Banks v. Perdue
Banks v. Perdue
Opinion of the Court
I. INTRODUCTION
Plaintiff Denise Banks brought this action under Title VII of the Civil Rights Act of 1964 against Defendant Secretary of the U.S. Department of Agriculture ("USDA" or "Defendant"), alleging, among other things, that she was discriminatorily removed from her Senior Executive Service position while employed at USDA based on her sex and race. Plaintiff's discrimination claims survived summary judgment and proceeded to trial. At trial, the jury agreed that Plaintiff's sex was a motivating factor in her demotion and returned a damages award of $100,000. The jury, however, found in favor of USDA on Plaintiff's race discrimination claim.
The jury's verdict lies at the heart of the parties' motions that are now before the court. In a motion filed under Rule 50 of the Federal Rules of Civil Procedure, USDA argues that the verdict cannot be sustained and asks the court to enter judgment as a matter of law in its favor on Plaintiff's sex discrimination claim. Alternatively, Defendant seeks a new trial pursuant to Rule 59. Plaintiff, on the other hand, maintains that the verdict should be upheld and, by her own motion, seeks an equitable award consisting of reinstatement to the Senior Executive Service, back pay, and a clean employment record.
For the reasons stated below, the court concludes that: (i) the jury had a reasonable basis to find that USDA discriminated against Plaintiff on the basis of sex when it removed her from her Senior Executive Service position; (ii) USDA is not entitled to a new trial; and (iii) Plaintiff is entitled to reinstatement to the Senior Executive Service, a clean record, and back pay, albeit in an amount less than she seeks. Accordingly, the court denies Defendant's Motion for Judgment as a Matter of Law or, in the Alternative, for a New Trial, and grants in part Plaintiff's Amended Motion for Reinstatement, Back Pay, and Clean Record.
*99II. DEFENDANT'S MOTION FOR JUDGMENT AS A MATTER OF LAW OR, IN THE ALTERNATIVE, FOR A NEW TRIAL
A. Background
1. Factual Background
In January 2000, Plaintiff Denise Banks was demoted from her Senior Executive Service ("SES") position at USDA. Def.'s Mem. in Support of Its Pending Mot. for J. as a Matter of Law or, in the Alternative, for a New Trial, ECF No. 151 [hereinafter Def.'s Mot.], Ex. 1, ECF No. 151-1 [hereinafter Trial Tr.], at 32-33.
At the time relevant to this lawsuit, USDA's Office of Civil Rights was directed by Rosalind Gray. Trial Tr. at 430. Gray, in turn, supervised three deputy directors, id. at 431, two of whom are central to this case: Plaintiff and Jeremy Wu. In February 1999, Plaintiff began working as Deputy Director for Employment and oversaw a staff of approximately 50 people. Id. at 209, 338, 431. Wu, an Asian-American male, was Deputy Director for Systems and Administration and oversaw a staff of approximately six people. Id. at 34, 212-13, 462-63; Def.'s Answer to First Am. Compl., ECF No. 16 [hereinafter Answer], ¶ 16; see Trial Tr. at 16.
Plaintiff and Wu were members of the SES, the highest career-level position in the federal government. Trial Tr. at 43. Members of the SES are executives at various agencies, and the only more senior positions in the federal government are presidential appointees. See id. at 200; cf. id. at 530. In 1999, Banks was in her first year as a member of the SES, which is a probationary period. Id. at 208, 294, 527. At the same time, Wu was in his second year as a member of the SES and had completed his probationary term. See id. at 44-45.
All SES members at USDA are subject to performance evaluations by their supervisor. See id. at 460-62, 539. The supervisor's evaluation is in turn reviewed by the Performance Review Board ("PRB" or "Board"), a collection of SES officials from other parts of USDA. See id. at 295, 461-62; see also id. at 461 (testimony from Gray explaining that "PRB rating boards are evaluation peer-review boards that are set up throughout all of the departments of government to evaluate [SES] members").
In November 1999, Gray gave both Plaintiff and Wu "unsatisfactory" performance *100appraisals and recommended that they be terminated from the SES. Def.'s Ex. 2; Def.'s Mot., Ex. 4, ECF No. 151-4 [hereinafter Def.'s Ex. 4]. The appraisals for both executives contained four performance "elements," or review criteria: (1) development and support of programs and policy; (2) delivery of programs and/or functions; (3) management of resources; and (4) civil rights. Id. For each executive, three of the four elements were considered "critical," see id. ; Trial Tr. at 41, 459-60, although different elements were designated as critical for each executive, according to his or her respective job duties, see Trial Tr. at 458-60, 465-66. "Management of resources" was critical for Wu because he managed the budget, contracting, and other resource issues in the Office of Civil Rights. See Trial Tr. at 464-65. "Development and support of programs and policy" was critical for Plaintiff, but not Wu, because Plaintiff developed programs and policies. Id. at 458-59, 465-66. Gray gave Plaintiff a "does not meet fully successful" in two elements: (1) development and support of programs and policy and (2) delivery of programs and/or functions. Def.'s Ex. 2. Gray gave Wu a "does not meet fully successful" for one element: delivery of programs and/or functions. Def.'s Ex. 4. Under the rating scale, these assessments gave each executive a summary rating of "unsatisfactory." Def.'s Ex. 2; Def.'s Ex. 4; see Trial Tr. at 466. Gray recommended that both be removed from the SES. Def.'s Ex. 2; Def.'s Ex. 4; see Trial Tr. at 532-33. In late 1999, Sally Thompson, Acting Assistant Secretary for Administration, reviewed and signed off on Plaintiff's and Wu's performance appraisals. Trial Tr. at 33, 180, 515; Def.'s Mot. at 4-5; Def.'s Ex. 2; Def.'s Ex. 4; see Trial Tr. at 536-37.
The appraisals then went to the PRB for review. Def.'s Mot. at 4; see Trial Tr. at 45, 527-28. In December 1999, Plaintiff submitted an approximately 40-page rebuttal of Gray's appraisal to the PRB. Trial Tr. at 181. The PRB reviewed Plaintiff's rebuttal and had some additional questions for Gray, who, in turn, submitted a supplemental statement. See id. at 182.
