Gary Rawson v. Sears, Roebuck & Co.
Opinions
STEPHEN H. ANDERSON, Circuit Judge.
Sears, Roebuck & Company appeals from a denial of post trial motions relating to a $19,096,495.01 judgment against it, plus $11,096.54 in costs, in an age discrimination case. The action was brought by Gary Rawson, a former Sears’ employee and store manager, whom Sears fired at age 59.
Rawson was employed by Sears for thirty-three years, becoming manager of the Sears store in Pueblo, Colorado, in 1965, where he served until his termination in 1979. Following his termination he either failed or chose not (the record does not disclose the reason) to pursue his age discrimination claim under the federal antidiscrimination statute enacted for that purpose, Age Discrimination in Employment Act of 1967, 29 U.S.C. §§ 621-634 (ADEA).
In July, 1981, twenty-eight months after his termination and beyond the statutory period for seeking relief under the ADEA, Rawson sued Sears in the Colorado state courts, stating eleven claims for relief, including several common law causes of action.1 All of those claims were ultimately dismissed except his claim based on an [910] implied private right of action under a Colorado penal statute, Colo.Rev.Stat. §§ 8-2-116 and 117 (1973).2 Those sections impose a fine from $100 to $250 upon employers who discharge employees solely because of age.3 Those provisions had been the law in Colorado for seventy-eight years prior to Rawson’s suit without any private action having been brought under them. Shortly after Rawson’s victory in this suit the Colorado legislature repealed the statutes in question, placing a similar provision under the Colorado Antidiscrimination Act (CAA), Colo.Rev.Stat. §§ 24-34-401 to 406 (1982 & Supp.1986). Thus, this case and a few which followed are the only ones involving the propriety of private suits under those state penal statutes. The Colorado Supreme Court has never ruled on the question, and both parties have resisted certification.4
Sears removed Rawson’s suit from state to federal court on grounds of diversity of citizenship. On Sears’ subsequent motion to dismiss for failure to state a claim, the district court held that “the Colorado legislature intended to create a private right of action under C.R.S. § 8-2-116 and that such a right of action is consistent with the state’s legislative scheme in labor relations.” Rawson v. Sears Roebuck & Co., 530 F.Supp. 776, 778 (D.Colo.1982). It also denied, in a published opinion, Sears’ later motion for summary judgment. Rawson v. Sears Roebuck & Co., 554 F.Supp. 327 (D.Colo.1983). Separate jury trials were held on the questions of liability and damage, the outcome of both trials being favorable to Rawson. Following the trial on liability, in a third published opinion, the district court held again that private damage awards were proper under section 8-2-116. Rawson v. Sears Roebuck & Co., 585 F.Supp. 1393 (D.Colo.1984). It then awarded Rawson costs amounting to $11,096.54. At the conclusion of the damages trial the jury awarded Rawson: $580,500 for lost wages and benefits; $264,410 for future wages and benefits and reduction in the value of his pension benefits; $5,000,000 for pain, suffering and humiliation; and $10,000,000 in punitive damages. Sears’ motions for judgment n.o.v., new trial, or remittitur were denied. 615 F.Supp. 1546. Judgment entered on the jury verdict included prejudgment interest in the amount of $3,251,585.01, for a total judgment of $19,096,495.01.
On appeal Sears asserts multiple assignments of error in the proceedings below. Two threshold issues, which we find dispositive of this appeal, are whether there is an express or an implied private right of action under the Colorado penal statute in question, sections 8-2-116 and 117, either alone or in combination with sections 8-3-108(1)(Z) and 8-3-121(1) of Colorado’s Labor Peace Act. Because we find that the statutes in question provide Rawson with neither an express right of action nor an implied private right of action, we find it unnecessary to address the other issues raised in this appeal, and we reverse the judgment below.
INTRODUCTION
At the outset we note that our task here is to interpret and apply the law of Colorado as we believe the Colorado Supreme Court would. City of Aurora v. Bechtel [911] Corp., 599 F.2d 382, 386 (10th Cir.1979); Symons v. Mueller Co., 493 F.2d 972 (10th Cir.1974). Prior to the district court decision in this case, no Colorado court or federal court applying Colorado law had addressed the particular question of whether a private right of action exists under section 8-2-116 for age discrimination. Since that decision, federal district courts in Colorado and lower Colorado state courts have reached conflicting conclusions on that issue. Compare Spulak v. K-Mart Corp., 664 F.Supp. 1395 (D.Colo.1985) (Finesilver, J.); Grandchamp v. United Air Lines, Inc., 36 Empl.Prac.Dec. (CCH) 11 34,987 (D.Colo. Jan. 15, 1985) (Carrigan, J.) [Available on WESTLAW, DCT database]; and Marks v. Cobe Laboratories, No. 85-CV-2726 (Jefferson Dist.Ct.Colo. Nov. 12, 1985) (all following Rawson and finding that a private right of action exists) with Taylor v. K-Mart Corp., No. 85-M-2336 (D.Colo. Jan. 13, 1986) (Matsch, J.) [Available on WESTLAW, DCT datebase]; Boccalatte v. Asamera Oil (U.S.) Inc., No. 86-CV-6283 (Denver Dist.Ct.Colo. Jan. 11, 1987); Sandro v. ICM Mortgage Corp., No. 86-CV-6 (Arapahoe Dist.Ct.Colo. July 1, 1986) and Laird v. Montgomery Ward, Inc., No. 85-CV-5569 (Denver Dist.Ct.Colo. Apr. 18, 1986) (finding that no private right of action exists).5
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STEPHEN H. ANDERSON, Circuit Judge.
Sears, Roebuck & Company appeals from a denial of post trial motions relating to a $19,096,495.01 judgment against it, plus $11,096.54 in costs, in an age discrimination case. The action was brought by Gary Rawson, a former Sears’ employee and store manager, whom Sears fired at age 59.
Rawson was employed by Sears for thirty-three years, becoming manager of the Sears store in Pueblo, Colorado, in 1965, where he served until his termination in 1979. Following his termination he either failed or chose not (the record does not disclose the reason) to pursue his age discrimination claim under the federal antidiscrimination statute enacted for that purpose, Age Discrimination in Employment Act of 1967, 29 U.S.C. §§ 621-634 (ADEA).
