Federal Circuits, D.C. Cir. (May 16, 1995)
Docket number: 93-7219
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U.S. Supreme Court - Patterson v. McLean Credit Union, 491 U.S. 164 (1989)
U.S. Supreme Court - Torres v. Oakland Scavenger Co., 487 U.S. 312 (1988)
U.S. Supreme Court - West Virginia v. United States, 479 U.S. 305 (1987)
U.S. Supreme Court - Smith v. Wade, 461 U.S. 30 (1983)
U.S. Supreme Court - Franks v. Bowman Transp. Co., 424 U.S. 747 (1976)
U.S. Court of Appeals for the D.C. Cir. - Barbour, Joyce A. vs. Browner, Carol M. (D.C. Cir. 1999)
Henry Morris, Jr., argued the cause, for appellants. With him on the briefs was Michael L. Stevens.
Martin W. Barbour, argued the cause and filed the brief, pro se.Before EDWARDS, Chief Judge, BUCKLEY and TATEL, Circuit Judges.TATEL, Circuit Judge:A jury awarded plaintiff Martin Barbour compensatory and punitive damages after finding that defendants Medlantic Management Corporation and Mark Merrill had violated his rights under 42 U.S.C. Sec . 1981 (Supp. V 1993) by refusing to hire him as Medlantic's Director of Corporate Materials Management because he is African-American. On the basis of the jury verdict the district court awarded Barbour back pay. Merrill and Medlantic appeal the district court's denial of their post-trial motion for judgment as a matter of law. Barbour cross-appeals the district court's calculation of back pay, as well as its refusal to award him either front pay or prejudgment interest on the back-pay award. Barbour also appeals the district court's grant of summary judgment in favor of a third defendant, the head of the search firm Medlantic used. We affirm the district court in all respects except its decision to deny Barbour front pay and prejudgment interest, which we remand for reconsideration.I.Medlantic provides centralized management services for a multi-hospital system in the Washington, D.C. area. In January 1989, Medlantic began searching for a new Director of its department of Corporate Materials Management, to be responsible for organizing and directing Medlantic's purchasing, warehousing, distribution and other supply-related services on behalf of its hospitals. Mark Merrill, Medlantic's Vice President for Support Services, supervised the candidate search. He prepared a job description, advertised the vacancy in trade publications, and solicited applications through professional acquaintances and informal channels. The job description stated that Medlantic was seeking someone with "multi-corporate" experience, a "minimum of ten years progressive responsibility in large scale operations," and either an MBA or five years' experience plus a BA.At the time of the search, Barbour was the Director of Materials Management for the Columbia Hospital for Women, one of four hospitals then in the Medlantic system. He also was serving as a member of Medlantic's Purchasing Council, a committee Merrill had created to coordinate the acquisition and use of resources by all of the hospitals in the Medlantic system. Barbour had come to Columbia Hospital approximately two years earlier, after retiring from a twenty-five-year career as an army officer. He held an MBA, and while in the army he had gained extensive experience as a supply coordinator and materials manager in a variety of multi-hospital and other large health services organizations. Upon learning of the Medlantic vacancy, Barbour informed Merrill of his interest in the Director's position and wrote a confirming letter.From among sixty to seventy applicants, Merrill conducted formal interviews of six, including Barbour. Four of these candidates--Barbour, another applicant from within the Medlantic system who was serving as Medlantic's interim Director of Corporate Materials Management, and two applicants from outside the Medlantic system--then advanced to a second round of interviews with a panel of Medlantic employees. In May 1989, Medlantic offered the position to one of the outsiders, Craig Shoup, a white candidate with no BA but with extensive management experience in a multi-hospital setting and who Merrill testified was a "superstar" and "by far the most qualified candidate." Shoup declined the offer.Rather than offer the position to Barbour or any of the other remaining candidates, Medlantic hired defendant Gregory Walling, founder