Equal Employment Opportunity Commission v. Delight Wholesale Co.

765 F. Supp. 583, 1991 U.S. Dist. LEXIS 8878, 59 Fair Empl. Prac. Cas. (BNA) 1212
CourtDistrict Court, W.D. Missouri
DecidedJune 13, 1991
Docket90-0022-CV-W-5
StatusPublished
Cited by4 cases

This text of 765 F. Supp. 583 (Equal Employment Opportunity Commission v. Delight Wholesale Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Equal Employment Opportunity Commission v. Delight Wholesale Co., 765 F. Supp. 583, 1991 U.S. Dist. LEXIS 8878, 59 Fair Empl. Prac. Cas. (BNA) 1212 (W.D. Mo. 1991).

Opinion

ORDER

SCOTT 0. WRIGHT, District Judge.

Before the Court are the parties’ briefs concerning back pay and other equitable relief. Plaintiff United States Equal Employment Opportunity Commission (EEOC) brought this action under Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C.A. § 2000e, et seq. EEOC alleged that Defendant Delight Wholesale discriminated against its employee, Carol Childers, based on her sex. EEOC premised its complaint on defendant’s alleged unlawful employment practices, which included unequal pay for equal work, demotion, failure to promote, and constructive discharge.

This case was tried before an advisory jury October 29 through November 1, 1990. After the jury returned its answers to special interrogatories, the Court adopted the jury’s findings, holding the defendant liable. The Court found that: (1) defendant unlawfully demoted Ms. Childers based on her sex; (2) defendant paid Ms. Childers less for substantially the same work performed by a man; (3) defendant constructively discharged Ms. Childers based on her sex. Judgment in favor of plaintiff was entered on the Title VII claims.

The Court subsequently heard evidence on the issue of damages and the parties submitted briefs on the issue. The parties attempted unsuccessfully to settle the damages issue. After the frustrated settlement negotiations, the Court took up the issue of damages. The following analysis describes the factors the Court considered in computing the damages, deductions, prejudgment interest, and other equitable relief. Appendix B sets forth the calculation and the findings of damages.

I. BACKGROUND

This order addresses the damages issue. The following analysis flows from the evidence presented at trial, the parties’ jointly stipulated facts, and the briefs submitted on damages. The key facts presented by the parties place three time periods in dispute. The Court refers the parties to Appendix A, attached to this order. Appendix A provides a timeline of Ms. Childers’ employment history and indicates the three periods in dispute. Before setting upon the task at hand, the damages calculation, some preliminary issues will be addressed.

Defendant opposes the finding of liability in this case. However, that issue was addressed during trial and the Court ruled that defendant was liable. That issue is not now before the Court.

Another background issue concerns EEOC’s delay in pursuing this cause. The charging party, Ms. Childers, filed her discrimination charge against defendant on May 6, 1986. EEOC notified Delight Wholesale of the charge one week later. Within one month, Delight Wholesale furnished information requested by EEOC. More than a year passed before EEOC, on December 16, 1987, notified defendant that its Detroit office would handle the case in an effort to expedite the investigation. The EEOC’s next communication with Delight Wholesale was made a year later, on December 12, 1988. At that time, EEOC requested further information which defendant furnished on January 5, 1989. On March 6, 1989, EEOC informed defendant that its investigation of the charge revealed issues of constructive discharge and pay discrimination. The EEOC issued a determination letter on August 15, 1989.

Defendant contends that it has been unduly prejudiced by the three-year delay in EEOC’s investigation of Ms. Childers’ charge. Delight Wholesale states that it was prejudiced at trial because only one of its witnesses was still employed by defendant, the documents and sales records were lost, and the company ownership had completely changed hands. Moreover, defendant submits that it is prejudiced by the effect EEOC’s delay has on the damages *587 and the prejudgment interest claimed on behalf of Ms. Childers who was employed by defendant for only four months. Delight Wholesale also claims that it currently faces precarious financial circumstances.

In opposition, EEOC states that this Court ruled prior to trial on the issue of delay, as it pertains to defendant’s laches defense. EEOC claims that defendant suffered no prejudice by the delay. EEOC points out that Delight Wholesale submitted all necessary evidence at trial and presented essential witnesses who sufficiently recalled the facts.

Prior to trial, the Court did deny defendant’s motion to dismiss based on laches. Defendant presented considerable evidence at trial, without indicating that a key witness or important evidence was unavailable. The pretrial ruling does not preclude consideration of EEOC’s delay within the Court’s determination of the Title VII damage award.

Courts have considerable discretion to fashion an equitable award, taking the delay into account. Compare Albemarle Paper Co. v. Moody, 422 U.S. 405, 425, 95 S.Ct. 2362, 2375, 45 L.Ed.2d 280 (1975) (district court’s equitable authority to determine damages in light of delay and prejudice to defendant) and EEOC v. Westinghouse Elec. Corp., 592 F.2d 484, 485-86 (8th Cir.1979) (district court’s discretionary and equitable authority to dismiss suit due to undue delay and substantial prejudice to defendant).

If EEOC had investigated and brought this suit in a more timely fashion, the Court might have ordered defendant to reinstate plaintiff in the position she should have had. At that point, defendant would not have faced potential damages for years of work plaintiff did not perform, nor would defendant have faced more than four years of prejudgment interest. EEOC’s delay in this cause is a proper consideration at this stage of the proceeding.

II. ANALYSIS

A. Computation of Damages

Computation of damages in this case entails four areas of inquiry. The first question involves the method of calculating the backpay award; the Court must determine the relevant time period and the comparative wage for calculating backpay. Second, the computation must take into effect plaintiff's reasonable duty to mitigate; backpay damages must be offset by the amount which plaintiff did earn or could reasonably have earned in mitigation. The third point for the Court to consider is whether prejudgment interest should be awarded and, if so, the rate and method for its calculation. And, finally, the Court must consider whether front pay or reinstatement is appropriate. Each of these four questions is taken up below. The Court’s final computation is set forth in Appendix B.

The underlying premise in computing a plaintiff’s Title VII award is the concept of making the injured party whole again. See e.g., Albemarle Paper Co., 422 U.S. at 418, 95 S.Ct. at 2372; EEOCv. Riss Int’l Corp., 35 Fair Empl. Prac. 423, 1982 WL 277 (W.D.Mo.1982). Under this premise, the appropriateness of backpay relief for unlawful employment discrimination is presumed. Albemarle Paper Co., 422 U.S. at 421, 95 S.Ct. at 2373; King v. Staley, 849 F.2d 1143, 1144 (8th Cir.1989).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
765 F. Supp. 583, 1991 U.S. Dist. LEXIS 8878, 59 Fair Empl. Prac. Cas. (BNA) 1212, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equal-employment-opportunity-commission-v-delight-wholesale-co-mowd-1991.