Nadeau v. Rainbow Rugs, Inc.

675 A.2d 973, 1996 Me. LEXIS 271, 68 Empl. Prac. Dec. (CCH) 44,204, 70 Fair Empl. Prac. Cas. (BNA) 1528
CourtSupreme Judicial Court of Maine
DecidedMay 7, 1996
StatusPublished
Cited by27 cases

This text of 675 A.2d 973 (Nadeau v. Rainbow Rugs, Inc.) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nadeau v. Rainbow Rugs, Inc., 675 A.2d 973, 1996 Me. LEXIS 271, 68 Empl. Prac. Dec. (CCH) 44,204, 70 Fair Empl. Prac. Cas. (BNA) 1528 (Me. 1996).

Opinion

WATHEN, Chief Justice.

Defendant, Rainbow Rugs, Inc. (“Rainbow”), appeals from the judgment entered in the Superior Court (Cumberland County, Mills, J.) following a jury-waived trial finding Rainbow liable for unlawful sexual harassment in violation • of 5 M.R.SA § 4572 (Pamph.1995). Rainbow contends that the court erred in finding that one incident of harassment created a hostile work environment. Rainbow further contends that even if a hostile work environment was created, it should not be held liable for the unauthorized acts of its employee. Finally, Rainbow challenges the award of attorney fees. Finding no error in the court’s determination that a hostile work environment existed and its award of attorney fees, we affirm the judgment.

The facts presented at the trial may be summarized as follows. Plaintiff Joyce Na-deau worked as an administrative assistant at Rainbow’s office, which was located in the Kennebunk home of Jere Scola, the president of Rainbow Rugs. Scola’s wife also worked in the office as the manager. Nadeau and Scola worked in the same room and he supervised all of her work. Scola was the *975 highest ranking employee of Rainbow in the United States. Rainbow’s Board of Directors were residents of Belgium.

In June 1991 Nadeau’s husband left her. Without her husband’s income, her job at Rainbow was the only source of support for her and her three children. Nadeau’s distress over her family difficulties was visible at work. Scola asked her to accompany him on a few short car trips from the office to Rainbow’s warehouse, which was preparing to open for business, and on the trips he asked her personal questions about her marriage and her financial situation. Nadeau testified that she felt intimidated by Scola and that the questioning made her feel uncomfortable.

One month after Nadeau’s husband left her, Scola again questioned Nadeau about her financial situation. She told him that she was receiving public assistance but was having difficulty making ends meet. He suggested that there were other options available to her but that he needed some time alone with her to discuss them. Nadeau testified that this suggestion provided her with a “glimmer of hope” that he had legitimate business ideas for improving her financial situation. The next day Scola asked Nadeau to lunch and she accepted his invitation based on their discussion the previous day.

At lunch he discussed his own marital difficulties and then suggested that they leave the restaurant. On the way back to Rainbow’s warehouse he told Nadeau that he had tested negatively for AIDS and then offered to give her money in exchange for sex. He told her that he could fly her to any city, give her money for shopping, and pay to have her hair done. He told her he did not love her and that he had no intention of leaving his wife — the affair would simply be a “hobby.” Because Scola’s wife also worked in the office, he told Nadeau that she would have to act “cold” so that his wife would not suspect anything.

Nadeau immediately rejected the proposal. Scola told her that her refusal would not jeopardize her position and that she could continue to work at the office. He asked her to let him know if she changed her mind. She worked at the warehouse for the rest of the day and she reported the incident to Cindy Staples, a friend and supervisor of the warehouse. She did not report the incident to anyone else because Scola was her only supervisor. Rainbow had no personnel policies, no policy regarding sexual harassment, and no complaint procedures for employees. Later in the day Scola returned and asked Nadeau to lie about having lunch with him because his wife was angry when she learned that they had gone out together. Nadeau called in sick the next two days and then sent a letter of resignation. She testified that she could no longer work there because Scola’s actions made her feel like a “slut” and because she felt that he would be looking at her as though she were “naked.”

She filed a complaint with the Human Rights Commission and ultimately the Commission issued a finding that there were reasonable grounds to believe that unlawful discrimination had occurred. Thereafter she brought this action pursuant to 5 M.R.S.A. § 4572(1)(A) (Pamph.1995), claiming that the harassment caused her work environment to become hostile. The court ruled that she had met the objective and subjective standards for sexual harassment claims enunciated by the United States Supreme Court in Harris v. Forklift Systems, Inc., 510 U.S. 17, 114 S.Ct. 367, 126 L.Ed.2d 295 (1993). The court determined that this was a rare and extreme case and that “in light of the record as a whole and the totality of the circumstances” Scola’s conduct created a hostile work environment.

The court also ruled that Rainbow, as the employer of Scola and Nadeau, was liable for Scola’s misconduct, adopting the reasoning of Harris v. International Paper Co., 765 F.Supp. 1509, 1516 (D.Me.1991) (“Employers are liable for hostile environment harassment both by their supervisors and by the victim’s co-workers if ‘an official representing that institution knew, or in the exercise of reasonable care, should have known, of the harassment’s occurrence, unless that official can show that he or she took appropriate steps to halt it.’ ” (citations omitted)). Nadeau was awarded back pay, attorney fees pursuant to 5 M.R.S.A. § 4614, and damages in the *976 amount of $1,000 pursuant to 5 M.R.S.A. § 4613(2)(B)(7).

In this case we consider whether one instance of sexual harassment may create a hostile working environment. The leading cases on the standard for hostile environment sexual harassment are Harris v. Forklift Systems, Inc., 510 U.S. 17, 114 S.Ct. 367, 126 L.Ed.2d 295 (1993) and Meritor Savings Bank v. Vinson, 477 U.S. 57, 106 S.Ct. 2399, 91 L.Ed.2d 49 (1986). Harris reaffirmed Meritor’s standard that discriminatory behavior that is sufficiently severe or pervasive creates a hostile or abusive working environment. The standard requires an objectively hostile or abusive environment— one that a reasonable person would find hostile or abusive — as well as the victim’s subjective perception that the environment is abusive. Harris, 510 U.S. 17, -, 114 S.Ct. 367, 370. Rainbow contends that the single instance of sexual harassment at issue is not sufficiently severe to meet the Meritor and Harris standard. Rainbow posits that because Meritor and Harris involved repeated instances of harassment, the standard for harassment requires that the conduct occur more than once.

Although Rainbow is correct that Meritor and Harris — and indeed many of the cases considering hostile environment harassment claims — involve a pattern of inappropriate conduct, there is no requirement that harassment occur more than one time in order to be actionable.

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675 A.2d 973, 1996 Me. LEXIS 271, 68 Empl. Prac. Dec. (CCH) 44,204, 70 Fair Empl. Prac. Cas. (BNA) 1528, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nadeau-v-rainbow-rugs-inc-me-1996.