PAUL G. BYRON, UNITED STATES DISTRICT JUDGE.
This cause comes before the Court on Defendant's Renewed Motion for Judgment as a Matter of Law and Alternative Motion for New Trial (Doc. 130), filed December 1, 2015. On December 23, 2015, Plaintiff responded in opposition. (Doc. 134). Upon consideration, Defendant's motions are denied.
Plaintiff, Marie Claire Noel, instituted this lawsuit against Defendant, Terrace of St. Cloud, LLC ("Terrace"), to vindicate her rights under the Family and Medical Leave Act ("FMLA"), 29 U.S.C. §§ 2601-2654, the Americans with Disabilities Act ("ADA"), 42 U.S.C. §§ 12101-12213, the Civil Rights Act of 1866, 42 U.S.C. § 1981, and the Florida Civil Rights Act, Fla. Stat. §§ 760.01-.11. In February 2010, Plaintiff began working as a full-time Certified Nursing Assistant at a nursing home operated by Southern Oaks Healthcare ("Southern Oaks").
The gravamen of Plaintiff's claims is that she believes she was illegally separated from employment because of her exercise of medical leave under the FMLA, because she was disabled, perceived as disabled, or required a reasonable accommodation under the ADA, or because she was discriminated against due to her race, color, or national origin. (Id. ¶ 2). Terrace denies that it illegally separated Plaintiff from employment and states that the only reason it did not retain Plaintiff in the transition from Southern Oaks is because Plaintiff did not complete Terrace's application process. (Id. ¶ 3(b)).
This matter proceeded to a jury trial beginning on October 8, 2015. On October 14, 2015, the jury returned a verdict in favor of Plaintiff, finding that Terrace violated Plaintiff's ADA rights by denying her a reasonable accommodation. (Doc. 116). The jury further determined that Plaintiff was entitled to recover $1,347.29 in lost wages, $27,512.95 for mental anguish and suffering, and $65,000.00 in punitive damages. (Id.). The Court thereafter entered judgment in favor of Plaintiff in the amount of $93,860.24 according to the jury's verdict. (Doc. 125). Terrace now renews its motion for judgment as a matter of law pursuant to Federal Rule of Civil Procedure 50(b). In the alternative, Terrace moves for a new trial.
Judgment as a matter of law should only be granted if no objectively reasonable jury, based on the evidence and
Terrace moves for judgment as a matter of law for a number of reasons. First, Terrace claims that the trial evidence is insufficient to support the jury's verdict that Terrace violated Plaintiff's rights under the ADA. (Doc. 130, pp. 6-9). Second, Terrace contends that the trial evidence is insufficient to support the jury's award of punitive damages. (Id. at pp. 6-7). Third, Terrace asserts that Plaintiff never pleaded the theory of liability through which she prevailed — that Terrace is liable for Southern Oaks' misconduct as its successor-in-interest — and that it first learned of Plaintiff's theory at trial. (Id. at pp. 9-16). Lastly, Terrace submits that, even if Plaintiff had properly alleged the theory of successor liability, the evidence adduced at trial is insufficient to support the jury's finding that Terrace can be held liable under that theory. (Id. at pp. 11-16).
The Court will not reach some of Terrace's arguments, however, as Terrace failed to raise them prior to the matter being submitted to the jury. Rule 50 is clear in its procedure. Before a case is submitted to the jury for consideration, a party may move for judgment as a matter of law on any issue which is not supported by legally sufficient evidence. Fed. R. Civ. P. 50(a). If the court denies relief at that time, the party may renew the motion after the jury has returned its verdict. Fed. R. Civ. P. 50(b). It is well-established that "any renewal of a motion for judgment as a matter of law under Rule 50(b) must be based upon the same grounds as the original request for judgment as a matter of law made under Rule 50(a)" and that "a party cannot assert grounds in the renewed motion that it did not raise in the earlier motion." SEC v. Big Apple Consulting USA, Inc., 783 F.3d 786, 813 (11th Cir. 2015). Although "[s]trict identity of issues... is not required" of the two motions, the grounds identified in a Rule 50(b) motion must be "closely related" to the grounds raised in the prior Rule 50(a) motion such that opposing counsel and the court are notified of the evidentiary shortcomings asserted. Howard v. Walgreen Co., 605 F.3d 1239, 1243 (11th Cir. 2010). This procedural safeguard "protects the non-moving party's right to cure deficiencies in the evidence before the case is submitted to the jury" and ensures that "[t]he moving party cannot ambush the court and opposing counsel after the verdict when the only remedy is a completely new trial." Middlebrooks, 256 F.3d at 1245.