and head of an executive search firm, to conduct a new search. When Barbour asked Merrill why Medlantic had not offered the position to him after Shoup declined, Merrill explained that he did not find Barbour qualified and that Medlantic was seeking someone, like Shoup, with significant experience in a multi-hospital setting in the private sector. Barbour told Merrill that he doubted private sector experience was a genuine requirement, given that he had advanced to the final round of interviews of the first search. Merrill asked Walling to consider Barbour again in the second search. Walling interviewed Barbour, but did not rank Barbour among the top candidates he recommended to Medlantic. According to his written evaluation, he concluded that "Martin [Barbour] has the functional knowledge and capabilities to undertake this position. However, he does not have the multi-system private sector experience that we are ideally seeking." Merrill interviewed three of Walling's top candidates and hired one of them, Terry Rich. Rich is white.Upon learning that Medlantic had hired Rich, Barbour filed suit, charging Medlantic and Merrill with unlawful employment discrimination in violation of 42 U.S.C. Sec . 1981 and seeking both damages and equitable relief. He subsequently amended his complaint to include Walling as a defendant, adding a charge that Walling conspired with Medlantic and Merrill to violate Barbour's civil rights, in violation of 42 U.S.C. Sec . 1985(3) (1988). The district court granted summary judgment in Walling's favor on the section 1985 claim, but denied the remaining defendants' motion for summary judgment on the section 1981 claim.Barbour tried his claims for compensatory and punitive damages to a jury and his claims for equitable relief to the court. The jury found that defendants had unlawfully discriminated, awarding Barbour $2,500 in compensatory damages for his emotional suffering and humiliation and $25,000 in punitive damages. The district court denied defendants' motion for judgment as a matter of law. Based on the jury's finding of unlawful discrimination, the district court awarded Barbour back pay of approximately $84,000, calculated from June 1, 1989, the date the court determined Barbour would have commenced employment had Medlantic hired him after Shoup declined the offer, to June 18, 1992, the date of the verdict. The court denied prejudgment interest, and also refused to award front pay. This appeal and cross-appeal followed.II.We first dispose of Barbour's several procedural challenges to defendants' appeal. His argument that defendants' notice of appeal does not meet the jurisdictional requirements of Federal Rule of Appellate Procedure 3(c) because it identifies only the district court's final judgment as the subject of the appeal, without also specifying each of the district court's previous interlocutory orders at issue, has already been rejected. Barbour v. Merrill, No. 93-7219, slip. op. at 1 (D.C.Cir. Mar. 18, 1994).Equally without merit are his claims that defendants' notice of appeal is invalid because the body of the notice fails to name "Medlantic Management Corporation" as a party to the appeal, instead naming its corporate parent, "Medlantic Healthcare Group," and because defendants' appellate counsel, Michael Stevens, entered his notice of appearance on behalf of Medlantic Healthcare Group, rather than Medlantic Management Corporation. As of November 12, 1993, when defendants filed their notice of appeal, the relevant language of Rule 3(c) provided only that a notice of appeal "shall specify the party or parties taking the appeal" and that "[a]n appeal shall not be dismissed for informality of form or title of the notice of appeal." Fed.R.App.P. 3(c) (1993). Barbour relies on the Supreme Court's interpretation of this rule in Torres v. Oakland Scavenger Co. for the proposition that because the requirements of Rule 3(c) are mandatory and jurisdictional, "failure to name a party in a notice of appeal ... constitutes a failure of that party to appeal." 