Upon review of a supervisor's evaluation and recommendation, the PRB issues its own summary rating, either concurring with or changing the supervisor's rating. Cf. id. at 42, 532-34. For Wu, the PRB changed the summary rating to "minimally satisfactory" and recommended that Wu be reassigned. See id. ; Def.'s Ex. 4. Wu's appraisal includes written comments from the PRB that "[t]he designation of element # 2 as critical not clear to the executive. The [PRB] gave the executive the benefit of the doubt and changed the designation to noncritical, thus changing the summary rating for Mr. Wu to Minimally Satisfactory." Def.'s Ex. 4. But for Plaintiff, the PRB concurred with Gray's summary rating and recommended Plaintiff's removal from the SES. See Trial Tr. at 295-96; Def.'s Ex. 2. Plaintiff's appraisal does not contain any written comments. See Def.'s Ex. 2. On January 10, 2000, Charles Rawls, Chairman of the PRB, signed both Plaintiff's and Wu's appraisals on behalf of the PRB. See Def.'s Ex. 2; Def.'s Ex. 4.
Before final action could be taken on Wu, Wu departed for an SES position within the Department of Energy. See Trial Tr. at 528, 530. The chair of the PRB told Gray that when Wu appeared before the PRB, Wu requested that his SES status be retained because he had accepted a position at the Department of Energy and planned to transfer. Id. at 530. He further told Gray that the PRB would not proceed with Wu's evaluation if Gray declined to submit supplemental materials to the PRB. Id. Gray did not submit any additional materials to the PRB. Id. Wu transferred to the Department of Energy around January 2000. See id. at 528.
*101Plaintiff's appraisal, however, was forwarded to then-Secretary of Agriculture, Dan Glickman, for a final rating and approval. Id. at 295-96. On January 19, 2000, Glickman issued a final rating of "unsatisfactory" for Plaintiff and signed the performance appraisal. Id. Wu's appraisal does not contain Glickman's signature. See Def.'s Ex. 4.
After Glickman signed Plaintiff's performance appraisal, it was forwarded to Paul Fiddick, who had joined USDA in or around November 1999 and had replaced Thompson as the Assistant Secretary for Administration. Trial Tr. at 301-03. Fiddick sat on the PRB that fall, including the PRB panel that reviewed Plaintiff's performance. See id. at 545-46. Fiddick sent Plaintiff a letter on January 24, 2000, informing her of her demotion. Def.'s Ex. 3. The letter states as the reason for her demotion "unsatisfactory" performance during her probationary period. Id. At trial, Fiddick testified that he did not remember the PRB proceedings evaluating Plaintiff. See Trial Tr. at 546. He also said that, when he sent the demotion letter to Plaintiff, he was just affirming the action of an independent body, the PRB. Id. at 541-42. Effective January 29, 2000, Plaintiff was assigned to a GS-15 position as Special Assistant to the Deputy Director for Programs in the Office of Civil Rights. Def.'s Ex. 3.
After her demotion, Plaintiff prepared a rebuttal to Gray's supplemental statement and gave it to Fiddick. Trial Tr. at 185-86, 547; see Pl.'s Mem. in Opp'n to Def.'s Mots. for J. as a Matter of Law, ECF No. 152 [hereinafter Pl.'s Opp'n], Ex. 4, ECF No. 152-4. Fiddick testified that his calendar shows that he held three meetings in March, April, and June 2000, when he assumes he discussed her request for reconsideration. See Trial Tr. at 547-48; see also id. at 517 (Gray testimony that Fiddick said that he had met with Plaintiff and her attorney following the PRB's decision); id. at 559-60 (Plaintiff testimony that she met with Fiddick in late 1999 and early 2000). Fiddick ultimately denied Plaintiff's request. Cf. id. at 546-47.
2. Procedural History
Plaintiff filed an EEO complaint regarding her demotion in February 2000. See Answer ¶ 8. In February 2007, USDA issued a final agency decision upholding Plaintiff's demotion. Cf. id. Plaintiff appealed, and the EEOC's Office of Federal Operations affirmed USDA's decision. Am. Compl., ECF No. 15, ¶ 8; see Answer ¶ 8.
Plaintiff filed a Complaint in this court in October 2007, which she amended in August 2008. See generally Am. Compl. In her five-count Amended Complaint, Plaintiff alleged that USDA discriminated against her on the basis of race, sex, and age. See id. ¶¶ 53-57. The parties cross-moved for summary judgment, and in March 2013, then-Chief Judge Roberts granted and denied those motions in part. Judge Roberts granted USDA's motion as to Plaintiff's hostile work environment claims as well as several of her retaliation claims, but allowed Plaintiff's race, age, and sex discrimination claims and other retaliation claims to proceed. See Banks v. Vilsack ,
Plaintiff's sex and race discrimination claims were tried before a jury in August 2013. At three points during trial-at the close of Plaintiff's case-in-chief, after the close of its own case, and at the close of Plaintiff's rebuttal case-USDA moved for *102judgment as a matter of law under Rule 50(a). See Trial Tr. at 372-82, 551-54, 561-63. At each point, Judge Roberts reserved ruling on the motion. Id. at 382, 553, 563.
At the close of evidence, Judge Roberts instructed the jury on two theories of intentional discrimination. See generally id. at 575-77, 601-15. He instructed that Plaintiff could show either that her sex was a determinative factor in her removal from the SES, or that her sex was a mere motivating factor in USDA's decision. See Final Instructions, ECF No. 124 [hereinafter Instructions], at 11-13. The court further explained that under the latter, "mixed-motive" theory, the jury could only award Plaintiff damages if USDA failed to prove by a preponderance of the evidence that it would have made the same decision to demote Plaintiff even if her sex had played no role in the decision. See id. at 15.
The jury returned a verdict that was favorable for Plaintiff in part, finding that USDA removed Plaintiff from her SES position because of intentional discrimination based on her sex, but not on the basis of her race. Trial Tr. at 681; see also Verdict Form, ECF No. 123. Importantly, in finding in favor of Plaintiff on her claim of sex discrimination, the jury did not conclude that Plaintiff would have been demoted but for her sex, but instead found that sex was a motivating factor in Plaintiff's demotion and that USDA had not shown it would have otherwise demoted Plaintiff. See Verdict Form. The jury awarded Plaintiff $100,000 in damages. Id.
