Yanta v. Montgomery Ward & Co., Inc.
Yanta v. Montgomery Ward & Co., Inc.
Dissenting Opinion
(dissenting). The state employment discrimination statutes
A bridge is thus constructed, connecting the 1973 declaration of a right to back pay with the construction of the law as it existed prior to the 1973 amendment.
At the 1957 end, as to finding anything by way of right or penalty that is not therein contained, the bridge-building encounters the firm holding, in Ross, that: “. . . Where the law gives a new remedy to meet a new situation, the remedy provided by the law is exclusive. ...”
At the 1973 end, as to the 1973 amendment indicating what the legislative intention of an earlier legislature was at the time of the 1957 amendment, the bridge-building project encounters a long line of cases holding that, in this state, the construction placed on a statute by a different legislature than enacted it is not binding upon the court.
It is clear that the plaintiff here, establishing the fact of employment discrimination based upon sex, does have the right to seek and secure back pay, in the federal courts,
Ch. 111, subch. II, secs. 111.31 to 111.37, Stats., prohibiting employment discrimination.
Ch. 268, Laws of 1973, creating sec. 111.36 (3) (b), Stats.
Ross v. Ebert (1957), 275 Wis. 523, 532, 82 N. W. 2d 315, this court denying injunctive relief and holding: “. . . that the measures already taken by the industrial commission provide the entire remedy given by law in the premises [violation of Fair Employment Code, sec. 111.31 to see. 111.36, Stats.] and their complaint did not state a cause of action which the trial court had jurisdiction to entertain.” See also: Murphy v. Industrial Comm. (1968), 37 Wis. 2d 704; 712a, 155 N. W. 2d 545, 157 N. W. 2d 568, holding that the ILHR department “. . . has no authority under the Wisconsin Fair Employment Practices Act, eh. Ill, subchapter II, of the Wisconsin Statutes, secs. 111.31 to 111.37, either during or after conciliation or after hearing, to award back pay to parties discriminated against on account of their sex in the wages paid them. . . .”
Ch. 266, Laws of 1957, creating sec. 111.36 (3), Stats.
Ross v. Ebert, supra, at page 528, citing In re Jeness (1935), 218 Wis. 447, 450, 261 N. W. 415.
Id. at page 528, citing State ex rel. Russell v. Board of Appeals (1947), 250 Wis. 394, 397, 27 N. W. 2d 378; LeFevre v. Goodland (1945), 247 Wis. 512, 516, 517, 19 N. W. 2d 884.
See: 1 Am. Jur. 2d, Actions, p. 601, sec. 73.
Id. at page 601.
See: State ex rel. Thompson v. Nash (1965), 27 Wis. 2d 183, 190, 133 N. W. 2d 769, citing State ex rel. Larson v. Giessel (1954), 266 Wis. 547, 555, 64 N. W. 2d 421, where this court held: “. . .
Green Bay Drop Forge Co. v. Industrial Comm. (1953), 265 Wis. 38, 51b, 60 N. W. 2d 409, 61 N. W. 2d 847, citing Northern Trust Co. v. Snyder (1902), 113 Wis. 516, 530, 89 N. W. 460, this court there holding: “. . . It is too elementary to justify us in referring to authority on the question, that a legislative body is not permitted under any circumstances to declare what its intention was on a former occasion so as to affect past transactions. . . .” See also: Dodge County v. Kaiser (1943), 243 Wis. 551, 557, 11 N. W. 2d 348, this court holding: “. . . The power conferred upon the county board by ch. 392, Laws of 1943, can have no weight in a construction of the statute as it existed before the amendment. . . .” See also: Maus v. Bloss (1954), 265 Wis. 627, 634, 62 N. W. 2d 708, this court holding: “. . . it is quite generally held that the legislature cannot by a later act establish or affect the construction of a former act. . . .” And: Moorman Mfg. Co. v. Industrial Comm. (1942), 241 Wis. 200, 208, 5 N. W. 2d 743, this court holding: “. . . Legislatures by a later act cannot establish or affect the construction of a former act. . . .”
Referring to 1 Am. Jur. 2d, Actions, p. 601, sec. 73.
Id. at pages 601, 602. (Emphasis supplied.)
See: 73 Am. Jur. 2d, Statutes, p. 382, sec. 178, stating: “. . . The legislative intent that controls in the construction of a statute has reference to the legislature which enacted the act.