487 U.S. 312, 314, 108 S.Ct. 2405, 2407, 101 L.Ed.2d 285 (1988). As Torres explains, "[t]he specificity requirement of Rule 3(c) is met only by some designation that gives fair notice [both to the opposition and to the court] of the specific individual or entity seeking to appeal." Id. at 318, 108 S.Ct. at 2409. However, in order to reduce the litigation spawned by Torres, the Supreme Court subsequently amended Rule 3(c), effective December 1, 1993, to provide that an appeal will not be dismissed for "failure to name a party whose intent to appeal is otherwise clear from the notice" and to permit "an attorney representing more than one party" to describe those parties with terms such as "the defendants." Fed.R.App.P. 3(c) (1994); see id., Advisory Committee's note to 1993 amendment. The amended rule also provides that a notice of appeal may identify the appellants "in either the caption or the body of the notice." Fed.R.App.P. 3(c). The Supreme Court instructed us to apply this new version of the rule retroactively "insofar as just and practicable." Order of April 22, 1993, Relating to the Amendments to the Federal Rules of Appellate Procedure, 113 S.Ct. 819 (1993).We conclude that it is both "just and practicable" to apply the current version of Rule 3(c). At the same time, we note that under either the old or new version, the notice of appeal left no doubt that Medlantic was an appellant. The caption named "Medlantic Management Corporation" as a defendant, and the body of the notice twice employed the plural usage "defendants," which could only have referred to Mark Merrill and Medlantic, the two defendants before the district court at the time of the judgment. See Milanovich v. Costa Crociere, S.p.A., 938 F.2d 297, 298 (D.C.Cir.1991). We are equally confident that despite appellate counsel's entry of an appearance on behalf of "Medlantic Healthcare Group," all parties and the court understood his intention to represent Medlantic Management Corporation. Counsel may have used the wrong name because Barbour's original complaint had named Medlantic Healthcare Group as the institutional defendant, and the docket sheet retained this name even after Barbour had amended his complaint to substitute parties. But after this amendment, references to "defendant Medlantic Healthcare Group" could only have referred to Medlantic Management Corporation. We therefore reject Barbour's procedural claims and turn to the merits of this appeal.III.Medlantic and Merrill challenge the district court's denial of their motion for judgment as a matter of law, arguing that Barbour failed to sustain his burden of proof with respect to both his allegation of unlawful discrimination under 42 U.S.C. Sec . 1981 and his request for punitive damages. We review the district court's denial of this motion de novo, focusing on whether the evidence was sufficient for a reasonable jury to have reached the challenged verdict. See Mackey v. United States, 8 F.3d 826, 829 (D.C.Cir.1993).Section 1981(a), part of the Civil Rights Act of 1866, prohibits an employer from refusing to hire a person because of race. Johnson v. Railway Express Agency, Inc., 421 U.S. 454, 459-60, 95 S.Ct. 1716, 1719-20, 44 L.Ed.2d 295 (1975). A plaintiff may establish a violation of this section using the same three-step framework of proof used to establish racial discrimination under Title VII. Patterson v. McLean Credit Union, 491 U.S. 164, 186, 109 S.Ct. 2363, 2377, 105 L.Ed.2d 132 (1989). Under this framework, a plaintiff bears the initial burden of proving, by a preponderance of the evidence, a prima facie case of discrimination by showing that he or she belongs to a racial minority, applied for an available position for which he or she was qualified, was rejected, and that thereafter the employer continued to seek to fill the position. Once established, the prima facie case raises an inference of unlawful discrimination, which the employer may rebut by presenting evidence of a legitimate, nondiscriminatory reason for the employee's rejection. The plaintiff then bears the ultimate burden of persuading the jury of intentional discrimination, and may do so by proving that the defendant's proffered reasons were a pretext for unlawful discrimination. Id. at 186-87, 109 S.Ct. at 2377-78; see Texas Dep't of Community Affairs v. Burdine, 450 U.S. 248, 252-53 & n. 6, 101 S.Ct. 1089, 1093-94 & n. 6, 67 L.Ed.2d 207 (1981); McDonnell Douglas Corp. v. Green, 411 U.S. 792, 802-05, 93 S.Ct. 1817, 1824-25, 36 L.Ed.2d 668 (1973).Medlantic and Merrill first maintain that Barbour failed to establish a prima facie case