Michael D. Carey v. Mt. Desert Island Hospital, Michael D. Carey v. Mt. Desert Island Hospital

156 F.3d 31
CourtCourt of Appeals for the First Circuit
DecidedOctober 23, 1998
Docket97-1661, 97-1688
StatusPublished
Cited by35 cases

This text of 156 F.3d 31 (Michael D. Carey v. Mt. Desert Island Hospital, Michael D. Carey v. Mt. Desert Island Hospital) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Michael D. Carey v. Mt. Desert Island Hospital, Michael D. Carey v. Mt. Desert Island Hospital, 156 F.3d 31 (1st Cir. 1998).

Opinions

COFFIN, Senior Circuit Judge.

Michael D. Carey brought this suit against Mt. Desert Island Hospital (“MDI”) for gender discrimination in violation of Title VII of [34]*34the Civil - Rights Act of 1964, 42 U.S.C. §§ 2000e-2000e-17, and the Maine Human Rights Act, 5 M.R.S.A. §§ 4551-4632. He alleged that he was discharged from his position as Vice-President of Finance because he was male.'

After a seven day trial, a jury returned a verdict in Carey’s favor, awarding compensatory and punitive damages of $210,000 and $400,000, respectively. The district court reduced the $610,000 total to $200,000 to conform with the statutory cap for awards of compensatory and punitive damages under Title VII. See 42 U.S.C. § 1981a(b)(3)(C). The court declined to award front pay, reasoning that it was included under the statutory cap, and was inappropriate under the circumstances of the case. The court awarded back pay in the amount of $110,070, making the total amount of recovery $310,070.

The parties cross-appealed, MDI attacking the verdict and Carey challenging the post-verdict rulings limiting his recovery. MDI appeals on five points: (1) sufficiency of the evidence; (2) jury instructions on the role of gender discrimination in the decision to terminate; (3) peremptory challenges to four female prospective jurors; (4) admission of certain deposition evidence; and (5) admission of a remark by an MDI employee manifesting anti-male animus. Carey argues that the court erred in failing to award front pay and in limiting the back pay award.

Our review of the record reveals that this was a case with much to say on either side, involving the always difficult question of probing the wellsprings of human motivation. Moreover, it was in our minds an exceptionally hard fought trial. While the verdict could have gone either way, our review persuades us that no error was committed below such as to justify reversal. We therefore affirm the judgments.

I. Sufficiency of the evidence

Title VII makes it unlawful, inter alia, to discharge any individual because of his sex. See 42 U.S.C. § 2000e-2(a)(l). Where the plaintiff must prove his case by circumstantial evidence in the absence of direct evidence, as here, “the plaintiff must make out a prima facie case of discrimination, the employer must then come forward with some non-discriminatory justification, and the plaintiff finally is given the opportunity to convince the trier of fact that the justification was pretextual and that the real reason was discriminatory.” Molloy v. Blanchard, 115 F.3d 86, 91 (1st Cir.1997) (quoting Cuello-Suarez v. Puerto Rico Elec. Power Auth., 988 F.2d 275, 278 (1st Cir.1993)); see also McDonnell Douglas Corp. v. Green, 411 U.S. 792, 802-04, 93 S.Ct. 1817, 36 L.Ed.2d 668 (1973) (setting forth the burden shifting framework); St. Mary’s Honor Ctr. v. Hicks, 509 U.S. 502, 511, 113 S.Ct. 2742, 125 L.Ed.2d 407 (1993). At all times, the plaintiff retains the burden of persuasion.

There is no real dispute that Carey has established a prima facie case, as he has shown that he had a satisfactory job performance record but was terminated and replaced by a woman. See Byrd v. Ronayne, 61 F.3d 1026, 1031 (1st Cir.1995) (listing requirements for the prima facie case) (citation omitted). And MDI has presented a legitimate nondiscriminatory reason for termination, namely, Carey’s continued mismanagement of his financial responsibilities.

Our focus in determining whether or not there was sufficient evidence to justify the verdict therefore rests on the third stage of the Title VII analysis — whether Carey introduced sufficient evidence to show that MDI’s justification was false and that the real reason for his discharge was gender. Carey may rely on the same evidence to prove pretext and discrimination. See Udo v. Tomes, 54 F.3d 9, 13 (1st Cir.1995). In considering a claim of insufficient evidence, we take the record in the light most favorable to the verdict. See Troy v. Bay State Computer Group, Inc., 141 F.3d 378, 382 (1st Cir.1998).

A. Events leading to termination.

MDI is a thirty-nine bed community hospital in Bar Harbor, Maine, with approximately 200 employees. In 1983, James Mroch, the Hospital’s CEO, hired Carey as Comptroller. In 1991, Carey was promoted to Vice President of Finance. His responsibilities included preparation of budgets and financial re[35]*35ports, working with outside auditors, service on various committees, including the Management Committee, and supervision of the Hospital’s accounting and' business offices.

The critical period in this case begins in January 1993 and extends to June 1994. In January 1993, MDI’s Board of Trustees discharged Mroch, and Dan Hobbs carried out the duties of CEO until September of that year. In the meantime, Lynda Tyson, who had become a Board member in 1989 and chairperson in 1993, engaged'a professional recruiter, Anna Phillips, to find a permanent replacement for Mroch. Carey applied for the position but in June was told-he would not be considered further. In July 1993, after its first choice, David Pagniucei, declined the offer, the Board offered the job to Leslie Hawkins. She accepted and commenced employment in mid-September 1993.

In the interim, on April 30, 1993, MDI’s new outside auditors, Berry, Dunn, McNeil & Parker (“Berry, Dunn”) prepared a “1993 Management Letter” reporting conditions observed during its end of the fiscal year audit of MDI. The letter contained, without specific identification, both “reportable conditions” and “other observations.” “Reportable conditions were defined as ‘matters ... relating to significant deficiencies in the design or operation of the internal control structure that, in- our judgment, could adversely affect the Organization’s ability to record, process, summarize, and report financial data consistent with the assertions of management in the consolidated statements’.”

Shortly after Hawkins commenced her duties, in September 1993, Tyson'arranged a meeting with Hawkins, the Board, and the Berry, Dunn auditors to discuss the Management Letter. Carey was not invited. The auditors said that while the items in the letter were serious and needed to be addressed, the finance department, with some assistance, should be able to rectify them before the next audit.

In April 1994, Hawkins asked Carey to present a proposed fiscal 1995 budget to the Board before April 30. Realizing one week before the deadline that he could not complete the assignment in time, Carey asked for and was granted a one month extension. In May, he submitted a budget, which projected large deficits and some high expenses. Hawkins and MDI’s finance committee found the proposal unacceptable and sent the budget back for reworking.

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Cite This Page — Counsel Stack

Bluebook (online)
156 F.3d 31, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michael-d-carey-v-mt-desert-island-hospital-michael-d-carey-v-mt-ca1-1998.