USDA then moved for judgment as a matter of law under Rule 50(b) or, in the alternative, for a new trial under Rule 59. Trial Tr. at 684-85; Def.'s Mot.; see also Def.'s Oral Mot. for Rule 50(a) and 50(b), ECF No. 155. That motion is now before the court.
B. Discussion
Defendant's Motion advances two bases for undoing the jury's verdict. First, under Rule 50, Defendant contends that no reasonable jury could have concluded from the evidence presented that Plaintiff's sex was a motivating factor in her demotion. To support that assertion, Defendant methodically identifies each potential individual discriminator-Rosalind Gray, Sally Thompson, Dan Glickman, and Paul Fiddick-and explains why the evidence does not evince any discriminatory intent on that individual's part. See Def.'s Mot. at 15-22. Moreover, Defendant also disputes that the jury could have reasonably concluded that the PRB discriminated against Plaintiff. See id. at 22-28. Defendant therefore asks the court to vacate the judgment in favor of Plaintiff on her sex discrimination claim and enter judgment in its favor as a matter of law. See id. at 1.
In the alternative, Defendant contends that a new trial is warranted under Rule 59 for two reasons: (1) Plaintiff gave Defendant no pre-trial notice of her theory that the PRB discriminated against her and raised it for the first time mid-trial, thus constituting prejudicial "unfair surprise," and (2) the jury's verdict is internally inconsistent. See id. at 3, 29-31. With respect to the latter ground, Defendant also argues that if the court were to enter judgment on the jury's verdict and decline to order a new trial, the court should at least do so "based on the jury's finding that gender was a mere motivating but not a determinative cause and, thus, award Plaintiff no compensatory damages or equitable relief." Id. at 29.
The court starts with Defendant's Rule 50 argument and then considers the grounds asserted for a new trial under Rule 59.
*1031. Rule 50
a. Legal standard
The standard for considering a motion under Rule 50"mirrors" the standard for summary judgment under Rule 56. Anderson v. Liberty Lobby, Inc. ,
b. The merits
The question posed by Defendant's Motion for Judgment as a Matter of Law is whether Plaintiff presented sufficient evidence at trial to allow a reasonable jury to conclude that her sex motivated USDA's decision to demote her. Title VII "provides that 'an unlawful employment practice is established when ... sex ... was a motivating factor for any employment practice.' " Ponce v. Billington ,
Although the "but for" and "mixed-motive" theories differ, the means of proving discriminatory intent are the same. "As with but-for causation, a plaintiff can use evidence of pretext and the McDonnell Douglas [Corp. v. Green ,
In this case, Plaintiff attempted to show pretext in two ways. First, she urged the jury to find pretext based on how Defendant treated her case relative to Wu's. Second, Plaintiff vigorously argued that Gray could not have reasonably believed that her work performance warranted the "unsatisfactory" rating that led to her demotion. For the reasons stated below, a reasonable jury could have found the evidence presented supports either approach.
i. Comparator evidence
For a female employee to be similarly situated to a male counterpart, "all of the relevant aspects of her employment situation" must be "nearly identical to those of the male employee." Holbrook v. Reno ,
Here, the jury could have found that Wu and Plaintiff were similarly situated based on the fact that: (i) both Plaintiff and Wu were members of the SES-the highest career position in the federal government; (ii) both were deputy directors in USDA's Office of Civil Rights; (iii) both shared the same supervisor, Gray, who was the director of the Office of Civil Rights; and (iv) both received an unsatisfactory rating for poor work performance from Gray and were recommended for removal from the SES at the same time. Cf.
USDA's post-trial contention that Wu and Plaintiff cannot be considered comparators as a matter of law rests largely not on some legal or position-based distinction, but rather on the employees' treatment by the PRB. See Def.'s Mot. at 25-27. USDA asserts that the Board articulated a legitimate reason for treating Plaintiff and Wu differently-namely, that Plaintiff was aware of all of her critical performance elements and Wu was not. Id. at 25. For that reason, USDA argues, the two are not similarly situated. Id. But USDA cannot bootstrap its claimed nondiscriminatory reason for treating Plaintiff and Wu differently into an argument that Plaintiff and Wu are not comparators. The question whether two employees are similarly situated is distinct from whether their different treatment gives rise to an inference of discrimination. Cf. Wheeler ,
Moreover, even if Wu's professed ignorance of one of his critical performance elements could be considered a potential distinguishing factor, see Def.'s Mot. at 27, the jury reasonably could have rejected it. There was sufficient evidence presented at trial for the jury to disbelieve Wu's claimed obliviousness. Gray testified that Wu received a "package" when he took the job as deputy director and that, upon receipt of the package, "not only did he sign off and accept his position, his job description, but he also accepted his performance standards at that time." Trial Tr. at 523. Thus, from Gray's testimony, the jury could find that Wu in fact did have knowledge of his critical performance elements and that his later claim of ignorance before the PRB was not credible. Additionally, Wu was in the SES for a year longer than Plaintiff when they received negative performance appraisals from Gray. See id. at 44-45. From that fact the jury reasonably could have found it implausible that Wu, a long-time employee of the federal government, see id. at 462, would not have known the full scope of his job duties and responsibilities, see id. at 619 (arguing in closing that Wu's asserted lack of knowledge was not credible in light of his experience). And, although USDA alludes to the difference in Plaintiff's and Wu's "critical elements" as a distinguishing factor between them, Def.'s Mot. at 26, the jury readily could have found that difference to be immaterial when the key question presented was why Wu was treated differently from Plaintiff when both were adjudged by Gray to have performed unsatisfactorily with regard to their respective job responsibilities and recommended for removal from the SES. In the end, it is the jury's province to weigh the evidence. Viewing that evidence in the light most favorable to Plaintiff here, the jury reasonably could have found that Wu and Plaintiff were similarly situated.