“In any event, a later statute not declaratory in its terms may not be relied upon for the purpose of giving a construction to an earlier act plain in its terms. . .
Murphy v. Miller Brewing Co. (E. D. Wis. 1969), 307 Fed. Supp. 829, affirmed in Hodgson v. Miller Brewing Co. (7th Cir. 1972), 467 Fed. 2d 221.
29 U. S. Code, sec. 216 (b).
Ch. 268, Laws of 1973, creating see. 111.36 (3) (b), Stats., effective June 16, 1974.
Opinion of the Court
This is a sex discrimination case. The principal issue raised on this appeal is whether the plaintiff-respondent, Delores Yanta, states a cause of action
In her civil action, Delores Yanta seeks damage recoveries arising from the following injuries allegedly proximately caused by the discriminatory firing: lost wages; “emotional and mental anguish and personal humiliationpersonal inconvenience and legal fees; and harm to character and reputation. After the defendant demurred to the complaint on the grounds that the action was barred by the statutes of limitations, and that the complaint failed to state a cause of action, the demurrer was overruled by the trial court. Montgomery Ward appeals.
We hold that the complaint, in part, does state a cause of action which is not barred by the statutes of limitations. We therefore affirm in part, reverse in part, and remand for further proceedings.
Secs. 111.31-111.37, Stats. 1969, prohibit employment discrimination based on, among other factors, sex. These statutes are administered by the Department of Industry, Labor & Human Relations, and at the time of the discrimination against plaintiff, the department had statutory authority to issue orders preventing future discrimination, but could not remedy violations in the past. In Murphy v. Industrial Comm.
“. . . has no authority under the Wisconsin Fair Employment Practices Act, ch. Ill, subchapter II, of the Wisconsin Statutes, secs. 111.31 to 111.37, either during or after conciliation or after hearing, to award back pay to parties discriminated against on account of their sex in the wages paid them.”3
A recent amendment, effective June 15, 1974, now permits the department to award back pay,
Plaintiff’s present action for back pay and other damages is grounded in the theory that secs. 111.31-111.37, Stats., create a private civil cause of action to recover for past injuries arising out of employment discrimination. Nothing in these statutes expressly mentions private actions. However, plaintiff relies particularly on the following sections in arguing such a cause of action is implied :
*57 “111.31 Declaration of policy. (1) The practice of denying employment and other opportunities to, and discriminating against, properly qualified persons by reason of their age, race, creed, color, handicap, sex, national origin or ancestry, is likely to foment domestic strife and unrest, and substantially and adversely affect the general welfare of a state by depriving it of the fullest utilization of its capacities for production. The denial by some employers, licensing agencies and labor unions of employment opportunities to such persons solely because of their age, race, creed, color, handicap, sex, national origin or ancestry, and discrimination against them in employment, tends to deprive the victims of the earnings which are necessary to maintain a just and decent standard of living, thereby committing grave injury to them. [Emphasis supplied.]
“(2) It is believed by many students of the problem that protection by law of the rights of all people to obtain gainful employment, and other privileges free from discrimination because of age, race, creed, color, handicap, sex, national origin or ancestry, would remove certain recognized sources of strife and unrest, and encourage the full utilization of the productive resources of the state to the benefit of the state, the family and to all the people of the state.
“(3) In the interpretation and application of this sub-chapter, and otherwise, it is declared to be the public policy of the state to encourage and foster to the fullest extent practicable the employment of all properly qualified persons regardless of their age, race, creed, color, handicap, sex, national origin or ancestry. This sub-chapter shall be liberally construed for the accomplishment of this purpose.”
“111.32 . . . (5) . . .
“ (g) It is discrimination because of sex:
“1. For an employer, labor organization, licensing agency or person to refuse to hire, employ, admit or license, or to bar or to terminate from employment or licensing such individual, or to discriminate against such individual in promotion, compensation or in terms, conditions or privileges of employment or licensing; . . .”
“111.325 Unlawful to discriminate. It is unlawful for any employer, labor organization, licensing agency or*58 person to discriminate against any employe or any applicant for employment or licensing.”
To support her contentions, plaintiff relies on art. I, sec. 9 of the Wisconsin Constitution providing that every person is entitled to a certain remedy for all injuries. Additionally, plaintiff contends that in the 1971 decision in Murphy v. Miller Brewing Co.
