United States Equal Employment Opportunity Commission v. MSDS Consultant Services, LLC

District Court, D. Maryland·Decided December 22, 2021·No. 8:18-cv-02917·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND UNITED STATES EQUAL EMPLOYMENT * OPPORTUNITY COMMISSION, * * Plaintiff, * * v. * Civil Action No. 8:18-cv-02917-PX * MSDS CONSULTANT SERVICES, LLC, * * Defendant. * *** MEMORANDUM OPINION Pending before the Court is Plaintiff United States Equal Employment Opportunity Commission (“EEOC”)’s request for damages in connection with default judgment previously entered against Defendant MSDS Consultant Services, LLC (“MSDS”). ECF Nos. 21, 31. On August 20, 2021, the EEOC submitted a supplemental memorandum of law and record evidence supporting the requested relief. ECF No. 31. MSDS has not responded, and the time for doing so has passed. See Loc. R. 105.2; Fed. R. Civ. P. 55(b)(2). For the reasons stated below, the Court GRANTS the motion. I. Background1 The EEOC sued MSDS on behalf of claimant, LaRufus Mitchell, for disability discrimination, hostile work environment, and failure to accommodate her disabilities while she was working at MSDS from 2014 to 2016, in violation of the Americans with Disabilities Act (“ADA”), 42 U.S.C. § 12101, et seq. See ECF No. 1. The Complaint averred that as to damages, Mitchell is entitled to backpay, prejudgment interest, front pay, punitive damages, and injunctive relief. ECF No. 16 ¶ 4. 1 The Court’s June 25, 2021 Memorandum Opinion set forth the facts relevant to entry of default judgment against MSDS Consultant Services, LLC, and which are incorporated by reference. See ECF No. 21 at 1–4. After MSDS failed to secure counsel and respond to the Complaint, the Clerk entered an Order of Default on April 5, 2019. ECF No. 12. On April 30, 2019, MSDS requested that the Court vacate the Clerk’s entry of default. ECF No. 15-1. MSDS was still unrepresented at the time, and so the Court struck the filing and directed MSDS to obtain counsel or risk default

judgment. ECF No. 21 at 4. The EEOC, in turn, moved for default judgment pursuant to Rule 55(a) of the Federal Rules of Civil Procedure. ECF No. 16. MSDS failed to respond. On June 25, 2021, the Court issued a Memorandum Opinion and Order granting default judgment against MSDS as to all three theories of liability. ECF No. 21, 22. As to damages, the Court denied the EEOC’s request for injunctive relief, but granted EEOC leave to supplement the record. ECF No. 21 at 10, 12. The EEOC now renews its request for back pay, front pay, prejudgment interest, compensatory and punitive damages, and post-judgment interest on Mitchell’s behalf. ECF No. 31. II. Standard of Review Even when liability has been established by an order of default judgment, allegations

“relating to the amount of damages” are not established merely because a defendant failed to participate in the action. See Fed. R. Civ. P. 8(b)(6); Trs. of the Elec. Welfare Trust Fund v. MH Passa Elec. Contracting, Inc., No. DKC-08-2805, 2009 WL 2982951, at *1 (D. Md. Sept. 14, 2009) (“Upon default, the well-pled allegations in a complaint as to liability are taken as true, although the allegations as to damages are not.”). Rather, the plaintiff must supply sufficient evidence to support the requested damages. See Monge v. Portofino Ristorante, 751 F. Supp. 2d 789, 795 (D. Md. 2010). The Court may, but is not required to, hold a hearing to receive evidence on requested damages. Id.; see Tr. of the Nat. Asbestos Workers Pension Fund. v. Ideal Insulation Inc., No. ELH-11-832, 2011 WL 5151067, at *4 (D. Md. Oct. 27, 2011) (collecting cases). The kinds of damages available are limited by those pleaded in the Complaint. See Fed. R. Civ. P. 54(c) (Damages on default judgment “must not differ in kind from, or exceed in

amount, what is demanded in the pleadings.”). But the Court must make “an independent determination of the sum to be awarded.” Educ. Credit Mgmt. Corp. v. Optimum Welding, 285 F.R.D. 371, 373–74 (D. Md. 2012) (quoting Adkins v. Teseo, 180 F. Supp. 2d 15, 17 (D.D.C. 2001)). The moving party bears the burden of proving damages by a preponderance of the evidence. See, e.g., Consol. Masonry & Fireproofing, Inc. v. Wagman Const. Corp., 383 F.2d 249, 252 (4th Cir. 1967). III. Analysis As a preliminary matter, the Court finds that each category of requested damages is fairly circumscribed by the Complaint. See ECF No. 1. The Court next turns to whether each request is supported by the evidence.