of discrimination because he did not demonstrate that he was qualified for the Director's position. They also argue that, even assuming Barbour established a prima facie case, the evidence of legitimate nondiscriminatory reasons for not hiring him was overwhelming. We disagree.Although defendants argue that Barbour was not qualified because he lacked significant private-sector experience, the jury reasonably could have determined, from the evidence before it, including the original job description and the fact that Barbour progressed to the final round of interviews, that Barbour was qualified and that private sector experience was not an absolute prerequisite. Similarly, after hearing testimony about Barbour's background and experience, about Merrill's assessments of Barbour's abilities, and about Medlantic's decision to hire Shoup notwithstanding his lack of the educational prerequisites Medlantic initially described as required for the job, the jury reasonably could have rejected Medlantic's proffered nondiscriminatory reasons for not hiring Barbour.As Medlantic and Merrill next argue, however, this was not enough. In light of the Supreme Court's recent decision in St. Mary's Honor Ctr. v. Hicks, --- U.S. ----, 113 S.Ct. 2742, 125 L.Ed.2d 407 (1993), the jury must also have reasonably concluded that the proffered nondiscriminatory reasons were a pretext for discrimination against Barbour. See id. at ----, 113 S.Ct. at 2752. But Medlantic and Merrill misconstrue the impact of this requirement, claiming as the central argument of their appeal that because Barbour "failed to introduce even a shred of evidence that even remotely suggests that race played a role" in his rejection, the jury could not have reached this conclusion and therefore the district court improperly denied their motion for judgment as a matter of law. As Hicks explained, a factfinder's rejection of the employer's nondiscriminatory reasons, while not sufficient to compel a finding of discrimination, nonetheless suffices to permit such a finding. Id. at ----, 113 S.Ct. at 2749. According to Hicks, a plaintiff need only establish a prima facie case and introduce evidence sufficient to discredit the defendant's proffered nondiscriminatory reasons; at that point, the factfinder, if so persuaded, may infer discrimination. Id. Although the Supreme Court issued Hicks after the proceedings below, the district court's jury instruction accorded entirely with the principles set forth in that case. The instruction, to which the defendants did not object, read: "The ultimate burden of persuading the jury that the defendants intentionally discriminated against the plaintiff remains at all times with Mr. Barbour." Thus, we must assume that the jury properly evaluated the evidence in reaching a conclusion that Hicks makes clear was within its discretion. Because Barbour introduced sufficient evidence for the jury to conclude both that he had proven a prima facie case of discrimination and that Medlantic's proffered reasons were pretextual, the jury could have reasonably concluded that Barbour had proven unlawful discrimination. While we need not speculate about the jury's reasoning, we note that it could have inferred that Medlantic changed its criteria for the second search to disadvantage or even to exclude Barbour, and, in light of Barbour's prima facie case, that Medlantic did so because of Barbour's race. The district court properly denied defendants' motion for judgment as a matter of law on this issue, and we affirm the jury's finding of discrimination under section 1981 and its accompanying award of compensatory damages.For similar reasons, we affirm the jury's award of punitive damages. Although defendants are correct that in section 1981 actions, as in section 1983 actions, punitive damages are proper only on a showing of "evil motive or intent, or ... reckless or callous indifference to the federally protected rights of others," Smith v. Wade, 461 U.S. 30, 56, 103 S.Ct. 1625, 1640, 75 L.Ed.2d 632 (1983) (decided under Sec. 1983); see Williamson v. Handy Button Mach. Co., 817 F.2d 1290, 1296 (7th Cir.1987) (applying same standard under Sec. 1981), their assertion that "not a shred of evidence" supports the imposition of punitive damages rests on a misunderstanding of this standard. An employee's right to