Nos. 86-3543, 86-3579.United States Court of Appeals, Eleventh Circuit.
February 26, 1988.
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Carlton Fields Ward Emmanuel Smith Cutler, PA, Mark E. Grantham, Tampa, Fla., and Icard, Merrill, Cullis, Timm Furen, PA, James E. Aker, Sarasota, Fla., for plaintiff-appellant.
Hill, Ward Henderson, PA, Benjamin H. Hill, III, Tampa, Fla., Kelley Drye Warren, Ned H. Bassen, New York City, Shackleford Farrior Stallings Evans, PA, Thomas C. MacDonald, Jr., Tampa, Fla., for defendant-appellee.
Appeal from the United States District Court for the Middle District of Florida.
Before FAY and HATCHETT, Circuit Judges, and MORGAN, Senior Circuit Judge.
MORGAN, Senior Circuit Judge:
[1] This appeal arises from the district court’s determination of appellants’[1] consolidated suits against appellee Sangamo Weston, Inc.[2] for willful violation of the Age Discrimination Employment Act of 1967, 29 U.S.C. § 621, et. seq.[2] I. FACTUAL BACKGROUND
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[3] In 1979 appellee Sangamo Weston,[4] headquartered in Atlanta, consisted of several operating divisions including the Data Systems Division, the focal point of this litigation. This division, primarily located in Sarasota, Florida, designed, manufactured, and marketed highly sophisticated telemetry equipment used for the transmission, reception, and recording of data.
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[7] All ten of the appellants were exempt at the time of dismissal. Nine of them were in middle management or were senior engineers on the staff of the Data Systems Division in Sarasota. Appellant Moore, as Eastern Regional Sales Manager, was based at the company’s branch office near Washington, D.C. At the time of their dismissal appellants ranged in age from forty-one to fifty-seven. [8] On May 11, 1981, appellant Castle filed an individual age discrimination complaint against Sangamo Weston. On June 5, 1981, the other nine appellants filed their joint complaint against the company. All ten appellants alleged that the company discharged them during 1979 because of their age. These actions were consolidated on July 24, 1981. [9] Following certain procedural disputes, see Castle v. Sangamo Weston, Inc., 744 F.2d 1464 (11th Cir. 1984), which need not concern us here, a jury trial was commenced in the United States District Court for the Middle District of Florida. At the close of all the evidence Sangamo Weston moved for a directed verdict. The district court reserved decision on this motion and proceeded to submit special interrogatories to the jury. On March 5, 1986, the jury returned verdicts of willful age discrimination in favor of each of the appellants and found that back pay damages should be awarded to appellants in amounts ranging from $0 to $181,451 Castle v. Sangamo Weston, Inc., 650 F. Supp. 252, 255 (M.D. Fla. 1986). The district court then excused the jury. On the following day a hearing was held concerning appellee’s motion for directed verdict. At the beginning of this hearing appellee made an oral motion for judgment notwithstanding the verdict. Pursuant to the trial judge’s request the parties gave arguments on all issues raised by Sangamo Weston’s motion for directed verdict and also on all issues raised by Sangamo Weston’s motion for judgment n.o.v. “This was done to accommodate the judge who presided over the trial and avoid a return trip from Omaha, Nebraska, to Tampa, Florida, to hear argument on a motion for judgment notwithstanding the verdict.” Castle v. Sangamo Weston, Inc., 650 F. Supp. at 254-55. The parties also filed extensive post-trial legal memoranda on these issues. [10] On July 17, 1986, by an order entitled “Judgments,” the district court entered judgment for each of the ten appellants in amounts equal to the back pay damages awarded by the jury and an additional equal amount for liquidated damages to each appellant, and front pay to appellants Fearn, Gregory, and Ridgewell.[5]Page 1555
from both the “Judgments” and the “Order and Judgment.” The district court then granted Sangamo Weston’s second motion for judgment n.o.v. and entered its “Order” with supplementary memorandum to that effect on August 18. Again erring on the side of caution the appellants filed their second notice of appeal, No. 86-3979, on August 25, 1986, appealing from the district court’s “Order.” These appeals were consolidated by this court on November 17, 1986. This court then asked the parties to address the issue of whether this court has jurisdiction to hear appeal of this case under appeal No. 86-3543 or under appeal No. 86-3579. Other issues in the case at bar are: (1) whether there was sufficient “substantial” evidence admitted at trial on which the jury reasonably could have based its verdicts; (2) if there was substantial evidence and the judgment n.o.v. is reversed, whether the district court’s conditional rulings on liquidated damages, front pay, and pension benefits were advisory opinions which should be vacated by this court; (3) if these conditional rulings were not advisory opinions, whether the district court abused its discretion in determining these equitable issues; (4) whether the appellants are entitled to an award for prejudgment interest on the back pay awards; and (5) if there was not substantial evidence, whether the appellants should be granted a new trial because the district court erroneously excluded key evidence of age discrimination which, if admitted, would have provided the jury with a sufficient basis to sustain its verdicts for the appellants.