A. Back Pay The EEOC first argues that Mitchell should receive back pay from the date of her termination on October 3, 2016, through the date of judgment. ECF No. 31 at 2. The EEOC specifically requests $210,492.02 in lost wages, $15,949.59 in lost paid time off (“PTO”) benefits, $26,928.14 in prejudgment interest on lost wages, $2,399.85 in prejudgment interest on lost PTO benefits, and $6,710.96 in lost medical insurance and out-of-pocket medical expenses. Id. The ADA authorizes the Court to award back pay and prejudgment interest. See 42 U.S.C. § 12117(a) (incorporating 42 U.S.C. §§ 2000e et seq.; 42 U.S.C. § 1981a); see also Est. of Allen v. Baltimore Cnty, No. CCB-13-3075, 2017 WL 6508930, at *6 (D. Md. Dec. 20, 2017). Whether to award backpay and prejudgment interest is left to the discretion of the trial court. Albemarle Paper Co. v. Moody, 422 U.S. 405, 421 (1975). The ADA incorporates the “remedies and procedures” established in Title VII, see 42 U.S.C. § 12117(a), which includes back pay for

plaintiffs who succeed in their Title VII claims. Dennis v. Columbia Collection Med. Ctr., Inc., 290 F.3d 639, 651 (4th Cir. 2002) (citing Albemarle, 422 U.S. at 421). Upon a finding of discrimination, “[b]ack pay ‘should be denied only for reasons which, if applied generally, would not frustrate the central statutory purposes of eradicating discrimination throughout the economy and making persons whole for injuries suffered through past discrimination.’” Id. (quoting Albemarle, 422 U.S. at 421) (addressing Title VII). That said, backpay “should only make the wrongly discharged employee monetarily whole under his employment contract,” and not accord the plaintiff a “windfall.” Cline v. Roadway Exp., Inc., 689 F.2d 481, 490 (4th Cir. 1982). The Court may award backpay for the period from termination of employment to judgment, and may include the salary, raises, and

fringe benefits that the employee would have received absent the discriminatory conduct. See Long v. Ringling Bros. Barnum & Bailey Combined Shows, Inc. 9 F.3d 340, 343 (4th Cir. 1993) (“Under Title VII a prevailing plaintiff is entitled to make whole relief. . . .

Free access — add to your briefcase to read the full text and ask questions with AI

United States Equal Employment Opportunity Commission v. MSDS Consultant Services, LLC, (D. Md. 2021).

United States Equal Employment Opportunity Commission v. MSDS Consultant Services, LLC (United States Equal Employment Opportunity Commission v. MSDS Consultant Services, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Albemarle Paper Co. v. Moody
422 U.S. 405 (Supreme Court, 1975)
Pollard v. E. I. Du Pont De Nemours & Co.
532 U.S. 843 (Supreme Court, 2001)
Price v. City of Charlotte, North Carolina
93 F.3d 1241 (Fourth Circuit, 1996)
Keith W. Cline v. Wal-Mart Stores, Incorporated
144 F.3d 294 (Fourth Circuit, 1998)
Eileen Hylind v. Xerox Corporation
481 F. App'x 819 (Fourth Circuit, 2012)
Loveless v. John's Ford, Inc.
232 F. App'x 229 (Fourth Circuit, 2007)
Wilson v. Phoenix Specialty Manufacturing Co.
513 F.3d 378 (Fourth Circuit, 2008)
Cooper v. Paychex, Inc.
960 F. Supp. 966 (E.D. Virginia, 1997)
Paulone v. City of Frederick
787 F. Supp. 2d 360 (D. Maryland, 2011)
Monge v. Portofino Ristorante
751 F. Supp. 2d 789 (D. Maryland, 2010)
Ogden v. Wax Works, Inc.
29 F. Supp. 2d 1003 (N.D. Iowa, 1998)
Hylind v. Xerox Corporation
749 F. Supp. 2d 340 (D. Maryland, 2010)