CADY, Chief Justice.
In this appeal, we must decide whether the Iowa Civil Rights Act (ICRA) permits a district court to award punitive damages. The district court held an award of punitive damages is not permitted under the ICRA. On our review, we affirm the decision of the district court and remand for further proceedings.
Tammie Ackelson, Robin Drake, and Heather Miller were employees of Manley Toy Direct and Toy Network, both limited liability companies located in Indianola, Iowa, with parent companies in Hong Kong. The businesses purchase and sell toys and other merchandise.
In 2010, the three employees initiated lawsuits against the businesses, collectively referred to as Manley Toy, and certain
Manley Toy moved to strike the claim for punitive damages. The district court granted Manley Toy's motion. It reasoned that the court could only grant relief that the civil rights commission was authorized to grant, and punitive damages are not available under the ICRA.
The plaintiffs sought, and we granted, interlocutory appeal. They ask us to review our prior decisions holding that punitive damages are not available for claims under the ICRA and to interpret the ICRA to permit courts to award punitive damages.
We review a decision by the district court on a motion to strike for correction of legal errors. See Iowa R.App. P. 6.907. Similarly, we review an interpretation of a statute for correction of legal errors. Rolfe State Bank v. Gunderson, 794 N.W.2d 561, 564 (Iowa 2011).
Section 216.16(6) of the ICRA provides that "[t]he district court may grant any relief in an action under this section which is authorized by section 216.15, subsection 9, to be issued by the commission." Id. 216.16(6). In turn, section 216.15(9) provides:
Id. § 216.15(9). Additionally, in allowing the ICRA to award damages to the complainant, section 216.15(9)(a)(8) states:
Id. § 216.15(9)(a)(8).
The ICRA was enacted in 1965. 1965 Iowa Acts ch. 121 (codified at 105A.1-.12 (1966)). It was subsequently amended in 1978 to require the exhaustion of administrative remedies before proceeding into court through the statutory procedures that remain in the Act today. See 1978 Iowa Acts ch. 1179 (codified at § 601A.1-.19 (1979)). However, the statutory language at issue in this case has not been changed in any meaningful way since the 1978 amendments.
We held the statutory phrase pertaining to damages "[did] not necessarily imply punitive damages are available." Id. We relied primarily on the reasoning of High v. Sperry Corp., 581 F.Supp. 1246, 1247-48 (S.D.Iowa 1984). See Chauffeurs, 394 N.W.2d at 384. The court in High found the district court's authority to award damages is no more extensive than that of the commission. 581 F.Supp. at 1247. It
Id. at 1248.
We confirmed this prediction, stating, "The language `but not limited to actual damages' in [ICRA] does not necessarily imply punitive damages are available." Chauffeurs, 394 N.W.2d at 384. We also relied on "[t]he general rule ... that an administrative agency cannot award punitive damages absent express statutory language allowing such an award." Id.
Four years later, in Smith v. ADM Feed Corp., we reiterated our interpretation of the ICRA that punitive damages were not available unless expressly provided. 456 N.W.2d 378, 383 (Iowa 1990), overruled on other grounds by McElroy v. State, 703 N.W.2d 385, 394-95 (Iowa 2005). We stated:
Smith, 456 N.W.2d at 383 (citation omitted). We also observed "[t]he district court sits as the commission and is empowered to grant only that relief authorized by section [216.15]." Id. at 381 (citing Iowa Code § 601A.16(5) (current version at id. § 216.16(6))).
Following Chauffeurs and Smith, we have continued to mention in a series of cases that punitive damages are not an available remedy unless expressly provided for under the ICRA. See, e.g., Channon v. United Parcel Serv., Inc., 629 N.W.2d 835, 849 (Iowa 2001). The last case to make this pronouncement was in 2004. See Van Meter Indus. v. Mason City Human Rights Comm'n, 675 N.W.2d 503, 515 (Iowa 2004) (citing Chauffeurs and holding that if the state civil rights commission lacks the power to award punitive damages so does a local civil rights commission). One case, City of Hampton v. Iowa Civil Rights Commission, cited Chauffeurs when it held the plaintiff introduced insufficient evidence to support an emotional-distress award. 554 N.W.2d 532, 537 (Iowa 1996). It reasoned that an emotional-distress award that was clearly excessive given the scant evidence the plaintiff introduced would be essentially punitive, and since Chauffeurs held punitive damages are unavailable under ICRA the emotional-distress award had to be reduced
To begin with, we recognize Congress amended Title VII of the Federal Civil Rights Act in 1991 to provide for a broader array of damages, including punitive damages. See Civil Rights Act of 1991, Pub.L. No. 102-166, § 102, 105 Stat. 1071, 1072 (codified at 42 U.S.C. § 1981a(a)(1) (1994)). It enacted the amendment "to strengthen existing protections and remedies available under federal civil rights laws to provide more effective deterrence and adequate compensation for victims of discrimination." H.R.Rep. No. 102-40(II), at 1 (1991), reprinted in 1991 U.S.C.C.A.N. 694, 694.