Finally, USDA argues that, even if Plaintiff and Wu can be considered comparators, "Plaintiff offered no basis for a reasonable juror to question the bona fides of the Board's stated reason" for treating Wu differently than Plaintiff. Id. at 28. In other words, USDA insists that the Board's nondiscriminatory reason for treating Plaintiff differently is not evidence of pretext. As discussed, the reason *106the Board offered for not recommending Wu's removal was that Wu did not know that one of his performance elements was deemed critical. The sole evidence presented by USDA of that rationale are typed comments at the conclusion of Wu's performance appraisal, which read: "The designation of element # 2 as critical not clear to the executive. The [Board] gave the executive the benefit of the doubt and changed the designation to noncritical, thus changing the summary rating for Mr. Wu to minimally satisfactory." Def.'s Ex. 4 at 4; see also Trial Tr. at 36-37, 41-42.
Moreover, the PRB's formulation of the reason for the disparate treatment itself could have planted seeds of doubt in the jurors' minds. Giving Wu "the benefit of the doubt" is the kind of subjective explanation that could have caused a reasonable juror to question the veracity of the Board's explanation. See Aka v. Wash. Hosp. Ctr. ,
ii. Gray's performance review and Fiddick's refusal to reconsider
Plaintiff's theory of discrimination was not confined to the PRB. Based on the evidence presented at trial, the jury also could have credited several other theories of pretext in reaching its conclusion that Plaintiff's sex motivated USDA's decision. The court starts with Gray. There was sufficient evidence presented at trial for a reasonable jury to find that Gray's stated reason for recommending Plaintiff's demotion was false or was patently unreasonable, and that the appraisal-upon which the PRB's recommendation and Fiddick's *107decision was based-was the product of discrimination. Gray recommended Plaintiff's removal due to her alleged poor performance. See generally Def.'s Ex. 2. The jury, however, heard evidence that, if believed, would cast doubt on Gray's credibility and the bona fides of her assessment of Plaintiff. For instance, Plaintiff presented testimony from one of her second-level subordinates in the USDA Office of Civil Rights, who stated that he had worked with about 50 people in the agency "who had come or gone or who were still there who were absolutely incompetent," unlike Plaintiff, and that he was therefore "stunned" by her demotion. Trial Tr. at 362, 368; see also id. at 368 (noting that in his 13 to 14 years in the Office, he had never seen anyone demoted other than Plaintiff). He further testified that Plaintiff was "the first Second-Line Supervisor [he] had ... in [his] time there, ever, who knew Civil Rights," id. at 368, and described her as "analytical," "very professional," "hands-on," "readily accessible," and "supportive," id. at 363. Moreover, for every contention by USDA at trial that Plaintiff underperformed in her job, Plaintiff provided rebuttal evidence. For example, as to Gray's assertion that there were approximately 120 cases in which decisions were drafted but not forwarded to her office for signature, see Def.'s Ex. 2 at 3, Plaintiff testified that many of those cases were at earlier stages and therefore were not ready for Gray's review, Trial Tr. at 135, 172. Similarly, to rebut Gray's assistant's claims that Plaintiff was difficult to locate during office hours, see Trial Tr. at 396-98, Plaintiff presented evidence from her special assistant that she worked long hours and was available, id. at 329-30, 335-36. It was up to the jury to resolve these factual disputes, and they reasonably could have found in Plaintiff's favor.
USDA emphasizes that the question is not whether Plaintiff actually performed poorly, but whether the employer honestly and reasonably believed she performed poorly. Def.'s Mot. at 16-17; Def.'s Reply Mem. in Supp. of Mots. for J. as a Matter of Law or, in the Alternative, for a New Trial, ECF No. 154 [hereinafter Def.'s Reply], at 21-22. Thus, even if Plaintiff created a jury question as to whether the performance review was accurate, USDA argues, she failed to present sufficient evidence casting doubt on the sincerity of Gray's belief in Plaintiff's poor performance. Def.'s Mot. at 17. Contrary to USDA's assertion, however, and as discussed immediately above, Plaintiff did present sufficient evidence to cast doubt upon Gray's belief that Plaintiff was performing poorly, and it went beyond Plaintiff's own testimony. Thus, this case stands in contrast to cases in which the parties do not contest the facts about how an individual performed and only take issue with a subjective appraisal based on largely uncontested facts. Cf. Royall ,
And then there is Fiddick. Fiddick sat on the PRB that considered both Plaintiff's and Wu's performance appraisals. Trial Tr. at 546-47. Although the Board did not ultimately demote Wu, it did recommend that Plaintiff be demoted, and Fiddick then executed that decision. See id. at 44-46; cf. id. at 538-42. Plaintiff asked Fiddick to reconsider. Specifically, after Plaintiff received notice of her demotion, she prepared a rebuttal statement and delivered it to Fiddick, in which she addressed the allegations of her poor performance. Pl.'s Opp'n, Ex. 4, ECF No. 152-4. Fiddick reviewed this material, yet denied her request for reconsideration. See Trial Tr. at 546-48. For the same reasons that the jury could have doubted the PRB's proffered explanation for Plaintiff's demotion, the jury could have questioned Fiddick's story. The jury could have held Fiddick accountable for curiously giving Wu the "benefit of the doubt," but not extending similar benefit to Plaintiff, either before the PRB or during the reconsideration process. Plaintiff pressed the jury to reach that very conclusion. Id. at 622, 660-62. Moreover, Plaintiff questioned Fiddick's credibility because he could not recall many of the facts surrounding Plaintiff's demotion. Id. at 622; see also id. at 627 (arguing that Fiddick "took refuge in a long period of time and in a large lack of memory to deny that he had involvement in this case"). It was for the jury to decide whether Fiddick's lapses in memory were innocent, or evidence of discriminatory animus. In short, there was evidence regarding Fiddick's actions from which the jury could infer that Plaintiff's sex was a motivating factor in her demotion.
USDA attempts to short-circuit scrutiny of Fiddick's conduct by arguing that his refusal to reconsider Plaintiff's demotion is not at issue in this case. See Def.'s Reply at 10, 14-15. But Fiddick's actions played a prominent role at trial, and Plaintiff argued in closing, without drawing an objection, that the jury could infer discrimination from Fiddick's inaction. Trial. Tr. at 622; see also id. at 660 (asserting that the "real decision-makers were the Performance Review Board and Mr. Fiddick"). There is simply no good reason for this court to ignore facts that were presented to the jury in deciding whether to sustain its verdict.
