Deffenbaugh-Williams v. Wal-Mart Stores, Inc.

156 F.3d 581, 1998 U.S. App. LEXIS 23989, 74 Empl. Prac. Dec. (CCH) 45,510, 77 Fair Empl. Prac. Cas. (BNA) 1699, 1998 WL 654810
CourtCourt of Appeals for the Fifth Circuit
DecidedSeptember 24, 1998
DocketNo. 97-10685
StatusPublished
Cited by94 cases

This text of 156 F.3d 581 (Deffenbaugh-Williams v. Wal-Mart Stores, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Deffenbaugh-Williams v. Wal-Mart Stores, Inc., 156 F.3d 581, 1998 U.S. App. LEXIS 23989, 74 Empl. Prac. Dec. (CCH) 45,510, 77 Fair Empl. Prac. Cas. (BNA) 1699, 1998 WL 654810 (5th Cir. 1998).

Opinion

RHESA HAWKINS BARKSDALE, Circuit Judge:

For the numerous issues presented regarding the amended judgment, the principal matter at hand is the imposition of punitive damages against an employer, through vicarious liability, for a racially discriminatory termination, in the light of two very recent Supreme Court decisions regarding employer vicarious liability for sexual harassment. A jury having found Wal-Mart Stores, Inc., liable under Title VII, 42 U.S.C. § 2000e et seq., and 42 U.S.C. § 1981, for such termination of Julie Deffen-baugh-Williams (Deffenbaugh), and having awarded her compensatory and punitive damages, Wal-Mart raises liability and the failure to mitigate the compensatory damages; Deffenbaugh, the district court’s setting aside, as a matter of law, the punitive damages. In the alternative, Wal-Mart asserts that the punitive damages are excessive. We AFFIRM as to liability and the amount of compensatory damages; as to the denial of punitive damages, we REVERSE, [585]*585but order a remittitur of $25,000, resulting in those damages being reduced from $100,-000 to $75,000, with Deffenbaugh having the option of a new trial on such damages.

I.

Deffenbaugh began working for Wal-Mart in 1979 as the jewelry manager for its store in Bowie, Texas. She voluntarily quit in 1982. In 1989, she began working as a sales associate at the Wal-Mart Hypermart in Arlington, Texas. In 1990, Deffenbaugh was promoted to manager of the jewelry department.

In May 1992, Deffenbaugh, who is white, began dating Truce Williams (Williams), a black sales associate in the Arlington Hyper-mart men’s wear department. They did not reveal the existence of their relationship to their co-workers.

Charlotte England served as Deffen-baugh’s direct supervisor until May or June 1993, when Dale Gipson became District Manager of the shoe and jewelry departments of six Wal-Mart stores, including the Arlington Hypermart. As manager of the jewelry department employees at the Hyper-mart, Gipson had direct supervisory authority over Deffenbaugh. Around this same time, Pat Price became the manager of Def-fenbaugh’s store; but, he never directly supervised Deffenbaugh.

In May and August 1993, Price saw Def-fenbaugh and Williams together at local restaurants; and, on one of these occasions, saw them kiss. In August 1993, shortly after the second occasion on which he saw Deffen-baugh and Williams together in public, Price asked Deffenbaugh to attend a lunch meeting at a local restaurant to discuss store inventory. Deffenbaugh testified that Price, England, and Gipson attended this meeting; and that, in the presence of Price and Gip-son, England told Deffenbaugh that she “would never move up with the company being associated with a black man and that Wal-Mart frowned upon fraternization with[in] the company”. Deffenbaugh responded that her personal business was not their concern, “because it did not affect [her] job performance”. Price and Gipson did not respond to these comments.

In October 1993, Price advised Deffen-baugh about Wal-Mart’s nonfraternization policy; and she signed a written acknowledgment of this policy. But, the policy did not prohibit employees from dating if they were not in a direct supervisory relationship.

Prior to December 1993, Deffenbaugh’s performance evaluations were favorable and she earned high revenues for the store. Early that December, however, Gipson reprimanded Deffenbaugh for an incident that October, in which she set aside a bottle of perfume to purchase at the end of her shift. Gipson accused her of “shopping on the clock”, ie., shopping for store merchandise during working hours. (In late November, Gipson and Greg Shelton, the Wal-Mart Loss Prevention Manager, had initially accused Deffenbaugh of stealing the perfume.)

Deffenbaugh was suspended for one day and returned to work only after she had prepared and signed a “plan of action”, outlining how she would improve her work performance. The plan included a statement that she would “never shop while on company time”. Despite her compliance with these instructions, Deffenbaugh believed the reprimand was pretextual, noting that there was no written policy prohibiting “shopping on the clock”.

Deffenbaugh testified that, after this reprimand, she contacted David Norman, the Wal-Mart regional manager, and told him that the Wal-Mart managers were “out to get [her] ... because of [her] dating [Williams]....” Norman replied that it was not a problem if she was dating a black man and assured her that he would “check into it”.

On Friday, 14 January 1994, the day after Deffenbaugh married Williams, he told her that he wanted to purchase a VCR from the electronics department. Just before 4:00 p.m., Deffenbaugh, before clocking out, went to the men’s wear department to give Williams cash from a paycheck she earlier had cashed for him. Williams asked Deffen-baugh for her Wal-Mart discount card. Def-fenbaugh testified that she stopped near the [586]*586electronics department cashier and handed Williams, not the cashier, the card. Williams used the card to purchase the VCR, while Deffenbaugh went to check on the jewelry department before walking to the front of the store to clock out.

The next morning, Williams’ supervisor, Arthur Stanford, telephoned Williams and informed him and Deffenbaugh that “they” were going to “mess with” and “terminate” Deffenbaugh on the following Monday. On Wednesday, 19 January 1994, Gipson told Deffenbaugh that her employment was terminated because she had “shopp[ed] on the clock” again. Deffenbaugh countered that the VCR had been purchased by Williams, not her; and that Gipson could verify this by asking a fellow employee who had seen Williams make the purchase. Instead, Gip-son relied on the cashier’s handwritten report that Deffenbaugh had been present when Williams made the purchase, and that store records showed that the card was used before Deffenbaugh clocked out.

Deffenbaugh brought this action against Wal-Mart in March 1995, claiming, inter alia, that, in violation of Title VII and § 1981, she, a white female, was discharged because she was dating a black male. Prior to the trial in July 1996, the district court dismissed all claims except that of racial discrimination.

At the close of Deffenbaugh’s case, and pursuant to Fed.R.Civ.P. 50, Wal-Mart moved for judgment as a matter of law, asserting that Deffenbaugh failed to establish a prima facie case because she is not a member of a protected class; that there was no evidence of discriminatory animus; that Wal-Mart could not be liable for compensatory damages after December 1994, when Def-fenbaugh voluntarily terminated her next employment; and that Deffenbaugh was not entitled to punitive damages. The court immediately denied the motion; and Wal-Mart announced that it rested, without presenting any evidence. At the charge conference, Wal-Mart renewed the same motion for judgment; it was, again, denied.

The jury found that race was a motivating factor in Wal-Mart’s decision to discharge Deffenbaugh; specifically, that she was discharged because of her association with a black person. It awarded compensatory damages for lost-earnings of $19,000 and punitive damages of $100,000.

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156 F.3d 581, 1998 U.S. App. LEXIS 23989, 74 Empl. Prac. Dec. (CCH) 45,510, 77 Fair Empl. Prac. Cas. (BNA) 1699, 1998 WL 654810, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deffenbaugh-williams-v-wal-mart-stores-inc-ca5-1998.