Defendant, on the other hand, argues that Murphy never reached the question of whether private actions are maintainable. Defendant then relies on Ross v.. Ebert
The parties’ opposing views concerning Murphy v. Miller Brewing Co., supra, must be resolved first. We agree with defendant that the court did not decide the question of the propriety of private employment discrimination actions. The plaintiff in that case pursued a civil action to recover back pay based on an illegal sex-based salary differential, after this court in Murphy v. Industrial Comm., supra, held the commission could not award the back pay. The defendant Miller Brewing Company moved for summary judgment on the grounds that the circuit court had no subject matter jurisdiction and that the complaint failed to state a cause of action. The trial court overruled the motion finding that it had jurisdiction, but it declined to rule on the question of whether the complaint stated a cause of action. This
. . jurisdiction depends not on whether the relief asked for is available, but on whether the court has the power to hear the kind of action brought. Thus, the circuit court has jurisdiction to determine whether the plaintiffs do, in fact, have a cause of action for damages for unlawful discrimination.”7
Concerning this latter determination, this court made no decision but instead merely found that the trial court’s failure to decide was not an abuse of discretion. Thus, the court did not rule on this question and the decision, therefore, does not support the contentions of either plaintiff or defendant in the case at bar.
In Ross v. Ebert,
“. . . But if such right was created we must look to the statute to see if the remedy or penalty for a*60 violation is provided. If it is, that remedy is exclusive. State ex rel Russell v. Board of Appeals (1947), 250 Wis. 394, 397, 27 N. W. (2d) 378; LeFevre v. Goodland (1945), 247 Wis. 512, 516, 517, 19 N. W. (2d) 884. Where the law gives a new remedy to meet a new situation, the remedy provided by the law is exclusive. In re Jeness (1935), 218 Wis. 447, 450, 261 N. W. 415.
“. . . Investigation, publicity, and a commission recommendation are what the statute provides in consequence of racial discrimination practiced by an employer or a union. We grant it is cold comfort to appellants but it is all the legislature saw fit to provide.”9
The court also held that art. I, sec. 9 of the state constitution, did not require the court to provide a remedy for racial discrimination.
Plaintiff attempts to distinguish Ross on the theory that the court solely held that discrimination by labor unions was not covered by the applicable discrimination statutes. This interpretation is wrong. The statute did cover such discrimination. Moreover, the industrial commission had already determined, as in the instant case, that the plaintiffs had been discriminated against. Thus the issue presented to the court in Ross was precisely the same issue presented here — whether plaintiff could receive relief through a civil action unavailable from the administrative agency.
It must be noted, however, that the decision in Ross was substantially based on the legislative history of ch. Ill, Stats., indicating the legislature intentionally
Thus, even though the change in the statutes came too late to affect plaintiff’s rights before the department, the narrow question now before us is whether this court can now take cognizance of the change in legislative attitude, so as to permit the plaintiff to pursue a cause of action for lost wages.
As stated in American Jurisprudence 2d:
“. . . It is well settled . . . that a private right of action may be predicated upon the violation of a statute containing a mandate to do an act for the benefit of another or prohibiting the doing of an act which might cause injury to another, even though no such right of action is given by the express terms of such statute; this depends upon intent to impose liability, whether the statute purports merely to secure the safety or welfare of the public generally, or the duty prescribed for the benefit of an individual specially injured by its violation.”
This situation is comparable to the tort law doctrine that the violation of certain statutes constitutes negligence per se. This court has held numerous times that where a defendant violates a statute designed to prevent a certain kind of harm to a certain class of persons,
Here, the statute was designed to prevent the loss of wages resulting from employment discrimination. Sec. 111.31, Stats., provides in part:
“. . . discrimination against them in employment, tends to deprive the victims of the earnings which are necessary to maintain a just and decent standard of living, thereby committing grave injury to them.”
Furthermore, the new sec. 111.36 (3) (b), Stats., specifically permits the department to award back pay. Although the statutes were changed after the discrimination occurred, this fact does not present any difficulties because in recognizing this cause of action, the court is acting no differently than in situations where it creates a new cause of action based on, for example, a section of the Restatement.
We limit plaintiff’s right to damages to the right to seek recovery for lost wages rather than for emotional harm, harm to reputation, or attorney’s fees.
The statutes expressly refer to harm from loss of wages; they do not refer to emotional or reputation
For the reasons expressed, we conclude that the plaintiff here does have a cause of action for sex discrimination, limited, however, to the recovery of lost wages.
