Smith v. Northwest Financial Acceptance, Inc.

129 F.3d 1408, 1997 Colo. J. C.A.R. 3067, 1997 U.S. App. LEXIS 34041, 72 Empl. Prac. Dec. (CCH) 45,096, 75 Fair Empl. Prac. Cas. (BNA) 1274, 1997 WL 746285
CourtCourt of Appeals for the Tenth Circuit
DecidedDecember 3, 1997
Docket96-8103, 96-8111
StatusPublished
Cited by75 cases

This text of 129 F.3d 1408 (Smith v. Northwest Financial Acceptance, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Northwest Financial Acceptance, Inc., 129 F.3d 1408, 1997 Colo. J. C.A.R. 3067, 1997 U.S. App. LEXIS 34041, 72 Empl. Prac. Dec. (CCH) 45,096, 75 Fair Empl. Prac. Cas. (BNA) 1274, 1997 WL 746285 (10th Cir. 1997).

Opinion

McKAY, Circuit Judge.

Plaintiff Debbie Smith brought a sexual harassment hostile work environment claim pursuant to Title VII of the Civil Rights Act of 1994, 42 U.S.C. § 2000e, et seq., against Defendants Norwest Financial Wyoming, Inc., a Wyoming Corporation; Norwest Financial, Inc., an Iowa corporation; and Mr. Curtis Mangus, an individual (Defendants). The advisory jury returned a verdict for Plaintiff, and the district court entered a judgment for Plaintiff for $270,000 in compensatory damages for emotional distress and $89,000 in lost future fringe benefits, totaling $359,000. The district court then granted Defendants’ Motion to Alter or Amend Judgment, reducing the compensatory damages award to $200,000, the statutory cap under 42 U.S.C. § 1981(a), and setting *1412 aside the advisory jury verdict for $89,000 in fringe benefits. The district court denied Defendants’ Motion for Judgment as a Matter of Law, or in the Alternative, a New Trial, and their Motion for Remittitur, and awarded Plaintiff $93,507.31 in combined costs and attorney’s fees pursuant to 42 U.S.C. § 2000e-5(k). Defendants appeal the denial of their post-trial motions and the district court’s order for damages and attorney’s fees and costs. Plaintiff cross-appeals the district court’s denial of her Motion for Sanctions against Defendants’ conduct at the pretrial settlement conference.

I.

This case arises out of the employment of Plaintiff by Norwest Financial Wyoming, Inc. and Norwest Financial, Inc. (Norwest) from February 1993 to January 1995. While at Norwest, Plaintiff worked as an accounts service representative under the supervision of Defendant Mr. Mangus. The Casper, Wyoming, office employed one part time female employee and only five full-time employees, namely Plaintiff, Mr. Mangus, and three other men. The employees shared a small open space without partitions or privacy. Plaintiff alleged that she was subjected to a hostile work environment based on offensive and sexually harassing comments made by Mr. Mangus during her employment. Plaintiffs claim rested primarily on six statements directed at her and frequently made within earshot of her co-workers. In October 1994, Plaintiff complained to her district manager about Mr. Mangus’ harassing statements. Plaintiff resigned from Norwest in January 1995 and began work as a bookkeeper with a Casper furniture company. She filed this action after pursuing her claim with the Equal Employment Opportunity Commission.

II.

Defendants appeal the district court’s denial of their Motion for Judgment as a Matter of Law on Plaintiff’s hostile work environment claim. They argue that the statements made to Plaintiff over the course of her employment were neither sufficiently severe nor pervasive to create a hostile work environment. We review de novo the district court’s legal conclusion that the conduct was sufficiently severe or pervasive to constitute a hostile work environment. Mason v. Oklahoma Turnpike Auth., 115 F.3d 1442, 1450 (10th Cir.), aff'd, 124 F.3d 217 (10th Cir.1997). Applying that standard, we must view the evidence most favorably to the nonmov-ing party and will reverse only “if ‘there is no legally sufficient evidentiary basis ... with respect to a claim or defense ... under the controlling law.’ ” Id. (citing Harolds Stores, Inc. v. Dillard Dep’t Stores, Inc., 82 F.3d 1533, 1546-47 (10th Cir.) (citations omitted), cert. denied, _ U.S _, — U.S. —, 117 S.Ct. 297, 136 L.Ed.2d 216 (1996)).

Title VII prohibits an employer from discriminating against an employee on the basis of sex “with respect to [her] compensation, terms, conditions, or privileges of employment.” 42 U.S.C. § 2000e-2(a)(1). This prohibition proscribes sexual harassment in the workplace. See Harrison v. Eddy Potash, Inc., 112 F.3d 1437, 1442 (10th Cir.1997), petition for cert. filed, 66 U.S.L.W. 3137 (U.S. Aug. 6, 1997) (No. 97-232); Hirschfeld v. New Mexico Corrections Dep’t, 916 F.2d 572, 575 (10th Cir.1990). Hostile work environment harassment occurs when unwelcome sexual conduct “ ‘unreasonably interferes] with an individual’s work performance or creat[es] an intimidating, hostile, or offensive working environment.’” Meritor Sav. Bank, FSB v. Vinson, 477 U.S. 57, 65, 106 S.Ct. 2399, 2404, 91 L.Ed.2d 49 (1986) (quoting 29 C.F.R. § 1604.11(a)(3)). Meritor states that “[f]or sexual harassment to be actionable, it must be sufficiently severe or pervasive ‘to alter the conditions of [the victim’s] employment and create an abusive working environment.’ ” Id. at 67, 106 S.Ct. at 2405 (citation omitted). The mere utterance of a statement which “ ‘engenders offensive feelings in an employee’ would not affect the conditions of employment to [a] sufficiently significant degree to violate Title VII.” Id. (quoting Rogers v. EEOC, 454 F.2d 234, 238 (5th Cir.1971), cert. denied, 406 U.S. 957, 92 S.Ct. 2058, 32 L.Ed.2d 343 (1972)).

Harris v. Forklift Systems, Inc., 510 U.S. 17, 114 S.Ct. 367, 126 L.Ed.2d 295 *1413 (1993), clarified the elements of a claim for gender discrimination resulting from a hostile work environment. The Supreme Court held that conduct within the purview of Title VII must be severe or pervasive enough to create both “an objectively hostile or abusive work environment — an environment that a reasonable person would find hostile” — and an environment the victim-employee subjectively perceives as abusive or hostile. Id. at 21-22, 114 S.Ct. at 370-71. We determine whether an environment is “hostile” or “abusive” by looking at the totality of circumstances, such as “the frequency of the discriminatory conduct; its severity; whether it is physically threatening or humiliating, or a mere offensive utterance; ... whether it unreasonably interferes with an employee’s work performance”; and the context in which the conduct occurred. Id. at 23, 114 S.Ct. at 371. Additionally, the Court specifically noted that any relevant factor “may be taken into account, [but] no single factor is required.” Id.

The Meritor test is a disjunctive one, requiring that the harassing conduct be sufficiently pervasive or

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129 F.3d 1408, 1997 Colo. J. C.A.R. 3067, 1997 U.S. App. LEXIS 34041, 72 Empl. Prac. Dec. (CCH) 45,096, 75 Fair Empl. Prac. Cas. (BNA) 1274, 1997 WL 746285, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-northwest-financial-acceptance-inc-ca10-1997.