Maria N. Gracia v. SigmaTron International, Inc. , 842 F.3d 1010 ( 2016 )


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  •                               In the
    United States Court of Appeals
    For the Seventh Circuit
    No. 15-3311
    MARIA N. GRACIA,
    Plaintiff-Appellee,
    v.
    SIGMATRON INTERNATIONAL, INC.,
    Defendant-Appellant.
    Appeal from the United States District Court for the
    Northern District of Illinois, Eastern Division.
    No. 1:11-cv-07604 — Edmond E. Chang, Judge.
    ARGUED SEPTEMBER 8, 2016 — DECIDED NOVEMBER 29, 2016
    Before FLAUM, ROVNER, and SYKES, Circuit Judges.
    ROVNER, Circuit Judge. Maria Gracia sued her employer,
    SigmaTron, International, Inc., for sexual harassment and for
    terminating her in retaliation for reporting sexual harassment.
    A jury found in favor of SigmaTron on the claim of sexual
    harassment but returned a verdict for Gracia on the retaliation
    count. SigmaTron challenges both the judgment in Gracia’s
    favor and the amount of damages awarded by the jury. We
    affirm.
    2                                                             No. 15-3311
    I.
    Maria Gracia entered the workforce at the age of sixteen.
    After holding jobs at Burger King, Dollar Tree and various
    staffing companies, Gracia began working on the assembly line
    for the defendant, SigmaTron, in 1999. SigmaTron is an
    international, publicly-traded company that manufactures
    printed circuit board assemblies. The company has approxi-
    mately 2500 employees at manufacturing facilities in the
    United States, Mexico, Taiwan and Vietnam. Its products are
    used in aviation, home appliances and medical devices, among
    other applications. A highly regarded employee at SigmaTron,1
    Gracia was promoted multiple times over the years until she
    achieved the position of assembly supervisor in 2004 or 2005.
    In her capacity as assembly supervisor, Gracia was respon-
    sible for product output and quality, for scheduling personnel
    and for directing team members in their work, among other
    things. Team members on the assembly line connected elec-
    tronic components to circuits boards according to the custom-
    ers’ requirements. Solder, the material used to attach compo-
    nents to circuit boards, may be made with lead or without lead.
    In some instances, customers requested that a particular solder
    1
    SigmaTron’s corporate human resources manager, Sandra Miedema,
    described Gracia as “absolutely great at her job,” “terrific,” and “excellent”
    prior to the events at the core of this case. Patrick Silverman, her manager,
    testified that, prior to the second half of 2008, Gracia’s attendance was
    excellent, her cooperation was good, her initiative was very good, her job
    knowledge was excellent, her work quality was good to excellent, and her
    work quantity or output was good.
    No. 15-3311                                                               3
    be employed, and it was the assembly supervisor’s job to make
    sure that all customer requirements were met.
    Gracia reported to Patrick Silverman, a production man-
    ager. In late 2007, Silverman began engaging in problematic
    conduct towards Gracia. He sent her a series of emails contain-
    ing graphic photographs of partially nude women in degrad-
    ing poses. In early 2008, he sent Gracia an email with a photo
    of her younger sister on which someone had superimposed an
    image of a male co-worker dressed as a baby, with the caption,
    “Mother, milk please,” in Spanish.2 Gracia testified that the
    unwelcome pictures made her feel embarrassed, uncomfort-
    able and upset. But she did not object to Silverman when he
    sent the photos and did not inform the company’s human
    resources department because Silverman was her boss. Gracia
    had noticed that Silverman and the company’s executive vice-
    president, Greg Fairhead, were good friends, and she feared
    2
    Silverman conceded at trial that he sent these photographs to Gracia
    because he found them “humorous.” After the litigation commenced and
    SigmaTron became aware that Silverman had sent these photographs to a
    female subordinate, he was advised in general not to use work email for
    non-business reasons. As of the time of the trial, no one at the company had
    mentioned these particular emails or photographs to him and no one at
    SigmaTron had ever disciplined him for sending these photographs.
    Miedema testified at trial that, although she found the pictures “disgust-
    ing,” she did not think they were sexual in nature. She refused to say that
    a male supervisor sending these photographs to a female subordinate
    violated the company’s sexual harassment policy.
    4                                                             No. 15-3311
    she would lose her job.3 Greg Fairhead is the brother of Gary
    Fairhead, the CEO of SigmaTron.
    In mid-2008, Silverman started writing Gracia up for
    tardiness. Gracia did not deny that she had been late on
    multiple occasions, sometimes as little as a minute and at times
    for longer intervals. But Silverman had not previously objected
    to her schedule and prior to mid-2008, Gracia‘s attendance
    record had been described by Silverman as “excellent.” One
    evening in the fall of 2008,4 Gracia received a series of late night
    calls at home from Silverman. He asked her to join him at a
    party with David Niemi, a man who had previously worked at
    3
    Gracia testified extensively about additional harassing actions allegedly
    taken by Silverman. For example, she testified that Silverman repeatedly
    asked her out on dates. She declined each time but was afraid to say more.
