Littell v. Allstate Insurance Company

2008 NMCA 012, 177 P.3d 1080, 143 N.M. 506
CourtNew Mexico Court of Appeals
DecidedNovember 21, 2007
Docket26,268
StatusPublished
Cited by19 cases

This text of 2008 NMCA 012 (Littell v. Allstate Insurance Company) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Littell v. Allstate Insurance Company, 2008 NMCA 012, 177 P.3d 1080, 143 N.M. 506 (N.M. Ct. App. 2007).

Opinion

OPINION

FRY, Judge.

{1} Defendant Allstate Insurance Co. appeals from a judgment on a jury verdict in favor of Plaintiff Patricia Littell on her claims of hostile work environment sexual harassment and retaliatory constructive discharge. Allstate argues that: (1) the district court abused its discretion in admitting certain evidence; (2) there was no evidence supporting either of Plaintiffs claims or the jury’s award of compensatory damages for alleged emotional injuries; (3) the issue of punitive damages should not have been submitted to the jury; and (4) the award of punitive damages manifested the influence of passion and prejudice and, therefore, violates due process. We affirm. We also remand to the district court the issue of whether Plaintiff is entitled to an award of attorney fees for this appeal.

BACKGROUND

{2} Plaintiff began work as a paralegal in Allstate’s Albuquerque Staff Counsel Office in 1996. In October 1998, Todd Aakhus joined the office as lead counsel. At this point, according to Plaintiff, conditions at the office changed. Aakhus regularly made sexual innuendoes and told dirty jokes that were demeaning to women. Aakhus allegedly engaged in sexual discussions and flirted with female employees, inappropriately touched female employees, commented about other employees’ sexual preferences, and tolerated similar conduct by other office employees. When Plaintiff reported these occurrences anonymously to Allstate’s hotline for employment disputes, Allstate investigated, but Plaintiff did not feel that Allstate did anything to resolve the situation. Also according to Plaintiff, Aakhus began treating her differently after she complained to the Allstate hotline. He became more aggressive, disciplined Plaintiff for pretextual reasons, and berated and belittled her publicly. Ultimately, when Aakhus refused to give Plaintiff a leave of absence so that she could deal with a “family crisis,” Plaintiff resigned.

{3} Plaintiff sued Allstate and asserted claims for violations of the New Mexico Human Rights Act, intentional infliction of emotional distress, prima facie tort, retaliatory discharge, and punitive damages. The district court entered summary judgment in favor of Allstate on Plaintiffs claim for intentional infliction of emotional distress and on her claim under the Human Rights Act to the extent it was predicated on retaliation. The case went to trial before a jury, and at the close of Plaintiffs evidence, the district court granted judgment as a matter of law in favor of Allstate on Plaintiffs claim for prima facie tort. After deliberating, the jury returned a verdict in favor of Plaintiff on her claims of hostile work environment sexual harassment and retaliatory discharge. The jury awarded Plaintiff $360,000 in compensatory damages and $1 million in punitive damages. The district court denied Allstate’s subsequent motion for judgment notwithstanding the verdict or, in the alternative, for remittitur or a new trial. This appeal followed. We provide additional facts in our discussion.

DISCUSSION

{4} Allstate makes the following arguments on appeal: (1) the district court abused its discretion by admitting evidence of incidents of which Plaintiff was not aware, of Allstate’s discipline of Aakhus, and of other matters that occurred after Plaintiff left Allstate’s employ; (2) there was no evidence supporting the jury’s determinations (a) that Allstate violated the Human Rights Act by allowing a hostile work environment to exist in the office, (b) that Allstate subjected Plaintiff to retaliatory constructive discharge, and (c) that Plaintiff was entitled to compensatory damages for alleged emotional injuries in the amount of $200,000 to $250,000; (3) the district court should not have allowed the issue of punitive damages to go to the jury because (a) Aakhus was not acting in a managerial capacity or in the scope of employment and (b) Allstate did not authorize, ratify, or participate in Aakhus’s misconduct; and (4) the punitive damages award manifested the influence of passion and prejudice, was excessive, and violates due process. We address each argument in turn.

I. The District Court Did Not Abuse Its Discretion in Admitting Evidence

{5} Allstate argues that the district court abused its discretion in admitting two categories of evidence, including: (1) testimony about incidents that Plaintiff was not aware of, and (2) evidence of matters that postdated Plaintiffs employment with Allstate, including Allstate’s disciplining and discharge of Aakhus. We review the district court’s admission of evidence for abuse of discretion, Coates v. Wal-Mart Stores, Inc., 1999-NMSC-013, ¶ 36, 127 N.M. 47, 976 P.2d 999, and conclude that the district court’s admission of this evidence was within the sound exercise of its discretion.

A. Incidents of Which Plaintiff Was Purportedly Not Aware

{6} Allstate contends that the only evidence admissible on Plaintiffs claim of sexual harassment was evidence regarding incidents of which Plaintiff was aware or made aware during her employment. Allstate further argues that Plaintiff failed to lay a foundation that she was aware of several incidents about which fellow employees Maureen Reed and Margie Lang testified. These incidents included Reed’s testimony that Aakhus reported a story in the office concerning a physician putting his hand in a woman’s vagina, Reed’s testimony regarding a twenty-minute discussion at lunch about a female attorney’s breasts, Reed’s testimony that a female attorney in the office would squat in her office “with her crotch open to the area,” Lang’s testimony that Aakhus gave her a book of erotica, and Lang’s testimony about a staff meeting at which a female attorney discussed her breasts.

{7} We agree with Allstate that there is case law supporting the view that Plaintiff could rely only on evidence relating to harassment of which she was aware during the time of her employment. See Hirase-Doi v. U.S. W. Commc’ns, Inc., 61 F.3d 777, 782 (10th Cir.1995) (explaining that the plaintiff in a hostile environment sexual harassment suit under Title VII “may only rely on evidence relating to harassment of which she was aware during the time that she was allegedly subject to a hostile work environment”). Consistent with this view, the district court ruled that evidence of events not witnessed by Plaintiff would be admitted if the events “occurred prior to the time of [Plaintiffs] departure, which she learned of essentially contemporaneously.” Our review of the trial transcript establishes that sufficient foundation was laid for introduction of the specified testimony.

{8} Reed testified that Plaintiff “knew about” Aakhus’s story regarding the doctor putting his hand in a woman’s vagina, and that Plaintiff was probably at the lunch where the female attorney talked about her breasts. Lang testified that she told Plaintiff about the book of erotica Aakhus had given her, and that she was sure that Plaintiff was made aware of the staff meeting where the female attorney discussed her breasts. Given this foundational testimony, we cannot say that the district court abused its discretion in admitting the evidence.

B.

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Cite This Page — Counsel Stack

Bluebook (online)
2008 NMCA 012, 177 P.3d 1080, 143 N.M. 506, Counsel Stack Legal Research, https://law.counselstack.com/opinion/littell-v-allstate-insurance-company-nmctapp-2007.