was
time barred, having been filed after the expiration of Article
1802's one-year statute of limitations; (2) the application of
Article 1802 -- which, according to the appellants, was merely a
ruse to obtain otherwise unavailable compensatory damages -- is
barred by the exclusive remedies of the ADEA and its Puerto Rico
analog, Act 115, P.R. Laws Ann. tit. 29, § 194a; (3) the court
failed to apply the heightened standard of "gross negligence,"
required where, as here, the defendants are directors of a (Puerto
Rico) corporation; (4) the evidence was generally insufficient to
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establish a cognizable Article 1802 claim; and (5) erroneous
instructions issued to the jury warrant a new trial. We address
these arguments seriatim.
1. Statute of Limitations
Whether Serrano's Article 1802 claim was time barred need
not detain us. Although the appellants did raise this issue at the
close of evidence, they failed to assert it in their renewed post-
verdict motion. Thus, the argument is unequivocally waived. See
United States v. Rodriguez,
311 F.3d 435, 437 (1st Cir. 2002) ("A
party who identifies an issue, and then explicitly withdraws it,
has waived the issue.").
2. Exclusive Remedy Bar
In inverse sequence, the appellants failed to raise the
exclusivity argument at the close of evidence, instead reserving
its initial articulation for their post-verdict motion.6 We have
held in no uncertain terms that such failure to raise an issue
prior to a Rule 50(b) motion for judgment as a matter of law,
without more, results in a waiver of that issue on appeal. See,
e.g., Casillas-Díaz v. Palau,
463 F.3d 77, 81 (1st Cir. 2006)
(adopting plaintiffs' contention that defendants "ha[d] waived
their [argument] by not raising it until their post-trial motion
for judgment as a matter of law"); Larch v. Mansfield Mun. Elec.
6
The appellants raised the issue for the first time not in
their actual Rule 50(b) motion, but rather in their response to the
plaintiff's reply to the motion.
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Dep't,
272 F.3d 63, 71-72 (1st Cir. 2001) (same); see also James W.
Moore, 5A Moore's Federal Practice ¶ 50.08 (2d ed. 1994) ("[A]ny
argument omitted from the [Rule 50(a)] motion made at the close of
evidence is waived as a ground for judgment under Rule 50(b).").
Moreover, finding a waiver is particularly appropriate under the
present circumstances, where the appellants not only failed to
timely raise the argument, but also expressly stipulated in a joint
proposed pretrial order that Article 1802 negligence was a
contested issue of law to be addressed at trial, and filed proposed
jury instructions on the Article 1802 claim.
Even were we to deem the appellants' belated argument
forfeited rather than waived, however, we would find no plain error
here. See generally United States v. Turbides-Leonardo,
468 F.3d
34, 38 (1st Cir. 2006) (holding that forfeiture of an argument
compels plain error review). We explain briefly.
The crux of the appellants' exclusivity claim is that,
pursuant to Puerto Rico case law, Article 1802 -- the
Commonwealth's broad general tort statute -- may not be invoked
concurrently with special labor laws, which they describe the ADEA
and Act 115 as, unless the tortious or negligent conduct alleged
under Article 1802 is sufficiently distinct from that covered by
the paired employment statute. In support of this argument, the
appellants rely principally upon a single unreported district court
order, issued after the conclusion of the trial in this case and
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mere weeks prior to the district court's denial of their Rule 50(b)
motion. See Rosario v. Valdes,
2008 WL 509204 (D.P.R. Feb. 21,
2008) (unpublished order).
In Rosario, the plaintiff brought an action under, inter
alia, Act 80, P.R. Laws Ann. tit. 29, § 185 (wrongful dismissal
act), Act 100, P.R. Laws Ann. tit 29, § 146 (employment
discrimination act), and Article 1802, alleging sexual harassment
by her employer. The court, itself relying on a few paragraphs
from a 1994 Puerto Rico Supreme Court case, Santini Rivera v. Serv.