Construed broadly, Terrace has preserved only two of the issues it presents in its renewed motion. First, Terrace challenges whether there is sufficient evidence to support the jury's award of punitive
The Court begins with Terrace's argument that it cannot be held liable for any discriminatory conduct by Southern Oaks. The general rule is that a successor entity is not responsible for the debts and liabilities of a predecessor unless the successor agrees to assume those obligations. See Wheat, First Sec., Inc. v. Green, 993 F.2d 814, 821 (11th Cir. 1993). However, beginning with the United States Supreme Court's unanimous decision in Golden State Bottling Co. v. NLRB, 414 U.S. 168, 94 S.Ct. 414, 38 L.Ed.2d 388 (1973), this general rule yields in the context of labor and employment disputes, where important employment-related policies may justify imposing liability against a successor for its predecessor's discriminatory actions.
Ultimately, whether to impose liability against a successor is a fact-intensive inquiry which requires the court to "balance[] the interests of the employees and the employer and labor law policy generally." In re Nat'l Airlines, Inc., 700 F.2d 695, 698 (11th Cir. 1983) (per curiam) (emphasis omitted), cert. denied, 464 U.S. 933, 104 S.Ct. 337, 78 L.Ed.2d 306 (1983). Courts may consider myriad factors, including whether there has been substantial continuity in business operations from the predecessor to the successor, whether the successor employs substantially the same work force as the predecessor, and whether the successor operates at the same location as the predecessor. See, e.g., Rojas v. TK Commcn's, Inc., 87 F.3d 745, 750 (5th Cir. 1996); Evans Servs., Inc. v. NLRB, 810 F.2d 1089, 1092-93 (11th Cir. 1987). Many courts have held that the two most significant factors to consider are whether the successor had notice of the prior misconduct and whether the successor is able to provide relief. See, e.g., Rojas, 87 F.3d at 750; Musikiwamba v. ESSI, Inc., 760 F.2d 740, 750 (7th Cir. 1985). Nevertheless, the question is "fact specific and must be conducted `in light of the facts of each case and the particular legal obligation which is at issue.'" Nat'l Airlines, 700 F.2d at 698 (quoting Howard Johnson Co. v. Detroit Local Joint Exec. Bd., Hotel & Rest. Emps. & Bartenders Int'l Union, AFL-CIO, 417 U.S. 249, 262 n.9, 94 S.Ct. 2236, 41 L.Ed.2d 46 (1974)).
Terrace maintains that the facts in the instant case lead to the irrefutable conclusion that it was not Southern Oaks' successor-in-interest. (Doc. 130, pp. 11-16). Prior to the instant motion, however, Terrace has acknowledged and admitted that it is Southern Oaks' successor-in-interest under the ADA. Although Terrace initially asserted the affirmative defense that it was not Southern Oaks' successor, it later stipulated in the parties' Joint Pre-Trial Statement — under the heading "Statement of Admitted Facts Which Require No Proof at Trial" — that it was Southern Oaks' successor-in-interest under the ADA. (Doc. 67, ¶ 9(r)). Further, counsel for Terrace conceded several times at trial that Terrace was Southern Oaks' successor-in-interest, (see, e.g., Unoff. Tr. 2::7:25-8:18, 3::13:16-14:20), never objected when Plaintiff referred to Terrace as Southern Oaks' successor for purposes of imposing liability, (see, e.g., Unoff. Tr. 1::164:25-165:11, 3::25:25-26:13, 3::205:2-7, 3::256:20-257:12), and consented at trial to the reading of the parties' pre-trial stipulation that Terrace was Southern Oaks' successor-in-interest under the ADA, (see, e.g., Unoff. Tr. 2::165:2-166:1, 3::181:15-183:14, 3::186:14-189:16; 4::1:13-2:23). It is not until after the jury returned an adverse verdict that Terrace wishes to dispute whether it was Southern Oaks' successor-in-interest.
