Dailey v. North Coast Life Ins. Co.

919 P.2d 589
CourtWashington Supreme Court
DecidedJuly 25, 1996
Docket63533-1
StatusPublished
Cited by55 cases

This text of 919 P.2d 589 (Dailey v. North Coast Life Ins. Co.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dailey v. North Coast Life Ins. Co., 919 P.2d 589 (Wash. 1996).

Opinion

919 P.2d 589 (1996)
129 Wash.2d 572

Janet DAILEY and Gregory Dailey, wife and husband, Respondents,
v.
NORTH COAST LIFE INSURANCE COMPANY, Chester R. Ogden, Dolores J. Dressel, and Laurence G. Egger, Petitioners.

No. 63533-1.

Supreme Court of Washington, En Banc.

Argued March 28, 1996.
Decided July 25, 1996.

*590 Randall & Danskin, P.S., Carole L. Rolando, and Richard C. Dietz, Robert T. Carter, Spokane, for Petitioners.

Mary E. Schultz, Spokane, for Respondents.

Mary F. Roberts, Marilyn J. Endriss, Seattle, Amicus Curiae, Washington Employment Lawyers Association.

Miller, Nash, Wiener, Hager & Carlsen, James R. Dickens, Francis L. Van Dusen, Jr., and Susan K. Stahlfeld, Seattle, Amicus Curiae, Washington Defense Trial Lawyers.

Debra L. Stephens, Bryan Harnetiaux, Spokane, Amicus Curiae, for Washington Trial Lawyers Association.

DOLLIVER, Justice.

Since its earliest decisions, this court has consistently disapproved punitive damages as contrary to public policy. See Spokane Truck & Dray Co. v. Hoefer, 2 Wash. 45, 50-56, 25 P. 1072 (1891). Punitive damages not only impose on the defendant a penalty generally reserved for criminal sanctions, but also award the plaintiff with a windfall beyond full compensation. See Kadoranian v. Bellingham Police Dep't, 119 Wash.2d 178, 188, 829 P.2d 1061 (1992). Particularly in the case of workplace discrimination, the Legislature has assured a plaintiff may "become whole" through a full panoply of compensatory damages. See Barr v. Interbay Citizens Bank, 96 Wash.2d 692, 699-700, 635 P.2d 441, amended by 96 Wash.2d 692, 649 P.2d 827 (1982). Nevertheless, Plaintiffs in the present case have asked the court to endorse the trial court's tortuous path through three statutes to find a sufficient expression of legislative intent for punitive damages in employment discrimination claims. We instead hold punitive damages are unavailable under the Law Against Discrimination (LAD), RCW 49.60.

On March 16, 1990, Defendant North Coast Life Insurance Co. terminated Plaintiff Julie Dailey's employment. Dailey and co-Plaintiff Gregory Dailey filed a wrongful termination claim that included an allegation of sex discrimination in violation of the LAD and specifically sought punitive damages. Both parties moved for partial summary judgment on the availability of punitive damages under the LAD.

The trial court granted Plaintiffs' motion, concluding RCW 49.60.030(2) both permitted punitive damages in an employment discrimination action and operated retrospectively. Defendants appealed. At the request of the Court of Appeals, the Supreme Court accepted certification of the case. We now reverse.

Governing resolution of this case is the court's long-standing rule prohibiting punitive damages without express legislative authorization. See, e.g., Barr, 96 Wash.2d at *591 699-700, 635 P.2d 441; Spokane Truck, 2 Wash. at 50-56, 25 P. 1072. The trial court determined the LAD, RCW 49.60.30(2), expressly authorized punitive damages by incorporating that federal remedy by reference to the United States Civil Rights Act of 1991, 42 U.S.C. § 1981a(a)(1). See Mackay v. Acorn Custom Cabinetry, Inc., 127 Wash.2d 302, 316, 898 P.2d 284 (1995) (Madsen, J., dissenting) (noting RCW 49.60.030(2) does not authorize punitive damages under state law). While we do not fault the trial court's analytic framework, we find the statutory authority too ambiguous and attenuated to suffice as express.

Since 1973, the Legislature has authorized private equitable and compensatory relief under the LAD:

to enjoin further violations, to recover the actual damages sustained by him, or both, together with the cost of suit including a reasonable attorney's fees or any other remedy authorized by this chapter or the United States Civil Rights Act of 1964....

Former RCW 49.60.030(2). In 1993, the Legislature acknowledged the Civil Rights Act of 1991 by amending RCW 49.60.030(2) to "any other remedy authorized by this chapter or the United States Civil Rights Act of 1964 as amended." (Italics ours.) RCW 49.60.030(2).

The Civil Rights Act of 1964 provided private remedies for employment discrimination in Title VII, historically authorizing only equitable relief. By the Civil Rights Act of 1991, Congress amended the 1964 Act to allow greater trial costs, including expert fees. 42 U.S.C. § 2000e-5(k); see Xieng v. Peoples Nat'l Bank, 120 Wash.2d 512, 528, 844 P.2d 389 (1993). The 1991 Act also amended 42 U.S.C. § 1981a, known as the Revised Statutes, to permit compensatory and punitive damages in an action for intentional employment discrimination:

provided that the complaining party cannot recover under section 1981 of [the Revised Statutes (42 U.S.C. § 1981)], the complaining party may recover compensatory and punitive damages as allowed in subsection (b) of this section, in addition to any relief authorized by section 706(g) of the Civil Rights Act of 1964, from the respondent.

42 U.S.C. § 1981a(a)(1).

Ambiguities cloud the relation between 42 U.S.C. § 1981a(a)(1) and RCW 49.60.030(2) to preclude characterization of their link as an express authorization for punitive damages. First, the structure of the language in RCW 49.60.030(2) arguably evinces an intent to incorporate only federal remedies qualifying as "costs." While the trial court read the provision as: "to recover the actual damages... together with ... any other remedy...," we might reasonably read the term "including" as restrictive: "the cost of suit including ...

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