In July, 1981, twenty-eight months after his termination and beyond the statutory period for seeking relief under the ADEA, Rawson sued Sears in the Colorado state courts, stating eleven claims for relief, including several common law causes of action.1 All of those claims were ultimately dismissed except his claim based on an [910] implied private right of action under a Colorado penal statute, Colo.Rev.Stat. §§ 8-2-116 and 117 (1973).2 Those sections impose a fine from $100 to $250 upon employers who discharge employees solely because of age.3 Those provisions had been the law in Colorado for seventy-eight years prior to Rawson’s suit without any private action having been brought under them. Shortly after Rawson’s victory in this suit the Colorado legislature repealed the statutes in question, placing a similar provision under the Colorado Antidiscrimination Act (CAA), Colo.Rev.Stat. §§ 24-34-401 to 406 (1982 & Supp.1986). Thus, this case and a few which followed are the only ones involving the propriety of private suits under those state penal statutes. The Colorado Supreme Court has never ruled on the question, and both parties have resisted certification.4
Sears removed Rawson’s suit from state to federal court on grounds of diversity of citizenship. On Sears’ subsequent motion to dismiss for failure to state a claim, the district court held that “the Colorado legislature intended to create a private right of action under C.R.S. § 8-2-116 and that such a right of action is consistent with the state’s legislative scheme in labor relations.” Rawson v. Sears Roebuck & Co., 530 F.Supp. 776, 778 (D.Colo.1982). It also denied, in a published opinion, Sears’ later motion for summary judgment. Rawson v. Sears Roebuck & Co., 554 F.Supp. 327 (D.Colo.1983). Separate jury trials were held on the questions of liability and damage, the outcome of both trials being favorable to Rawson. Following the trial on liability, in a third published opinion, the district court held again that private damage awards were proper under section 8-2-116. Rawson v. Sears Roebuck & Co., 585 F.Supp. 1393 (D.Colo.1984). It then awarded Rawson costs amounting to $11,096.54. At the conclusion of the damages trial the jury awarded Rawson: $580,500 for lost wages and benefits; $264,410 for future wages and benefits and reduction in the value of his pension benefits; $5,000,000 for pain, suffering and humiliation; and $10,000,000 in punitive damages. Sears’ motions for judgment n.o.v., new trial, or remittitur were denied. 615 F.Supp. 1546. Judgment entered on the jury verdict included prejudgment interest in the amount of $3,251,585.01, for a total judgment of $19,096,495.01.
On appeal Sears asserts multiple assignments of error in the proceedings below. Two threshold issues, which we find dispositive of this appeal, are whether there is an express or an implied private right of action under the Colorado penal statute in question, sections 8-2-116 and 117, either alone or in combination with sections 8-3-108(1)(Z) and 8-3-121(1) of Colorado’s Labor Peace Act. Because we find that the statutes in question provide Rawson with neither an express right of action nor an implied private right of action, we find it unnecessary to address the other issues raised in this appeal, and we reverse the judgment below.
INTRODUCTION
At the outset we note that our task here is to interpret and apply the law of Colorado as we believe the Colorado Supreme Court would. City of Aurora v. Bechtel [911] Corp., 599 F.2d 382, 386 (10th Cir.1979); Symons v. Mueller Co., 493 F.2d 972 (10th Cir.1974). Prior to the district court decision in this case, no Colorado court or federal court applying Colorado law had addressed the particular question of whether a private right of action exists under section 8-2-116 for age discrimination. Since that decision, federal district courts in Colorado and lower Colorado state courts have reached conflicting conclusions on that issue. Compare Spulak v. K-Mart Corp., 664 F.Supp. 1395 (D.Colo.1985) (Finesilver, J.); Grandchamp v. United Air Lines, Inc., 36 Empl.Prac.Dec. (CCH) 11 34,987 (D.Colo. Jan. 15, 1985) (Carrigan, J.) [Available on WESTLAW, DCT database]; and Marks v. Cobe Laboratories, No. 85-CV-2726 (Jefferson Dist.Ct.Colo. Nov. 12, 1985) (all following Rawson and finding that a private right of action exists) with Taylor v. K-Mart Corp., No. 85-M-2336 (D.Colo. Jan. 13, 1986) (Matsch, J.) [Available on WESTLAW, DCT datebase]; Boccalatte v. Asamera Oil (U.S.) Inc., No. 86-CV-6283 (Denver Dist.Ct.Colo. Jan. 11, 1987); Sandro v. ICM Mortgage Corp., No. 86-CV-6 (Arapahoe Dist.Ct.Colo. July 1, 1986) and Laird v. Montgomery Ward, Inc., No. 85-CV-5569 (Denver Dist.Ct.Colo. Apr. 18, 1986) (finding that no private right of action exists).5
In endeavoring to ascertain the proper construction of state law where no authoritative state court decision exists, we acknowledge that “[t]he views of a resident federal district judge concerning the local law of his home state are entitled to some deference by an appellate court.” Corbitt v. Andersen, 778 F.2d 1471, 1475 (10th Cir.1985); see also Inryco, Inc. v. CGR Bldg. Systems, Inc., 780 F.2d 879, 881 (10th Cir.1986); Polin v. Dun & Bradstreet, Inc., 768 F.2d 1204, 1207 (10th Cir. 1985); An-Son Corp. v. Holland-America Ins. Co., 767 F.2d 700, 704 (10th Cir.1985); Business Interiors, Inc. v. Aetna Casualty & Surety Co., 751 F.2d 361, 363 (10th Cir.1984). However, “it is inappropriate to defer to the district court’s views” where “another resident district court judge has expressed views contrary to those expressed by the trial court” in the case under review. Maughan v. SW Servicing, Inc., 758 F.2d 1381, 1384 n. 2 (10th Cir. 1985) (McKay, J.); McGehee v. Farmers Ins. Co., 734 F.2d 1422 (10th Cir.1984) (rule of deference to local federal district judge’s interpretation not applied where contrary view expressed by another resident federal district judge). As indicated by the cases cited earlier, federal district judges in Colorado disagree on the question of Colorado law before us. Because of that, and other facts unique to this case,6 we are not confronted with any issue of deference to the district court’s interpretation of Colorado law.7 We must, therefore, make our own independent inquiry into the proper inter[912] pretation of state law, taking due note of the relevant state court and federal district court decisions. See, e.g., Big River Grain, Inc. v. SBA, 718 F.2d 968 (9th Cir. 1983); Luke v. American Family Mut. Ins. Co., 476 F.2d 1015 (8th Cir.1972), cert. denied, 414 U.S. 856, 94 S.Ct. 158, 38 L.Ed.2d 105 (1973); Ward v. Hobart Mfg. Co., 450 F.2d 1176 (5th Cir.1971); Mutual of Omaha Ins. Co. v. Russell, 402 F.2d 339 (10th Cir.1968), cert. denied, 394 U.S. 973, 89 S.Ct. 1456, 22 L.Ed.2d 753 (1969). In so doing, we “may look to all resources, including decisions of other states, as well as Colorado and federal decisions, and to the general weight and trend of authority.” City of Aurora v. Bechtel Cory., 599 F.2d 382, 386 (10th Cir.1979); see also Burgert v. Tietjens, 499 F.2d 1 (10th Cir.1974).