Air., Inc., 137 D.P.R. 1 (P.R. 1994), opined that "to the extent
that a specific labor law covers the conduct for which a plaintiff
seeks damages, he is barred from using that same conduct under
Article 1802. An additional claim under Article 1802 may only be
brought by the employee-plaintiff if it is based on tortious or
negligent conduct distinct from that covered by the specific labor
law(s) invoked." Rosario,
2008 WL 509204, at *2.
We have held, on rare occasions, that a court's failure
to recognize and apply, sua sponte, well-established case law can
be so "clear or obvious" as to constitute plain error. See, e.g.,
Chestnut v. City of Lowell,
305 F.3d 18 (1st Cir. 2002) (en banc)
(per curiam) (holding that a court's failure to recognize existing
Supreme Court precedent and preclude, sua sponte, the availability
of punitive damages for a 42 U.S.C. § 1983 claim, was sufficiently
clear and obvious to amount to plain error); see also United States
-17-
v. Kasenge,
660 F.3d 537, 541 (1st Cir. 2011) (noting that one of
the elements of plain error is that the error be "clear or
obvious"). The district court's error here -- if error at all --
was neither clear nor obvious.
While the contested punitive damages issue in Chestnut
was known to the court, having been affirmatively raised by the
court in the parties' presence but subsequently ignored, there is
no suggestion that the trial court in this case should have known
about the preemption argument proposed here. Further, in Chestnut,
the issue had been decisively dispatched in a decades-old Supreme
Court case; by contrast, the present topic of bar by exclusive
remedy had been discussed only in an unpublished district court
order issued after the trial had already concluded.7 Thus,
although the District of Puerto Rico has since held that a single
tort claim cannot serve as the basis for simultaneous damages under
Act 115 and Article 1802, see, e.g., Nieves Perez v. Doctors'
Center Bayamon, No. 09-2212,
2011 WL 1843057, at *7 (D.P.R. May 16,
2011), that case is not an appellate decision, and the issue was
far from clear at the time of Serrano's trial, see, e.g., Pagan-
Alejandro v. PR ACDelco Serv. Ctr., Inc.,
468 F. Supp. 2d 316
(D.P.R. 2006) (considering an Article 1802 claim concurrently with
7
To the extent that the court might have considered the
Rosario order in its analysis of the appellants' Rule 50(b) motion,
it declined to consider the merits, correctly deeming the argument
waived. See
Larch, 272 F.3d at 71-72.
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claims, based on the same conduct, under specific Puerto Rico
employment statutes).8
The requirements for plain error are extremely demanding,
and "in this circuit, it is rare indeed . . . to find plain error
in a civil [matter]."
Chestnut, 305 F.3d at 20. This case is no
exception. We conclude that, in light of the relative obscurity of
Rosario, the paucity of jurisprudence on the issue at the time of
trial, the fact that the issue was never raised by either party,
and the appellants' own affirmative trial conduct acknowledging
Article 1802 as a viable cause of action throughout the
proceedings, the court's allowance of the Article 1802 claim did
not constitute plain error. See United States v. Marino,
277 F.3d
11, 32 (1st Cir. 2002) (declining to find plain error where the law
was unsettled).
3. "Gross Negligence" Standard
We turn next to the appellants' contention that the jury,
pursuant to the court's purportedly erroneous instructions, applied
a standard of general negligence, rather than the required gross
8
Indeed, at the time of Serrano's trial, there was also
language in some cases suggesting that such a bar might exist only
where the text of the employment statute being invoked provides
explicitly that its remedies are exclusive -- language that is not
evident in Act 115. See, e.g., Melendez v. KMart Corp., No. Civ.
04-1067,
2006 WL 696082, at *6 (D.P.R. Mar. 17, 2006) (unreported
opinion and order) (ordering plaintiff to "show cause why the
causes of action under Article[] 1802 . . . should not be dismissed
considering settled case law indicating . . . Act 80's nature as
the provider of exclusive remedies, thus, preempting causes of
action under Article[] 1802") (emphasis added).
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negligence standard, in imposing liability on HEAM's board members
in their individual capacity. Our cases hold that because this
claim was not raised in either of the appellants' motions for JMOL,
it has been effectively waived. See Rodríguez-García v. Miranda-
Marín,
610 F.3d 756, 766 n.10 (1st Cir. 2010), cert. denied, 131 S.
Ct. 1016 (2011); Parker v. Gerrish,
547 F.3d 1, 12 (1st Cir. 2008).
Even assuming, arguendo, that this claim was merely
forfeited, it is still subject to the plain error test, which in
this case is but an alternative path to the same result. To meet
the requirements of plain error, the appellants must show (1) an
error that was (2) clear or obvious and not only (3) affected the
appellants' substantial rights but also (4) seriously impaired the
fairness, integrity, or public reputation of the proceedings --
something akin to a miscarriage of justice. United States v.
