Doyne v. Union Elec. Co.

755 F. Supp. 866, 1991 U.S. Dist. LEXIS 1011, 55 Fair Empl. Prac. Cas. (BNA) 103, 1991 WL 9799
CourtDistrict Court, E.D. Missouri
DecidedJanuary 7, 1991
Docket89-2120 C(1)
StatusPublished
Cited by4 cases

This text of 755 F. Supp. 866 (Doyne v. Union Elec. Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Doyne v. Union Elec. Co., 755 F. Supp. 866, 1991 U.S. Dist. LEXIS 1011, 55 Fair Empl. Prac. Cas. (BNA) 103, 1991 WL 9799 (E.D. Mo. 1991).

Opinion

755 F.Supp. 866 (1991)

Morgan I. DOYNE, Plaintiff,
v.
UNION ELECTRIC COMPANY, Defendant.

No. 89-2120 C(1).

United States District Court, E.D. Missouri, E.D.

January 7, 1991.

*867 *868 Marilyn Teitelbaum, Schuchat, Cook & Werner, St. Louis, Mo., for plaintiff.

Thomas Hanna, McMahon, Berger, Hanna, Linihan, Cody & McCarthy, St. Louis, Mo., for defendant.

MEMORANDUM OPINION

DAVID D. NOCE, United States Magistrate Judge.

This action is before the Court for the entry of judgment following a jury trial. The parties consented to the exercise of jurisdiction over the action by a United States Magistrate Judge under 28 U.S.C. § 636(c)(3).

Plaintiff Morgan I. Doyne brought this suit against defendant Union Electric Company ("Union Electric") on the claim that Union Electric terminated Doyne from employment on account of his age, in violation of the federal Age Discrimination in Employment Act ("ADEA"), 29 U.S.C. § 621, et seq., and the Missouri Human Rights Act, § 213.010 R.S.Mo.

Jury's findings.

Following a trial, the jury made the following findings: (1) Union Electric terminated Morgan Doyne from employment because of his age and to effect a cost saving because he had been paid a higher salary than a retained employee who was younger in age than Doyne. (2) Because of Finding (1), Doyne suffered $177,515.00 in lost monetary benefits, but suffered no mental anguish and suffering, up to October 1, 1990. (3) From October 1, 1990, to the time he otherwise would have retired from employment by Union Electric, Doyne would have suffered $273,993.00 in lost monetary benefits, but no mental anguish and suffering. (4) Doyne did not prove that Union Electric's age discrimination was willful. (5) Doyne proved entitlement to $48,492.00 in punitive damages. (6) Union Electric did not prove that it would have terminated Doyne without the motivation found in Finding (1). See, Jury Answers to Special Interrogatories, filed October 13, 1990.

Discussion.

In addition to the back pay (Finding (2), above), front pay (Finding (3), above), punitive *869 damages (Finding (5), above), and a reasonable attorney's fee, plaintiff seeks pre-judgment interest, from March 1, 1988 (the day plaintiff was terminated) through October 1, 1990 (the end of the jury's back pay computation), on the back pay award. Defendant argues that plaintiff is not entitled to pre-judgment interest or any front pay, and that any pay award must be reduced by the amount of Social Security benefits and pension payments he has received.

Pre-judgment interest.

Upon proof that the employer willfully violated the ADEA, an employee may recover liquidated damages. 29 U.S.C. § 626(b). When liquidated damages are awarded for willful age discrimination, a plaintiff is not entitled to recover pre-judgment interest, to avoid duplication of remedies; otherwise, pre-judgment interest may be appropriate. Gibson v. Mohawk Rubber Company, 695 F.2d 1093, 1102-03 n. 9 (8th Cir.1982). In this case the jury did not find that defendant committed a willful violation of the ADEA. Therefore, plaintiff is not entitled to liquidated damages.

Defendant argues that, although plaintiff is not entitled to liquidated damages, the jury did award him punitive damages which are similar in nature to liquidated damages. Therefore, defendant argues, plaintiff should not receive pre-judgment interest, to avoid a double recovery. This argument is incorrect. Liquidated damages for a violation of the ADEA are not punitive, but compensatory. Gibson, supra, 695 F.2d at 1102; Fariss v. Lynchburg Foundry, 769 F.2d 958, 967 (4th Cir. 1985). Thus, an award of punitive damages and pre-judgment interest is not a duplication of remedies.

Plaintiff is entitled to pre-judgment interest, if the back pay award was reasonably capable of being ascertained at the time of the discriminatory act. Behlar v. Smith, 719 F.2d 950, 954 (8th Cir.1983), cert. denied, University of Arkansas Board of Trustees v. Greer, 466 U.S. 958, 104 S.Ct. 2169, 80 L.Ed.2d 552 (1984); Morgan v. Arkansas Gazette, 897 F.2d 945, 954 (8th Cir.1990). In this case, the back pay award was the amount the jury found plaintiff would have earned if defendant had not terminated him, i.e., salary and benefits, added cost of insurance, lost pension and social security benefits, lost 401(k) benefits, and lost deferred compensation plan benefits. See, Jury Instruction No. 13. The amounts of these components were reasonably capable of being ascertained at the time plaintiff was terminated. Plaintiff is entitled to pre-judgment interest to compensate him for the loss of the use of these lost economic benefits. Behlar v. Smith, supra, 719 F.2d at 954.

Plaintiff argues that the amount of the pre-judgment interest should be either 7.4%, which plaintiff describes as the non-taxed municipal bond rate, or the current post-judgment interest rate provided by law, see 28 U.S.C. § 1961(a). The Court takes judicial notice of the facts that the "average accepted auction price for the last auction of fifty-two week United States Treasury bills," see 28 U.S.C. § 1961(a), was 7.14% on March 1, 1988, was 7.78% on October 1, 1990, and is now 7.02%. The Court will award pre-judgment interest at the rate of 7.14% per annum on the back pay award, because that was a reasonable, ascertainable rate when plaintiff was terminated. Equal Employment Opportunity Commission v. Northwest Airlines, 1989 WL 168009, 1989 U.S.Dist. LEXIS 16793, 51 FEP Cases 1317, 1331 (W.D. Wash.1989) (Weinberg, U.S. Mag. J.); cf., General Facilities, Inc. v. National Marine Service, Inc., 664 F.2d 672, 674 (8th Cir.1981).

Front pay in lieu of reinstatement.

Plaintiff seeks an award of the front pay found by the jury, instead of reinstatement as a Union Electric employee. Following the jury trial, the Court received evidence on plaintiff's entitlement to equitable relief. From the evidence adduced at trial and during the post-trial hearing, the undersigned makes the following findings:

*870 1. Morgan Doyne would prefer not to return to work at Union Electric. He believes that neither he nor Union Electric can work together harmoniously. However, if the Court ordered reinstatement in lieu of the front pay found by the jury in Finding (3), above, he would reluctantly return to work there.

2. Doyne is not sure he will seek employment elsewhere. Although he has sent out job applications, he has not followed up on them.

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755 F. Supp. 866, 1991 U.S. Dist. LEXIS 1011, 55 Fair Empl. Prac. Cas. (BNA) 103, 1991 WL 9799, Counsel Stack Legal Research, https://law.counselstack.com/opinion/doyne-v-union-elec-co-moed-1991.