[13] II. DISCUSSION[14] A. Effect of Appeal No. 86-3543
[15] It is ironic that steps taken in the instant case in the interests of judicial economy and efficiency caused the opposite result. In the post-verdict/pre-judgment hearing, the district court and the parties agreed to the presentation of arguments on appellee’s oral motion for judgment n.o.v. so that the trial judge would not have to return from Nebraska to Florida for a second hearing on that motion. See Castle v. Sangamo Weston, Inc., 650 F. Supp. at 254-55. Appellee feared the motion was untimely, however, because it was made before entry of any judgment in the case. Rule 50(b) may be read as requiring a judgment to be entered if a verdict is rendered before the motion for judgment n.o.v. may be made. “Not later than 10 days after entry of judgment, a party who has moved for a directed verdict may move to have the verdict and any judgment entered thereon set aside and to have judgment entered in accordance with his motion for a directed verdict.” Fed.R.Civ.P. 50(b).[6]
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for judgment n.o.v.[8] Thus, appellee claims that appellants’ first appeal is a nullity and only appellants’ second notice of appeal is valid. Appellee then argues that the second notice of appeal only specifically appeals[9] from the district court’s “Order” of August 18, 1986. The “Order” does not refer to the document entitled “Judgments” in which the district court granted equitable relief to appellants. Appellee asserts, therefore, that the only issue before us is the correctness of the district court’s entry of the “Order” granting judgment n.o.v., and appellants’ objections to the district court’s award of equitable relief should not be considered, as not having been properly raised.
[18] Appellants counter by arguing that the district court previously granted the exact same motion so that the lower court’s subsequent “final” ruling of August 18 was in the nature of an order entering a final judgment that validates an otherwise premature notice of appeal. See Jetco Elec. Ind., Inc. v. Gardiner, 473 F.2d 1228, 1231 (5th Cir. 1973).[10]Page 1557
the nature of an order entering a final judgment that validates an otherwise premature notice of appeal. There are numerous situations where appellants’ analysis would be correct. See Jetco Elec. Ind., Inc., 473 F.2d at 1231 (appeal from non-final order was validated when second non-final order considered together with the first non-final order effectively terminated all litigation among the parties); Cape May Greene, Inc. v. Warren, 698 F.2d 179 (3d Cir. 1983) (premature appeal of grant of motion for summary judgment validated when remaining cross-claim on a collateral matter was dismissed); Pireno v. New York Chiropractic Ass’n, 650 F.2d 387 (2d Cir. 1981) (appeal from judgment entered for two of three defendants treated by appeals court as effective as of the date of judgment was entered in favor of last remaining defendant); Richerson v. Jones, 551 F.2d 918, 922 (3d Cir. 1977) (appeal from non-final order which is followed by a final order “may be regarded as an appeal from the final order in the absence of a showing of prejudice to the other party.”). See generally Robinson v. Tanner, 798 F.2d 1378 (11th Cir. 1986) (summary of case law concerning premature notices of appeal).
