Department of Civil Rights v. Horizon Tube Fabricating, Inc

385 N.W.2d 685, 148 Mich. App. 633
CourtMichigan Court of Appeals
DecidedFebruary 3, 1986
DocketDocket 80852
StatusPublished
Cited by16 cases

This text of 385 N.W.2d 685 (Department of Civil Rights v. Horizon Tube Fabricating, Inc) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Department of Civil Rights v. Horizon Tube Fabricating, Inc, 385 N.W.2d 685, 148 Mich. App. 633 (Mich. Ct. App. 1986).

Opinion

R. B. Burns, J.

This appeal arises out of claimant’s claim of employment discrimination in violation of the Elliott-Larsen Civil Rights Act, MCL 37.2101 et seq.; MSA 3.548(101) et seq. Claimant, Marian Caskey, was hired by respondent in July, 1977. She was 5 feet 4 Vi inches tall and weighed approximately 250 pounds at the time she was hired. In May, 1980, several employees, including claimant, were laid off. After learning that employees with less seniority were being recalled, claimant called respondent and was informed that she had to undergo a physical examination as a condition to recall. Accordingly, she was examined at Metro Industrial Clinic on July 18, 1980. After claimant brought the written results of the examination to respondent, she was informed by respondent that she would not be recalled unless she lost 125 pounds. She then went to her family physician who also examined claimant and found that she was physically able to resume her employment.

*636 Claimant filed charges with the Civil Rights Commission and hearings were held before a referee in July and August, 1982. At the July hearing, claimant testified that she had made efforts to find new employment but that she had been unable to find fulltime, regular work. As a result, her only employment had been caring for an elderly woman on an irregular basis, for which she was compensated $91 a month. Claimant testified that she had filled out applications "up and down Northline”, but that her efforts had been unsuccessful. Upon cross-examination, claimant admitted that the last time she had reported to the unemployment office was one to two years previously. However, she stated that she had been to the office within the prior two months to examine the microfilms of job listings. She recalled specifically applying for a position at the Kelsey-Hayes plant in Pontiac in September, 1981, the winter of 1981 or 1982 and summer of 1982.

In its decision, the commission found that respondent had unlawfully failed and refused to recall claimant because of her weight and that respondent had not shown that claimant failed to mitigate her damages. The commission also awarded claimant’s attorney, Charlene Snow, fees in the amount of $8,437, calculated at a rate of $70 per hour.

The commission’s decision was appealed to the Wayne County Circuit Court and the circuit judge upheld the decision of the commission, but increased the attorney fees awarded to Snow to a rate of $90 per hour. The court declined to rule on whether claimant was entitled to interest on the award.

The first issue we consider is whether the circuit court applied the correct standard in determining whether claimant mitigated her damages. The *637 circuit court looked to federal cases under Title VII, 42 USC 2000e et seq., and concluded that claimant was required to use reasonable care and diligence in seeking suitable employment in order to mitigate her damages.

In Michigan, the defendant has the burden to prove that the plaintiff failed to employ every reasonable effort to mitigate damages. Williams v American Title Ins Co, 83 Mich App 686; 269 NW2d 481 (1978). This rule is applicable to both contract and tort actions. Williams, supra. The question of the appropriate standard for determining a plaintiff’s obligation to mitigate damages under Elliott-Larsen appears to present a question of first impression. However, like the circuit judge, we look to federal decisions under Title VII for guidance.

Like Elliott-Larsen, a primary purpose of Title VII is to prohibit discriminatory practices in employment. See Ford Motor Co v EEOC, 458 US 219; 102 S Ct 3057; 73 L Ed 2d 721 (1982). Because of the similarities in the statutes, Michigan courts have frequently relied on federal decisions under Title VII when deciding state employment discrimination claims. 1

Section 706(g) of Title VII 2 imposes a duty to mitigate damages. However, once a claimant has presented a prima facie case of discrimination and damages, the burden of demonstrating that he failed to mitigate his damages shifts to the respondent. Rasimas v Michigan Dep’t of Mental Health, 714 F2d 614 (CA 6, 1983); Kaplan v International *638 Alliance of Theatrical & Stage Employees & Motion Picture Machine Operators, 525 F2d 1354 (CA 9, 1975). In order to meet this burden, respondent must provide evidence to satisfy the following two-pronged test:

"The burden of proving a failure to mitigate damages in an employment discrimination suit is on defendant. Kaplan [supra, p 1363]. To satisfy this burden, defendant must establish (1) that the damage suffered by plaintiff could have been avoided, i.e., that there were suitable positions available which plaintiff could have discovered and for which he was qualified; and (2) that plaintiff failed to use reasonable care and diligence in seeking such a position.” Sias v City Demonstration Agency, 588 F2d 692, 696 (CA 9, 1978).

This test appears to be almost uniformly accepted. 3

We disagree with respondent’s interpretation of "reasonable care and diligence” as meaning that the discharged employee is required to make every effort to find employment. A claimant is only required to make every reasonable effort to mitigate damages and is not held to the highest standard of diligence. Rasimas, supra; United States v Lee Way Motor Freight, Inc, 625 F2d 918 (CA 10, 1979) ; Thurber, supra.

Moreover, a finding of diligence is not a condition precedent to an award of back pay. It is a respondent, not a claimant, who bears the burden of establishing that the claimant willfully failed to mitigate damages and this burden is not met merely by showing that further actions could have been taken in the pursuit of employment. "Rather, the defendant must show that the course of conduct plaintiff actually followed was so deficient as *639 to constitute an unreasonable failure to seek employment.” Thurber, supra, p 242.

In summary, diligence in mitigating damages within the employment discrimination context does not require every effort, but only a reasonable effort and it is a respondent, not a claimant, who has the burden of establishing that the claimant failed to make an honest, good faith effort to secure employment.

Having concluded that the circuit judge applied the correct standard, we must now determine whether he was correct in finding that claimant mitigated her damages. This Court’s review of the circuit court’s findings in the present case is governed by the clearly erroneous standard of MCR 2.613(C), formerly GCR 1963, 517.1. Dixon v Ford Motor Co, 402 Mich 315; 262 NW2d 666 (1978); Civil Rights Comm v Chrysler Corp, 80 Mich App 368; 263 NW2d 376 (1977).

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Bluebook (online)
385 N.W.2d 685, 148 Mich. App. 633, Counsel Stack Legal Research, https://law.counselstack.com/opinion/department-of-civil-rights-v-horizon-tube-fabricating-inc-michctapp-1986.