Lastly, USDA appears to argue that even if there were sufficient evidence for a reasonable jury to find that Plaintiff's sex motivated USDA's decision to remove her from the SES, the jury could not have reasonably concluded that USDA failed to meet its burden in showing that it would have removed Plaintiff from the SES anyway. See Ponce ,
2. Rule 59
a. Legal standard
The court turns now to USDA's alternative argument that a new trial is warranted under Rule 59. See Def.'s Mot. at 3, 29. Rule 59 allows a court to grant a new trial after a jury verdict "for any reason for which a new trial has heretofore been granted in an action at law in federal court." Fed. R. Civ. P. 59(a)(1). "The authority to grant a new trial ... is confided almost entirely to the exercise of discretion on the part of the trial court." Queen v. Schultz ,
b. The merits
In this case, USDA argues it is entitled to a new trial on two separate grounds: unfair surprise and an inconsistent jury verdict. The court begins with the claim of unfair surprise.
i. Unfair surprise
"A party seeking a new trial on the grounds of unfair surprise must show that it was deprived of a fair hearing and demonstrate 'reasonably genuine surprise, which necessarily was inconsistent with substantial justice and which resulted in actual prejudice.' " Hancock v. Wash. Hosp. Ctr. ,
Although Plaintiff unquestionably could have done more to make known that she would ultimately argue that the PRB discriminated against her, USDA cannot reasonably claim that it was "genuine[ly] surprised" by that contention at trial. See id. at 29. While it is true that Plaintiff's pleading does not explicitly identify the Board as a discriminator, the Amended Complaint gave Defendant "fair notice" that the PRB's decision-making would be relevant to Plaintiff's discrimination claims. See Bell Atl. Corp. v. Twombly ,
*110Compl. ¶ 16. USDA, of course, knew that the PRB gave Wu "the benefit of the doubt," but displayed no such goodwill towards Plaintiff. Thus, there can be little question that Defendant had notice that the PRB's decision-making would be a central feature of Plaintiff's case.
Additional facts weigh against USDA's claimed unfair surprise. At the summary judgment stage, USDA expressly recognized that Plaintiff would be pointing to the PRB as a discriminator. In a footnote in its opening brief, USDA wrote: "Plaintiff alleges that the fact that the Performance Review Board did not remove the Asian male from SES shows that the reasons for Plaintiff's removal were pretext for unlawful discrimination. In doing so, Plaintiff adds yet another set of decision-makers to the list of actors who she claims discriminated against her on the basis of ... sex." See Def.'s Mot. for Summ. J., ECF No. 38, Def.'s Mem. of Points & Authorities in Supp. of Mot. for Summ. J., ECF No. 38-2, at 6 n.1 (citation omitted). That passage is a clear acknowledgment by USDA that Plaintiff would be using the PRB's actions to make out her discrimination claims.
Moreover, USDA anticipated that at trial it would need to rebut Plaintiff's contention that the PRB discriminated against her. USDA designated Charles Rawls-the Chairman of the Board at the time the PRB recommended removal of Plaintiff from the SES-as a witness in its Revised Pretrial Statement. See Def.'s Revised Pretrial Statement, ECF No. 91, at 8. Rawls was to testify about the Board evaluation process and explain "the considerations used by the 1999 PRB that reviewed and approved of Ms. Banks's unsatisfactory rating and removal from the SES and that reviewed Gray's decisions regarding Mr. Wu's FY 1999 performance appraisal."
ii. Inconsistent verdict
That leaves Defendant's second ground for seeking a new trial under Rule 59 : internal inconsistencies in the jury's verdict. See Def.'s Mot. at 30-31. "Claims that a jury verdict is inconsistent impose a special obligation on the court to view the evidence in a manner that reconciles the verdicts if possible, and to grant a new trial if not." Halcomb v. Woods ,
*111" '[S]uccessful claims of verdict inconsistency are rare,' arising only when the jury has reached conclusions that 'cannot reasonably be reconciled or sustained.' " Halcomb ,
In this case, the Verdict Form asked the jurors a series of questions. It first asked whether USDA removed Plaintiff from her SES position "because of intentional discrimination based upon her sex." Verdict Form ¶ 4. If the answer was "yes," the jury was asked to decide whether Plaintiff's sex was a determinative factor or a motivating factor in USDA's decision. See id. ¶ 5. If the jury chose "determinative factor," it proceeded straight to the question of damages; if the jury chose "motivating factor," it was directed to answer the following question:
Although Plaintiff Denise Banks's sex was a motivating factor in the USDA's decision to remove her from her SES position, would the USDA have removed her from the position even if her sex had played no role in its decision?
Id. ¶ 6. If the answer to that question was "no," the jury was then instructed to enter an award of money damages. Id. ¶ 7. The jury here did exactly as instructed. It first found Plaintiff's sex to be a motivating, but not determinative, factor in USDA's decision. See id. ¶ 5. It then considered the question quoted above and answered it "no." See id. ¶ 6. It then proceeded to award $100,000 in damages. See id. ¶ 7.
According to USDA, the jury's answers are inconsistent with one another because the jury found that "Plaintiff's gender was not the 'but for' cause of her demotion by rejecting it as a 'determinative factor,' " yet simultaneously "decided that her demotion occurred because gender played a role in the decision-i.e. , gender was the but for reason for the decision." Def.'s Mot. at 31. But there is no inconsistency. The jury's answers clearly track the law of this Circuit governing single versus mixed-motive cases. See Ponce ,
In a mixed-motive case 42 U.S.C. § 2000e-5(g)(2)(B) provides the employer with a "limited affirmative defense" that "does not absolve it of liability, but restricts the remedies available to a plaintiff." More particularly, if the plaintiff makes out a violation under § 2000e-2(m), but the defendant "demonstrates that [it] would have taken the same action in the absence of the impermissible motivating factor," then the district court may grant declaratory or injunctive relief and attorney's fees, but "shall not award damages or issue an order requiring any ... reinstatement, hiring, promotion, or payment."
Fogg v. Gonzales ,
Nevertheless, USDA further insists that the jury's "illogical and conflicting results" cannot be explained by the shifting burdens of proof, as Plaintiff claims, because "[t]he jury is not learned in jurisprudence regarding burdens of proof and the verdict *112form assigns no burdens in presenting the questions for the jury's consideration." Def.'s Reply at 25. But that argument ignores the jury instructions delivered by Judge Roberts. As relevant here, the instructions provided:
Ms. Banks presents two theories as to how the USDA intentionally discriminated against her....