With that standard of review in mind, we turn now to an examination of Rawson’s arguments that there is either an express or an implied private right of action under sections 8-2-116 and 117.
I.
EXPRESS RIGHT OF ACTION
Rawson argues that, collectively, sections 8-2-116 and 8-2-117 of the 1903 Labor Relations Act and sections 8-3-108 and 8-3-121 of the 1943 Labor Peace Act create an express right of action for age discrimination.8 He claims that the language and history of both Acts and the fact that they occupy successive chapters in the same statutory title support his argument. We find his argument unpersuasive. The fact that the two Acts were enacted forty years apart is not alone dis-positive; however, absent some clearer indication by the legislature of an intent to link the two Acts, we are reluctant to view the latter one as implicitly incorporating any provisions of the earlier one. Cf. Sterling v. Industrial Comm’n, 662 P.2d 1096 (Colo.App.1982).9
In addition, from our review of the provisions of the Labor Peace Act and those Colorado cases discussing and interpreting it, we find no evidence that the Colorado legislature intended that Act to extend beyond union-related employer-employee disputes. As Sears points out, in defining “labor dispute” in section 8-3-104(13)(b), the Act specifically states:
The general right of an employer to select his own employees is recognized [913] and shall be fully protected. It shall not constitute a labor dispute if an employer discharges or refuses to employ an employee on account of incompetence, neglect of work, unsatisfactory service, or dishonesty; but the discharge of an employee or the refusal to employ an employee shall constitute a labor dispute only when such discharge or refusal to employ is founded upon membership in a union or labor organization or activity therein or when such discharge or failure to employ is in violation of a contract.
Id. (emphasis added). In contrast, Rawson argues that the Act extends to dismissals of employees on the basis of age. He relies on the phrase “any crime or misdemeanor in connection with any controversy as to employment relations” in section 8-3-108(1)(Z) as evidence that the Labor Peace Act is interested in more than merely “labor disputes.” Viewing the statutory scheme as a whole, however, we do not find the difference between “labor dispute” and “employment relations” indicative that sections 8-3-108 and 8-3-121 confer a right of action on persons alleging a violation of section 8-2-116. As Sears has also pointed out, the very name of the Act provides some guidance as to its intended scope. See U.M. v. District Ct., County of Lorimer, 631 P.2d 165 (Colo.1981); Conrad v. City of Thornton, 191 Colo. 44, 553 P.2d 822 (1976); Blanchard v. Griswold, 121 Colo. 29, 214 P.2d 362 (1949).
Furthermore, except for the lower court decision in this case, we can find no reported Colorado decision which has applied the Labor Peace Act and its express right of action to any context outside of union-related activities or disputes. See, e.g., Pipelines Local Union No. 798 v. Ellerd, 503 F.2d 1193 (10th Cir.1974); Denver Bldg. & Constr. Trades Council v. Shore, 132 Colo. 187, 287 P.2d 267 (1955); Bennett’s Restaurant, Inc. v. Industrial Comm’n, 127 Colo. 281, 256 P.2d 891 (1953). In Bennett’s Restaurant, the Colorado Supreme Court suggested that the Act as a whole is to be construed consistent with the view expressed in section 8-3-104(13)(b) when the court stated:
“The act does not interfere with the normal exercise of the right of the employer to select its employees or to discharge them. The employer may not, under cover of that right, intimidate or coerce its employees with respect to their self-organization and representation, and, on the other hand, the Board is not entitled to make its authority a pretext for interference with the right of discharge when that right is exercised for other reasons than such intimidation and coercion. The true purpose is the subject of investigation with full opportunity to show the facts.”
256 P.2d at 894 (quoting NLRB v. Jones & Laughlin Steel Corp., 301 U.S. 1, 45, 57 S.Ct. 615, 628, 81 L.Ed. 893 (1937)). We, therefore, are unwilling to extend the provisions of the Labor Peace Act to situations which do not involve union-related activities.10
[914] For the foregoing reasons, we find that Rawson has no express right of action for age discrimination under the statutes upon which he relies. We turn, therefore, to a consideration of whether an implied private right of action exists for age discrimination under section 8-2-116.
II.
IMPLIED PRIVATE RIGHT OF ACTION
Rawson argues that the Colorado courts would imply a private right of action under section 8-2-116 under common law principles and asks us to affirm the district court’s holding to that effect. We first examine the district court’s rationale for concluding that a private right of action exists.
A. District Court’s Analysis.
The district court, citing Touche Ross & Co. v. Redington, 442 U.S. 560, 99 S.Ct. 2479, 61 L.Ed.2d 82 (1979), observed that the implication of a private right of action “is a question of statutory construction.” Rawson, 530 F.Supp. at 777. It then applied the four-part test established by the Supreme Court in Cort v. Ash, 422 U.S. 66, 95 S.Ct. 2080, 45 L.Ed.2d 26 (1975),11 for determining the existence of an implied right of action under a federal statute. The district court observed that “[b]ecause the present case involves a Colorado statute, the U.S. Supreme Court’s analysis is not controlling; however, in the absence of any contrary word from the Colorado Supreme Court, the Cort test provides useful guidance.” Rawson, 530 F.Supp. at 778. The district court concluded that “the first three elements of the Cort test are satisfied here.” Id. The court found that section 8-2-116 “especially singles out employees between the ages of 18 and 60 who have been discharged solely because of their age.” Id. The court then found the second part of the Cort test was met because “other statutes [sections 8-3-121(1) and 108(l)(i)] indicate that the Colorado Legislature intended to create a private right of action here.” Id. Finally, the court concluded that the third part of the Cort test was satisfied because “such a right of action is consistent with the state’s legislative scheme in labor relations.” Id.