Additionally, many state statutes now expressly permit either the district court or an administrative agency to award punitive damages.
Some states have enacted statutes that authorize a variety of relief for successful employment discrimination plaintiffs, but neither specifically mentions punitive damages nor contains open-ended language such as "included, but not limited to." See, e.g., Colo.Rev.Stat. § 24-34-405 (2012);
Of these latter jurisdictions, some courts have concluded that, due in part to the absence of express statutory provision for punitive damages in their statutes, a district court may not award punitive damages.
Some of the courts that have rejected punitive damages claims have strong, well-established public policies against permitting punitive damages without express legislative authorization. See Devillier, 709 So.2d at 282 ("Punitive damages cannot be awarded unless authorized by statute."); Dailey, 919 P.2d at 590 ("Governing resolution of this case is the court's long-standing
This review not only reveals divergent approaches to punitive damages in civil rights litigation, but shows that the issue, for the most part, has received much attention. In particular, it has also been an issue that has actively engaged legislatures and required courts to interpret statutory enactments. Over the years, this time honored process has allowed the states to carve out their position on punitive damages.
First, it asserts Iowa businesses prefer a climate in which punitive damages are not available. It is argued that punitive damage awards can give rise to adverse consequences to businesses, including the threat of insolvency. See W. Kip Viscusi, The Social Costs of Punitive Damages in Environmental and Safety Torts, 87 Geo. L.J. 285, 285 (1998). ABI also points out that "Iowa is geographically surrounded by states that have business-friendly legal climates with respect to this issue.... Iowa competes with these states to attract new businesses, as well as for the jobs and commerce they generate." Second, ABI argues that the costs of punitive damages award will be passed on to consumers and shareholders. See Lisa Litwiller, From Exxon to Engle: The Futility of Assessing Punitive Damages as Against Corporate Entities, 57 Rutgers L.Rev. 301, 334-35 (2004).
Of course, arguments can be made based on public policy that would support punitive damages. As the plaintiff's argue, punitive damages are well-established under Iowa's common law. See Lacey v. Straughan, 11 Iowa 258, 260 (1860). Punitive damages by definition punish defendants who have intentionally violated another's rights. See Ward v. Ward, 41 Iowa 686, 688 (1875). They exist to protect society and the public in general. Sebastian v. Wood, 246 Iowa 94, 100, 66 N.W.2d 841, 844 (1954); see also David G. Owen, A Punitive Damages Overview: Functions, Problems and Reform, 39 Vill. L.Rev. 363, 374-81 (1994).
In particular, punitive damages would serve to deter purposeful employment discrimination. Cf. Humburd v. Crawford, 128 Iowa 743, 744, 105 N.W. 330, 330-31 (1905) (reasoning that the strong public policy opposing discrimination in public accommodations, evidenced by the Iowa Civil Rights Act of 1884, could be effectuated through a private cause of action for damages). Indeed, punitive damages have
We then said:
Id.
The plaintiffs rely on our own criticism of Smith as a signal that McElroy not only opened the door for jury trials in ICRA claims, but also to allowing in other components of the civil justice system, including punitive damages. They then developed a detailed analysis of the relevant statutory language of the ICRA to support an interpretation that the legislature implicitly intended for punitive damages to be awarded. This analysis was met with a strong countervailing argument by Manley Toy.
Importantly, the rules of interpretation established to assist courts in determining legislative intent do not follow a common path, only a common outcome. At times, various rules are used to the exclusion of others. In this case, we decline to revisit an interpretation based on the words and phrases used in the relevant statute.
Instead, the path we follow in this case is one primarily built on the venerable principles of stare decisis and legislative acquiescence. We are slow to depart from stare decisis and only do so under the most cogent circumstances. See State v. Liddell, 672 N.W.2d 805, 813 (Iowa 2003). Moreover, we presume the legislature is aware of our cases that interpret its statutes. Baumler v. Hemesath, 534 N.W.2d 650, 655 (Iowa 1995). When many years pass following such a case without a legislative response, we assume the legislature has acquiesced in our interpretation. Gen. Mortg. Corp. of Iowa v. Campbell, 258 Iowa 143, 152, 138 N.W.2d 416, 421 (1965).
We have clearly and repeatedly stated our conclusion that the ICRA does not implicitly permit an award of punitive damages. This message has been a reoccurring pronouncement over the last twenty-seven years. No significant legislative changes have been made since our first pronouncement in 1986 that would even hint at a shift in legislative intent since that time.