employment free from racial discrimination is one of the most widely recognized and protected civil rights. As the Supreme Court has explained, evidence that suffices to establish an intentional violation of protected civil rights also may suffice to permit the jury to award punitive damages, provided the jury, in its "discretionary moral judgment," Smith v. Wade, 461 U.S. at 52, 103 S.Ct. at 1638, finds that the conduct merits a punitive award. See id. at 51-54, 103 S.Ct. at 1637-39; Rowlett v. Anheuser-Busch, Inc., 832 F.2d 194, 205-06 (1st Cir.1987). No additional evidence is required. See Smith v. Wade, 461 U.S. at 53-55, 103 S.Ct. at 1638-39.Medlantic and Merrill have conceded that the district court properly instructed the jury on this issue. We are satisfied that the jury's finding of intentional racial discrimination permitted it to find the "evil motive or intent, or ... reckless or callous indifference" required to award punitive damages. See Rowlett, 832 F.2d at 205-06. We thus affirm the district court's denial of the motion for judgment as a matter of law on this issue as well.IV.We next turn to Barbour's cross-appeal, in which he challenges the adequacy of the district court's award of equitable relief. Barbour asserts error with respect to the district court's calculation of back-pay, its denial of prejudgment interest on the back-pay award, and its denial of front pay. We address these issues in turn, reviewing each only to determine if the district court abused its discretion. See Lander v. Lujan, 888 F.2d 153, 156 (D.C.Cir.1989). As we have recently noted, "[we] must consider 'whether the decision maker failed to consider a relevant factor, whether [the decision maker] relied on an improper factor, and whether the reasons given reasonably support the conclusion.' " Kickapoo Tribe of Indians v. Babbitt, 43 F.3d 1491, 1497 (D.C.Cir.1995) (quoting Johnson v. United States, 398 A.2d 354, 365 (D.C.1979)). We evaluate Barbour's claims in light of the principle that under section 1981, as under Title VII, a district court has wide discretion to award equitable relief. See Johnson v. Railway Express Agency, 421 U.S. at 460, 95 S.Ct. at 1720; Mims v. Wilson, 514 F.2d 106, 109-10 (5th Cir.1975). The district court should fashion this relief so as to provide a victim of employment discrimination the most complete make-whole relief possible. See, e.g., Franks v. Bowman Transp. Co., 424 U.S. 747, 764, 96 S.Ct. 1251, 1264, 47 L.Ed.2d 444 (1976); Mims, 514 F.2d at 110.Barbour's primary challenge to the district court's back-pay calculation is to the court's use of a figure of $70,000 as the salary he would have received had Medlantic hired him. Barbour claims that the court should have used $85,000, the salary Medlantic paid to Terry Rich, whom Medlantic ultimately hired. But Barbour is not necessarily entitled to the identical compensation as Rich. As the district court explained, "Medlantic credibly testified that it based salary offers on an individual's current salary," and Medlantic also testified that it adjusted its offers to compensate for differences in housing prices to attract candidates from outside the Washington area. Rich had to relocate from Pennsylvania, where his previous salary had been in the $60,000 range. Barbour's salary was approximately $40,000, and he did not need to relocate. In view of Medlantic's additional testimony that it would have offered Barbour $65,000 or $70,000, the district court did not abuse its discretion in fixing his lost Medlantic salary at $70,000. Cf. Nord v. United States Steel Corp., 758 F.2d 1462, 1472 (11th Cir.1985) (finding that employees receiving higher salaries than the amount used to calculate plaintiff's back-pay award were not similarly situated).Barbour also challenges the district court's refusal to include in his back-pay award a $200 per month car allowance, which Barbour's evidence showed Medlantic had provided to Rich. Although back pay should generally include the value of lost fringe benefits, see, e.g., Saulpaugh v. Monroe Community Hosp., 4 F.3d 134, 145 (2d Cir.1993), cert. denied, --- U.S. ----, 114 S.Ct. 1189, 127 L.Ed.2d 539 (1994); Cox v. American Cast Iron Pipe Co., 784 F.2d 1546, 1562 (11th Cir.), cert. denied,Try vLex for FREE for 3 days
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