We will examine Colorado law and, like the district court, draw “useful guidance” from the Supreme Court’s case law concerning implied rights of action in reaching our conclusion as to the proper interpretation of Colorado law.
[915] B. Colorado Law on Implied Rights of Action.
As we have indicated, prior to the lower court decision in this case no Colorado court had addressed the question of whether an implied right of action exists for age discrimination under section 8-2-116.13 The few decisions subsequent to the lower court case have provided little detailed analysis or explanation of court holdings concerning the existence or nonexistence of such an implied right of action.14 Thus, we must make our own inquiry into Colorado law to determine the appropriate resolution of this issue.
We have found numerous Colorado cases which have expressed a general unwillingness to expand upon statutory remedies specifically provided in a statutory scheme. Sears relies in particular upon Silverstein v. Sisters of Charity, 38 Colo.App. 286, 559 P.2d 716 (1976). There, the plaintiff, a physically disabled person, sued two health care corporations on the ground that they discriminated against her in violation of Colo.Rev.Stat. § 24-34-801(l)(b) (1973) when they refused to hire her as a respiratory therapist. Section 24-34-801 did not expressly provide for civil actions for compensatory or exemplary damages. Furthermore, there was a criminal penalty for [916] a violation of section 24-34-801 rendering such a violation a misdemeanor. Nonetheless, the plaintiff argued that a private right of action should be implied. The Colorado Court of Appeals disagreed. In so doing, it stated:
The relevant portions of that statute confer new rights and duties unknown at common law, and provide criminal penalties for violations thereof. Where a statute creates legal duties and provides a particular means for their enforcement, the designated remedy excludes all others. Colorado Cent. R. Co. v. Humphreys, 16 Colo. 34, 26 P. 165 (1891). See also Board of County Commissioners v. HAD Enterprises, Inc., 35 Colo. App. 162, 533 P.2d 45 (1974). Here, there is no question but that the legislature could have authorized civil penalties for violation of the act. [citations omitted]. However, it chose to impose only a criminal sanction. Therefore, we have no authority to impose civil liability. Quintano v. Industrial Commission, 178 Colo. 131, 495 P.2d 1137 (1972). See also Swenson v. LaShell, 118 Colo. 333, 195 P.2d 385 (1948).
559 P.2d at 718. The court also rejected the plaintiffs argument that the inadequacy of the specified criminal penalty indicated that an implied civil remedy was appropriate. “However, the legislature sought to deter such discrimination by making violation of the statute a misdemeanor; thus, we cannot disturb its apparent determination that the criminal penalty provided is an adequate remedy.” Id.
The Court of Appeals in Silverstein also indicated that its reluctance to expand upon specified statutory remedies extended even to “legislation designed to benefit particular individuals or classes.” Id. Relying on Quintano v. Industrial Comm’n, 178 Colo. 131, 495 P.2d 1137 (1972), the Court of Appeals cautioned “in the area of remedies in furtherance of legislative purposes the courts should proceed with great caution, leaving determination of the appropriate means of enforcement to the legislature.” Id. at 718-19. Quintano involved the question of whether the Colorado Industrial Commission or any of its individual members could be liable under Colo.Rev. Stat. § 80-2-1 (1963) in an action for damages the plaintiff allegedly suffered when a machine malfunctioned. Section 80-2-1 provides, in pertinent part:
The industrial commission of Colorado shall be charged with the inspection of all factories, mills, workshops ... or any kind of an establishment wherein laborers are employed or machinery used, for the purpose of protecting said employees or guests against damages arising from imperfect or dangerous machinery____
Id. The Colorado Supreme Court affirmed the Court of Appeals’ dismissal of the complaint against the Commission “on the basis of sovereign immunity,” and against the individual Commission members, stating that:
If the General Assembly has the intent that employees and guests may use this statute as the basis for civil liability, then its expression of this intent should be loud and clear, i.e., by authorizing the remedy.
495 P.2d at 1139.16
Other cases in Colorado express the same general philosophy. See Board of [917] Comm’rs v. Pfeifer, 190 Colo. 275, 546 P.2d 946, 949 (1976) (“in this case the legislature has clearly and expressly established the remedies available to the Board in order to enforce its subdivision requirement, and they are so limited.”); Gladden v. Guyer, 162 Colo. 451, 426 P.2d 953, 957 (1967) (“It is for the legislature and not the judiciary to determine the penalty for violation of a statute, [citation omitted]. The penalty provided by the legislature for [violation of the statute] is a fine ... or imprisonment ..., or both. To declare void a contract entered into without such certificate [as the statute required] would be enlarging upon the penalties provided by the legislature.”); 17 American Television & Communications Corp. v. Manning, 651 P.2d 440, 447 (Colo.App.1982) (“where a statute creates legal duties which were non-existent at common law and provides a particular means for their enforcement, the designated remedy is exclusive, and courts should not imply new remedies to accompany the new right in the absence of some legislative indication or other circumstances that such a result was intended.”); Hargreaves v. Skrbina, 635 P.2d 221, 227 (Colo.App.1981) (“since no specific legislative authorization for attorneys’ fees appears in the Longmont ordinance ... an award of attorneys’ fees would be improper. See Silverstein.”), aff'd in part, rev’d in part, 662 P.2d 1078 (Colo.1983); Board of County Comm’rs v. HAD Enterprises, Inc., 35 Colo.App. 162, 533 P.2d 45, 46 (1974) (“[the statute at issue] provides that one who violates the terms thereof shall be guilty of a misdemeanor and may be subject to a fine and imprisonment. These provisions are the sole remedies under the act____ [W]here the legislature has not seen fit to authorize a particular remedy in a statute, we cannot supply one.”); Farmers Group, Inc. v. Trimble, 658 P.2d 1370, 1378 (Colo.App.1982) (“The General Assembly could have added the remedy of a private civil action for damages to its catalog of sanctions. It did not do so, however, and in the absence of any indication of contrary legislative intent, we must assume that the specific remedies designated by the General Assembly exclude all others.”), aff'd on other grounds, 691 P.2d 1138 (Colo.1984).
