Atchley v. Nordam Group, Inc.

180 F.3d 1143, 5 Wage & Hour Cas.2d (BNA) 696, 1999 Colo. J. C.A.R. 3297, 1999 U.S. App. LEXIS 11380, 75 Empl. Prac. Dec. (CCH) 45,914, 79 Fair Empl. Prac. Cas. (BNA) 1818, 1999 WL 374241
CourtCourt of Appeals for the Tenth Circuit
DecidedJune 4, 1999
Docket98-5006, 98-5020, 98-5087 and 98-5125
StatusPublished
Cited by46 cases

This text of 180 F.3d 1143 (Atchley v. Nordam Group, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atchley v. Nordam Group, Inc., 180 F.3d 1143, 5 Wage & Hour Cas.2d (BNA) 696, 1999 Colo. J. C.A.R. 3297, 1999 U.S. App. LEXIS 11380, 75 Empl. Prac. Dec. (CCH) 45,914, 79 Fair Empl. Prac. Cas. (BNA) 1818, 1999 WL 374241 (10th Cir. 1999).

Opinion

JOHN C. PORFILIO, Circuit Judge.

One month prior to giving birth, Delisa Atchley took maternity leave from her job *1146 at The Nordam Group and received assurances from Nordam managers she could return to the position at the completion of her leave. When she tried to return as promised, she learned there was no place for her. After several fruitless attempts to find another position at Nordam or elsewhere in Oklahoma, Ms. Atchley filed suit against Nordam alleging violations of the Pregnancy Discrimination Act, Title VII of the Civil Rights Act of 1964 as amended, 42 U.S.C. § 2000e, and the Family and Medical Leave Act, 29 U.S.C. § 2601. She prevailed before a jury, and in a thorough order, the district court denied Nordam’s motion for judgment as a matter of law, as well as its motion for a new trial. Nordam appeals, and we affirm. 1

The Nordam Group is a Tulsa, Oklahoma, company that employs over 1000 people in the aviation industry. Sometime prior to 1987, Nordam’s Aircraft Modification Division (AMD) began development of “hush kits” to reduce airplane noise. To aid in this project, Design Support Services (DSS) provided a significant number of engineers and other employees. A written agreement between Nordam and DSS established the relationship between the entities and, in part, provided Nordam would compensate DSS for its actual costs plus a markup. The agreement also specified “personnel furnished [by DSS] will at all times be considered [DSS] employees.” DSS would have responsibility for “payment of wages, compensation, hiring and firing” of those employees furnished by DSS. Furthermore, “in no instances or sense shall [those employees] be construed .as [Nordam] employees.” DSS also agreed to “indemnify [Nordam] against any and all damages, expenses, liabilities, and claims arising from sickness, injuries to, death, of any person or damage to, or loss of any property caused by the negligence of [DSS] employees.”

Ms. Atchley learned about the position of document clerk at Nordam through her mother, Donna Selan, who worked on the hush kit project at Nordam and received her paycheck from DSS. Nordam manager, John Calvert, interviewed Ms. Atchley, who had previously worked for Nordam in a different capacity, and hired her through DSS. DSS faxed to Ms. Atchley at the Nordam facility a Temporary Employee Agreement which indicated she was on temporary assignment to Nordam and would be paid an hourly wage of $6.77. Vacation and holiday benefits would be paid by DSS. Ms. Atchley testified at the time of the agreement she understood she “would be working through DSS for Nor-dam,” and she would be ineligible for Nor-dam health insurance, 401K, and profit sharing benefits. During her employment, Ms. Atchley received her paychecks, including a raise, from DSS, but all other job contacts, such as job supervision and evaluations, were with Nordam.

After two years, Ms. Atchley took over document control responsibilities for the entire Aircraft Modification Division, the division running the hush kit project. Eight months later, on September 30, 1993, Ms. Atchley found out she was pregnant, and on March 14, 1994, gave Nordam manager Calvert a handwritten note informing him she would be taking maternity leave beginning May 13, 1994. At the bottom of the note she queried, “John, is this all you need from me.” Calvert responded, “Yes.” On May 13, Ms. Atchley began her leave, intending to return six weeks after the birth of her child.

While Ms. Atchley was away, Nordam experienced what it called “structural changes.” The hush kit project ended, and Nordam purchased a company called BizJet. Nordam’s Director of Engineering Services made a job requisition for a document control clerk to support the new enterprise. In addition, Nordam merged its AMD and manufacturing divisions. A long-time Nordam employee was placed in *1147 charge of document control for the new division.

When Ms. Atchley informed Nordam manager Calvert she was ready to come back to work, Calvert responded he needed to check her status with Mr. Gallagher because the organizational changes had made her position unsettled. On July 25, 1994, Ms. Atchley was informed her services were no longer required in the document control position. She subsequently tried to obtain other employment with Nordam but was told no positions for which she was qualified were available.

Ms. Atchley ultimately filed this action in the district court naming only Nordam as a defendant. After Nordam, in turn, filed a third-party complaint against DSS, claiming DSS was the true employer of Ms. Atchley, she filed an amended complaint naming DSS as a defendant. The court denied all motions for summary judgment, and the case proceeded to a jury trial.

At the close of Ms. Atchley’s evidence, the court found Nordam was Atchley’s statutory employer under Title VII and granted DSS’ motion for a directed verdict. The jury returned a verdict in favor of Ms. Atchley on her Title VII and FMLA claims, and awarded her $9,000 in back pay, $8,000 for emotional distress and other nonpecuniary losses, $9,000 for liquidated damages on the FMLA claim, and $65,000 in punitive damages under Title VII.

Nordam filed a motion for judgment as a matter of law or, in the alternative, a new trial. Nordam sought a new trial on grounds either DSS should not have been dismissed or the testimony of plaintiffs witness, Dianna McCuddy, should not have been allowed. The district court denied both motions, and Nordam filed this appeal.

Nordam argues:' (I) there was no evidence to support the award of punitive damages; (II) the evidence was insufficient to support a finding of liability under Title VII; (III) there was no evidence to support an award of damages for emotional distress; (IV) Ms. Atchley failed to prove a claim under the FMLA; (V) the district court lacked subject matter jurisdiction over- the Title VII claim; (VI) the award of liquidated and punitive damages constituted an impermissible double recovery; and (VII) DSS should not have been dismissed at the conclusion of evidence.

We review de novo a district court’s disposition of a motion for judgment as a matter of law, applying the same standard as the district court. See Mason v. Oklahoma Turnpike Auth., 115 F.3d 1442, 1450 (10th Cir.1997). Judgment as a matter of law is warranted “only if the evidence points but one way and is susceptible to no reasonable inferences supporting the party opposing the motion.” Id. (“We do not weigh the evidence, pass on the credibility of the witnesses, or substitute our conclusions for [those] of the jury. However, we must enter judgment as a matter of law in favor of the moving party if ‘there is no legally sufficient evidentiary basis ... with respect to a claim or defense ... under the controlling law.’ ”). In conducting our review, “[t]he evidence and inferences therefrom must be construed most favorably to the nonmoving party.” Wolfgang v. Mid-America Motorsports, Inc., 111 F.3d 1515, 1522 (10th Cir.1997).

I.

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Bluebook (online)
180 F.3d 1143, 5 Wage & Hour Cas.2d (BNA) 696, 1999 Colo. J. C.A.R. 3297, 1999 U.S. App. LEXIS 11380, 75 Empl. Prac. Dec. (CCH) 45,914, 79 Fair Empl. Prac. Cas. (BNA) 1818, 1999 WL 374241, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atchley-v-nordam-group-inc-ca10-1999.