Serricchio v. WACHOVIA SECURITIES LLC

658 F.3d 169, 191 L.R.R.M. (BNA) 2617, 2011 U.S. App. LEXIS 18868, 94 Empl. Prac. Dec. (CCH) 44,262, 2011 WL 4035754
CourtCourt of Appeals for the Second Circuit
DecidedSeptember 13, 2011
DocketDocket 10-1590-cv
StatusPublished
Cited by88 cases

This text of 658 F.3d 169 (Serricchio v. WACHOVIA SECURITIES LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Serricchio v. WACHOVIA SECURITIES LLC, 658 F.3d 169, 191 L.R.R.M. (BNA) 2617, 2011 U.S. App. LEXIS 18868, 94 Empl. Prac. Dec. (CCH) 44,262, 2011 WL 4035754 (2d Cir. 2011).

Opinion

POOLER, Circuit Judge:

This is an appeal from three orders of the United States District Court for the District of Connecticut (Arterton, J.): (1) denying summary judgment to Appellant Wachovia Securities LLC (“Wachovia”) 1 on the ground that Appellee Michael Serricchio had adequately requested reinstatement to his prior employment position following a period of active military duty; (2) awarding liquidated damages, in an amount equal to the award of backpay, which was $389,453, and granting equitable relief to Serricchio following a bench trial on damages after a jury found Wachovia liable for violating the Uniformed Services Employment and Reemployment Rights Act (“USERRA”) in failing to reemploy Serricchio “promptly” to a position of like “seniority, status and pay” following his military service; and (3) denying Wachovia’s motion for judgment as a matter of law, or, in the alternative, for a new trial. 2

Michael Serricchio, a member of the United States Air Force Reserve, was employed by Wachovia as a financial advisor. In the wake of September 11, 2001, Serricchio was called to active duty. After serving his country, Serricchio requested reemployment at Wachovia, as he was entitled to do under USERRA. Wachovia failed to reemploy Serricchio for a term of nearly four months after he requested reinstatement and ultimately offered Serricchio a reemployment position that set his compensation at the commission rate he had received prior to activation but without regard to the sizable book of business he had established in the months before his military service. A jury found that Wachovia’s actions violated USERRA, because the bank failed to reemploy Serricchio “promptly” and because the reemployment position offered to Serricchio was not of equivalent “seniority, status and pay” to his pre-service position. The district court held a separate bench trial on damages, after which it ordered Wachovia to reinstate Serricchio with a fixed salary for three months during which time he was to undergo training to regain his broker’s licenses. The district court later denied Wachovia’s post-trial motions, and Wachovia appealed.

Although this case presents a number of issues of first impression for this and other courts, two predominate. First, we must decide whether USERRA requires an employer, who compensated a servicemember on a commission basis prior to his activation, to consider the size of the service- *174 member’s pre-activation book of business in determining the appropriate post-service reemployment position. USERRA guarantees servieemembers a position of like “seniority, status, and pay” upon their return from active duty. See 38 U.S.C. § 4313(a)(2)(A). Is a reemployment position that provides the same commission rate (i.e., the same fixed percentage on accounts serviced), without regard to the volume or size of the accounts in the servieemember’s pre-activation book of business, sufficient to satisfy USERRA, as a matter of law? The district court concluded that it was not, and the Secretary of the United States Department of Labor, charged with promulgating regulations under the statute, see 20 C.F.R. § 1002.2, has submitted a letter amicus curiae advancing the same conclusion. For reasons discussed in full detail below, we agree.

Second, we must decide whether it was an abuse of discretion’for the district court to award Serriechio reinstatement to his prior financial advisor position with a fixed salary, even though his pre-service compensation was wholly commission-based. On this point, we note that where, as here, a jury has returned a verdict in favor of the servieemember, the statute authorizes a district court to use its “full equity powers ... to vindicate fully the rights of’ veterans. 38 U.S.C. § 4323(e) (emphasis added). Wachovia has identified no evidence overlooked, or legal precedent misinterpreted, that would lead us to the conclusion that the district court abused its discretion in fashioning the terms of Serricchio’s reinstatement.

Accordingly, we affirm the orders of the district court in their entirety.

I

The Uniformed Services Employment and Reemployment Rights Act (“USER-RA”) is the “latest in a series of laws protecting veterans’ employment and reemployment rights going back to the Selective Training and Service Act of 1940.” 20 C.F.R. § 1002.2. USERRA’s immediate predecessor, which was enacted as part of the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, was commonly referred to as the Veterans’ Reemployment Rights Act. See id. In enacting USERRA, Congress made clear that the statute should be thought of as an extension of existing law — -not an entirely new piece of legislation supplanting the body of case law that had developed around veterans’ rights. See id. (noting that “federal laws protecting veterans’ employment and reemployment rights for the past fifty years ha[ve] been successful and that the large body of case law that ha[s] developed under those statutes remain[s] in full force and effect, to the extent it is consistent with USERRA”). The purpose of USERRA is to encourage military service “by eliminating or minimizing the disadvantages to civilian careers”; “to minimize the disruption to the lives” of servieemembers and their employers “by providing for the prompt reemployment” of servieemembers; and “to prohibit discrimination” against servicemembers. 38 U.S.C. § 4301(a).

USERRA provides in relevant part that servieemembers called away to military service “shall be promptly reemployed” by their former employers upon completion of a period of service in the armed forces. 38 U.S.C. § 4313(a) (emphasis added). In order for this guarantee to apply, the servicemember must “notify the employer ... of the person’s intent to return to a position of employment with such employer ... by submitting an application for reemployment with the employer not later than 90 days after the completion of the period of service.” 38 U.S.C. § 4312(e)(1)(D).

*175 The Supreme Court has explained that reemployment protections for servicemembers are “to be liberally construed for the benefit of those who left private life to serve their country....” Fishgold v. Sullivan Drydock & Repair Corp., 328 U.S. 275, 285, 66 S.Ct. 1105, 90 L.Ed. 1230 (1946) (discussing the Selective Training and Service Act of 1940).

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658 F.3d 169, 191 L.R.R.M. (BNA) 2617, 2011 U.S. App. LEXIS 18868, 94 Empl. Prac. Dec. (CCH) 44,262, 2011 WL 4035754, Counsel Stack Legal Research, https://law.counselstack.com/opinion/serricchio-v-wachovia-securities-llc-ca2-2011.