One of the more thorough discussions of Colorado law concerning implied rights of action is contained in Holier v. Moore & Co., 681 P.2d 962 (Colo.App.1983), in which the court stated:
Colorado has accepted the guidelines set down by the United States Supreme Court in Cort v. Ash, 422 U.S. 66 [95 S.Ct. 2080, 45 L.Ed.2d 26] ... (1975) as useful for determining whether a statute impliedly authorizes a private cause of action. Cloverleaf Kennel Club, Inc. v. Colorado Racing Commission, 620 P.2d 1051 (Colo.1980). There are three factors which determine whether a private remedy is implicit in a statute which does not expressly authorize such a remedy. They are (1) whether the plaintiff is within the class for whose benefit the statute was enacted, (2) whether the legislature has explicitly or implicitly intend[918] ed to create a private remedy, and (3) whether an implied private remedy would be consistent with the purposes of the legislative scheme. Cort v. Ash, supra.
The focus of the inquiry is whether the legislature intended to create a private cause of action. Touche Ross & Co. v. Redington, 442 U.S. 560 [99 S.Ct. 2479, 61 L.Ed.2d 82] ... (1979). If the statute expressly provides a remedy, courts must be chary of reading others into it. Transamerica Mortgage Advisors, Inc. v. Lewis, 444 U.S. 11 [100 S.Ct. 242, 62 L.Ed.2d 146] ... (1979). In the absence of strong indicia of legislative intent to the contrary, courts are compelled to conclude that the legislature provided precisely the remedies it considered appropriate. Middlesex County Sewerage Authority v. Sea Clammers, 453 U.S. 1 [101 S.Ct. 2615, 69 L.Ed.2d 435] ... (1981).
Applying these principles here, we note that § 12-61-103(2) does not contain language indicating a legislative intent to authorize private remedies for its violation. The statutory scheme authorizes the Commission to enforce compliance with the provisions and to discipline noncompliance____ Where a statute creates legal duties and provides a particular means of enforcement, the designated remedy is exclusive and courts are without authority to impose others. Silverstein v. Sisters of Charity, 38 Colo.App. 286, 559 P.2d 716 (1976). We find no “loud and clear” expression of legislative intent authorizing a private remedy for violations of § 12-61-103(2) and Commission Rules C-4 through C-7. See Quintano v. Industrial Commission, 178 Colo. 131, 495 P.2d 1137 (1972). And in light of the enforcement procedures provided in the statutory scheme, coupled with lack of legislative intent authorizing a private cause of action, we must refrain from inferring one.
Id. at 964. See also Bennett v. Furr’s Cafeterias, Inc., 549 F.Supp. 887 (D.Colo.1982) (in finding that the applicable Colorado statute of limitations was not tolled, the district court stated that its holding was “in keeping with the general hesitancy of the courts to judicially except cases from applicable limitations statutes and is of a piece with the Colorado court’s general approach to the problem of ‘judicial legislation.’ ” Id. at 892-93 (footnotes omitted)); Cloverleaf Kennel Club, Inc. v. Colorado Racing Comm’n, 620 P.2d 1051 (Colo.1980); Agnello v. Adolph Coors Co., 695 P.2d 311 (Colo.App.1984) (refusing to construe the CAA as providing any remedies in addition to those expressly provided therein); Red Seal Potato Chip Co. v. Colorado Civil Rights Comm’n, 44 Colo.App. 381, 618 P.2d 697 (1980) (similarly construing the CAA). All of these cases, we believe, provide persuasive evidence that the Colorado courts are reluctant to imply additional remedies in statutes where there is no clear legislative intent to do so.
In so finding, we note that another panel of this court has interpreted Colorado law similarly. In Gammill v. U.S., 727 F.2d 950 (10th Cir.1984), this court affirmed a district court decision that the plaintiffs could not maintain their action under the Federal Tort Claims Act, 28 U.S.C. § 1346(b) (1982). The plaintiffs had contracted hepatitis allegedly because a civilian physician employed at a military installation failed to notify the public health authorities of infectious hepatitis in a family with whom the plaintiffs had contact, thereby preventing the plaintiffs from receiving effective inoculations. Such failure to notify violated Colo.Rev.Stat. § 25-1-649 (1982),18 a Department of the Army [919] Regulation, and regulations at the military base concerning communicable diseases. This court agreed with the district court that the United States could not be held liable for a violation of section 25-1-649 in part because “Colorado courts have held that when a statute provides for criminal punishment, as does G.R.S. § 25-1-649, the intent of the legislature is presumed to be that such punishment is in lieu of all other remedies.” Gammill, 727 F.2d at 952. In so holding, we stated as follows:
First, we note that Colorado courts have been extremely cautious in recognizing private rights of action “implied” by criminal statutes. This reluctance clearly stems from a concern within the Colorado judiciary of crossing over the bounds of the bench into the province of the legislature. See Quintana v. Industrial Commission, 178 Colo. 131, 495 P.2d 1137, 1139 (1972); Farmers Group, Inc. v. Trimble, 658 P.2d 1370, 1378 (Colo.App.1982). In the present case, C.R.S. § 25-1-649 provides for a criminal fine ranging from five to one-hundred dollars. There is no indication that the legislature also intended to supplement this criminal penalty with a private civil right of action. The Colorado Supreme Court has observed that the creation of such rights “is not a subject in which we should attempt to infer such a legislative intent.” Quintano, ... 495 P.2d at 1138____ In light of these strong statements, we will not conclude that the district court erred in not inferring a private right of action based upon C.R.S. § 25-1-649.
Id. at 953 (footnote omitted).