Torres-Rosario,
658 F.3d 110, 116 (1st Cir. 2011). Given the facts
underpinning this argument, the appellants cannot hope to meet this
stringent standard.
At the close of trial, the appellants requested, in
pertinent part, the following jury instructions to be issued on the
applicable negligence standard:
Defendants' Proposed Jury Instruction No. 36
Civil Code of Puerto Rico, Article 1802
The standard of liability for this cause of
action is a negligence standard. [. . .]
Negligence under the law of Puerto Rico means
failure to use reasonable care which
essentially translated into not anticipating
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and not foreseeing the rational consequences
of an act or of a failure to act which a
prudent and reasonable person could have
foreseen under the same circumstances.
Defendants' Proposed Jury Instruction No. 37
Fault for Negligence - Defined
Another cause of action filed against the
individual defendants . . . is a negligence
claim . . . . The standard of liability for
this cause of action is a negligence standard.
[. . .] Negligence under the law of Puerto
Rico means failure to use reasonable care
which essentially translates into not
anticipating and not foreseeing the rational
consequences of an act or of a failure to act
which a prudent and reasonable person could
have foreseen under the same circumstances.
Thus, refined to its essence, the appellants invite us to
find that the court's substantial incorporation of their own
proposed instructions, rather than issuing, sua sponte, completely
divergent gross negligence instructions, constituted at the very
least a miscarriage of justice. We decline the invitation. "Where
a defendant does not offer a particular instruction, and does not
rely on the theory of defense embodied in that instruction at
trial, the district court's failure to offer an instruction on that
theory sua sponte is not plain error." United States v. Alberico,
559 F.3d 24, 27 (1st Cir. 2009). It necessarily follows that
where, as here, a defendant not only fails to offer a particular
instruction, but proposes an alternative instruction which the
court substantially adopts -- and the embodiment of which the
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defendant espoused throughout the trial proceedings -- no plain
error has occurred.
4. Sufficiency of the Evidence
Article 1802 provides that "[a] person who by act or
omission causes damage to another through fault or negligence shall
be obliged to repair the damage so done." P.R. Laws Ann. tit. 31,
§ 5141. In order to prevail on this theory, the plaintiff must
show "(1) evidence of physical or emotional injury, (2) a negligent
or intentional act or omission (the breach of duty element), and
(3) a sufficient causal nexus between the injury and defendant's
act or omission (in other words, proximate cause)." Vázquez-
Filippetti v. Banco Popular de P.R.,
504 F.3d 43, 49 (1st Cir.
2007) (construing Puerto Rico law).
As with Serrano's retaliation claim, a reasonable jury
could have found fault or negligence on the part of the board. The
board based its decision to terminate Serrano in part on his
testimony in a deposition concerning an unrelated property dispute
with the hospital; but none of the board members bothered to read
the deposition transcript, instead relying on characterizations of
Serrano's testimony from the hospital's lawyer who was present at
the deposition (and adverse to Serrano). Moreover, the board never
gave Serrano an opportunity to defend himself, despite his twenty-
plus years of service and impeccable reputation. Instead, the
board had its fiat delivered in a terse and impersonal letter more
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than three weeks after the fact. Finally, Serrano testified that,
as a result of his termination, he experienced anxiety, bouts of
depression, and trouble sleeping, all of which was corroborated at
trial by Serrano's wife. This comprised a sufficient basis for the
jury's Article 1802 finding.
5. Erroneous Jury Instructions
The appellants' request for a new trial fares no better.