Because the parties are bound by their pre-trial stipulations, see G.I.C. Corp. v. United States, 121 F.3d 1447, 1450 (11th Cir. 1997),
The jury found that Terrace violated Plaintiff's rights under the ADA by denying a reasonable accommodation for her disability. (Doc. 116). Denial of a reasonable accommodation under the ADA includes circumstances such as those presented in this case where an employer denies employment opportunities to a job applicant or employee based on the employer's belief that it will need to provide a reasonable accommodation — such as medical leave — to the applicant or employee in the future. See 42 U.S.C. § 12112(b)(5)(B). An employer is liable for punitive damages for its violation of the ADA where the employer is found to have acted with malice or reckless indifference to the plaintiff's federally protected rights. See 42 U.S.C. §§ 1981a(a)(2), (b)(1). "Malice means `an intent to harm' and recklessness means `serious disregard for the consequences of [one's] actions.'" EEOC v. W & O, Inc., 213 F.3d 600, 611 (11th Cir. 2000) (quoting Ferrill v. Parker Grp., Inc., 168 F.3d 468, 476 (11th Cir. 1999)). The defendant's negligence toward the plaintiff's civil rights is not enough to sustain an award of punitive damages. Id. Instead, the case is one where the defendant acts "in the face of a perceived risk that its actions will violate federal law." Id. (quoting Kolstad v. Am. Dental Ass'n, 527 U.S. 526, 536, 119 S.Ct. 2118, 144 L.Ed.2d 494 (1999)). Malice or reckless indifference under § 1981a may be proven through evidence showing a pattern of discrimination by the defendant, the defendant's malevolence toward the plaintiff's civil rights, or the defendant's blatant disregard for its civil obligations. Goldsmith v. Bagby Elevator Co., 513 F.3d 1261, 1280 (11th Cir. 2008).
Plaintiff adduced substantial trial evidence which could lead a reasonable jury to conclude that Terrace acted with malice or reckless indifference when it denied Plaintiff employment opportunities on account of a perceived disability which would require reasonable accommodation. Plaintiff began working at Southern Oaks in February 2010. (Doc. 67, ¶ 9(f)). Plaintiff testified at trial that she contracted cerebral meningitis in the summer of 2013 and that Southern Oaks allowed her to take medical leave under the FMLA beginning August 24th. (Unoff. Tr. 1::190:5-191:1, 1::193:13-21). After undergoing surgery to eradicate a meningitis colony in her brain, Plaintiff returned to work on October 18th with instruction from her doctor that she only engage in light duty and not perform any heavy lifting. (Id. 1::193:22-196:13; Joint Ex. 1). However, Plaintiff stated that Southern Oaks ignored her doctor's orders and required her to work full duty, which included tasks such as lifting, bathing, showering, and transporting twelve residents assigned to her care. (Unoff. Tr. 1::194:19-195:16; see also Joint Ex. 4). Plaintiff estimated that her full duties required her to, at times, lift or move more than 100 pounds. (Unoff. Tr. 1::195:9-16). In the middle of her third day of full duty work in contravention of her doctor's orders, Plaintiff began bleeding from her
There was conflicting trial evidence as to what happened next and why. According to Terrace, Southern Oaks terminated Plaintiff on its final day of operation, November 30th, and Terrace did not retain Plaintiff because Plaintiff had not completed Terrace's application process. (See id. 2::110:6-117:13; Joint Ex. 3). However, the jury heard from Southern Oaks' (and subsequently Terrace's) Director of Nursing, Tina Bourland, who revealed that she was the one who recommended that Terrace not employ Plaintiff. (Unoff. Tr. 3::138:24-139:1). Ms. Bourland explained both at trial and in answers to interrogatories which were introduced into evidence that she made her recommendation at that time based on Plaintiff's bad attitude, poor work performance, and failure to follow company policy while employed at Southern Oaks. (Id. 