The next issue raised on this appeal is which statute of limitations is applicable to the cause of action as limited to lost wages. Since defendant’s liability here is entirely based upon statute,
“893.19 Within 6 years; . . .
it
“(4) An action upon a liability created by statute when a different limitation is not prescribed by law.”
Is a different limitation prescribed by law that would render sec. 893.19 (4), Stats., inapplicable? We think not.
Defendant argues that the two-year limitation contained in sec. 893.21 (5), Stats., applies here:
“893.21 Within 2 years. Within 2 years:
“(5) Any action to recover unpaid salary, wages or other compensation for personal services, except fees for professional services.”
If plaintiff had actually rendered services for defendant, instead of being unemployed, then defendant’s contention would be correct. As the court held in Estate of Javornik:
“. . . ‘personal services’ as used in sec. 893.21 (5), Stats., means human labor such as is commonly rendered in return for a salary or a wage in the case of an employee . . . .”
There is no question that the services performed by plaintiff as a salesclerk would fit into this definition. However, the crucial fact here, which takes this controversy out of the operation of sec. 893.21 (5), Stats., is that plaintiff performed no services during the period
The case at bar is very similar to the cases of Tully v. Fred Olson Motor Service Co.
Defendant’s further contention is that sec. 893.21 (1), Stats., governs here:
*66 “893.21 Within 2 years. Within 2 years:
“(1) An action by a private party upon a statute penalty or forfeiture when the action is given to the party prosecuting therefor and the state, except when the statute imposing it provides a different limitation.”
This argument may be quickly refuted. Plaintiff seeks to impose liability on defendant under the sex discrimination statutes. However, the statutes specify no penalty or forfeiture for their violation. If liability created by statute were construed to constitute a penalty or forfeiture within the meaning of sec. 893.21 (1), Stats., then sec. 893.19 (4) would be rendered a nullity. Therefore, we conclude that sec. 893.21 (1) does not apply here.
Since a different limitation is not prescribed by law, we must conclude that plaintiff’s cause of action is governed by the six-year limitation embodied in sec. 893.19 (4), Stats. Thus, since plaintiff was fired on April 17, 1969, the period of limitation did not expire before plaintiff commenced suit.
We conclude, therefore, that a cause of action, limited to lost wages, is stated by the plaintiff’s complaint herein, and we also conclude that that cause of action is not barred by the statutes of limitations.
By the Court. — Order affirmed in part, reversed in part, and cause remanded for further proceedings not inconsistent with this opinion.
(1968), 37 Wis. 2d 704, 155 N. W. 2d 545, 157 N. W. 2d 568.
Id. at page 712.
Id. at page 712a.
Ch. 268, Laws of 1973, created sec. 111.36 (3) (b), Stats., as follows: “(b) If, after hearing, the department finds that the respondent has engaged in discrimination, it shall make written findings and order such action by the respondent as will effectuate the purpose of this subchapter, with or without back pay. Back pay liability shall not accrue from a date more than 2 years prior to the filing of a complaint with the department. Interim earnings or amounts earnable with reasonable diligence by the person discriminated against shall operate to reduce back pay otherwise allowable. Amounts received by the person discriminated against as unemployment benefits or welfare payments shall not reduce the back pay otherwise allowable, but shall be withheld from the person discriminated against and immediately paid to the unemployment reserve fund or, in the case of a welfare payment, to the welfare agency making such payment.”
(1971), 50 Wis. 2d 323, 184 N. W. 2d 141. The previous case of Murphy v. Industrial Comm., supra, footnote 1, held only that the enabling statute did not permit the Department of Industry, Labor & Human Relations to order back pay in a proceeding before that agency.
(1957), 275 Wis. 523, 82 N. W. 2d 315.
Murphy, supra, footnote 6, at page 327.
(1957), 275 Wis. 523, 82 N. W. 2d 315.
Id. at pages 528, 529. This court has consistently held that statutory remedies for newly created rights are exclusive. See, State ex rel. Conn v. Board of Trustees (1969), 44 Wis. 2d 479, 482, 171 N. W. 2d 418; Burke v. Madison (1962), 17 Wis. 2d 623, 630, 638a, 117 N. W. 2d 580, 118 N. W. 2d 898; Essock v. Cold Spring (1960), 10 Wis. 2d 98, 104, 105, 102 N. W. 2d 110.
