Velez v. Roche

335 F. Supp. 2d 1022, 2004 U.S. Dist. LEXIS 18551, 2004 WL 2095614
CourtDistrict Court, N.D. California
DecidedJune 30, 2004
DocketC-02-0337-EMC
StatusPublished
Cited by17 cases

This text of 335 F. Supp. 2d 1022 (Velez v. Roche) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Velez v. Roche, 335 F. Supp. 2d 1022, 2004 U.S. Dist. LEXIS 18551, 2004 WL 2095614 (N.D. Cal. 2004).

Opinion

ORDER DENYING DEFENDANT’S MOTION FOR JUDGMENT AS MATTER OF LAW OR NEW TRIAL; DENYING REQUEST FOR REMITTITUR (Docket No. 207)

CHEN, Magistrate Judge.

Having considered the parties’ briefs and accompanying submissions as well as the argument of counsel, and good cause appearing therefor, the Court hereby DENIES Defendant Air Force’s (“AF”) motion for judgment as a matter of law (“JMOL”) or new trial as well as its request for remittitur.

I. FACTUAL & PROCEDURAL BACKGROUND

Plaintiff Pauline Velez filed suit against the AF, alleging discrimination on the basis of gender. In her complaint, Dr. Velez asserted four causes of action: (1) gender discrimination based on disparate treatment, (2) gender discrimination based on hostile work environment, (3) failure to prevent gender discrimination, and (4) pregnancy discrimination. The AF moved for summary judgment which the Court granted in part and denied in part. See Docket Nos. 76, 117 (orders of 12/10/03 *1025 and 1/7/04). The summary judgment order left for trial only the disparate treatment and hostile work environment claims. In the summary judgment order, the Court rejected the AF’s argument that there was no genuine dispute that it was not Dr. Velez’s employer for purposes of Title VII, either under a direct employer or indirect employer theory.

Subsequently, a jury trial was held in which the jury found in favor of the AF on the disparate treatment claim but in favor of Dr. Velez on the hostile work environment claim. The jury awarded Dr. Velez noneconomic damages in the amount of $505,623: It did not award Dr. Velez any economic damages.

II. DISCUSSION

In its motion for JMOL or new trial and request for remittitur, the AF challenges the verdict on the hostile work environment claim. More specifically, the AF argues that JMOL or a new trial should be granted because (1) the AF did not have an employment relationship with Dr. Velez and (2) there was insufficient evidence that (a) the unwelcome conduct to which Dr. Velez was exposed was severe or pervasive and/or that (b) the AF failed to take prompt, effective remedial action reasonably calculated to stop the harassment. The AF also argues that a new trial should be granted because (3) the evidence related to California Business & Professions Code § 805 was prejudicial as was (4) the jury instruction on adverse employment action. Finally, the AF contends that (5) the jury’s award of $505,623 should be reduced to $300,000 to reflect the Title VII statutory cap and then remitted to $75,000 and that (6) Dr. Velez’s settlement with the VA should be used to offset the jury’s award against the AF. The Court addresses each of the arguments below.

A. Motion for Judgment as Matter of Law

“Judgment as a matter of law is appropriate when the evidence, construed in the light most favorable to the nonmoving party, permits only one reasonable conclusion, which is contrary to the jury’s verdict.” Omega Envtl. v. Gilbarco, Inc., 127 F.3d 1157,1161 (9th Cir.1997); see also McLean v. Runyon, 222 F.3d 1150, 1153 (9th Cir. 2000) (same); Baker v. Delta Air Lines, 6 F.3d 632, 644 (9th Cir.1993) (“We must determine whether the evidence, considered as a whole and viewed in the light most favorable to the nonmoving party, reasonably can support only a verdict for the moving party.”) (internal quotation marks omitted). “A directed verdict or JNOV [ie., judgment as a matter of law] is appropriate only where the evidence is such that, without weighing the credibility of the witnesses or otherwise considering the weight of the evidence, there can be but one conclusion.” Id. (internal quotation marks omitted; emphasis added).

1. Employer Under Title VII

The AF’s first argument is that JMOL should be granted because it did not have an employment relationship with Dr. Velez for purposes of Title VII. See Mot. at 3-4. In support of this argument, the AF relies primarily on a Sixth Circuit opinion that came out after this Court’s summary judgment order but before trial. See Shah v. Deaconess Hosp., 355 F.3d 496 (6th Cir. 2004).

In Shah, the plaintiff was a general surgeon who for many years had surgical privileges at the defendant hospital. See id. at 497. In 1999, the hospital revoked part of the plaintiffs surgical privileges after one of his patients died following surgery. See id. More specifically, the revocation occurred after a peer review of the plaintiffs conduct that proceeded *1026 through numerous stages. See id. at 498. The plaintiff filed suit against the hospital claiming discrimination on the basis of age and national origin. See id. at 497.

The Sixth Circuit began its opinion by noting that, as a general matter, Title VII protects employees, not independent contractors. See id. at 499. “Three of our sister circuits have explicitly held that a physician denied hospital privileges is not protected by the federal employment discrimination statutes if he or she is an independent contractor.” Id. (citing Cile-eek v. Inova Health Sys. Servs., 115 F.3d 256, 261-63 (4th Cir.1997); Alexander v. Rush North Shore Med. Ctr., 101 F.3d 487, 493-94 (7th Cir.1996); Diggs v. Harris Hosp.-Methodist, Inc., 847 F.2d 270, 272-73 (5th Cir.1988)). The Sixth Circuit then went on to apply a common law analysis to determine whether a hired party is an independent contractor or an employee. See id. at 499. This analysis required the consideration of factors such as

the hiring party’s right to control the manner and means by which the product is accomplished; the skill required by the hired party; the duration of the relationship between the parties; the hiring party’s right to assign additional projects; the hired party’s discretion over when and how to work; the method of payment; the hired party’s role in hiring and paying assistants; whether the work is part of the hiring party’s regular business; the hired party’s employee benefits; and tax treatment of the hired party’s compensation.

Id. at 499-500. The court concluded that “the record in this case fails to disclose any dispute regarding any of these factors.” Id. at 500. The court noted, for example, that the hospital did not pay the plaintiff for his services or provide him with a W-2 form and that the plaintiff performed about 45 percent of his surgeries at other hospitals. See id.

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Bluebook (online)
335 F. Supp. 2d 1022, 2004 U.S. Dist. LEXIS 18551, 2004 WL 2095614, Counsel Stack Legal Research, https://law.counselstack.com/opinion/velez-v-roche-cand-2004.