[21] In the case at bar, however, this analysis is inapplicable because Fed.R.App.P. Rule 4(a)(4) specifically cites a Fed.R.Civ.P. 50(b) motion as one of four instances in which a premature notice of appeal “shall have no effect.” See Griggs v. Provident Consumer Discount Co., 459 U.S. 56, 60, 103 S.Ct. 400, 403, 74 L.Ed.2d 225 (1982) (notice of appeal filed before disposition of motion for a new trial is ineffective for appellate jurisdiction because under Fed.R.App.P. 4(a)(4), as amended in 1979, the premature notice of appeal “was not merely defective; it was a nullity.”). See also 9 J. Moore, B. Ward,[23] Id. at 181-82, 83 S.Ct. at 229-30, quoting Conley v. Gibson, 355 U.S. 41, 48, 78 S.Ct. 99, 103, 2 L.Ed.2d 80 (1957). Accord Bankers Trust Co. v. Mallis, 435 U.S. 381, 98 S.Ct. 1117, 55 L.Ed.2d 357 (1978). [24] Thus, viewing the ineffective appeal No. 86-3543 and the valid appeal No. 86-3579, appellants in the case at bar clearly intended to appeal both the July 17 “Judgments” as well as the August 18 “Order.” Moreover, the “Order” specifically refers to the district court’s “previous Memorandum and Opinion” in which the lower court’s findings and conclusions set forth in the “Judgments” are actually incorporated. We therefore hold that all rulings by the lower court, including its determinations regarding liquidated damages and front pay, are properly before this court. [25] B. Sufficiency of the EvidenceThe defect in the second notice of appeal did not mislead or prejudice the respondent. With both notices of appeal before it (even granting the asserted ineffectiveness of the first), the Court of Appeals should have treated the appeal from the denial of the motions as an effective, although inept, attempt to appeal from the judgment sought to be vacated. Taking the two notices and the appeal papers together, petitioner’s intention to seek review of both the dismissal
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and the denial of the motions was manifest. . . .
It is too late in the day and entirely contrary to the spirit of the Federal Rules of Civil Procedure for decisions on the merits to be avoided on the basis of such mere technicalities. “The Federal rules reject the approach that pleading is a game of skill in which one misstep by counsel may be decisive to the outcome and accept the principle that the purpose of pleading is to facilitate a proper decision on the merits.
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case,[14] however, because the discrimination tends to be more subtle than race or sex discrimination, yet no less injurious to the worker who has been dismissed. McCorstin v. United States Steel Corp., 621 F.2d 749, 754 (5th Cir. 1980). For example, in Pace v. Southern Ry. Sys., 701 F.2d 1383, 1390 (11th Cir.), cert. denied, 464 U.S. 1018, 104 S.Ct. 549, 78 L.Ed.2d 724 (1983), we noted the Ninth Circuit’s conclusion in Douglas v. Anderson, 656 F.2d 528 (9th Cir. 1981) that the third prong of th McDonnell Douglas test could be established by showing that a plaintiff “was replaced by a substantially younger employee with equal or inferior qualifications” (emphasis in original). Also, where the plaintiff’s dismissal was part of a reduction in force, obviously replacement is not an issue. See McCuen v. Home Insurance Co., 633 F.2d 1150, 1151 (5th Cir. Unit B 1981) McCorstin, 621 F.2d at 754.
[30] Another variation of age discrimination is a claim of constructive discharge which appellant Moore alleged at trial. A plaintiff can prove constructive discharge by showing that his employer created conditions “so difficult or unpleasant that a reasonable person in the employee’s shoes would have felt compelled to resign.” Bourque v. Powell Elec. Mfg. Co., 617 F.2d 61, 65 (5th Cir. 1980), quoting Alicea Rosado v. Garcia Santiago, 562 F.2d 114, 119 (1st Cir. 1977). Whether a prima facie case of discrimination has been established is essentially a factual question. Goldstein v. Manhattan Ind., Inc., 758 F.2d 1435, 1443 (11th Cir.), cert. denied, 474 U.S. 1005, 106 S.Ct. 525, 88 L.Ed.2d 457 (1985). If an ordinary person could reasonably infer discrimination from the facts shown, if those facts remained unrebutted, a plaintiff has established a prima facie case. Id. The burden then shifts to the defendant to produce evidence that the plaintiff was “discharged for a legitimate, nondiscriminatory reason.” Archambault v. United Computing Sys., Inc., 786 F.2d 1507, 1512 (11th Cir. 1986). See Goldstein, 758 F.2d at 1444. To rebut the plaintiff’s evidence the defendant must present evidence which “raises a genuine issue of fact as to whether it discriminated against the plaintiff.”Archambault, 786 F.2d at 1512, quoting Texas Dept. of Community Affairs v. Burdine, 450 U.S. 248, 254-55, 101 S.Ct. 1089, 1094, 67 L.Ed.2d 207 (1981) (Supreme Court clarified shifting nature of burdens of persuasion when McDonnell DouglasPage 1560
we reverse the district court’s grant of judgment n.o.v. and reinstate the jury verdict of willful violation of the ADEA and back pay damages as to each of the ten appellants.