The first proposed ground for a new trial is that all instructions
concerning Article 1802 were wrong. That ground, however, is
premised entirely on their waived argument that Article 1802 has no
place in this case, and in any event it lacks adequate independent
development. See United States v. Zannino,
895 F.2d 1, 17 (1st
Cir. 1990) ("[I]ssues adverted to in a perfunctory manner,
unaccompanied by some effort at developed argumentation, are deemed
waived."). The second ground, somewhat more specific than the
first, is that the court improperly instructed the jury on the
proximate cause element of Article 1802. We see no material
difference, however, between the proximate-cause instruction
proposed by the defendants and the one that the court ultimately
delivered, and we are satisfied that the court's choice of language
adequately explained the concept. Accordingly, there was no abuse
of discretion. See McDonough v. City of Quincy,
452 F.3d 8, 21
(1st Cir. 2006).
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C. Remaining Claims
We briefly address the remaining arguments, which pertain
mostly to damages.
First, the appellants argue that the jury's $1 million
compensatory damages award warrants remittitur or, in the
alternative, a new trial on damages. "We will not disturb an award
of damages because it is extremely generous or because we think the
damages are considerably less." Koster v. Trans World Airlines,
Inc.,
181 F.3d 24, 34 (1st Cir. 1999). Rather, "[w]e will only
reverse an award if it is so grossly disproportionate to any injury
established by the evidence as to be unconscionable as a matter of
law."
Id. Here, the award may well have overcompensated Serrano,
but in these circumstances we cannot say that it was unconscionable
or that the court abused its wide discretion in refusing to disturb
the jury's calculus. See Gasperini v. Ctr. for Humanities, Inc.,
518 U.S. 415, 433 (1996) (abuse of discretion standard).
Second, the appellants argue that the court's front-pay
award of approximately $250,000 was an abuse of discretion. Front
pay is "money awarded for lost compensation during the period
between judgment and reinstatement or in lieu of reinstatement."
Pollard v. E.I. du Pont de Numours & Co.,
532 U.S. 843, 846 (2001).
Because awards of front pay "necessarily involve predictions of
events yet to come," they "are generally afforded more deference"
than other discretionary awards in this context, such as back pay.
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Johnson v. Spencer Press of Me., Inc.,
364 F.3d 368, 380 (1st Cir.
2004). Here, reinstatement was not possible, and the relatively
modest (for a cardiologist) front-pay award was appropriate based
on Serrano's age and the nature of his practice. It was not an
abuse of the court's equitable discretion.
Third, the appellants challenge the jury's finding that
the retaliation was willful, resulting in an additional award of
$267,400. See 29 U.S.C. § 626(b) (entitling prevailing plaintiff
to doubled back pay in situations involving "willful violations").
Congress intended this liquidated-damages provision to be punitive,
thereby serving to deter willful misconduct. See Trans World
Airlines, Inc. v. Thurston,
469 U.S. 111, 125 (1985). For this
purpose, a violation is considered willful if "the employer . . .
knew or showed reckless disregard for the matter of whether its
conduct was prohibited by the ADEA."
Id. at 126; see also Hazen
Paper Co. v. Biggins,
507 U.S. 604, 614-16 (1993). Here, for many
of the same reasons as are discussed above,9 we are satisfied that
the jury was free -- although by no means compelled -- to assemble
the pieces of evidence into a mosaic of calculated misconduct from
which it could infer reckless disregard for the protections of the
ADEA. Accordingly, the liquidated-damages award stands.
9
See supra Part II.A (addressing the appellants' challenge to
the sufficiency of the evidence on Serrano's retaliation claim).
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Last, the appellants contest attorneys' fees, not because
$140,000 is unreasonable but rather on the ground any fee award was
improper. They recognize that the ADEA authorizes an award of
attorneys' fees to prevailing parties, McKennon v. Nashville Banner
Publ'g Co.,
513 U.S. 352, 357 (1995); see 29 U.S.C. §§ 216(b),
626(b) (2006), so part of the argument -- which we need not address
further -- is merely an extension of their earlier argument that
retaliation was unproved. The other part is that the award should
be reduced because the court did not make certain findings required
under Puerto Rico law. See IOM Corp. v. Brown Forman Corp.,
627
F.3d 440, 452 (1st Cir. 2010) (construing Puerto Rico law). But
the appellants do not adequately explain why the rule that they
urge applies in this case, nor do they explain how such findings
would have altered the award in this case. More than that is
required to show an entitlement to relief. See
Zannino, 895 F.2d
at 17.
III. CONCLUSION
For the aforementioned reasons, the judgment is affirmed.
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