3::127:8-129:1; Pl.'s Ex. 4, ¶¶ 3, 5). Notwithstanding, Ms. Bourland conceded at trial that Plaintiff actually performed her job well, followed instructions, received positive performance reviews, and was always friendly and pleasant toward staff and residents. (Unoff. Tr. 3::136:19-137:14; Joint Ex. 5). In fact, about one year prior to making her recommendation to Terrace that it not retain Plaintiff, Ms. Bourland presented Plaintiff with a Certificate of Award recognizing her "dedication and commitment" to Southern Oaks' residents. (Unoff. Tr. 3::143:18-144:1; Pl.'s Ex. 3). Ms. Bourland stated at trial that she had no knowledge of whether Plaintiff had completed Terrace's application process. (Unoff. Tr. 3::114:11-16).
Moreover, Plaintiff testified at trial that she worked a full shift on November 30th without any notice of being terminated and that she first learned that she lost her job on December 1st (the day Terrace took over Southern Oaks). (Id. 1::204:23-206:7). On that day, Plaintiff stated she received a call from an unidentified Terrace employee
The jury also heard testimony from Mary Ellen Cortese, a Licensed Practical Nurse who worked at Southern Oaks during the same time period as Plaintiff. (See id. 1::245:5-13). Ms. Cortese stated that, like Plaintiff, she took FMLA leave while she worked at Southern Oaks — first in 2011 to undergo foot surgery and again in 2012 to care for her husband who had been diagnosed with cancer. (Id. 1::247:1-248:5). Ms. Cortese testified that during her second period of FMLA leave in 2012, Ms. Bourland informed her that she had taken a lot of time off and that she would be terminated if she were to take any more. (Id. 1::251:3-13). Ms. Cortese additionally testified about a 2012 performance evaluation in which Ms. Bourland penalized her for having "family illness issues which affected attendance." (Id. 1::248:15-250:13; Pl.'s Ex. 2). Also like Plaintiff, Ms. Cortese testified that she worked a full shift at
Based on the above-cited evidence and testimony, a reasonable jury could conclude that Terrace acted with malice or reckless indifference when it denied employment to Plaintiff due to a perceived need to afford her a reasonable accommodation. Plaintiff's testimony provides direct evidence of Terrace's intent to discriminate, as a Terrace employee informed Plaintiff that her excessive medical leave was Terrace's reason for not retaining her. The temporal proximity of Plaintiff's departure from her last period of medical leave — approximately four weeks — supports this notion. Moreover, Ms. Cortese's testimony corroborates Plaintiff's account by showing that Terrace not only viewed employees who took medical leave in a negative light, but also overtly threatened those who it perceived as taking too much time off. Ms. Cortese's testimony also supplies evidence of a pattern of discrimination, as Ms. Cortese was separated from employment in the same way and under the same circumstances as Plaintiff. Additionally, Southern Oaks' official termination of Plaintiff on November 30th without Plaintiff's knowledge, coupled with Terrace's decision not to hire Plaintiff the very next day, permits the reasonable inference that Terrace used the transition from Southern Oaks as a ruse to rid itself of certain employees under the guise of declining to offer employment. Lastly, Ms. Bourland's testimony and answers to interrogatories clearly contradict Terrace's allegedly legitimate, non-discriminatory reason for not extending employment to Plaintiff. Despite Terrace's position that it denied employment to Plaintiff for her failure to complete its application process, Ms. Bourland testified that she had no idea whether Plaintiff completed Terrace's application process and that Terrace actually declined to employ Plaintiff due to her poor attitude and work performance. A reasonable jury could therefore conclude that Terrace's proffered reason for not hiring Plaintiff was false and merely a pretext to engage in discrimination.
