Dutcher v. Randall Foods

546 N.W.2d 889, 1996 Iowa Sup. LEXIS 243, 70 Fair Empl. Prac. Cas. (BNA) 1426, 1996 WL 189928
CourtSupreme Court of Iowa
DecidedApril 17, 1996
Docket94-1530
StatusPublished
Cited by49 cases

This text of 546 N.W.2d 889 (Dutcher v. Randall Foods) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dutcher v. Randall Foods, 546 N.W.2d 889, 1996 Iowa Sup. LEXIS 243, 70 Fair Empl. Prac. Cas. (BNA) 1426, 1996 WL 189928 (iowa 1996).

Opinion

TERNUS, Justice.

Appellant, Lori Duteher, successfully proved her employer, appellee Randall Foods, violated the Equal Pay Act 1 , see 29 U.S.C. § 206(d) (1992), and the Iowa Civil Rights Act, see Iowa Code ch. 216 (1993). A jury awarded Duteher lost wages and benefits. The trial court, however, refused to award Duteher liquidated damages, damages for emotional distress and attorney fees. Duteher appealed. We reverse the trial court’s denial of liquidated damages and attorney fees, and remand for determination of an appropriate fee and entry of judgment in accordance with our decision.

I. Background Facts and Proceedings.

Lori Duteher began working for Randall in 1984 as a part-time wrapper and counter person in the meat department. In 1990 she was promoted to a full-time position, responsible for the prepackaged meat section of the meat department. At that time, store management granted Dutcher’s request to have a “supervisor” patch sewn on her white work jacket; two other full-time employees in the meat department received the same patch.

In late 1991, Duteher began to suspect that Randall was discriminating against her based on her gender. Her suspicions were primarily based on her belief that Myron Gilliland, a full-time male employee in the produce department, received a higher wage than she did.

Randall hired Gilliland in September of 1991 as a full-time produce clerk. Randall expected Gilliland would move into a management position; he had twelve years of experience in the grocery business, five in managerial positions. Gilliland was initially hired at a rate of $5.80 per hour; three weeks later Dutcher’s wage was raised to the same hourly rate. In October of 1991, however, Gilliland received a one dollar raise; Duteher did not receive a raise at that time.

By coincidence, the produce department manager was Dutcher’s brother-in-law, Tom Duteher. Lori Duteher learned of the pay differential between her and Gilliland when Tom Duteher told his brother, Lori Duteher’s husband, in early 1992.

Lori Duteher then complained to the store manager about being paid less than Gilliland. When she found the manager’s response unsatisfactory, she filed a complaint with the Iowa Civil Rights Commission. See Iowa Code § 216.15 (1993). Following the issuance of a right-to-sue letter, see id. § 216.16, Duteher filed a petition in the Iowa district court. Her petition included a claim under the Equal Pay Act to recover wages, liquidated damages and attorney fees. It also stated a claim under the Iowa Civil Rights Act for loss of income and benefits, emotional distress, punitive damages and attorney fees. Both claims were based on the allegation that Duteher did not receive wage increases given to males working in equal positions.

Trial of Dutcher’s case was bifurcated: the equal pay claim was tried to a jury and the civil rights claim was tried to the court. The jury decided Randall violated the Equal Pay Act by paying Duteher at a rate less than the rate “paid to a member of the opposite sex for a job doing substantially equal work which required equal skill, effort and responsibility.” It awarded her $2128 for lost wages and benefits, only $40.80 less than what she had requested. The court entered judgment on the jury verdict and addressed the remaining issues.

With respect to the Equal Pay Act, the court found Randall demonstrated it acted in good faith and had reasonable grounds to believe it was not violating the law in setting the pay rate for Duteher and comparable employees. Thus, the court denied liquidated damages. See 29 U.S.C. § 260. In *892 addition, Dutcher’s claim for attorney fees was also denied.

The court then considered Dutcher’s discrimination claim under the Iowa Civil Rights Act. The court adopted the jury’s findings that (1) Randall paid Duteher less than male employees because she was female and (2) Duteher lost wages and benefits of $2128. Dutcher’s claim for additional compensatory damages was denied because the court rejected her testimony that Randall’s discriminatory conduct caused her emotional distress. The trial court also found Randall’s actions were not willful or wanton and consequently concluded punitive damages were not warranted.

On appeal Duteher makes several claims: (1) the trial court erred in considering whether Randall’s conduct was reasonable and in good faith because Randall had not raised this issue as an affirmative defense; (2) even if this issue had been properly raised, the court abused its discretion in finding Duteher was not entitled to liquidated damages; (3) substantial evidence does not support the court’s conclusion that Duteher suffered no emotional distress; and (4) the trial court erred in failing to award Duteher reasonable attorney fees. Randall did not file a cross-appeal and therefore, we accept as established that Randall violated the Equal Pay Act and the Iowa Civil Rights Act by paying Duteher less than males in comparable positions. Similarly, the amount of Dutcher’s lost wages and benefits, not challenged on appeal, is also conclusively determined.

II. Liquidated Damages.

Section 216(b) of the FLSA provides for an award of liquidated damages to a prevailing employee:

An employer who violates the provisions of [the Equal Pay Act] shall be liable to the employee ... affected in the amount of their unpaid ... wages ... and in an additional equal amount as liquidated damages.

29 U.S.C. § 216(b). An employee’s right to liquidated damages may, however, be defeated:

[I]f the employer shows to the satisfaction of the court that the act or omission giving rise to such action was in good faith and that he had reasonable grounds for believing that his act or omission was not a violation of the Fair Labor Standards Act of 1938, as amended, the court may, in its sound discretion, award no liquidated damages or award any amount thereof not to exceed the amount specified in section 216 of this title.

Id. § 260.

Duteher challenges the district court’s denial of liquidated damages on both procedural and substantive grounds. First, she claims section 260 is an affirmative defense which the employer must plead and prove. Because Randall failed to plead “good faith and reasonable grounds” in its answer, Duteher claims the defense was waived. Second, Duteher asserts the trial court abused its discretion in failing to award liquidated damages because the evidence does not show good faith and reasonable grounds for Randall’s actions.

We agree that Randall waived this defense when it failed to raise section 260 as an affirmative defense. Consequently, we do not reach the question of whether Randall successfully proved it acted in good faith and on reasonable grounds.

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Bluebook (online)
546 N.W.2d 889, 1996 Iowa Sup. LEXIS 243, 70 Fair Empl. Prac. Cas. (BNA) 1426, 1996 WL 189928, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dutcher-v-randall-foods-iowa-1996.