Estate of Barbara L. Reynolds v. Lynn Martin, Secretary of Labor

985 F.2d 470, 2 Am. Disabilities Cas. (BNA) 512, 93 Daily Journal DAR 1879, 93 Cal. Daily Op. Serv. 975, 1993 U.S. App. LEXIS 1974, 60 Empl. Prac. Dec. (CCH) 42,052, 1993 WL 27657
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 9, 1993
Docket91-15237
StatusPublished
Cited by68 cases

This text of 985 F.2d 470 (Estate of Barbara L. Reynolds v. Lynn Martin, Secretary of Labor) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of Barbara L. Reynolds v. Lynn Martin, Secretary of Labor, 985 F.2d 470, 2 Am. Disabilities Cas. (BNA) 512, 93 Daily Journal DAR 1879, 93 Cal. Daily Op. Serv. 975, 1993 U.S. App. LEXIS 1974, 60 Empl. Prac. Dec. (CCH) 42,052, 1993 WL 27657 (9th Cir. 1993).

Opinion

FERGUSON, Circuit Judge:

The Secretary of Labor appeals the district court’s award of pre- and post-judgment interest on damages awarded to Barbara Reynolds in her wrongful discharge suit under the Rehabilitation Act. We hold that the Civil Rights Act of 1991 entitles Reynolds to pre- and postjudgment interest on her award. Thus, we affirm. BACKGROUND

Plaintiff-appellee Barbara Reynolds was an employee of the Department of Labor from July 1, 1979 until September 26, 1980, when she was discharged. After exhausting administrative remedies, Reynolds sued the Secretary of Labor in the district court, alleging violations of the Rehabilitation Act of 1973, as amended, 29 U.S.C. § 701 et seq., the Civil Service Reform Act, 5 U.S.C. § 1201 et seq., and breach of contract. The district court granted summary judgment for the Secretary. Reynolds appealed, solely with regard to her Rehabilitation Act claim. On appeal, we reversed and remanded the case for trial. See Reynolds v. Brock, 815 F.2d 571 (9th Cir.1987).

Reynolds died while the case was pending on remand. The administrator of Reynolds’ estate was substituted for her as plaintiff. The parties consented to trial before a magistrate without a jury. The court found that Reynolds’ discharge violated the Rehabilitation Act. Citing the remedial provisions of the Act, the court awarded back pay, with prejudgment interest, and costs including attorney’s fees. Judgment was entered accordingly. The judgment stated that Reynolds was also entitled to postjudgment interest under 28 U.S.C. § 1961.

The Secretary moved for an amendment of the judgment to eliminate the award of interest. The motion was denied. The district court determined that the interest provision of the Back Pay Act, 5 U.S.C. § 5596, applied to Reynolds’ back pay atvard.

The parties entered into a settlement agreement that resolved all issues in the case except the issue of Reynolds’ entitlement to interest on her back pay award. Thus, the only question remaining in the case is whether an employee of the United States found to be entitled to back pay under the Rehabilitation Act is entitled to an award of pre-. or postjudgment interest on that back pay.

DISCUSSION

We review the district court’s award of interest on Reynolds’ back pay award in light of the Civil Rights Act of 1991, which became law after the district court entered its judgment in this case. We conclude that the Act applies to cases pending on its effective date and thereby entitles Reynolds to receive pre- and postjudgment interest on her back pay award under the Rehabilitation Act.

*472 Jurisdiction and Standard of Review

We have jurisdiction over this appeal under 28 U.S.C. § 1291. Whether Reynolds is entitled to interest on the back pay awarded by the district court is a question of law that we review de novo. See United States v. McConney, 728 F.2d 1195, 1201 (9th Cir.1984) (en banc), cert. denied, 469 U.S. 824, 105 S.Ct. 101, 83 L.Ed.2d 46 (1984).

Civil Rights Act of 1991

The Civil Rights Act of 1991 (“Act” or “Civil Rights Act of 1991”) was signed into law on November 21, 1991. See Pub.L. No. 102-166, 105 Stat. 1071 (1991). The Act was intended, in part, “to respond to recent decisions of the Supreme Court by expanding the scope of relevant civil rights statutes in order to provide adequate protection to victims of discrimination.” Civil Rights Act of 1991, § 3(4). Among these decisions is Library of Congress v. Shaw, 478 U.S. 310, 106 S.Ct. 2957, 92 L.Ed.2d 250 (1986).

In Shaw, the Supreme Court held that prejudgment interest was not available against the federal government under Title VII. In enacting the Civil Rights Act of 1991, Congress amended Title VII to specify that federal employees are entitled to all of the remedies ordinarily available under Title VII, including payment of interest. Section 114(2) of the Act amends section 717 of the Civil Rights Act of 1964 (codified as amended at 42 U.S.C. § 2000e-16) to provide that “the same interest to compensate for delay in payment shall be available [to federal employees] as in cases involving nonpublic parties.” Nonpublic parties are liable for pre- and postjudgment interest under 28 U.S.C. § 1961. Under the amended Act, the government is similarly liable because section 114(2) of the Act provides an express congressional waiver of the government’s ordinary sovereign immunity from interest on judgments entered against it. See, e.g., Hall v. Bolger, 768 F.2d 1148, 1151-52 (9th Cir.1985) (holding that an express congressional waiver abrogates governmental immunity from postjudgment interest).

The remedial provisions of the Rehabilitation Act, 29 U.S.C. § 794a(a)(l), incorporate 42 U.S.C. § 2000e-16 by reference. Reynolds has successfully litigated a claim under the Rehabilitation Act. Hence, if the Civil Rights Act of 1991 applies to cases pending at its enactment, it entitles Reynolds to receive pre- and postjudgment interest on her back pay award under the Rehabilitation Act.

A.

The Supreme Court has issued apparently conflicting opinions on whether— absent clear statutory direction regarding retroactivity — congressional enactments are to be presumed retroactive or only prospective in application. Compare Bradley v. Richmond School Bd., 416 U.S. 696, 711, 94 S.Ct. 2006, 2016, 40 L.Ed.2d 476 (1974) (“[A] court is to apply the law in effect at the time it renders its decision, unless doing so would result in manifest injustice or there is statutory direction or legislative history to the contrary.”), with Bowen v. Georgetown Univ. Hosp., 488 U.S. 204, 208, 109 S.Ct. 468, 471, 102 L.Ed.2d 493 (1988) (“[Congressional enactments and administrative rules will not be construed to have retroactive effect unless their language requires this result.”). The Court has noted this “apparent tension,” but it has stated unambiguously that where congressional intent is clear as to a statute’s retroactive or prospective application, that intent governs. Kaiser Aluminum & Chem. Corp. v. Bonjorno,

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985 F.2d 470, 2 Am. Disabilities Cas. (BNA) 512, 93 Daily Journal DAR 1879, 93 Cal. Daily Op. Serv. 975, 1993 U.S. App. LEXIS 1974, 60 Empl. Prac. Dec. (CCH) 42,052, 1993 WL 27657, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-barbara-l-reynolds-v-lynn-martin-secretary-of-labor-ca9-1993.