James E. Rodgers v. Western-Southern Life Insurance Company, Cross-Appellee

12 F.3d 668, 1993 U.S. App. LEXIS 32982, 63 Empl. Prac. Dec. (CCH) 42,729, 63 Fair Empl. Prac. Cas. (BNA) 694
CourtCourt of Appeals for the Seventh Circuit
DecidedDecember 17, 1993
Docket93-1125, 93-1266
StatusPublished
Cited by316 cases

This text of 12 F.3d 668 (James E. Rodgers v. Western-Southern Life Insurance Company, Cross-Appellee) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
James E. Rodgers v. Western-Southern Life Insurance Company, Cross-Appellee, 12 F.3d 668, 1993 U.S. App. LEXIS 32982, 63 Empl. Prac. Dec. (CCH) 42,729, 63 Fair Empl. Prac. Cas. (BNA) 694 (7th Cir. 1993).

Opinion

FLAUM, Circuit Judge.

On April 27, 1989, after exhausting state administrative remedies, James E. Rodgers (“Rodgers”) brought suit in federal district court against his former employer, Western-Southern Life Insurance Company (‘Western-Southern”). Rodgers alleged that Western-Southern discriminated against him by creating a racially hostile environment in violation of Title VII of the Civil Rights Act of 1964 and the Fourteenth Amendment and in so doing constructively discharged him. The district court dismissed Rodgers’ Fourteenth Amendment claim on the ground that Western-Southern is not a state actor. Following a bench trial, the district court held Western-Southern liable under Title VII for maintaining a racially hostile work environment and awarded back pay to Rodgers in the amount of $101,674.78 under the constructive discharge theory. The court also ordered Western-Southern to provide Rodgers with an annuity in accordance with its pension plan. Western-Southern appeals from the court’s liability determination and its award of back pay. Rodgers cross-appeals from the court’s failure to award front pay. For the following reasons, we affirm the district court in all respects.

I.

James E. Rodgers was employed in the Milwaukee, Wisconsin office of Western-Southern Life Insurance Company from 1973 until 1985. Throughout Rodgers’ period of employment, Western-Southern’s Milwaukee office employed approximately eighteen to twenty Sales Agents who reported to four Associate Sales Managers who, in turn, reported to one District Sales Manager. The District Sales Manager during this entire period was William Mann (“Mann”). In addition to supervising the overall operation of the Milwaukee office, Mann also hired all *671 Sales Agents, including Rodgers. Mann is a white man;' Rodgers is a black man.

Rodgers began his tenure with Western-Southern as a Sales Agent, a position that required Rodgers to sell insurance policies, collect premiums from policyholders, negotiate policy loans and transfers, and perform weekly and monthly accounting of the premiums he collected. As of 1973, four of the Milwaukee-based Sales Agents were black, and that number increased to six or seven by the time Rodgers quit in' 1985. By all accounts, Rodgers compiled an outstanding record as a Sales Agent and experienced no significant conflicts with any of the Associate Sales Managers who supervised him.

In 1980, Rodgers received a promotion to Associate Sales Mánáger, a position which he held until his resignation in 1985. At that time, two black men — Rodgers and Mark Thomas (“Thomas”) — and two white men filled the four Associate Sales Manager positions. Rodgers’ duties as a Associate Sales Manager consisted of supervising five Sales Agents, reporting directly to District Sales Manager Mann on a daily basis, assisting the Sales Agents in making sales, training new Sales Agents, and assisting the new agents in their preparation for the state insurance sales licensing examination. In addition to performing their own duties, Associate Sales Managers also were expected to service “open accounts” — accounts vacated when one of the Sales Agents quit — until a replacement Sales Agent was hired. Not surprisingly, these extensive duties required Associate Sales Managers to work long hours. In a typical week, Rodgers and his colleagues logged twelve-hour days from Monday through Friday, and often put in several more hours on Saturday and occasionally on Sunday.

