Equal Employment Opportunity Commission v. PVNF, L.L.C.

487 F.3d 790, 2007 U.S. App. LEXIS 11276, 89 Empl. Prac. Dec. (CCH) 42,815, 100 Fair Empl. Prac. Cas. (BNA) 1043, 2007 WL 1404310
CourtCourt of Appeals for the Tenth Circuit
DecidedMay 14, 2007
Docket06-2011
StatusPublished
Cited by335 cases

This text of 487 F.3d 790 (Equal Employment Opportunity Commission v. PVNF, L.L.C.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit 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. PVNF, L.L.C., 487 F.3d 790, 2007 U.S. App. LEXIS 11276, 89 Empl. Prac. Dec. (CCH) 42,815, 100 Fair Empl. Prac. Cas. (BNA) 1043, 2007 WL 1404310 (10th Cir. 2007).

Opinion

TACHA, Chief Circuit Judge.

The Equal Employment Opportunity Commission (“EEOC”) seeks reversal of the District Court’s entry of judgment as a matter of law in favor of Defendant-Appel-lee PVNF, LLC d/b/a “Chuck Daggett Motors” (“CDM”) on its claims of sex discrimination and retaliation under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., as well as the District Court’s award of attorney’s fees to CDM. We take jurisdiction under 28 U.S.C. § 1291 and AFFIRM in part, REVERSE in part, and REMAND for a new trial.

I. BACKGROUND

Marla Segovia was hired in 1996 as a salesperson at Teague-Strebeck Motors, a car dealership. When she was hired, she received a form entitled “No Harassment Policy/Procedure” indicating that Teague-Strebeck Motors prohibited “slurs, jokes and other verbal, graphic, or physical conduct relating to an individual’s ... sex” and instructed those who felt they were being harassed to “make your feelings known to your supervisor immediately.” The policy provided that any matter brought to the attention of a supervisor would be “thoroughly investigated, and where appropriate, disciplinary action [would] be taken.” Teague-Strebeck Motors sold the dealership in 2000 to Alva Carter and Chuck Daggett. Mr. Carter owned fifty-one percent of the company; Mr. Daggett owned the remaining forty-nine percent. They operated the dealership under the name Chuck Daggett Motors (“CDM”) and Mr. Daggett served as the general manager. The “no harassment” policy continued in full force and effect after the change in ownership.

In January 2000, Mr. Daggett promoted Ms. Segovia from salesperson to Finance Manager. The following year, in June 2001, he promoted her to New Car Sales Manager, a position she held until she resigned in October of that year. At that time, Roger Ennis was the Used Car Sales Manager. Each sales manager had supervisory authority over employees in their respective departments. Ms. Segovia could hire and fire new car salespeople and Mr. Ennis could hire and fire used car salespeople. Each manager could also issue disciplinary notices to any subordinate employee, regardless of which department that employee worked in.

Both managers’ pay was commission-based — Ms. Segovia earned commission based on the sale of new cars; Mr. Ennis earned commission based on the sale of used cars. When a prospective customer had a trade-in, the managers had conflicting incentives in assessing the value of the trade-in: Ms. Segovia had an incentive to value the trade-in at a high price to entice the customer to buy a new car, and Mr. Ennis had an incentive to value the trade-in at a low price because he could then sell the trade-in at a greater profit. This di *794 chotomy created tension between Ms. Segovia and Mr. Ennis. Ms. Segovia routinely made more money in commissions than Mr. Ennis. Indeed, in her role as New Car Sales Manager, she was the highest paid employee at Chuck Daggett Motors, aside from Mr. Daggett himself.

Evidence at trial established that Mr. Carter made numerous gender-based remarks to Ms. Segovia and to other female employees. 1 For example, Mandi Wood, who worked for CDM as a cashier, testified that when she sought a promotion from Mr. Carter he responded that “as ... a woman ... [she] should sit behind the computer and that would be more fitting for [her];” and that “as a woman, [she] should sit and count money.” Another employee, Michelle Reid, testified that Mr. Carter commented that he could pay farmhands to work in the office for less than he paid the women. And Mr. Carter told Ms. Reid, who was pregnant at the time, that “[w]omen take too much time off of work for medical reasons. They belong at home barefoot and pregnant.” Another time, after Ms. Reid rubbed her belly, Mr. Carter said, “What are our customers going to think with you standing there rubbing your belly?” Ms. Reid complained about the latter comment to Joanne Richmond, the office manager and systems administrator at CDM, but nothing was done because “people fear[ed] for their job[s].” Ms. Richmond testified that she heard Mr. Carter mention that women did not belong in the workplace because of their childcare issues; she also testified that Mr. Carter told her he wanted to know when female applicants had children “because of the child care issues.”

From June to September 2001, Mr. Carter subjected Ms. Segovia to similar sex-based remarks. Soon after she was promoted to New Car Sales Manager, she hired a woman salesperson for the department. Mr. Carter reprimanded her, saying, “I don’t want a whole bunch of damn women working here. Men don’t like to work with women. Men like to dicker with men.” And, “women [bring] their emotional baggage and problems to the dealership.” She complained to Mr. Dag-gett about Mr. Carter’s comments and told him that she was thinking of reporting his behavior to the EEOC. Mr. Daggett advised her to “start documenting things” but then said, “[w]e never had this conversation,” which Ms. Segovia understood to mean that Mr. Daggett would not support her in reporting Mr. Carter. Following this conversation, Ms. Segovia continued to be subjected to sex-based remarks by Mr. Carter.

During a sales managers’ meeting, where Ms. Segovia was the only woman, Mr. Carter told her that he was going to buy her a book on “women in management” and later explained to her that “[t]he difference between men and women is that the women have to take more of a bitch approach.” Another time Mr. Carter commented to Ms. Segovia and two other women that “Mexican women’s nipples turn black-brown after they had babies,” which Ms. Segovia found offensive because her daughter is half-Spanish. Finally, when Ms. Segovia’s husband came into the dealership to buy a car, Mr. Carter told him that he “was getting a good deal ... because he was sleeping with [Ms. Segovia].”

Ms. Segovia was also subjected to arguably sex-based remarks by other CDM employees. In April 2001, during an argument with a male salesperson, he reacted *795 “wildly,” stood up and “cleared his desk [of papers] and ... called [her] a bitch.” He threw a plate against the wall, and then left the dealership, quitting. Ms. Segovia felt threatened and scared; she complained about the episode to Mr. Ennis (the salesperson’s supervisor) and to Mr. Daggett. Rather than discipline the salesperson, Mr. Ennis went to see him at the request of Mr. Daggett in an effort to get him to return to the dealership because “[he] sold a lot of cars.” The salesperson returned to work the following day. He was not disciplined.

On another occasion, Ms. Segovia required a used car salesperson to split the commission on a loan with a new car salesperson because both salespeople played roles in brokering the deal. When the used car salesperson learned of the split commission, he came into Ms. Segovia’s office and “violently called [her] a bitch.” In response, Ms. Segovia exercised her managerial authority and explained that because of his behavior he would not be receiving any of the commission. Mr. Daggett or Mr. Ennis (it is unclear who) overrode Ms. Segovia’s decision, however, and awarded the entire commission to the used car salesperson. Ms.

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487 F.3d 790, 2007 U.S. App. LEXIS 11276, 89 Empl. Prac. Dec. (CCH) 42,815, 100 Fair Empl. Prac. Cas. (BNA) 1043, 2007 WL 1404310, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equal-employment-opportunity-commission-v-pvnf-llc-ca10-2007.