To show that ... sex was a determinative factor , the plaintiff must show that if not for her ... sex, the defendant would not have made its employment decision about her....
... [Y]ou should find for Ms. Banks if you find that the USDA's explanation is not the true reason and that but for intentional discrimination based on Ms. Banks's ... sex, the USDA would not have removed Ms. Banks from her SES position in 2000.
To show that ... sex was a motivating factor in the defendant's decision, the plaintiff .... must only prove that her ... sex played an actual or substantial role in the defendant's decisions even though other factors may also have motivated the defendant.
....
In order for you to find for the plaintiff, the plaintiff must prove by a preponderance of the evidence that one or more USDA officials intentionally discriminated against her....
....
If you find that ... sex was a determinative factor in the defendant's decision ... then you must determine an amount that is fair compensation for the plaintiff's damages.
If you find that the plaintiff's ... sex was a motivating, but not a determinative factor in the defendant's employment decision, then you must decide whether the plaintiff is entitled to damages. The plaintiff is not entitled to damages if the defendant proves by a preponderance of the evidence that it would have treated the plaintiff the same even if the plaintiff's ... sex had played no role in the employment decision.
Instructions at 11-13, 15 (emphasis added); see also Trial Tr. at 610-14. These instructions provided the jury with the roadmap it needed to resolve the parties' dispute. The instructions clearly distinguished between Plaintiff's two theories of discrimination and identified the party that shouldered the burden of proof as to each theory. Therefore, the instructions provided all the "jurisprudence" necessary to resolve Plaintiff's sex discrimination claim.
* * *
For the foregoing reasons, the court denies Defendant's Motion for Judgment as a Matter of Law or, in the Alternative, for a New Trial.
III. PLAINTIFF'S MOTION FOR EQUITABLE RELIEF
Having prevailed at trial, Plaintiff now seeks equitable relief. In her Motion, Plaintiff seeks: (1) reinstatement to the SES, (2) back pay, and (3) the removal of any reference to her 2000 demotion from her Official Personnel File. See generally Pl.'s Am. Mot. USDA concedes that, under the circumstances, expunging Plaintiff's demotion from her record is an appropriate equitable remedy. See Def.'s Opp'n at 3 n.3. Thus, only reinstatement and back pay are at issue. The court will address each issue in turn.
A. Reinstatement
District courts have wide discretion to award equitable relief under Title *113VII, including reinstatement. Barbour v. Merrill ,
USDA opposes Plaintiff's reinstatement, citing her poor performance as a supervisory employee while she was in the SES and thereafter. Def.'s Opp'n at 3, 7-18. In addition to evidence related to Plaintiff's performance as an SES member, USDA offers evidence of "significant issues with [Plaintiff's] supervisory performance" following her demotion in 2000. Id. at 8. According to USDA, Plaintiff has been tasked with supervisory duties in four different positions: (i) Chief of the Policy Division (2004-2005); (ii) Chief of the Employee Complaints Division (2005-2007); (iii) Director of the Data and Records Management Division (2009-2012); and (iv) Director of the Corporate Services Division (2012-2013). Id. at 7-8. Yet, in each of those positions, USDA contends, her work has been criticized. Id. at 8. Her purported supervisory deficiencies fall into three main categories. First, USDA contends that Plaintiff's "failures to provide timely performance evaluations and plans to her subordinates have continued since her demotion." Id. Second, USDA argues that Plaintiff has continued to show "her inability as a supervisor to ensure that EEO case materials are properly maintained and organized to allow for the proper functioning of the agency's EEO activities." Id. at 10. Third, USDA cites Plaintiff's "failure[ ] to communicate essential information to her supervisors." Id. at 13. As to each of these points, USDA cites to multiple evaluations, e-mails, and letters relating to events that have occurred since 1999. Plaintiff, for her part, vigorously pushes back against USDA's criticism of her supervisory performance. See generally Pl.'s Reply to Def.'s Opp'n to Mot. for Reinstatement, Back Pay, and Clean Record, ECF No. 178 [hereinafter Pl.'s Reply].
The court does not attempt, in the present posture,
In the end, what USDA asks the court to do is to countenance continuing to deny Plaintiff a senior status that she once had earned and enjoyed, but lost due to sex discrimination. The court will not do so. The court therefore grants Plaintiff's request for reinstatement to the SES.
B. Back Pay
Plaintiff also seeks "back pay in the amount of $701,025 as of December 8, 2016, plus any accrued back pay to the date of judgment and prejudgment interest at the Treasury rate." Pl.'s Am. Mot. at 1. To understand how Plaintiff reached the sum she seeks, as well as USDA's objections *115to such an award, some background is necessary.
In Plaintiff's initial motion for equitable relief, see ECF No. 161, she relied upon the expert opinion of financial analyst Joseph Rosenberg. See Joint Motion for Discovery and to Extend Briefing Schedule on Pl.'s Requests for Equitable Relief, ECF No. 162, at 2. Because Plaintiff did not disclose Rosenberg as a potential expert or produce certain Office of Personnel Management reports during discovery, USDA sought to strike the expert report and undisclosed documents. See
During this discovery period, Rosenberg timely amended his original report twice-once on July 27, 2016, see Pl.'s Am. Mot., Ex. 6, ECF No. 170-1 [hereinafter Second Rosenberg Report], and again on August 23, 2016, after he was deposed by USDA, see Def.'s Opp'n, Ex. EE, ECF No. 175-31 [hereinafter Rosenberg Tr.]; Pl.'s Am. Mot., Ex. 7, ECF No. 170-2 [hereinafter Third Rosenberg Report]. More than a month after the extended discovery period closed, Rosenberg filed another amended report, dated December 8, 2016 ("Late Rosenberg Report"). See Order, ECF No. 165, at 1 (setting October 26, 2016, as deadline for close of discovery); Pl.'s Am. Mot., Ex. 8, ECF No. 170-3 [hereinafter Late Rosenberg Report]. The court, however, excluded the Late Rosenberg Report as untimely, holding that the Third Rosenberg Report would be the operative expert report. See Hr'g Tr. (draft), Oct. 5, 2017, at 46. Because this ruling came after the close of briefing, Plaintiff's back pay calculation is based on the Late Rosenberg Report, including its $701,025 computation of back pay. See Pl.'s Am. Mot. at 1; Late Rosenberg Report at 23.