    She also testified that Silverman once pulled away the neck of her
    turtleneck shirt in front of a co-worker and asked her if she was hiding bite
    marks. According to Gracia, Silverman attempted to invite himself to her
    apartment for an overnight stay, suggesting that he would rather stay with
    Gracia after attending a Cubs game than drive home to Rockford, a distant
    suburb. On occasion, he sent her texts or emails asking her to go out to
    dinner or meet him at a bar. Each time, she declined. Gracia did not report
    this conduct to her employer. Because the jury found for SigmaTron on the
    sexual harassment claim, we will not credit Gracia’s testimony on this issue
    unless her testimony is unopposed. We include her testimony to provide
    context for her claim of retaliation.
    4
    Gracia could not recall the exact date of the late-night calls but testified
    that they occurred approximately one month before two October 2008
    meetings that she had with Sandra Miedema, the company’s human
    resources manager.
    No. 15-3311                                                                 5
    SigmaTron. She declined the invitation.5 On October 15, a few
    weeks after she declined Silverman’s late-night party invita-
    tion, several months after receiving the explicit emails, and
    after years of being an exemplary employee, Gracia was
    suspended for two days for tardiness. When she returned to
    work after the suspension, she requested a meeting with
    SigmaTron’s corporate human resources manager, Sandra
    Miedema.
    At the October 20 meeting, Gracia told Miedema for the
    first time about the late-night phone calls from Silverman and
    that Silverman had been treating her differently. She explained
    that he had begun writing her up for tardiness even though her
    timeliness had not been an issue before. Miedema noticed that
    Gracia’s appearance had deteriorated since she had seen her
    last, that she looked dull and lacked luster. Even her clothing,
    jewelry and makeup had changed. Four days later, Miedema
    called Gracia in for a second meeting. Gracia again discussed
    the late-night phone calls and told Miedema that Silverman
    had been treating her differently and that he was sexually
    harassing her.6 Miedema asked Gracia, “Is he sweet on you?”
    5
    Silverman denied making any call, saying that Niemi made one call to
    Gracia from a party using Silverman’s phone. Niemi denied at trial that he
    made any call to Gracia from a party. SigmaTron insists that any such call
    took place in 2004, but the jury was entitled to believe Gracia on this point.
    It was also entitled to credit Niemi and Gracia over Silverman. Neither
    Fairhead nor Miedema called Niemi to check out Silverman’s story.
    6
    The defendant vehemently denies in its briefs that Gracia complained to
    Miedema about sexual harassment. But at trial, Gracia responded affirma-
    (continued...)
    6                                                              No. 15-3311
    and Gracia replied, “Yes.” Miedema also asked Gracia if she
    was on drugs. Gracia denied that she was taking drugs and
    offered to undergo drug testing. Miedema then dropped the
    subject.
    At the end of that second meeting, Miedema bypassed her
    own supervisor and brought Gracia to the office of Greg
    Fairhead, SigmaTron’s executive vice-president. Miedema said
    that she did not like the idea of Silverman “pushing at Maria.”
    Gracia repeated to Fairhead that Silverman had subjected her
    to multiple unwanted late-night phone calls at home. Fairhead
    replied that Silverman had called her only once. Gracia tried to
    tell Miedema and Fairhead more about Silverman’s inappro-
    priate conduct but Fairhead spoke over her and gave her no
    chance to interject. After a break in the meeting, during which
    Miedema and Fairhead spoke privately to Silverman, Gracia
    was brought back in to speak with Miedema, Silverman and
    Fairhead. Ultimately, Gracia was told to shake hands with
    Silverman and work together.
    Dissatisfied with the company’s response to her claim of
    sexual harassment, Gracia filed a charge with the Equal
    Employment Opportunity Commission (“EEOC”), alleging sex
    and national origin discrimination. SigmaTron received a copy
    of the EEOC charge on November 19, 2008. Approximately two
    6
    (...continued)
    tively to a question about whether she “explicitly complain[ed] about sexual
    harassment” to Miedema in the October 24th meeting. As we explain in
    section II.A. below, in reviewing the denial of a motion for judgment as a
    matter of law, we construe the facts in favor of the party that prevailed at
    trial. And so we credit Gracia’s version of the facts on the retaliation claim.
    No. 15-3311                                                                7
    weeks later, on December 4, Silverman purportedly told
    Fairhead that he had received a report from Eduardo Trujillo,
    another SigmaTron supervisor, that Gracia had allowed an
    employee to use the wrong solder on a customer’s order, using
    unleaded solder on a board that called for solder with lead.
