Wheeler v. Catholic Archdiocese of Seattle

880 P.2d 29, 124 Wash. 2d 634, 3 Am. Disabilities Cas. (BNA) 1104, 1994 Wash. LEXIS 550
CourtWashington Supreme Court
DecidedSeptember 15, 1994
Docket59591-7
StatusPublished
Cited by34 cases

This text of 880 P.2d 29 (Wheeler v. Catholic Archdiocese of Seattle) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wheeler v. Catholic Archdiocese of Seattle, 880 P.2d 29, 124 Wash. 2d 634, 3 Am. Disabilities Cas. (BNA) 1104, 1994 Wash. LEXIS 550 (Wash. 1994).

Opinions

Madsen, J.

At issue in this case is whether workers’ compensation benefits representing replacement for lost wages should be deducted from a jury award of damages arising out of claims based on handicap discrimination, retaliation, and negligent supervision.

Facts

Catherina Wheeler, hereafter referred to as the Plaintiff, was hired in 1979 as head housekeeper of St. Thomas Center, a conference facility owned by the Catholic Archdiocese of Seattle (Archdiocese). In 1981, Plaintiff was promoted to executive housekeeper. In April 1984, the Archdiocese hired Norbert Patton as director of maintenance at the center. Patton combined the housekeeping and maintenance departments under his supervision. As a result, Plaintiff’s salaried position became an hourly position and she reported to Patton instead of the center’s administrator, Donald Leak. When Plaintiff complained to Leak about problems she was experiencing with Patton, Leak told her to communicate directly with Patton.

In May 1984, Plaintiff injured her hand while working at the center, and took a 3-month medical leave to recuperate. Before she went on leave, Patton made some sexually explicit comments to her.

During her leave, Plaintiff received a memorandum from Leak stating that if she and Patton did not make progress in their communication problems within the month, her work performance would be considered unsatisfactory. Plaintiff’s office was closed during her leave and she was assigned a corner of Patton’s office as her work station. Patton also informed Plaintiff that she could not return to work without a full work release from her doctor.

[637]*637Plaintiff became despondent because of her health, and events at work and attempted suicide. She spent 3 weeks of her 3-month leave of absence in an inpatient treatment facility. She continued in therapy for several years, and her treating psychologist testified that she suffers from posttraumatic stress disorder.

Plaintiff returned to work after the 3-month leave before her hand was completely healed. In April 1985, Plaintiff again took a leave of absence to undergo the first of three surgeries to repair her injured hand. During this and subsequent periods of leave, Plaintiff received workers’ compensation benefits, and for a few months she received voluntary payments from the Archdiocese compensating for the difference between the workers’ compensation time-loss benefits and Plaintiff’s normal salary.

Plaintiff encountered serious conflict and harassment from Patton from April 1984 until September 1985, when she left the center for her second surgery. She left with the understanding that the center would have a job for her when she returned, but when her doctor released her 8 months later, she was told that her previous position had been filled. She was not offered any other jobs with the Archdiocese.

On May 19, 1987, Plaintiff filed suit against the Archdiocese for handicap, age, and sex discrimination; retaliation for opposing discrimination; intentional infliction of emotional distress; negligent supervision/negligent infliction of emotional distress; invasion of privacy; outrage; and failure to provide a safe workplace.

The case was tried before a jury in September 1990. At the close of the evidence, the trial court granted Plaintiff’s motion for a directed verdict on her handicap discrimination claim and denied the Archdiocese’s motion to dismiss the negligent supervision claim. The court did dismiss Plaintiff’s claim of failure to provide a safe workplace. The court reasserted its pretrial ruling that the Archdiocese would not be entitled to an offset of Plaintiff’s workers’ compensation benefits if she were awarded damages.

[638]*638The jury returned a general verdict of $150,000 in favor of Plaintiff on the claims of handicap discrimination, retaliation, and negligent supervision/negligent infliction of emotional distress. The trial court denied the Archdiocese’s motion for a new trial and Plaintiff’s motion for reinstatement. The court then entered judgment on the verdict and awarded Plaintiff approximately $47,000 in attorney’s fees and expenses, well below her request of approximately $140,000.

The parties cross-appealed. The Court of Appeals upheld the directed verdict and the trial court’s refusal to dismiss the negligent supervision claim and to order reinstatement. Wheeler v. Catholic Archdiocese, 65 Wn. App. 552, 829 P.2d 196 (1992). These issues are not before us.

The Court of Appeals also held that the trial court erred in refusing to offset Plaintiff’s damages award by the amount of her workers’ compensation benefits representing replacement for lost wages. Wheeler, at 572. The Court of Appeals remanded so that the trial court could determine the amount of the offset and adjust the damages award accordingly. Wheeler, at 572. The Court of Appeals also held that the trial court erred in reducing Plaintiff’s attorney’s fees and expenses and remanded for redetermination. Wheeler, at 575-76. The court denied Plaintiff’s request for attorney’s fees on appeal.

Both parties petitioned for review of the Court of Appeals’ decision. We denied the Archdiocese’s petition for review of the directed verdict and negligent supervision issues. We accepted Plaintiff’s petition requesting review of the offset issue as well as the issue of whether the Court of Appeals erred in denying her attorney’s fees and expenses on appeal.

I

We turn first to Plaintiff’s contention that the Court of Appeals erred in failing to apply the collateral source rule to prevent an offset of workers’ compensation in this case. We have not yet decided whether workers’ compensation benefits, paid for an injury occurring while plaintiff was in [639]*639the employ of the defendant, may be offset against a back pay award covering the same employment period. The federal courts, however, have confronted this precise issue. In this circumstance, federal courts have resolved the question of offset of workers’ compensation benefits under the discriminatee’s duty to mitigate, not under the collateral source rule as urged by the parties in this case. See Wheeler, at 570 (citing Canova v. NLRB, 708 F.2d 1498, 1504 (9th Cir. 1983); American Mfg. Co., 167 N.L.R.B. 520, 522-23 (1967); Aguinaga v. United Food & Comm’l Workers Int’l Union, 720 F. Supp. 862, 876 (D. Kan. 1989); EEOC v. Blue & White Serv. Corp., 674 F. Supp. 1579, 1582-83 (D. Minn. 1987)). These cases concluded that an offset of workers’ compensation against an award of back pay is warranted because these benefits represent, in part, payment for lost wages. See American Mfg. Co., at 523; EEOC, at 1583.

In employment discrimination cases, the doctrine of mitigation underlies the offset of a payment of lost wages against an award of back pay. For example, under Title VII a discriminatee has a duty to mitigate damages when he or she has suffered economic loss as a result of unlawful employment discrimination. Robert Belton, Remedies in Employment Discrimination Law 374 (1992). Section 706(g) of Title VII specifically provides that " '[i]nterim earnings or amounts earnable with reasonable diligence by the person or persons discriminated against shall operate to reduce the back pay otherwise allowable.’ ” Belton, at 374 (quoting 42 U.S.C.

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Cite This Page — Counsel Stack

Bluebook (online)
880 P.2d 29, 124 Wash. 2d 634, 3 Am. Disabilities Cas. (BNA) 1104, 1994 Wash. LEXIS 550, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wheeler-v-catholic-archdiocese-of-seattle-wash-1994.