[33] C. Post-Verdict Rulings[37] Castle v. Sangamo Weston, Inc., 650 F. Supp. at 261-62. Once the decision was made to grant appellee’s motion determination of liquidated damages and equitable relief became an academic exercise. Appellate courts in at least three cases have concluded that where a jury determined a liability issue in favor of the defendant, jury findings on damages for the plaintiff were created in a “purely academic atmosphere.” See Williams v. Slade, 431 F.2d 605, 609 (5th Cir. 1970). “The determination of damages therefore bore the characteristic of an advisory opinion … for it was purely academic when it was made and did not pass through the refining pressure of reality.” O’Neill v. United States, 411 F.2d 139, 146 (3d Cir. 1969). See Romer v. Baldwin, 317 F.2d 919, 923 (3d Cir. 1963). Cf. Hutton v. Fisher, 359 F.2d 913, 920 (3d Cir. 1966). In the case at bar, although the court rather than the jury made the damages determinations, we conclude that these determinations were no less “advisory” than the jury determinations in the above-mentioned cases.The above findings and judgments have been entered without ruling on the defendant’s motion for directed verdict or alternative motion for judgment notwithstanding the verdict, to which the Court now turns its attention. . . .
The Court has concluded that since judgments will be entered in favor of the plaintiffs, outlining how the Court would rule in the event the jury’s verdicts and findings are upheld, it will address and rule upon the defendant’s motion for judgment notwithstanding the verdict. In the interest of judicial economy this procedure has been taken to put this case in a posture so that if this Court’s ruling on the defendant’s motion for judgment notwithstanding the verdict is overturned, and barring any major error during the trial which would necessitate a retrial, the case may be finalized without the need for a remand to this Court for findings as to front pay, liquidated damages, and final entries of judgment for each plaintiff.
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[38] We admirably note that the district court’s procedural maneuvers in this case were all designed to promote judicial economy. Unfortunately, these conditional rulings are an impermissible means to a noble end. The only conditional ruling allowed by Fed.R.Civ.P. 50 is a conditional ruling for a new trial should the trial court’s grant of a motion for judgment n.o.v. be overruled. See Fed.R.Civ.P. 50; 9 C. Wright A. Miller, Federal Practice and Procedure Sec. 2540 (1971). We regret the necessity of prolonging these proceedings, but in the interest of justice we must remand the case back to the district court for determination on the issues of liquidated damages and equitable relief for appellants. To guide the district court, we now summarize the prevailing case law on these issues. [39] 1. Liquidated DamagesPage 1562
be inappropriate” and that appellants “would be made whole by the damages previously awarded to them and should recover nothing from the defendant for front pay damages.”[16] Castle v. Sangamo Weston, Inc., 650 F. Supp. at 257, 258. Appellee argues these findings were correct and that no other equitable relief is necessary. Appellee contends that appellants rejected reinstatement and are therefore precluded from seeking money damages in lieu of reinstatement, and, if appellants are not precluded from seeking money damages, they were made whole by the damages previously awarded.
