Wilson v. Gillis Advertising Co.

145 F.R.D. 578, 8 I.E.R. Cas. (BNA) 1487, 1993 U.S. Dist. LEXIS 755, 61 Empl. Prac. Dec. (CCH) 42,244, 60 Fair Empl. Prac. Cas. (BNA) 1078, 1993 WL 15255
CourtDistrict Court, N.D. Alabama
DecidedJanuary 7, 1993
DocketCiv. A. No. 92-AR-2126-S
StatusPublished
Cited by12 cases

This text of 145 F.R.D. 578 (Wilson v. Gillis Advertising Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wilson v. Gillis Advertising Co., 145 F.R.D. 578, 8 I.E.R. Cas. (BNA) 1487, 1993 U.S. Dist. LEXIS 755, 61 Empl. Prac. Dec. (CCH) 42,244, 60 Fair Empl. Prac. Cas. (BNA) 1078, 1993 WL 15255 (N.D. Ala. 1993).

Opinion

MEMORANDUM OPINION AND ORDER

ACKER, District Judge.

The court has for consideration a motion filed by Linda F. Wilson, plaintiff in the above-entitled cause, to compel the testimony of the Rule 30(b)(6), F.R.Civ.P., representative of defendant, Gillis Advertising Company (“Gillis Advertising”), and for sanctions against Gillis Advertising pursuant to Rule 37, F.R.Civ.P., because of said defendant’s alleged refusal to provide the information sought from the Rule 30(b)(6) witness as to the financial condition of the corporate defendant. Wilson’s action is brought against Gillis Advertising, her employer, under the Civil Rights Act of 1964, as amended in 1991. Inter alia, she seeks the punitive damages which the 1991 amendment would allow upon proof by a preponderance of the evidence of the intentional sex discrimination which she alleges occurred. She also seeks punitive damages under pendent state law theories, namely, assault and battery and intentional infliction of emotional distress. Wilson has requested the trial by jury to which she is entitled under each and all of her theories of liability, federal and state.

The question here presented is whether either the 1991 amendment to the Civil Rights Act or the law of Alabama permits pre-trial discovery into the financial status of the defendant for the purpose of giving that information to the jury for it to use in assessing punitive damages in the event punitive damages are called for.

This issue, insofar as it implicates state law, and if the state law were controlling, would be simple, because the application of Ala.Code § 6-11-23 (1992)1 would [580]*580clearly prevent the jury from considering defendant’s net worth in deciding what, if any, punitive damages to award. Although an argument can be made that this is simply an Alabama rule of evidence, and is thus procedural rather than substantive, it is so fundamental to the resolution of the issue of punitive damages under the Alabama law theories as to be effectively substantive and as a practical matter binding on a federal trial court when it tries an Alabama tort claim seeking punitive damages.

Plaintiff’s access to defendant’s net worth for her use during the jury trial of her Title VII claim is a much more difficult question, made even more difficult by the combining of her Title VII claim with her state law claims for simultaneous trial before a single jury. Generally speaking, the financial position of a defendant is relevant and discoverable in federal causes of action “where the complaint alleges facts demonstrating the possibility that punitive damages will be at issue.” Federal Procedure § 26:58 (1988). The United States Supreme Court says that “evidence of a tortfeasor’s wealth is traditionally admissible as a measure of the amount of punitive damages that should be awarded.” City of Newport v. Fact Concerts, Inc., 453 U.S. 247, 270, 101 S.Ct. 2748, 2761, 69 L.Ed.2d 616 (1981). Wilson correctly cites Woods-Drake v. Lundy, 667 F.2d 1198, 1203 n. 9 (5th Cir. 1982) (“defendant’s net worth was an important factor for the jury to consider in determining an amount of punitive damages”), for the proposition that a defendant’s financial status is always a factor to be considered by the jury in assessing punitive damages. Finally, “[fjederal and state courts [except Alabama by statute] have, as a matter of course, found a defendant’s financial condition relevant for discovery purposes where punitive damages have been at issue.” State of Wis. Inv. Bd. v. Plantation Square Assocs., 761 F.Supp. 1569, 1577 (S.D.Fla.1991).

Based on these authorities, this court concludes that in a suit involving a federal question where punitive damages are at issue, the financial condition of the defendant is relevant and will be admissible as a factor to be used in determining the amount of punitive damages, if any, to be awarded.2 None of the above cited authorities, however, informs this court at what point in the litigation such information becomes discoverable or at what point in the trial such information becomes admissible. As the district court in Plantation Square said, there remains unresolved the issue of whether a defendant’s financial worth becomes discoverable and/or admissible “(1) upon the pleading of a punitive claim, (2) only after some prima facie showing by plaintiff of defendant’s liability, or (3) only after the trier of fact has determined defendant’s liability for punitive damages.” Plantation Square, 761 F.Supp. at 1577. There are federal courts in all three camps. Id. Because there is no expression on the subject by the Supreme Court or by the Eleventh Circuit, an interesting choice of law problem is presented, even though this is not a diversity case, and therefore not within the aegis of Erie v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938), because “discovery is a procedural matter that is governed by the Federal Rules of Civil Procedure,” Mid Continent Cabinetry, Inc. v. George Koch Sons, Inc., 130 F.R.D. 149, 151 (D.Kan.1990).

The problem here must be addressed because 42 U.S.C. § 1988, which the parties agree is applicable, “authorizes resort to state law to provide enlightenment as to the parameters of actions under [the civil rights statutes] where the civil rights laws are ‘deficient,’ ” unless the state law is “ ‘inconsistent with’ ” the Constitution or federal law. Bell v. City of Milwaukee, 746 F.2d 1205, 1234 (7th Cir.1984). Gillis Advertising argues that there is a deficien[581]*581cy in the civil rights laws here being invoked by Wilson, namely, that those laws do not specify at what point in the litigation the financial background of a defendant becomes discoverable and/or admissible. Even though Rule 26(b), F.R.Civ.P., provides some guidance on this point, it does not squarely answer the question, nor does the case law applying Rule 26(b) answer the question. This court therefore must refer to state law, unless it is inconsistent with federal law. See id. (“Since the civil rights acts do not specify ... the measure of available damages, there must be a reference to state law____”). As already stated, under Alabama statutory law financial information about a defendant cannot be discovered “until after a verdict for punitive damages has been rendered,” or unless the information is “otherwise discoverable.” Ala. Code § 6-ll-23(b) (1992).3

This court’s initial sense was that § 1988 suggests a look at state law only where substantive deficiencies in the civil rights laws exist and not where, as here, there is a procedural issue as to the federal claim involving matters of discovery and admissibility of evidence. After all, “discovery is a procedural matter that is governed by the

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145 F.R.D. 578, 8 I.E.R. Cas. (BNA) 1487, 1993 U.S. Dist. LEXIS 755, 61 Empl. Prac. Dec. (CCH) 42,244, 60 Fair Empl. Prac. Cas. (BNA) 1078, 1993 WL 15255, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilson-v-gillis-advertising-co-alnd-1993.