Dessie v. Generale Bank

799 F. Supp. 1544, 1992 U.S. Dist. LEXIS 12384, 1992 WL 201320
CourtDistrict Court, S.D. New York
DecidedAugust 20, 1992
Docket90 Civ. 3366 (CHT)
StatusPublished
Cited by2 cases

This text of 799 F. Supp. 1544 (Dessie v. Generale Bank) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dessie v. Generale Bank, 799 F. Supp. 1544, 1992 U.S. Dist. LEXIS 12384, 1992 WL 201320 (S.D.N.Y. 1992).

Opinion

OPINION AND ORDER

TENNEY, District Judge.

This diversity case, brought under New York’s Human Rights Law, N.Y.Exec.Law § 296 (McKinney 1982 & Supp.1992), involves a claim of employment discrimination on the basis of race and/or national origin. It was tried before a jury which found in favor of the defendant Generale Bank on plaintiffs claim of wrongful termination, but found in favor of the plaintiff Alazar Dessie and awarded him $200,000 on his claim that the defendant discriminated against him between May 16, 1988 and January 15, 1990 by inadequately compensating him. The jury also awarded the plaintiff damages for mental anguish in the amount of $40,000. Defendant Generale Bank has moved for entry of an order granting judgment as a matter of law, pursuant to Fed.R.Civ.P. 50(b), on Mr. Dessie’s claim of discriminatory treatment in the determination of his salary or, in the alternative, reducing the jury’s award on that claim to not more than $84,000. Defendant also moves for judgment as a matter of law on Mr. Dessie’s claim for damages for mental anguish. For the reasons set forth below, the motion is granted.

BACKGROUND

Plaintiff Alazar Dessie is a Black man who, at the time of his employment by defendant, was an Ethiopian citizen. Tr. 97, 100; Pre-Trial Order (“PTO”) § 5 II1. Defendant Generale Bank is a bank organized under the laws of Belgium whose head office is located in Brussels, Belgium. PTO § 5 ¶ 2. Generale Bank has branches throughout Belgium and operates in more than thirty countries. Id. In April 1984, Mr. Dessie was hired by Ian Messer, the Chief Executive Officer and General Manager of a recently established New York branch of Generale Bank, to assume the position of Group Vice President, Marketing. Tr. 108,112; Ex. 2; PTO § 4, IT 1; § 6 1T 4-7. Mr. Dessie had initially worked with Mr. Messer at the Continental Illinois National Bank & Trust Co. and had later switched to The Gulf Bank, K.S.C. at Mr. Messer’s invitation. Tr. 102, 104-05; PTO § 6 IT 2-3. At the same time that he hired Mr. Dessie, Mr. Messer also hired a man named Hans Neukomm to serve as the branch’s Executive Vice President and Treasurer. PTO § 6 IT 8. As of at least February 1985, if not earlier, Patrick Speeckaert was also employed by the New York branch as the person in charge of the operations department. Tr. 117. Between April 1984 and May 1988, Mr. Dessie received two promotions — to Senior Vice President and then Executive Vice President — and five salary increases. Tr. 116, 124, 126, 133, 136.

In May 1988, Mr. Messer was relocated by Generale Bank to its London office. Tr. 137; PTO § 6 IT 21, 25. Upon Mr. Messer’s reassignment, Mr. Dessie was appointed General Manager of the New York branch, although Mr. Messer retained the title of Chief Executive Officer. Exs. H, I; PTO § 6 IT 22. Mr. Dessie testified at trial that Mr. Messer retained this title as a convenience so that his benefits would not be disrupted close to his approaching retirement. Tr. 160-61. As of June 1988, however, although both Mr. Neukomm and Mr. Speeckaert reported to Mr. Dessie, they both were more highly compensated than he was. Tr. 189, 393-95; PTO § 6 ¶ 26. In June of 1989, Guy Dahin, the General Treasurer of Generale Bank, was appointed Chief Executive Officer of the New York branch, effective in November of that year. Tr. 861, 863-64; Ex. 35. In January 1990, one and a half years after his promotion to General Manager, Mr. Dessie was notified *1546 that his position was being eliminated. Tr. 297-98; Ex. 58; PTO § 6 ¶ 62. His salary at that time was 1220,00o. 1 Tr. 193, 204; Exs. 37, 38; PTO § 6 ¶ 41.

In May 1990, Mr. Dessie commenced this action against Generate Bank in which he asserted that he was wrongfully terminated by Generate Bank and that he had been paid less from the period of May 1988 until his termination because of his race and/or national origin. PTO § 4 U 1-2. In addition to compensatory damages, Mr. Dessie sought damages for mental anguish, humiliation and emotional distress caused by his termination. PTO § 4 Tí 1(b). Trial of this case began on December 2, 1991. Tr. 1. On December 12, 1991 the court charged the jury according to a three-part “pretext” or McDonnell Douglas analysis which required Mr. Dessie to prove, inter alia, a prima facie case of discrimination in his compensation by establishing the following facts by a preponderance of the evidence: (1) that he was a member of the class protected by the statute; (2) that he was paid lower salaries and bonuses than the employees whose salaries were the subject of comparison; (3) that he did work equal to those employees; and (4) that such disparate treatment occurred in circumstances giving rise to an inference that Generate Bank discriminated against him on the basis of his race and/or national origin. Tr. 1282-85. The jury was then instructed that if it found that Mr. Dessie established a prima facie case, it should then consider whether Mr. Dessie had proved by a preponderance of the evidence that the reason given by Generate Bank for its compensation decisions — namely that the salaries and bonuses it paid to Mr. Dessie were consistent with his functions, seniority, experience, merit, and the relative market demand for individuals in his area of expertise — was merely a pretext for discrimination. Id.

During the charging conference after both sides had rested, Mr. Dessie argued for the first time that the jury should be charged that it should consider whether Generate Bank had discriminated against him by paying him less than Ian Messer, rather than just less than Mr. Neukomm and Mr. Speeckaert. Tr. 1120-22. Generate Bank objected on the ground that Mr. Dessie had never previously claimed that his salary should be compared to any officers other than Mr. Neukomm and Mr. Speeckaert, either in the Pleadings or in the Pre-Trial Order, nor had he offered any evidence at trial supporting such a comparison. Tr. 1120, 1122. The court ruled that Mr. Dessie’s salary claim would be limited by the pleadings and the PreTrial Order and, thus, precluded any comparison to Mr. Messer’s salary in connection with that claim. Tr. 1122.

On December 13, 1991, the jury returned a verdict in favor of Generate Bank on Mr. Dessie’s termination claim, finding that Generate Bank had not discriminated against Mr. Dessie in connection with his discharge. Tr. 1321. The jury found in favor of Mr. Dessie on his salary claim, finding that between May 16, 1988 and January 15, 1990, Generate Bank had paid him $200,000 less than Mr. Neukomm and Mr. Speeckaert. Tr. 1322. The jury also found that Mr. Dessie had sustained $40,-000 in mental anguish damages. Id. Generate Bank then renewed a previously-made motion for judgment as a matter of law in accordance with Fed.R.Civ.P. 50(b). Tr. 1324-25.

DISCUSSION

I. Judgment as a Matter of Law

The legal standards applicable to a motion for judgment as a matter of law are well established. 2

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Bluebook (online)
799 F. Supp. 1544, 1992 U.S. Dist. LEXIS 12384, 1992 WL 201320, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dessie-v-generale-bank-nysd-1992.