See also: Metzger v. Department of Taxation (1967), 35 Wis. 2d 119, 128-130, 150 N. W. 2d 431, where the court held that art. I, sec. 9, Wis. Const., does not entitle litigants to what they might consider the best remedy, but merely to their day in court.
1 Am. Jur. 2d, Actions, p. 601, sec. 73. A stated exception to this rule is that where a new right is created, the statutory remedy is considered exclusive unless a contrary intention is demonstrated. Here, the amendment of the statute to permit awarding of back pay constitutes a contrary intention.
Weiss v. Holman (1973), 58 Wis. 2d 608, 616, 617, 207 N. W. 2d 660; Schicker v. Leick (1968), 40 Wis. 2d 295, 300, 301, 162 N. W. 2d 66. Prosser, Torts (4th ed.), pp. 190-204, sec. 36.
State v. Michels Pipeline Construction, Inc. (1974), 63 Wis. 2d 278, 217 N. W. 2d 339.
In Cedarburg Light & Water Comm. v. Glens Falls Ins. Co. (1969), 42 Wis. 2d 120, 124, 125, 166 N. W. 2d 165, the court said: “As a general rule, in the absence of any contractual or statutory liability therefor, attorney’s fees and expenses incurred by the plaintiff in litigation of his claim against the defendant, aside from statutory court costs and fees, are not recoverable as an item of damages. Nor are attorney’s fees and other expenses incurred in former litigation between the same parties recoverable in a subsequent action. 22 Am. Jur. 2d, Damages, p. 234, sec. 165. Baker v. Northwestern National Casualty Co. (1965), 26 Wis. 2d 306, 132 N. W. 2d 493.” The court then listed several exceptions to this rule that are inapplicable to the case at bar.
School District No. 1 v. ILHR Dept. (1974), 62 Wis. 2d 370, 215 N. W. 2d 373 (nontraumatic work-connected mental harm not compensable except in extraordinary circumstances); Ver Hagen v. Gibbons (1970), 47 Wis. 2d 220, 227, 177 N. W. 2d 83 (negligently inflicted emotional harm not actionable unless manifested by physical injuries); Alsteen v. Gehl (1963), 21 Wis. 2d 349, 358-361, 124 N. W. 2d 312 (no recovery for intentionally inflicted emotional harm unless defendant acted with extreme and outrageous conduct for the purpose of causing emotional distress, and an extreme disabling emotional response resulted).
In the absence of contrary statutory or contract provisions, an employer may discharge his employees for any reason without incurring liability therefor. Kovachik v. American Automobile Asso. (1958), 5 Wis. 2d 188, 92 N. W. 2d 254. See also: Klug v. Flambeau Plastics Corp. (1974), 62 Wis. 2d 141, 148, 149, 214 N. W. 2d 281; Goff v. Massachusetts Protective Asso., Inc. (1970),
In Kuhl v. Chicago & N. W. Ry. (1898), 101 Wis. 42, 77 N. W. 155, the court held this particular statute of limitation applied to actions entirely created by statute.
(1967), 35 Wis. 2d 741, 749, 151 N. W. 2d 721.
(1965), 27 Wis. 2d 476, 134 N. W. 2d 393.
(1966), 32 Wis. 2d 320, 145 N. W. 2d 716.
Concerning Tully and Cheese, the court in Green v. Granville Lumber & Fuel Co. (1973), 60 Wis. 2d 584, 589, 211 N. W. 2d 467, had this to say: . . In Tully and Cheese it was determined that the plaintiff’s cause of action arose out of the contract and was therefore subject to the provisions of the six-year statute of limitations, and that the two-year statute of limitations was not applicable. We recognize that in both Tully and Cheese the employees had not actually performed any services, where as in this case the contributions of the defendant to the various funds were calculated upon the time the respective employees actually worked for the defendant. However, the fact is that it is only in reference to the collective bargaining agreement that the plaintiffs have any cause of action.”
Green involved an action to compel the defendant company to contribute to union employee benefit funds as required under the collective bargaining contract. Despite the fact that the level of contributions was pegged to the time actually worked by employees and therefore resembled compensation, the court held the action was actually grounded on contract and was not designed to recover compensation for services within the meaning of sec. 893.21 (5), Stats. Therefore, the court applied the six-year limitation governing contract actions.
Reference
- Full Case Name
- Yanta, Respondent, v. Montgomery Ward & Company, Inc., Appellant
- Cited By
- 49 cases
- Status
- Published