Rawson endeavors to refute this line of cases with the Colorado Supreme Court’s opinion in Travelers Ins. Co. v. Savio, 706 P.2d 1258 (Colo.1985) which, he argues, implicitly overrules Silverstein. We disagree with Rawson’s interpretation of Savio. The plaintiff in Savio brought a separate tort action against his employer’s workmen’s compensation carrier for alleged bad faith handling of his claim. No express or implied right of action was invoked under the workmen’s compensation statutes; the tort claim was specifically made independently of, not under, those statutes. The insurance company argued that the workmen’s compensation statutes provided the exclusive remedy. The Colorado Supreme Court rejected that argument, finding that the Act and plaintiff’s claim involved different conduct:
Such overlap does not exist between our statutes and the tort of bad faith. The duty of an insurer under the Act to provide benefits and compensation is factually and analytically distinct from its duty to deal in good faith with claimants, even though such duties necessarily involve a common underlying physical injury.
706 P.2d at 1270. Thus, the major inquiry and holding in Savio addressed an issue wholly unrelated to the issue addressed in Silverstein, which was the existence of an implied private right of action under a penal statute. That is the obvious reason why neither Silverstein nor related cases were discussed by the Colorado Supreme Court in Savio; rather than a supposition that the parties and the court overlooked some important relationship between those cases and Savio.
Other states have followed a view similar to that expressed in Silverstein and the other Colorado cases cited above. See, e.g., Mein v. Masonite Corp., 109 Ill.2d 1, 92 [920] Ill.Dec. 501, 504, 485 N.E.2d 312, 315 (1985) (affirming dismissal of claim alleging wrongful discharge on account of age, and citing with approval Teale v. Sears Roebuck & Co., 66 Ill.2d 1, 3 Ill.Dec. 834, 359 N.E.2d 473 (1976) for the proposition that “[s]ince the [Age Discrimination] Act provided a criminal penalty for its violation, this language was interpreted as an internal restriction which ‘strongly militates against, if indeed it does not preclude, expansion of the statutory sanction’ to include a civil cause of action.”); Fawcett v. G.C. Murphy & Co., 46 Ohio St.2d 245, 348 N.E.2d 144, 147 (1976) (affirming dismissal of claims alleging wrongful discharge on account of age, and stating “it cannot be concluded that the General Assembly by ‘clear implication’ intended to create a civil action for damages for the breach of R.C. 4101.17. This court, therefore, is disinclined to read such a remedy into that section.”).20 See also Wentworth v. Solem, 548 F.2d 773, 775 (8th Cir.1977) (affirming dismissal of complaint alleging violation of statutes concerning the transportation in interstate commerce of goods manufactured by convicts, and stating “we find that [the plaintiff] cannot predicate a private claim on those statutes. [18 U.S.C. sections 1761-62 are criminal statutes and do not expressly create a private right of action.”).
Our review of Colorado cases, as well as those from other jurisdictions, convinces us that the Colorado Supreme Court would decline to imply a private right of action under section 8-2-116. We believe that the Colorado legislature did not intend to provide any remedy for violations of section 8-2-116 other than that expressly provided in section 8-2-117. Accordingly, the district court erred when it concluded that an implied private right of action exists under section 8-2-116.21
Because the Colorado Supreme Court has stated, as did the district court in this case, [921] that the Colorado courts draw “useful guidance” from the jurisprudence of the United States Supreme Court concerning implied rights of action, and because that jurisprudence provides additional support for our conclusion in this case, we turn to a brief review of that case law.
C. Supreme Court Law on Implied Rights of Action.
It is widely thought that Texas & Pac. Ry. v. Rigsby, 241 U.S. 33, 36 S.Ct. 482, 60 L.Ed. 874 (1916) was the first case in which the Supreme Court recognized an implied private right of action under a federal statute which did not itself provide one. Some commentators and courts believe the doctrine had its origins in Marbury v. Madison, 5 U.S. (1 Crunch) 137, 2 L.Ed. 60 (1803) or even earlier. See, e.g., Merrill, Lynch, Pierce, Fenner & Smith, Inc. v. Curran, 456 U.S. 353, 102 S.Ct. 1825, 72 L.Ed.2d 182 (1982); Foy, Some Reflections on Legislation, Adjudication, and Implied Private Actions in the State and Federal Courts, 71 Cornell L.Rev. 501 (1986); Note, Implying Civil Remedies from Federal Regulatory Statutes, 77 Harv.L.Rev. 285 (1963). For many years the Supreme Court followed an expansive or receptive view of the common law power of courts to imply remedies into statutory schemes where none existed. It followed some variation of the basic maxim “ubi jus ibi remedium” (where there is a right there is a remedy). See, e.g., Allen v. State Bd. of Elections, 393 U.S. 544, 89 S.Ct. 817, 22 L.Ed.2d 1 (1969); J.I. Case Co. v. Borak, 377 U.S. 426, 84 S.Ct. 1555, 12 L.Ed.2d 423 (1964). In so doing, the Court looked into the language and legislative history of the particular statute to determine Congressional intent concerning implied private rights of action and it considered whether the judicial implication of a remedy would advance or frustrate the purpose of Congress in enacting the particular statutory scheme. See, e.g., Cort v. Ash, 422 U.S. 66, 95 S.Ct. 2080, 45 L.Ed.2d 26 (1975); see also generally Ashford, Implied Causes of Action Under Federal Laws: Calling the Court Back to Borak, 79 Nw. U.L.Rev. 227 (1984); Frankel, Implied Rights of Action, 67 Va.L.Rev. 553 (1981). “During the 1940s, 1950s, and 1960s, the federal law of implied private actions began to flower.” Foy, 71 Cornell L.Rev. at 559.
