EEOC v. Clear Lake Dodge

Court of Appeals for the Fifth Circuit·Decided June 24, 1994·No. 92-02859·Published

Opinion

IN THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT

No. 92-2679

EQUAL EMPLOYMENT OPPORTUNITY COMMISSION, Plaintiff-Appellee,

RHONDA L. GOERLITZ,

Intervenor-Plaintiff

Appellee-Cross Appellant,

versus

CLEAR LAKE DODGE, ET AL., Defendants,

GULF COAST DODGE, INC., d/b/a CLEAR LAKE DODGE,

Defendant-Appellant

Cross-Appellee.

*****************************************************************

No. 92-2859

EQUAL EMPLOYMENT OPPORTUNITY COMMISSION, Plaintiff,

WALTER R. GRIMES, Appellant,

versus

RHONDA L. GOERLITZ,

Intervenor-Plaintiff

Appellee,

versus

CLEAR LAKE DODGE, ET AL.,

Defendants.

Appeals from the United States District Court for the Southern District of Texas

(June 24, 1994)

Before JOHNSON, GARWOOD, and JOLLY, Circuit Judges. E. GRADY JOLLY, Circuit Judge:

The Equal Employment Opportunity Commission, on behalf of Rhonda Goerlitz brought this sex discrimination action--in which Goerlitz later intervened personally to raise state law issues-- against Gulf Coast Dodge, Inc., claiming that Gulf Coast fired Ms. Goerlitz because of her pregnancy. The jury returned a defendant's verdict in favor of Gulf Coast on all state law issues. The district judge ruled in favor of Ms. Goerlitz on her Title VII claims. We affirm both the jury and the judge.

In addition to these merits issues, we reverse the district court's award of attorney's fees essentially because an award in this case, in which the plaintiff was adequately represented by the EEOC on her Title VII claims and the plaintiff lost her individually raised claims, would constitute a payment for redundant attorneys and constitute a windfall for Goerlitz's

attorneys. Finally, we affirm the district court's imposition of sanctions on Gulf Coast's attorney in connection with post-trial matters.

I

Gulf Coast hired Rhonda Goerlitz to be a customer service representative ("CSR"). Goerlitz was hired in probationary status for the first ninety days at $1400 a month with a raise after that to $1500 a month if given permanent status. When she began work on July 15, 1990, Goerlitz was about one month into a pregnancy.

She worked with automobile purchasers to assure that the vehicle was clean when delivered, to demonstrate how to operate various features on the automobile like the cruise control and the radio, and to show the location of the spare tire. In the case of a van purchase, her job included demonstrating how to fold down the sofa bed.

After about one and a half months on the job, and several weeks after she revealed her pregnancy, Goerlitz was taken out of her job as a CSR and was assigned temporarily as a dispatcher to fill in for vacationing employees. Goerlitz's supervisor, Don McMillan ("McMillan"), made this change in Goerlitz's assignment after he had observed her demonstrating vehicles. McMillan stated that Goerlitz was "too big" to enter vehicles properly. When McMillan transferred Goerlitz from the CSR position, he told her that when she was no longer needed as a dispatcher, he would look into finding her a clerical position.

After a few weeks as a dispatcher, on September 10, 1990, when McMillan was on vacation, Goerlitz slipped and fell on the service driveway. She was taken by ambulance to an emergency room, where it was determined that she had sprained her ankle. She returned to work the same day, but Harry McGinty, who was filling in for McMillan, instructed Goerlitz to stay home for the rest of the week and to contact McMillan upon his return the next Monday.

On September 17, Goerlitz called McMillan to ascertain her employment status. McMillan told her that he did not need anyone to work in dispatch that day. In response to Goerlitz's inquiry about her status, McMillan replied that it had not changed since their conversation in August when he had transferred her from her position as a CSR. According to McMillan, he told Goerlitz that he thought they could put together a job for her doing filing and possibly keypunch. Goerlitz asked several times during the conversation if she had been fired; McMillan answered that she had not.

Goerlitz went to see McMillan the next day, on September 18, and they once again discussed the file clerk job. On the day before the meeting occurred, however, McMillan had prepared a Personnel Action Report and had dated it effective September 12, 1990. On the form, the box labeled "TERMINATION" was checked and the following comment was written: "unable to perform her duties properly due to pregnancy." McMillan testified at trial that this report was not a termination notice, but merely a transfer slip

indicating to the company's payroll clerk which department was responsible for the employee's pay.

II

The EEOC originally brought this action against Gulf Coast, alleging that Goerlitz was terminated from her position at Gulf Coast because of her sex (pregnancy). The suit was commenced on April 1, 1991, pursuant to Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000 et seq.

Some six months later, on October 29, 1991, Goerlitz intervened. She alleged, in addition to the Title VII action, causes of action under the Texas Human Rights Act, TEX. REV. CIV. STAT. ANN. art. 5221k (Vernon 1991); the Texas Workers Compensation Act, TEX. REV. CIV. STAT. ANN. art. 8307c (Vernon Supp. 1991); intentional infliction of emotional distress; and negligent infliction of emotional distress. Goerlitz demanded a jury.

The district court granted Goerlitz a binding jury for her state law claims, but the court determined that it would submit interrogatories under Title VII to the jury only as an advisory jury, under the Civil Rights Acts of 1964. The trial began on January 6, 1992. On January 15, the jury returned its answers to the interrogatories in favor of the defendants on all claims.

On February 18, 1992, the district court made findings of facts and conclusions of law on Goerlitz's claims under Title VII.1

1 The court noted that "the parties agreed that the claim for violations of Title VII presents questions for the Court rather

It concluded that the "EEOC and Goerlitz established through direct testimony and documentary evidence that Goerlitz's pregnancy was a substantial factor in Gulf Coast's decision to reassign her." The court held that "Gulf Coast had failed to prove by a preponderance of the evidence that the decision to reassign Goerlitz and then discharge her would have been made absent her pregnancy," or that "Goerlitz's pregnancy interfered with her ability to perform either her job as [CSR] or her job in Dispatch."

Accordingly, the district court found that Goerlitz was entitled to back pay, prejudgment interest thereon, and attorneys' fees. The court, however, accepted the jury's finding against Goerlitz on her state law claims, and denied Goerlitz's motions for judgment notwithstanding the verdict and for a new trial on her state law claims.

On August 10, 1992, Goerlitz had Gulf Coast served with a writ of execution. On the same day, Gulf Coast filed a motion to approve the supersedeas bond. Goerlitz opposed the motion to approve the supersedeas bond and sought sanctions for submitting a defective bond. On September 24, the trial court held a hearing on both motions, and the court ordered sanctions against Gulf Coast's attorney, Grimes, on October 19.

than for the jury." The district court characterized the jury's verdict as "advisory fact findings on the non-jury fact questions."

Gulf Coast filed its notice of appeal on August 25, and on October 30, Grimes filed a notice of appeal from the court's order of sanctions.

III

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