During this same period, the issue of punitive damages in civil rights claims has received broad national attention, making it very likely that our legislature would have taken action to alter our interpretation if it disapproved. Our review of the landscape of the law across the nation shows that this has been a topic of national conversation. Additionally, the issue is injected with public policy considerations, making it an issue particularly appropriate for legislative consideration. See Jensen v. Sattler, 696 N.W.2d 582, 586 (Iowa 2005) ("The scope of the statute is a matter of public policy and therefore within the province of the legislature."); cf. Robinson v. Bognanno, 213 N.W.2d 530, 532 (Iowa 1973) ("[A]n amendment [to enlarge the class protected by the Dram Shop Act] would be the exclusive province of the legislature."), overruled on other grounds by Lewis v. State, 256 N.W.2d 181, 192 (Iowa 1977). Overall, we think our legislature would be quite surprised to learn if we decided to reverse course and take a different position under the guise of statutory interpretation. We did our job twenty-seven years ago and will leave it for the legislature to take any different approach. The specific arguments presented by the plaintiffs are not so powerful or obvious that they plainly undermine our prior line of cases. Additionally, we recognize our legislature has demonstrated that it knows how to permit punitive damages for specific civil rights actions when it wishes to do so. Compare Iowa Code § 216.15(9)(a)(8) (permitting the commission to award complainant "damages for an injury caused by the discriminatory or unfair practice which damages shall include but are not limited to actual damages" in an employment discrimination action), with id. § 216.17A(6)(a) (permitting the district court to award "actual and punitive damages" in a housing discrimination action). It expressly provided for punitive damages for housing discrimination when it added section 216.17A(6)(a) in 1991, only five years after Chauffeurs and just a year after Smith. See 1991 Iowa Acts ch. 184, § 11 (allowing award of "[a]ctual and punitive damages") (codified at Iowa Code § 601A.17A (1993) (current version at id. § 216.17A(6)(a))).
We affirm the decision of the district court and remand for further proceedings.
The complainant may leave the administrative track and choose to file a suit in district court. Filing an administrative complaint is a mandatory prerequisite to filing a complaint in district court. See id. § 216.16(1) (providing that a complainant "must initially seek an administrative relief"). After a complaint has been on file with the ICRA for sixty days, unless an administrative judge has made a finding that no probable cause exists, the complainant may obtain a release to file an action in the district court — a so-called "right to sue letter." Id. § 216.16(3)(a). The issuance of a right-to-sue letter bars the commission from pursuing administrative remedies further. Id. § 216.16(4). Once the action is in district court, it proceeds as an ordinary action at law.
Similarly, New Hampshire explicitly permits the district court to award "enhanced compensatory damages." N.H.Rev.Stat. § 354-A:21-a(I) (LexisNexis 2008). Enhanced compensatory damages are awarded under similar circumstances as punitive damages but reflect a different underlying rationale. See State v. Hynes, 159 N.H. 187, 978 A.2d 264, 273 (2009); see also Vratsenes v. N.H. Auto., Inc., 112 N.H. 71, 289 A.2d 66, 68 (1972) (rejecting deterrence rationale for punitive damages and instead allowing the size of the compensatory damage award to reflect the aggravating circumstances). As Hynes acknowledged, these enhanced damages are not meant to be punitive but to compensate the victim. 978 A.2d at 273. Notwithstanding, given New Hampshire's long-standing rule regarding punitive damages, the New Hampshire General Court's addition of enhanced compensatory damages in 2006 appears to reflect the same approach as the above states.
Some of these jurisdictions cap the amount of punitive damages the jury may award a successful plaintiff. See, e.g., Ark.Code Ann. § 16-123-107(c)(2)(A) (providing a cap for the total of compensatory and punitive damages a plaintiff may be awarded based on the total number of employees the defendant employs).
Michigan long ago adopted a rule regarding punitive damages, which is conceptually similar to New Hampshire's rule, stated above, but similar to Nebraska's rule in effect in this context. See Eide v. Kelsey-Hayes Co., 431 Mich. 26, 427 N.W.2d 488, 498-501 (1988) (Griffin, J., concurring in part and dissenting in part). In Michigan, "exemplary damages may not be awarded to punish. They are available, if at all, only as an element of compensatory damages." Id. at 498; see also Veselenak v. Smith, 414 Mich. 567, 327 N.W.2d 261, 265 (1982) (rejecting a distinction between mental-anguish damages and separate exemplary damages). Explaining this rule, the Michigan Supreme Court has said: "When compensatory damages can make the injured party whole, this court has denied exemplary damages." Hayes-Albion v. Kuberski, 421 Mich. 170, 364 N.W.2d 609, 617 (1984). Thus, the remedies section of Michigan's civil rights act-which defines "damages" as "damages for injury or loss caused by each violation of this act" and does not otherwise explicitly provide for exemplary damages, Mich. Comp. Laws Ann. § 37.2801(3) (West 2001) — does not include exemplary damages. See Eide, 427 N.W.2d at 500-01; id. at 493 (majority opinion) (adopting the reasoning of the partial dissent regarding exemplary damages).