USDA raises a host of objections related to Rosenberg's computation of back pay in his Late Report, some of which presumably apply to the Third Rosenberg Report. In calculating Plaintiff's back pay, Defendant relies on an annotated demonstrative exhibit, which "correct[s]" any assumptions that the agency contends are flawed. Def.'s Opp'n at 26. Otherwise, it uses the assumptions underlying the calculations of the "most probable scenario" in the Third Rosenberg Report. See
Based on the present record and the parties' briefs, the court cannot-and should not-attempt to calculate a final back pay award. Instead, the court will resolve USDA's objections to Rosenberg's analysis and leave it to the parties to propose an appropriate award in light of the court's rulings.
1. Mitigating income calculation
To begin, USDA objects to the source of the numbers used to calculate Plaintiff's *116mitigating income-that is, the amount of income Plaintiff has received since her demotion in 2000. See Def.'s Opp'n at 21-23. In preparing his Second Report, Rosenberg identified Plaintiff as the source for her actual compensation from 2000 to 2008, which he testified was derived from Bank's pay stubs or W-2 tax forms. Id. at 21-22; see also Second Rosenberg Report at 17; Rosenberg Tr. at 90-91. In his Third Report, however, Rosenberg used the rates of pay set forth in SF-50s contained in Plaintiff's employment file. Def.'s Opp'n at 22 (citing Third Rosenberg Report); see Pl.'s Am. Mot. at 14-15. His Late Report, however, reverts back to Plaintiff's W-2 tax forms, as well as an income statement from the Social Security Administration, to tally mitigating income. Def.'s Opp'n at 22 (citing Late Rosenberg Report at 3). USDA argues that even though Rosenberg testified that using Plaintiff's SF-50s to fix Plaintiff's annual income would be "more accurate," his Late Report relies on the less accurate source of data. Id. USDA insists that the SF-50s' income figures be used to tabulate mitigating income. Id. at 25.
This objection is largely moot, however. The court has since excluded the Late Rosenberg Report, and USDA admits that the Third Report "us[es] the 'more accurate' rates set by [USDA] and reflected on Banks's SF-50s as the source of mitigating income."Id. at 22, 25. Thus, Plaintiff's mitigating income should be calculated based on the bonuses and salary rates set forth in Banks' SF-50s or other relevant record contained in her official personnel file. See id. at 25. The parties also should assume that Plaintiff did not receive any bonuses prior to 2005 in calculating her mitigating income, given the lack of any SF-50s in her file reflecting such bonuses. See Def.'s Ex. PP at n.7.
2. Pay not received due to administrative error
USDA also takes issue with the income figures that Rosenberg used from 2003 to 2007. This objection relates to an administrative error that apparently resulted in a discrepancy between the pay Plaintiff received and the pay set by USDA. See Def.'s Opp'n at 23. From 2003 to 2008, Plaintiff's salary, set by the Office of Civil Rights, did not increase even as her GS pay levels increased. Id. Instead, Plaintiff's salary remained fixed at $125,246 per year. Id. In September 2008, Plaintiff raised this issue with her supervisor. See Def.'s Exs., Ex. JJ, ECF No. 175-36. USDA then issued a series of SF-52 forms to harmonize Plaintiff's salary for 2003 to 2008 to the corresponding appropriate GS-15, step 10, salary for those years. See Def.'s Opp'n at 23; Def.'s Exs., Ex. KK, ECF No. 175-37. USDA also amended the SF-50s in Plaintiff's official personnel file to reflect the changes. Def.'s Opp'n at 23. While Plaintiff received the salary-differential payment for the 2008 calendar year, she claims she did not receive those payments for 2003 to 2007. See Def.'s Exs., Ex. J, ECF No. 175-10 [hereinafter Def.'s Ex. J], at 88-89. She seeks to recoup those sums here by calculating a salary mitigation figure that reflects the lesser income actually received, as opposed to the greater income she should have received per her corrected SF-50s. See Def.'s Opp'n at 23-24; cf . Pl.'s Am. Mot. at 14-15. USDA opposes that request. It argues that Plaintiff is not entitled to back pay from 2003 to 2007 to the extent such pay arises out of the administrative errors. Such errors, USDA contends, are unrelated to Plaintiff's demotion. See Def.'s Opp'n at 23-24. The court agrees.
In considering appropriate equitable relief, the court's goal "is to restore the plaintiff[ ], as nearly as possible, to the *117circumstances [she] 'would have occupied if the wrong had not been committed.' " Caudle v. District of Columbia ,
3. Projected compensation
USDA's remaining objections relate to Rosenberg's calculation of Plaintiff's projected compensation, i.e., the income that she could have expected to earn had she not been wrongfully removed from her SES position. First, USDA attacks the premise of the "most probable" scenario relied upon by Rosenberg. See Def.'s Opp'n at 25. Under this scenario, Plaintiff would have received "outstanding" or "exceeds expectations"
Second, USDA argues that Rosenberg, "based on no authority whatsoever[,] projected that [Plaintiff] would have received elevations in [Executive Schedule 'ES'] levels under the prior SES pay system each year from 2000 to 2004." Def.'s Opp'n at 25; see Def.'s Exs., Ex. HH, ECF No. 175-34, at 19-23; see also Third Rosenberg Report at 10 ("For years 2000-2003, step increases from ES-1 to ES-4 were assumed for all levels.... Salaries in 2004 weren't available and so were averaged between the 2003 and 2005 salaries for each level."); Rosenberg Tr. at 55 (explaining that the 2004 average was based, in part, on "what she would have earned as an ES-4 in 2003"). According to USDA, under the old ES-based SES pay system, promotions from one ES-level to the next (with a corresponding pay increase) did not occur as Rosenberg assumes. Def.'s Opp'n at 25. Specifically, Patricia Moore, Director of Executive Resources for *118USDA, testified that from 2000 to 2003, SES employees did not progress like a GS employee would expect to under the grading system, provided their performance was satisfactory. Def.'s Exs., Ex. NN, ECF No. 175-39 [hereinafter Def.'s Ex. NN], at 26-27; see Pl.'s Am. Mot. at 13. Instead, supervisors could make recommendations to the Board based upon the employee's performance, and the Board and ultimately the Secretary would have "sole discretion ... to give them that progression to the next level." Def.'s Ex. NN at 27. Importantly, an SES employee who received a rating of "outstanding" would not necessarily progress to the next level. Id. at 27-28. Under the old system, progression was based upon a number of factors, including the structure of the office. Id. at 28. As Moore testified: "If my boss was an ES-4, he probably wasn't going to give me, as a subordinate, an ES-5. So it was based on the position as well as my performance." Id.