From this evidence, and based on the Court's review of the entire trial record, substantial evidence exists to support the jury's award of punitive damages against Terrace. A reasonable jury could conclude that Terrace engaged in a pattern of discrimination, acted malevolently toward Plaintiff's civil rights, or blatantly disregarded its civil obligations. Accordingly, Terrace's renewed motion for judgment as a matter of law will be denied.
Terrace alternatively moves for a new trial. (Doc. 130, pp. 16-19). A district court may grant a new trial for a
Terrace asserts that a number of errors resulted in a trial that was patently unfair. First, Terrace states that it was unfair to allow Plaintiff to try its case under the theory that Terrace could be held liable for the conduct of Southern Oaks. (Doc. 130, p. 17). Terrace claims that Plaintiff never alleged this theory in either her Charge of Discrimination submitted to the Equal Employment Opportunity Commission or her Amended Complaint and that Terrace was never notified of Plaintiff's theory of liability until trial. Terrace's argument is unfounded, however, as Plaintiff's Amended Complaint clearly premised liability against Terrace as Southern Oaks' successor-in-interest, (Doc. 25, ¶¶ 39, 65-71), Terrace recognized Plaintiff's theory of liability when it asserted the affirmative defense that it was not Southern Oaks' successor-in-interest, (Doc. 27, ¶ 10), and the parties' eventually stipulated for purposes of trial that Terrace was Southern Oaks' successor-in-interest under the ADA, (Doc. 67, ¶ 9(r)).
Next, despite complaining that it was not aware of Plaintiff's theory of liability until trial, Terrace nevertheless insists that it did not mean to stipulate to the fact that it was Southern Oaks' successor-in-interest and that, as a result, the jury should not have been permitted to consider the stipulation. (Doc. 130, p. 17). However, as explained previously, the parties are bound by their pre-trial stipulations. If Terrace unintentionally agreed to facts which were not true, it is Terrace's mistake to bear. In a similar vein, Terrace contends that a new trial is necessary because the jury was never instructed on the law of successor liability. (Id.). Again, however, there was never a need for the jury to receive such instruction, as Terrace agreed at all times during trial that it was Southern Oaks' successor-in-interest.
Terrace also takes issue with the Court providing the jury with a corrected verdict form during their deliberations to rectify the inadvertent omission of Plaintiff's ADA reasonable accommodation claim — the claim under which Plaintiff ultimately prevailed. (Id.). Terrace does not suggest that it was improper for the Court to provide the corrected verdict form; rather, Terrace only argues that the reasonable accommodation claim lacked "any legitimate evidentiary basis" and "should have been disposed of as a matter of law and never should have gone to the jury." (Id. at p. 17). The Court therefore reads Terrace's argument as asserting that the jury's verdict on Plaintiff's reasonable accommodation claim is contrary to the great weight of the evidence.
However, a jury's verdict is not contrary to the great weight of the evidence simply because the party moving for a new trial believes that his evidence is
Although Terrace concludes that the jury's verdict in this case must have been the result of "unlawful [j]ury [c]ompromise," Terrace does not point to any fact or event which would support such an inference. (Doc. 130, p. 18). Terrace likewise cites no evidence which it believes was wrongly admitted or excluded. Indeed, upon review of the trial record as a whole, the Court finds no just reason to disturb the jury's verdict in this case. Terrace's alternative motion for new trial is therefore denied as well.
For the aforementioned reasons, it is