It is undisputed that Mann and the Associate Sales Managers had a difficult working relationship. In fact, Western-Southern concedes that Mann regularly resorted to profanity and personal insults in trying to motivate his subordinates. Many of Mann’s insults, at least on their face, were race-neutral. For example, Mann routinely referred to the Sales Managers as “knobheads,” “knuckleheads,” “dunderheads,” and “goons.” When Mann wished to summon Rodgers to his office, Mann referred to Rodgers by his nickname, Rabbit, apparently to the amusement of the other agents. Mann also admonished Rodgers on one occasion with the statement: “You must think you’re back in Arkansas chasing jackrabbits.” The parties dispute whether this -last statement, though neutral on its face, has racial overtones. The district court found that Rodgers “not unreasonably construed [this remark] as a racial slur intended to malign his black, southern heritage and to suggest that he should not have become an insurance agent.” Finally, in addition to verbal abuse, on one occasion Mann emptied the contents of Rodgers’ desk drawers onto Rodgers’ desktop because he was unable to find something in the desk.

Mann’s comments were not limited to race-neutral epithets. Rodgérs testified that Mann used the word “nigger” twice in Rodgers’ presence. Rodgers’ colleague, Mark Thomas, testified that he heard Mann use the term “nigger” five to. ten times during Thomas’ tenure with Western-Southern. About six months before Rodgers quit, Mann stated in a bold, demanding tone: “You black guys are too fucking dumb to be insurance agents.” Mann conceded that he might have made this statement. On another occasion, Mann told' Rodgers that' Mann’s boss, Divisional Vice-President Dennis Lehman (“Lehman”) had advised Mann not to hire any more black agents.

On two occasions, Mann’s comments at sales managers’ meetings so angered Rodgers that he walked .out, but neither Rodgers nor Thomas ever directly confronted Mann regarding his racially offensive comments. By 1983, Rodgers began to experience physical problems that he attributed at trial to the combination of harsh treatment and racist language to which Mann subjected him at work. Rodgers received medical treatment, including stress therapy, which he discontinued after one year because the constant pressure at work limited the treatment’s effectiveness.

Despite his job-related stress, Rodgers continued to work as an Associate Sales Manager. Early in 1985, one of Rodgers’ Sales Agents quit, leaving Rodgers with an *672 open account to service in addition to his other duties. In March, 1985, Mann increased the size of the open account from $23,000 in average annualized premium to approximately $80,000. The parties disagree as to Mann’s motivation for this increase, but after weighing the evidence adduced at trial, the court found that Mann’s enlargement of the open account was not racially motivated. Nevertheless, Rodgers reached the conclusion that he could not cope with the additional work load on top of the work-related stress he already was experiencing. At this point, Rodgers asked Mann for a demotion from Associate Sales Manager to Sales Agent. Mann persuaded Rodgers to reconsider his request by agreeing that Rodgers could reduce his responsibility for servicing accounts to two nights a week. This agreement was short-lived. Within a few weeks, Mann threatened to fire Rodgers because he was not spending enough time servicing accounts. Finally, in early May, Mann informed Rodgers that one of Rodgers’ Sales Agents, Michael Taylor (“Taylor”), would be fired because Taylor had failed his licensing examination for the second time. Rodgers, fearing the prospect of having to service a second open account, orally renewed his request to be demoted to Sales Agent. Both Rodgers and Mann were aware that such a request should have been made in writing, but Mann advised Ro.dgers that Mann would not consider such a request in any case. Mann stated that Rodgers could either remain as an Associate Sales Manager or quit.

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Bluebook (online)
12 F.3d 668, 1993 U.S. App. LEXIS 32982, 63 Empl. Prac. Dec. (CCH) 42,729, 63 Fair Empl. Prac. Cas. (BNA) 694, Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-e-rodgers-v-western-southern-life-insurance-company-cross-appellee-ca7-1993.