Based on this uncontested testimony, the court agrees that Plaintiff's projected compensation should not rest on the assumption that her ES level would have increased each year from 2000 to 2003. To hold otherwise would require speculation not only that Plaintiff would have received high performance ratings during these years, but also that a myriad of other factors existed to warrant the level increase. Such speculation cannot form the basis of a back pay award.
Finally, USDA objects to Rosenberg's projected salary increases from 2010 to 2013, as SES salaries were frozen during this period by Executive Order. See Def.'s Opp'n at 25 (noting 2013 freeze); Def.'s Ex. PP at n.2 ("For years 2010 to 2013, USDA did not project a salary increase because all SES salaries were frozen by OPM during this period of time."). To the extent Rosenberg does not account for such pay freezes in his Third Report, his calculations are inaccurate. Plaintiff's back pay should reflect such pay freezes. See generally Def.'s Exs., Ex. OO, ECF No. 175-40 (2013 OPM Memorandum); Freeze on Pay Adjustments for Federal Civilian Employees , U.S. Office of Pers. Mgmt. (Dec. 30, 2010), https://www.chcoc.gov/content/freeze-pay-adjustments-federal-civilian-employees (2010 OPM Memorandum).
The foregoing rulings obviously change the analyses with respect to back pay, and the court is in a poor position to attempt to calculate how those rulings affect the ultimate award. Accordingly, the court directs the parties to meet and confer and attempt to reach a resolution on the amount of back pay in light of the court's rulings. In updating the back pay calculations, the parties shall also take into account the year 2017, as well any amounts that would be due to her in 2018 "through the date of judgment." See Barbour ,
IV. CONCLUSION AND ORDER
For the foregoing reasons, Defendant's Motion for Judgment as a Matter of Law or, in the Alternative, for a New Trial is denied, and Plaintiff's Amended Motion for Reinstatement, Back Pay, and Clean Record is granted in part and denied in part.
The parties shall meet and confer and, no later than 30 days from this date, file a Joint Status Report indicating whether the parties have agreed on a total back pay amount in light of the court's rulings. If the parties cannot agree on a back pay award, the Report shall specifically identify any disputes over calculations so that the court can make a final determination.
The court will enter final judgment in this matter upon resolution of the back pay award. The parties shall present the court with a draft order.
The court apologizes to the parties, particularly to Plaintiff, for the inordinate amount of time that the Rule 50 motion has been pending. No motion, let alone a post-trial motion, should take so long to resolve.
For convenience, the court cites to Exhibit 1 of Defendant's Motion, which compiles all of the daily jury trial transcripts and includes sequential page numbering. The individual trial transcripts may be found in ECF Nos. 142-147.
Citations to Plaintiff's Amended Motion are to the page numbers electronically generated by CM/ECF.
Judge Roberts excluded USDA's proposed witness from the PRB, Charles Rawls, because USDA disclosed his name too late. See Banks v. Vilsack ,
While Halcomb analyzed inconsistencies in the jury's verdict as a ground for new trial, see
Although the court asked whether either party wished to have an evidentiary hearing on the appropriateness of reinstatement as a remedy, both parties declined the invitation. See Hr'g Tr. (draft), Oct. 5, 2017, at 47-48, 54-56.
The court makes two clarifications here. First, there is no performance appraisal for the period during which Plaintiff served as Chief of the Policy Division. See Def.'s Ex. MM. At least for purposes of back pay, USDA has conceded that it will treat Plaintiff's performance as "Outstanding," as it has been unable to locate Plaintiff's 2004 appraisal. Def.'s Exs., Ex. PP, ECF No. 175-41, at n.1. The court finds no reason to assume otherwise for purposes of her reinstatement, or at least no reason to adopt USDA's argument that her performance was sub-par during this period, because Defendant does not point to any record evidence to support such a conclusion. See Def.'s Opp'n at 7-15. Second, while Plaintiff is correct that she received "outstanding" ratings during the 2009-2010 and 2010-2011 years when she served as the Director of the Data and Records Management Division, see Def.'s Ex. MM at 8-9, the court notes that she was the Director until August 2012, see Def.'s Exs., Ex. J, ECF No. 175-10, at 56. During the 2011-2012 appraisal period, she received a rating of "Fully Successful." Def.'s Ex. MM at 10.
Because the court finds reinstatement is an appropriate remedy here, it does not consider the substitute remedy of front pay. Cf. Pollard v. E.I. du Pont de Nemours & Co. ,
Plaintiff claims she has "availed herself of every avenue known to her to have USDA correct the underpayment," Pl.'s Reply at 12, and testified that these claims were part of the instant action, see Def.'s Ex. J at 91-92. Assuming that to be true, Plaintiff still cannot dispute that on the eve of trial, she voluntarily dismissed "all issues in th[e] case except whether USDA discriminated against [her] based on her race and sex when it removed her in 2000 from her [SES] position ... and demoted her to a GS-15 position." Pl.'s Mot. for Partial Voluntary Dismissal and Mot. in Limine, ECF No. 80, at 1; see Mem. Op. & Order, ECF No. 88. Additionally, the court takes no position on USDA's argument that the statutory time period to recover unpaid salary has now passed.
The SES system uses the term "Exceeds Expectations" instead of "Superior" to describe the second highest appraisal score. See Def.'s Ex. PP at n.1.
Reference
- Full Case Name
- Denise A. BANKS v. Sonny PERDUE, U.S. Secretary of Agriculture
- Cited By
- 4 cases
- Status
- Published