Hudson v. Soft Sheen Products, Inc.

873 F. Supp. 132, 1995 U.S. Dist. LEXIS 397, 68 Fair Empl. Prac. Cas. (BNA) 21, 1995 WL 21954
CourtDistrict Court, N.D. Illinois
DecidedJanuary 10, 1995
Docket94 c 0487
StatusPublished
Cited by4 cases

This text of 873 F. Supp. 132 (Hudson v. Soft Sheen Products, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hudson v. Soft Sheen Products, Inc., 873 F. Supp. 132, 1995 U.S. Dist. LEXIS 397, 68 Fair Empl. Prac. Cas. (BNA) 21, 1995 WL 21954 (N.D. Ill. 1995).

Opinion

MEMORANDUM OPINION

BRIAN BARNETT DUFF, District Judge.

Plaintiffs Valarie Hudson and Cynthia Freeman (“Plaintiffs”) allege that, while they worked for Defendant Soft Sheen Products, Inc. (“Soft Sheen”), Defendant Larry Allen (“Allen”), a vice president of Soft Sheen, sexually harassed them. They bring two counts under Title VII and one count each under common law theories of negligent retention and battery. Allen moves for judgment on the pleadings concerning the Title VII counts. Soft Sheen and the Plaintiffs (“the Opponents”) oppose the motion. For the reasons discussed below, we grant Allen’s motion.

I. Background

As a vice president of Soft Sheen, Allen was the Plaintiffs’ supervisor, someone with the authority to alter the terms and conditions of their employment. While acting as their supervisor, he allegedly engaged in verbal and physical sexual harassment, including offering the Plaintiffs employment benefits in exchange for sexual favors. Eventually, after employees complained about Allen’s conduct and the company conducted an internal investigation, Soft Sheen terminated his employment.

II. Standard of Review

We may review Fed.R.Civ.P. 12(c) motions for judgment on the pleadings under the same standard as we review Fed.R.Civ.P. 12(b)(6) motions for dismissal for failure to state a claim. Alexander v. City of Chicago, 994 F.2d 333, 336 (7th Cir.1993); see Thomason v. Nachtrieb, 888 F.2d 1202, 1204 (7th Cir.1989). “A party fails to state a claim ... only if [it] ‘can prove no set of facts upon which relief may be granted.’ We assume well-pleaded allegations are true and ... draw all reasonable inferences in the light most favorable to the plaintiff.” Bethlehem Steel Corp. v. Bush, 918 F.2d 1323, 1326 (7th Cir.1990) (citation omitted).

III. Discussion

A. Statutory Provisions

Title VII prohibits “employers” from discriminating against employees on the basis of their “race, color, religion, sex, or national origin ...” 42 U.S.C. § 2000e-2(a)(1). “The term ‘employer’ means a person engaged in an industry affecting commerce who has fifteen or more employees ... and any agent of such a person.” 42 U.S.C. § 2000e(b).

Before the Civil Rights Act of 1991 (“the Amendments”), prevailing plaintiffs could receive injunctive relief and “affirmative ae *134 tion” such as back pay. 42 U.S.C. § 2000e-5(g). After the Amendments, however, prevailing plaintiffs could receive additional remedies, most notably compensatory and punitive damages. 42 U.S.C. § 1981a(a)(l) and (b)(1) and (2). Still, Congress limited the scope of those new remedies:

The sum of the amount of compensatory damages ... and punitive damages awarded under this section, shall not exceed, for each complaining party—
(A) in the case of [an employer] who has more than 14 and fewer than 101 employees ..., $50,000;
(B) in the case of [an employer] who has more than 100 and fewer than 201 employees ..., $100,000;
(C) in the ease of [an employer] who has more than 200 and fewer than 501 employees ..., $200,000;
(D) in the case of [an employer] who has more than 500 employees ..., $300,000.

42 U.S.C. § 1981a(b)(3).

B. Statutory Interpretation

Allen argues that the definition of “employer” excludes individuals in their individual capacity. 1 He relies on Weiss v. Coca-Cola Bottling Co., 772 F.Supp. 407 (N.D.Ill. 1991) (Duff, J.), in which we held that the “and any agent” language of § 2000e(b) merely incorporates respondeat superior into the statute, and “[a] person liable in [his] official capacity is liable only as a surrogate for the employer.” Id. at 411. In other words, “[t]he relief granted is against the employer, not the individual employees whose actions would constitute a violation of the Act.” Hangebrauck v. Deloitte & Touche, 1992 WL 348743, at *3 (N.D.Ill. Nov. 9, 1992) (Duff, J.), (interpreting Weiss). We believed that this was the “more reasonable view,” particularly because “the damages available under Title VII are damages which an employer, not an individual, would generally provide — i.e. backpay, reinstatement, etc.” Weiss, 772 F.Supp. at 411. Consequently, Allen argues that the Plaintiffs improperly sued him in his individual capacity, and we should grant his motion for judgment on the pleadings.

The Opponents argue that the Amendments undercut the reasoning and result in Weiss. They rely on authority such as Vakharia v. Swedish Covenant Hospital, 824 F.Supp. 769 (N.D.Ill.1993), in which the court stated that “if the amendments did apply, Judge Duffs argument would lose virtually all of its force, since the[y] allow for full compensatory ... as well as punitive damages.” Id. at 785, n. 2; see § 1981a(a)(l) and (b)(1) and (2). In fact, in Hangebrauck, before we had occasion to focus of the issue, we also believed that our reasoning had lost force. 1992 WL 348743, at *3. With the force gone, the Opponents argue that our result in Weiss is overruled and that the definition of “employer” now includes individuals in their individual capacity. Consequently, they argue that the Plaintiffs properly sued Allen, and we should deny the motion for judgment on the pleadings.

This is our first opportunity to consider whether the reasoning and result in Weiss survive the Amendments. Undeniably, the Amendments allow for tort-style damages. Yet they contain a limitation on damages provision, § 1981a(b)(3), which directly ties the possible monetary awards to the size of the employer. As we see it, the issue is whether Congress gave with one hand and took with the other, meaning whether it allowed for individual liability through the tort-style damages provision, but then disallowed it through the limitation on damages provision.

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873 F. Supp. 132, 1995 U.S. Dist. LEXIS 397, 68 Fair Empl. Prac. Cas. (BNA) 21, 1995 WL 21954, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hudson-v-soft-sheen-products-inc-ilnd-1995.