[45] We disagree. Appellants did not abandon their demand for reinstatement; they merely presented to the lower court reasons why reinstatement might be considered inappropriate. A court must be informed on all aspects of an issue if it is to make a reasonable decision. The district court correctly determined that reinstatement was not a viable form of relief due to the surrounding circumstances in the case at bar. [46] The district court then concluded that its awards of liquidated damages as well as the back pay awards provided sufficient relief to appellants, and, therefore, the court refused to grant any additional monetary damages such as front pay to appellants. The district court mistakenly relied on guidelines set out in a First Circuit opinion which determined that liquidated damages could be considered when deciding whether to grant further relief. See Castle v. Sangamo Weston, Inc., 650 F. Supp. at 258. [47] A district court may not factor in the liquidated damages award when considering equitable relief because liquidated damages are punitive in nature. Thurston, 469 U.S. at 125, 105 S.Ct. at 624. Punitive damages are imposed on a defendant to punish him or to set an example for others; they are awarded to plaintiffs in addition to compensatory or actual damages. See Black’s Law Dictionary 352 (5th ed. 1979). Liquidated damages are not meant to replace equitable relief under the ADEA. See Dickerson v. Deluxe Check Printers, Inc., 703 F.2d 276, 280 (8th Cir. 1983). [48] The district court also implied that front pay damages, being prospective, were much too speculative to be calculated. Castle v. Sangamo Weston, Inc., 650 F. Supp. at 257-61. Admittedly, awarding prospective relief involves some risk of uncertainty, but that in itself does not preclude an award of such relief. “District courts have had considerable experience with damages for future wages in employment contract and personal injury cases, … as well as front pay cases under Title VII.”Whittlesey, 742 F.2d at 728 (citations omitted). The duty to mitigate damages by seeking employment elsewhere will, of course, limit the amount of front pay available. See id. [49] Appellants, on appeal, request an award of prejudgment interest on their back pay awards. Appellee correctly points out that at trial appellants asked for prejudgment interest only if their demands for liquidated damages were denied. Appellants made these demands in accordance with controlling precedent in this circuit See O’Donnell v. Georgia Osteopathic Hospital, Inc., 748 F.2d 1543, 1552 (11th Cir. 1984). The law in this circuit on this particular issue, however, has since been changed. See Lindsey II, 810 F.2d at 1102. This court, in Lindsey II, concluded that in light of the Thurston decision “the portion o O’Donnell that bars recovery of both liquidated damages and prejudgment interest under the ADEA is no longer the law.” Id.Page 1563
465 U.S. 1023, 104 S.Ct. 1275, 79 L.Ed.2d 680 (1984). An ADEA plaintiff may now recover prejudgment interest in addition to liquidated damages.
[50] We must emphasize that we merely set forth the prevailing law on each of these issues. The decision whether to grant equitable relief, and, if granted, what form it shall take, lies in the discretion of the district court. Goldstein, 758 F.2d at 1448. Although the district court’s discretion is broad, see Robinson v. City of Fairfield, 750 F.2d 1507, 1512 (11th Cir. 1985), it must be “guided by sound legal principles.” Albemarle Paper Co. v. Moody, 422 U.S. 405, 416, 95 S.Ct. 2362, 2371, 45 L.Ed.2d 280[51] III. CONCLUSION
[52] We reverse the district court’s grant of the judgment notwithstanding the verdict. We reinstate the jury verdicts of willful violation of the ADEA and the jury’s awards of back pay. We remand this case back to the district court to award liquidated damages at least equal to the amount of back pay awarded to each of the appellants, and to reconsider appellants’ demands for further equitable relief.
(a) It shall be unlawful for an employer —
(1) to fail or refuse to hire or to discharge an individual or otherwise discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual’s age
. . . . .
If a timely motion under the Federal Rules of Civil Procedure is filed in the district court by any party: (i) for judgment under Rule 50(b) . . . the time for appeal for all parties shall run from the entry of the order . . . granting or denying any . . . such motion. A notice of appeal filed before the disposition of any of the above motions shall have no effect. A new notice of appeal must be filed within the prescribed time measured from the entry of the order disposing the motion as provided above.
(emphasis added).
Appellants’ first notice, No. 86-3543 specifically appealed from the documents entitled “Judgments” and “Order and Judgment,” which were both entered on July 17, 1986.
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