Margaret MacGlashan v. Abs Lincs Ky, Inc. D/B/A Cumberland Hall Hospital

448 S.W.3d 792
CourtKentucky Supreme Court
DecidedDecember 16, 2014
Docket2014-SC-000098-CL
StatusUnknown
Cited by6 cases

This text of 448 S.W.3d 792 (Margaret MacGlashan v. Abs Lincs Ky, Inc. D/B/A Cumberland Hall Hospital) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Margaret MacGlashan v. Abs Lincs Ky, Inc. D/B/A Cumberland Hall Hospital, 448 S.W.3d 792 (Ky. 2014).

Opinion

OPINION OF THE COURT

BY JUSTICE VENTERS

Pursuant to CR 76.37(1), this Court granted the certification request of The United States District Court for the Western District of Kentucky to answer the following question of Kentucky law:

Can a plaintiff who alleges that her employment was wrongfully terminated in violation of Kentucky Revised Statute 216B.165 assert a claim for the recovery of front pay, along with other damages she may have sustained, by reason of her discharge?

For the reasons stated below, we conclude that the answer is “yes.”

I. FACTUAL AND STATUTORY BACKGROUND

Because the case comes to this Court upon a Certification Order requested by the United States District Court, we review the question presented upon a limited but adequate factual record. According to the Certification Order, Margaret Macglashan alleges in her suit in the federal district court that she had been employed by ABS LINCS, KY., doing business as Cumberland Hall Hospital, and that she was fired because she was “preparing to report a clear medication error” to an appropriate hospital regulatory authority pursuant to KRS Chapter 216B.

KRS Chapter 216B broadly covers the regulation of health care facilities and services in Kentucky. KRS 216B.165(1) requires hospital employees to report circumstances in which “patient safety” or “quality of care” is “in jeopardy.” KRS 216B.165(3) provides a kind of whistle-blower protection for health facility workers. It prohibits a health care facility or service from retaliating against an employee who reports any deficiencies of the facility or service pursuant to KRS 216B.165(1). However, KRS Chapter 216B does not prescribe any specific civil remedies for the whistle-blowing employee who suffers retaliation for making such a report. For remedies, one must look to the generic provisions of KRS 446.070 which states: “A person injured by the violation of any statute may recover from the offender such damages as he sustained by reason of the violation, although a penalty or forfeiture is imposed for such violation.”

II. ANALYSIS: FRONT PAY, KRS 216B.165(3), AND KRS 446.070

In the parlance of wrongful termination of employment litigation, “front pay” is “money awarded for lost compensation during the period between judgment and reinstatement or in lieu of reinstatement.” Pollard v. E.I. du Pont de Nemours & Co., 532 U.S. 843, 846, 121 S.Ct. 1946, 150 L.Ed.2d 62 (2001). See also Brooks v. Lexington-Fayette Urban County. Hous. Auth., 132 S.W.3d 790, 806 (Ky.2004). As opposed to front pay, “back pay” or “lost wages” includes the damages incurred from the date of the wrongful termination until the date the matter is adjudicated. Front pay is awarded for compensation lost during the period between the date of the adjudication and the reinstatement of employment, or where reinstatement is not an appropriate remedy, 1 *794 the date of re-employment by another employer in lieu of reinstatement. Thus, front pay is just as much of a “damage sustained” as back pay; the principal difference between the two is that back pay represents lost wages incurred before the trial and front pay represents a reasonable estimate of damages that will accrue after the trial. See Dollar Gen. Partners v. Upchurch, 214 S.W.3d 910, 918 (Ky.App.2006). “The purpose of front pay is limited to compensating the employee for wages lost as a result of the wrongful termination.” Id. at 921.

The issue essentially boils down to whether front pay fits within the statutory language of KRS 446.070 permitting a plaintiff to recover “such damages as he sustained by reason of the violation.” The answer is obvious—“lost compensation during the period between judgment and reinstatement or in lieu of reinstatement” is a “damage[ ] sustained by reason of the violation.” A loss of income extending after the date of the adjudication is a type of injury that one might reasonably be expected to suffer as a result of a wrongful discharge in violation of KRS 216B.165(3).

An employee acting under the protection of KRS 216B.165(3) could not be made whole without front pay, since the measure of his or her damages would necessarily include those wages lost between the time of the judgment and the time of reinstatement (or some remuneration that reasonably compensates the employee in lieu of reinstatement). If not for the wrongful reprisal by the employer, the employee would have collected her wages during that time frame and, therefore, the wrongful loss of those wages is compensable as damages in a civil action because the loss represents a “damage[ ] sustained by reason of the violation.” If, as noted in Pollard, front pay is “compensation for wages lost,” it is obviously a monetary damage foreseeably suffered by one who was wrongfully fired.

The argument proffered against allowing an award of front pay is based upon a flawed syllogism. First, the Hospital points out that our decision in Pari-Mutuel Clerks’ Union of Kentucky, Local 541, SEIU, AFL-CIO v. Kentucky Jockey Club, 551 S.W.2d 801, 802 (Ky.1977) holds that KRS 446.070 does not provide a right of reinstatement for wrongful termination because reinstatement is an equitable remedy rather than a kind of “damage[ ] sustained.” Next, it cites to our holding in Brooks that “front pay either supplements the equitable remedy of reinstatement or acts as a substitute for it.” 132 S.W.3d at 806, (citing to Pollard, 532 U.S. at 846, 121 S.Ct. 1946). From these two propositions, the Hospital reasons that because reinstatement is not included among the “damages” allowed under KRS 446.070

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Cite This Page — Counsel Stack

Bluebook (online)
448 S.W.3d 792, Counsel Stack Legal Research, https://law.counselstack.com/opinion/margaret-macglashan-v-abs-lincs-ky-inc-dba-cumberland-hall-hospital-ky-2014.