John Morgan v. The Arkansas Gazette

897 F.2d 945, 1990 WL 18031
Court of Appeals for the Eighth Circuit·Decided May 14, 1990·No. 88-1901·Published·Cited by 116 cases

Opinions

JOHN R. GIBSON, Circuit Judge.

A jury found that the Arkansas Gazette Company willfully discriminated against John Morgan in violation of the Age Discrimination in Employment Act, 29 U.S.C. §§ 621-634 (1982 & Supp. V 1987) (ADEA). The jury awarded Morgan back pay and liquidated damages, and the district court1 ordered reinstatement and an award of prejudgment interest. On appeal, the Gazette argues that: (1) the district court erred in not granting the Gazette’s motion for a judgment notwithstanding the verdict not only because there was insufficient evidence to support the jury verdict, but also because of certain statements of Morgan, (2) the court erred by refusing to give a “good faith” instruction to the jury; (3) the court made various evidentiary errors; (4) the court abused its discretion in ordering that Morgan be reinstated; (5) the award of front pay has been waived or is precluded under the facts; and (6) the court erred in allowing Morgan to recover both liquidated damages and prejudgment interest. For the reasons stated below, we affirm Morgan’s judgment of actual damages but reverse the award of liquidated damages because the evidence was insufficient to show a willful violation of the ADEA. We also affirm the court’s order granting Morgan reinstatement and prejudgment interest.

Morgan began working for the Gazette in 1974. After serving in various positions in the circulation department, he worked as a circulation branch manager until he was terminated in 1986 at the age of forty-four. He was fired by the city circulation manager, Tony Tinker, age thirty-three, and replaced by Brad Cromley, age twenty-eight. Morgan filed suit against the Gazette, claiming that he was discharged because of his age. He alleged a pattern and practice of age discrimination in terminations and transfers.

The Gazette argues that Morgan was terminated because of his poor performance and his falsification of sensitive documents. It claims that Morgan knowingly submitted false circulation figures to the Audit Bureau of Circulation. The Audit Bureau determines the rates that a newspaper may charge its advertisers based on the circulation figures submitted by each newspaper. Morgan admits that he submitted false circulation data but claims that his immediate supervisor, Jake Mathews, ordered him to falsify the information and that Tony Tinker, the city circulation manager, was aware of the scam. The Gazette denies Morgan’s accusation and claims that its policy is to fire all employees who falsify documents.

More detailed evidence surrounding this controversy will be set forth later as we discuss issues which make it relevant.

At the conclusion of the five day trial, the district court submitted special interrogatories to the jury. The jury’s answers to those interrogatories reveal that it found that Morgan’s age was a determining factor in the Gazette’s decision to discharge him and that it was a willful decision to discharge him because of his age. Based on these findings and the jury’s determination of damages, Morgan was awarded $35,641.40 in back pay and another $35,641.40 in liquidated damages for the willful violation. The court also ordered that Morgan be reinstated to his former position with the Gazette or a similar position because it found that there were no exceptional circumstances which would justify not reinstating him. Specifically, the court observed that Morgan’s position was not a high level, unique, or unusually sensitive position and that any animosity between the parties was largely eradicated because the employees most closely associ[948]*948ated with the case were no longer working for the Gazette. In addition, the court granted Morgan’s request for prejudgment interest and rejected the Gazette’s argument that awarding both prejudgment interest and liquidated damages constituted a double recovery. This appeal followed.

I.

The Gazette asserts that it was entitled to a judgment notwithstanding the verdict as a matter of law and, alternatively, that the evidence was insufficient to support a finding of age discrimination. The ADEA protects individuals who are at least forty years of age from discrimination in “compensation, terms, conditions, or privileges of employment because of such individual’s age.” 29 U.S.C. § 623(a)(1).

We have dealt with claims of insufficient evidence in age discrimination cases on numerous occasions. It is well-established that the allocation of burdens and ordering of proof set out by the Supreme Court in McDonnell Douglas Corp. v. Green, 411 U.S. 792, 802-05, 93 S.Ct. 1817, 1824-26, 36 L.Ed.2d 668 (1973), applies to age discrimination cases brought under the ADEA. Hall v. American Bakeries Co., 873 F.2d 1133, 1134 (8th Cir.1989). Under the McDonnell Douglas guidelines:

[T]he plaintiff has the burden of establishing a prima facie case of age discrimination. Once such a showing has been made, the burden of production shifts to the employer to produce evidence showing that its actions were taken for legitimate, nondiscriminatory reasons. If the employer makes such a showing, the ultimate burden that a plaintiff must meet is to show that age was a determining factor in the actions taken by the employer.

Bethea v. Levi Strauss & Co., 827 F.2d 355, 357 (8th Cir.1987) (citations omitted).

Our task upon appeal of an age discrimination ease, however, is a limited one. This court will not assess the adequacy of a party’s showing at any particular stage of the McDonnell Douglas analysis. Gilkerson v. Toastmaster, 770 F.2d 133, 135 (8th Cir.1985). Rather, we are directed to focus our attention upon the ultimate factual issue of whether the employer intentionally discriminated against the employee. United States Postal Serv. Bd. of Gov. v. Aikens, 460 U.S. 711, 714-15, 103 S.Ct. 1478, 1481-82, 75 L.Ed.2d 403 (1983). Once a finding of discrimination has been made and that judgment is being considered on appeal, the McDonnell Douglas “presumptions fade away, and the appellate court should simply study the record with a view to determining whether the evidence is sufficient to support whatever finding was made at trial.” Barber v. American Airlines, 791 F.2d 658, 660 (8th Cir.), cert. denied, 479 U.S. 885, 107 S.Ct. 278, 93 L.Ed.2d 254 (1986).

In reviewing the district court’s denial of the Gazette’s motion for a judgment notwithstanding the verdict, we apply the same standard as the district court. Cleverly v. Western Elec. Co., 594 F.2d 638, 641 (8th Cir.1979) (per curiam). This standard requires that we:

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John Morgan v. The Arkansas Gazette, 897 F.2d 945, 1990 WL 18031 (8th Cir. 1990).

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