In 1975, in its decision in Cort v. Ash, 422 U.S. 66, 95 S.Ct. 2080, 45 L.Ed.2d 26 (1975), the Court endeavored to make explicit the criteria to be used in determining whether a private cause of action should be implied in a statute which does not provide one explicitly. It was those factors which the district court applied in this case. Since Cort, the question of Congressional intent has become the main concern and the other Cort factors have diminished in significance. The question of implication of private remedies is now viewed as a strict question of “statutory construction” to determine “whether Congress intended to create the private right of action asserted.” Touche Ross & Co. v. Redington, 442 U.S. 560, 568, 99 S.Ct. 2479, 2485, 61 L.Ed.2d 82 (1979); see also Daily Income Fund, Inc. v. Fox, 464 U.S. 523, 535-36, 104 S.Ct. 831, 838, 78 L.Ed.2d 645 (1984); Middlesex County Sewerage Auth. v. National Sea Clammers Ass’n., 453 U.S. 1, 13, 101 S.Ct. 2615, 2622-23, 69 L.Ed.2d 435 (1981); Texas Indus. v. Radcliff Materials, Inc., 451 U.S. 630, 639, 101 S.Ct. 2061, 2066, 68 L.Ed.2d 500 (1981); Shoultz v. Monfort of Colorado, Inc., 754 F.2d 318 (10th Cir.1985), cert. denied, — U.S. -, 106 S.Ct. 1259, 89 L.Ed.2d 569 (1986). If Congressional intent on the question of an implied civil remedy can be discerned from the statute or its legislative history, further inquiry into whether the judicial implication of such a remedy would further or impede Congressional goals is unnecessary. Transamerica Mortgage Advisors, Inc. v. Lewis, 444 U.S. 11, 100 S.Ct. 242, 62 L.Ed.2d 146 (1979).
In addition, in Touche Ross, the Supreme Court employed the familiar maxim “ex-pressio unius est exclusio alterius” to find no implied liability where a statutory scheme contained provisions providing express liability elsewhere. Thus, there has been a distinct shift away from the full application of the Cort factors to a narrower exercise of statutory construction in or[922] der to glean Congressional intent. See, e.g., Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Curran, 456 U.S. 353, 102 S.Ct. 1825, 72 L.Ed.2d 182 (1982); Transamerica Mortgage Advisors, Inc. v. Lewis, 444 U.S. 11, 100 S.Ct. 242, 62 L.Ed.2d 146 (1979).22
As the Eleventh Circuit has noted, “the Supreme Court has imposed increasingly severe restrictions on the availability of implied causes of action under federal statutes.” Local Div. 732, Amalgamated Transit Union v. Metropolitan Atlanta Rapid Transit Auth., 667 F.2d 1327, 1334 (11th Cir.1982).23 Because the Colorado courts draw “useful guidance” from the Supreme Court’s cases on the question of implication of remedies and because our review of Colorado cases on the subject convinces us that the Supreme Court’s increasingly restrictive view of the availability of such judicially implied remedies is consistent with Colorado law on that issue, we view the restrictive trend in the Supreme Court as supportive of our conclusion in this case.
CONCLUSION
For the reasons set forth in this opinion, the decision of the district court denying Sears’ post-trial motion for judgment notwithstanding the verdict is reversed; the judgments for costs and damages are vacated; and the case is remanded for entry of judgment dismissing the complaint.
Footnotes
In sum, we are not abandoning any firmly established circuit-wide rule. Rather, we are simply fulfilling our appropriate appellate function in this case. Indeed, we are following the exhortation of our dissenting brother to avoid making "this court’s determination of legal issues in diversity cases little more than a will-o’the-wisp." Catts Co. v. Gulf Ins. Co., 723 F.2d 1494, 1504 (1983) (McKay, J., dissenting).
of course cannot determine whether the defendant has criminally violated C.R.S. § 8-2-116. However, the Colorado legislature’s broad definition of unfair labor practices indicates an intent to create a private right of action to anyone who can prove by a preponderance of the evidence that a defendant has violated a criminal labor statute.
Rawson, 530 F.Supp. 776, 778 (emphasis added). We do not believe that, for the purpose of an express right of action, the definition of unfair labor practices intends to abrogate the usual standard of proof for a criminal charge such as a criminal violation of section 8-2-116. Rather, we view the reference to the commission of any crime or misdemeanor to require the usual showing, as specified in section 18-1-402, of proof beyond a reasonable doubt. While the "preponderance of the evidence” standard may be appropriate for a private right of action implied under a statutory scheme, we are unwilling to endorse the incorporation of that standard in an express private right of action which [914] depends upon the existence of a criminal violation.
First, is the plaintiff "one of the class for whose especial benefit the statute was enacted,” Texas & Pacific R. Co. v. Rigsby, 241 U.S. 33, 39, 36 S.Ct. 482, 484, 60 L.Ed. 874 (1916) (emphasis supplied) — that is, does the statute create a federal right in favor of the plaintiff? Second, is there any indication of legislative intent, explicit or implicit, either to create such a remedy or to deny one? See, e.g., National Railroad Passenger Corp. v. National Assn, of Railroad Passengers, 414 U.S. 453, 458, 460, 94 S.Ct. 690, 693, 694, 38 L.Ed.2d 646 (1974) (Amtrak). Third, is it consistent with the underlying purposes of the legislative scheme to imply such a remedy for the plaintiff? See, e.g., Amtrak, supra; Securities Investor Protection Corp. v. Barbour, 421 U.S. 412, 423, 95 S.Ct. 1733, 1740, 44 L.Ed.2d 263 (1975); Calhoun v. Harvey, 379 U.S. 134, 85 S.Ct. 292, 13 L.Ed.2d 190 (1964). And finally, is the cause of action one traditionally relegated to state law, in an area basically the concern of the States, so that it would be inappropriate to infer a cause of action based solely on federal law? See Wheeldin v. Wheeler, 373 U.S. 647, 652, 83 S.Ct. 1441, 1445-46, 10 L.Ed.2d 605 (1963); cf. J.I. Case Co. v. Borak, 377 U.S. 426, 434, 84 S.Ct. 1555, 1560-61, 12 L.Ed.2d 423 (1964); Bivens v. Six Unknown Federal Narcotics Agents, 403 U.S. 388, 394-5, 91 S.Ct. 1999, 2003-05, 29 L.Ed.2d 619 (1971); id., at 400, 91 S.Ct. at 2006-07 (Harlan, J., concurring in judgment).
