Equal Employment Opportunity Commission v. Nutri/System, Inc.

685 F. Supp. 568, 1988 U.S. Dist. LEXIS 3958, 51 Fair Empl. Prac. Cas. (BNA) 1769
CourtDistrict Court, E.D. Virginia
DecidedMay 5, 1988
DocketCiv. A. 87-0798-A
StatusPublished
Cited by35 cases

This text of 685 F. Supp. 568 (Equal Employment Opportunity Commission v. Nutri/System, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia 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. Nutri/System, Inc., 685 F. Supp. 568, 1988 U.S. Dist. LEXIS 3958, 51 Fair Empl. Prac. Cas. (BNA) 1769 (E.D. Va. 1988).

Opinion

JUDGMENT ORDER

ELLIS, District Judge.

This matter came before the Court for trial on plaintiff Equal Employment Opportunity Commission’s (EEOC) and intervenor-plaintiff Wilett Bunion’s (intervenor) claim of racial discrimination in employment under Title VII of the Civil Rights Act of 1964, 42 U.S.C. §§ 2000e to 2000e-17. At the conclusion of the trial, the Court, from the bench, issued findings of fact and conclusions of law with respect to liability. In essence, the Court found that defendant’s discharge of intervenor was racially motivated, in violation of Title VII. The parties were then given an opportunity to submit additional memoranda and supporting materials concerning remedies and attorney’s fees and costs. 42 U.S.C. § 2000e-5(k). The Court has considered these materials and sets forth its conclusions below. A Memorandum Opinion on *570 the liability and remedy aspects of this case may be issued at a later date.

I. Reinstatement

The EEOC seeks an offer of reinstatement on behalf of intervenor. Intervenor, however, has made unmistakably clear that she has no interest in reemployment with Nutri/System. During her deposition on December 7, 1987, intervenor stated that she was not seeking reinstatement. (See Deposition of Wilett Willis Bunton, at 107 (attached as Exhibit 3 to defendant’s Post Trial Memorandum Concerning Remedies)). No evidence was presented at trial to indicate that intervenor desires reemployment with Nutri/System. A reinstatement order under these circumstances is unwarranted and unnecessary. See Bitsouni v. Sheraton Hartford Corp., 33 Fair Empl.Prac.Cas. (BNA) 894 (D.Conn.1983) (court may deny reinstatement where there is no evidence that plaintiff seeks former position). Accordingly, the Court, in the exercise of its discretion, declines to issue a reinstatement order in this case.

II. Backpay

Where, as here, there is a finding of liability under Title VII, the plaintiff's remedy ordinarily includes an award of backpay. Albemarle Paper Co. v. Moody, 422 U.S. 405, 421-22, 95 S.Ct. 2362, 2373, 45 L.Ed.2d 280 (1975). In determining the amount of backpay due, the Court starts with the familiar principles that (i) an award of backpay is usually appropriate where unlawful discrimination is found, (ii) that district courts have discretion in fixing the amount of the award, (iii) that one of the primary purposes of backpay relief is to make the victim of discrimination whole and (iv) that district courts should avoid making speculative awards. Albemarle Paper Co., 422 U.S. at 421-22, 95 S.Ct. at 2373-2374; Leonard v. City of Frankfort Elec. & Water Plant Bd., 752 F.2d 189, 195 (6th Cir.1985); Pollard v. Grinstead, 741 F.2d 73, 75 (4th Cir.1984); Blackwell v. Sun Elec. Corp., 696 F.2d 1176, 1185 (6th Cir.1983). Given the Court’s finding of liability and the evidence on lost income, intervenor is entitled to backpay from the defendant in the amount of $51,696.72, with post-judgment interest running from March 28,1988, at the rate of 6.71 percent, until the judgment is paid. The backpay amount includes pre-judgment interest at the rate of eight percent per annum, compounded quarterly.

Defendant has not carried its burden of demonstrating that intervenor failed to take reasonable steps to mitigate her damages. Edwards v. School Bd. of the City of Norton, 658 F.2d 951, 956 (4th Cir.1981). Therefore, backpay is awarded for the period from March 5, 1982, the date of her termination, to December 31, 1985. The record reflects that after December 31, 1985, intervenor’s income, had she remained a Nutri/System center manager, would have been less than the amount she actually earned from other sources.

In calculating the amount of monthly commission income to be added to intervenor’s basic salary to yield the amount of backpay due, the Court chose to average five figures representing two percent of gross sales for the Springfield center for the months of December, 1981 ($492.54), January, 1982 ($427.88), February, 1982 ($737.16), March, 1982 ($1559.10) and April, 1982 ($2094.10). The average of these figures equals $1062.16. This amount was then multiplied by three to obtain the quarterly commission figure ($3186.47) and added to the amount of salary intervenor would have earned per quarter ($2500). The resulting sum ($5686.47) was the basis for calculating the amount of backpay due per quarter. Intervenor’s actual earnings from other sources per quarter were subtracted from $5686.47. The result was the amount of net backpay due for that quarter. Interest at the rate of eight percent was then applied to these net quarterly figures and compounded quarterly.

Considerations of fairness move the Court, in its discretion, to adopt this means of fixing an appropriate backpay award. Limiting intervenor to her historical 1981 commission income would unfairly deny her the benefit of the advertising campaign *571 defendant instituted early in 1982. On the other hand, giving intervenor credit for commissions earned by her successor from May, 1982 through 1984 would be speculative and give intervenor an undeserved and unwarranted windfall. Cf. Blackwell v. Sun Elec. Corp., 696 F.2d 1176, 1185 (6th Cir.1983) (plaintiff’s testimony that he could have earned two to three times his former income in sales territory which was expanded after his discharge was too speculative to support a damage award); Cross v. National Trust Life Ins. Co., 553 F.2d 1026, 1031-32 (6th Cir.1977) (award upheld where district court based backpay on average of compensation during weeks when plaintiffs’ earnings were highest, rather than on earnings of white sales agents). Intervenor is not entitled to receive the benefits of her successor’s abilities and efforts as part of the backpay award. Therefore, the Court chose to average commissions for December, January and February, the last three full months intervenor worked, as well as March and April, the months following intervenor’s discharge. The fairness of selecting this period is manifest: it encompasses the period immediately prior to intervenor’s discharge, the period when her earnings were highest, and it includes the two months following her discharge in order to give her the benefit of the advertising campaign commenced while she was still employed.

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685 F. Supp. 568, 1988 U.S. Dist. LEXIS 3958, 51 Fair Empl. Prac. Cas. (BNA) 1769, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equal-employment-opportunity-commission-v-nutrisystem-inc-vaed-1988.