422 U.S. at 78, 95 S.Ct. at 2087-88 (emphasis original).
The federal district courts have been similarly divided. In Brezinski v. F. W. Woolworth Co., 626 F.Supp. 240 (D.Colo.1986) and in Brenimer v. Great Western Sugar Co., 567 F.Supp. 218 (D.Colo.1983), Judge Kane followed his own view in Rawson and reiterated that a private right of action exists under section 8-2-116. In both Spulak and Grandchamp, the district court employed the same reasoning as in Rawson. By contrast, the district court in Taylor v. K-Mart Corp., No. 85-M-2336 (D.Colo. Jan. 13, 1986) [Available on WESTLAW, DCT database], concluded that "there is no private right of action for a violation of C.R.S. § 8-2-116.” Similarly, the district court in Glover v. United Air Lines, Inc., No. 86-M-323 (D.Colo. June 24, 1986) [Available on WESTLAW, DCT database], dismissed the plaintiffs second claim stating “contrary to the view expressed in Rawson v. Sears Roebuck & Co., 530 F.Supp. 776 (D.Colo.1982), and contrary to Marks v. Cobe Laboratories, No. 85-CV-2726 (Jefferson County District Court, Colorado) the Colorado statute in effect at the time of the operative facts in this case did not provide for a private right of action under C.R.S. 8-2-116, and the court being also of the view that the recent repeal of that statute and enactment of a specific age discrimination statute supports this conclusion.”
In Silver v. St. Luke’s Hosp., Inc., No. 84-M-2046 (D.Colo. May 3, 1985) [Available on WEST-LAW, DCT database], the district court simply stated that, on the question of the existence of a private right of action under section 8-2-116, "[t]he state law is unsettled and should not be addressed in this case.” In Borumka v. Rocky Mountain Hosp., 599 F.Supp. 857, 859 (D.Colo. 1984) , the district court noted the Rawson decision but, because the "Colorado courts have not had the occasion to address the issue,” the court declined to exercise pendent jurisdiction over the claims based on section 8-2-116; accord, Hensman v. Adams County Dep’t. of Social Servs., 623 F.Supp. 96 (D.Colo.1985); DiRito v. Ideal Basic Indus., Inc., 617 F.Supp. 79 (D.Colo. 1985) . Finally, in Bouts v. United Air Lines, Inc., No. 83-F-1329 (D.Colo. Sept. 18, 1984), the district court denied the defendant's motion to dismiss or for summary judgment without prejudice as to the plaintiffs claim under section 8-2-116, without any explanation therefor.
[T]he court held that it generally would not find an implied right of private civil action against a state agency in a new statute, because of the problems of sovereign immunity.
530 F.Supp. at 778 n. 3. We do not completely agree with the district court’s analysis of Quintano. After noting that the statute at issue in that case "specifically designates the classes of individuals for whose benefit it is intended," the court in Quintano stated that it affirmed the dismissal of the complaint against the individual commissioners “by reason of the philosophy of this court as expressed in Evans [v. Board of County Comm'rs, 482 P.2d 968 (Colo.1971) in [917] which] ... [w]e said in effect that there are certain fields, such as sovereign immunity, in which the courts should leave establishment of substantive law to the legislative branch. We have the same view as to the matter under consideration." 495 P.2d at 1139 (emphasis added). Thus, we read the Colorado Supreme Court’s language in Quintano more broadly than did the district court here. The court was not simply affirming the dismissal of the complaint because of sovereign immunity considerations; rather, its language evidenced a broader concern about judicial implication of liability under statutes where the legislature has not explicitly so provided.
the court held that a party's violation of a public cattle-testing statute did not void a contract it entered into, but only made it voidable. The court’s decision therefore implies that the other party could exercise a right stemming from the statute to void the contract if it so desired.
530 F.Supp. at 778 n. 3. We disagree also with the district court’s narrow interpretation of Gladden. The court in Gladden stated it would not declare the contract at issue void, but ”[a]t most ... merely voidable.” 426 P.2d at 957. We do not believe that the court’s opinion evidences a willingness to imply civil damages liability for the violation of a statute which does not so provide.
Rawson essentially argues that the decision to repeal sections 8-2-116 and 117 and include age discrimination in the CAA evidences only an intent to put a limit on the type of damages available to age discrimination plaintiffs. It does not indicate, Rawson claims, that the legislature never intended a private right of action for age discrimination prior to the January 1, 1985 amendment.
Sears, by contrast, argues that the amendment of the CAA and the repeal of sections 8-2-116 and 117 indicate that the legislature never intended to create a private right of action under section 8-2-116. Noting this deficiency, the legislature repealed the current statutes and included age discrimination within the statutory scheme prohibiting all other forms of discrimination, which explicitly provides a specified remedy and procedure for aggrieved plaintiffs. The district court in this case rejected Sears' argument on this issue, stating:
Defendant’s argument is clever, but does not persuade me that a private right of action is not authorized by § 8-2-116. I have compared the provisions of the proposed bill to the statute and find that their objectives are not totally dissimilar.
585 F.Supp. 1393, 1394-95.
We find, however, that absent any indication by the legislature of its intent in effecting these changes by means of House Bill 1198, we are simply engaging in speculation as to that intent. Both Rawson’s and Sears’ arguments on this point have some appeal, but we cannot reach any conclusion which assists us in our inquiry into the proper construction of section 8-2-116. We accordingly acknowledge both parties’ arguments but find they do not dissuade us from our conclusion, reached by carefully examining Colorado cases and those from other jurisdictions, that no implied private right of action exists under section 8-2-116.
In view of the Supreme Court’s shift after Borak to a primary emphasis on legislative intent, it may be that the Supreme Court has adopted the former view — that federal courts lack the power to imply private remedies without clear legislative authorization to do so. See generally Frankel, supra note 22.
Because, in this case, we must construe the law of Colorado on implication of remedies where statutes provide none expressly, the Supreme Court’s increasingly restrictive view of the power of federal courts to imply private remedies is arguably less significant to our decision on state law. State courts, as courts of general jurisdiction, are not subject to the same constraints concerning their power to imply remedies as are federal courts, which are courts of limited jurisdiction. “If the Court’s restrictive doctrine of implication rests on the limited jurisdiction of the federal courts ... the doctrine poses no obstacle to the creation of private rights of action under state law." Frankel, supra note 22 at 564 n. 64. Nonetheless, as the Colorado courts, including the lower court in this case, take "useful guidance” from the Supreme Court cases, so do we in endeavoring to construe Colorado law.
822 F.2d 908 (Gary Rawson v. Sears, Roebuck & Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.