    Silverman claimed that when Trujillo pointed out the problem
    to Gracia, she had not taken the matter seriously. Silverman
    asserted that when Trujillo told him about the problem, he
    (Silverman) went to the production floor, segregated the
    contaminated product and took care of the problem. After
    Silverman conveyed this purported sequence of events to
    Fairhead, Trujillo confirmed Silverman’s story to Fairhead. The
    next day, approximately six weeks after Gracia’s first com-
    plaint to Miedema about Silverman’s sexual harassment and
    two weeks after the company received Gracia’s EEOC charge,
    SigmaTron terminated Gracia’s employment.7
    At trial, however, Trujillo, a SigmaTron supervisor, denied
    making any report to Silverman about Gracia or employees on
    her assembly line, and did not recall Gracia speaking to him
    about the soldering incident. Instead, Trujillo testified that he
    was called into Fairhead’s office on December 5 and asked
    “about the wrongdoing of boards being soldered.” He re-
    7
    Fairhead memorialized his explanation for the termination in a memo,
    claiming that Gracia was fired for “not following the strict standard on
    solder technology.” The memo also stated that Trujillo brought the error to
    Gracia’s attention and that she did nothing to stop the work, instead telling
    Trujillo, “I have done this many times before and nobody ever found out.”
    According to the memo, Trujillo reported the error to Silverman who then
    rectified the situation. Fairhead represented in the memo that he questioned
    Trujillo, who confirmed Silverman’s report.
    8                                                         No. 15-3311
    sponded to Fairhead that he “was aware, as well as the whole
    group of inspectors.” According to Trujillo, employees often
    used the wrong solder on circuit boards at SigmaTron, and that
    to the best of his knowledge, no one had ever been fired
    because of the inadvertent use of the incorrect solder on a
    circuit board. Trujillo also testified that, approximately one
    month before Gracia was fired, Silverman advised Trujillo to
    stay away from Gracia because he (Silverman) was “throwing
    bombs at” her.
    Gracia testified that, on December 4, Trujillo brought to her
    attention that an employee was using the wrong solder, and
    that she addressed the problem immediately and appropri-
    ately. She removed the products from the employee applying
    the wrong solder and delivered them to the correct area. She
    also determined which employee had made the mistake, a
    group leader who accepted responsibility. According to Gracia,
    Silverman never came to the production floor and was not
    involved in rectifying the problem. As we discuss below,
    because Gracia prevailed at trial on her retaliation claim, we
    credit the version of the facts that support the jury’s verdict.
    The jury was free to believe Gracia and Trujillo, and corre-
    spondingly free to determine that Silverman and Fairhead had
    lied about the incident.8
    In response to the retaliation claim, SigmaTron asserted at
    trial that the company terminated Gracia’s employment
    because she had allowed an assembly line worker to use the
    8
    As we will discuss below, Gracia presented additional evidence that the
    company’s stated reason for her termination was a pretext.
    No. 15-3311                                                          9
    wrong solder, did not resolve the problem and did not take the
    matter seriously. As for the harassment claim, the company
    argued that Silverman’s alleged conduct did not meet the
    standard for hostile work environment, that Gracia had little
    evidence corroborating her claims, and that Gracia did not
    avail herself of the company’s sexual harassment policy
    because she never informed her employer that Silverman had
    done anything other than invite her to a party and treat her
    differently by writing her up for tardiness. The jury found in
    favor of SigmaTron on the sexual harassment claim and in
    favor of Gracia on the retaliation claim. The jury awarded
    Gracia $57,000 in compensatory damages and $250,000 in
    punitive damages.9 SigmaTron appeals.
    II.
    On appeal, SigmaTron contends that it is entitled to
    judgment as a matter of law on the retaliation claim because
    the evidence was insufficient to support the jury’s verdict.
    SigmaTron also maintains that the compensatory and punitive
    damages awards are unsupported by the evidence, and that
    the punitive damages are both disproportionate to the harm
    suffered by Gracia and out of line with damages awarded in
    similar cases. Finally, in the alternative, SigmaTron argues that
    it is entitled to a new trial.
    A.
    We review de novo the denial of a motion for judgment as
    a matter of law. Empress Casino Joliet Corp. v. Balmoral Racing
    9
    In keeping with the statutory cap, the compensatory damages award was
    remitted to $50,000. The total amount of damages awarded was $300,000.
    10                                                     No. 15-3311
    Club, Inc., 
    831 F.3d 815
    , 822 (7th Cir. 2016); Fed. R. Civ. P. 50. In
    its opening brief, SigmaTron asserted that we must review the
    evidence in the light most favorable to the party against whom
    judgment was granted, in this instance, SigmaTron. The
    company’s statement of the standard is incorrect and in fact
    inverts the true standard. Once a jury has spoken, reviewing
    the record as a whole, “the court must draw all reasonable
    inferences in favor of the nonmoving party, and it may not
    make credibility determinations or weigh the evidence.” Reeves
    v. Sanderson Plumbing Products, Inc., 
    530 U.S. 133
    , 150 (2000).
    Moreover:
    the court must disregard all evidence favorable to
    the moving party that the jury is not required to
    believe. … That is, the court should give credence to
    the evidence favoring the nonmovant as well as that
    evidence supporting the moving party that is uncon-
    tradicted and unimpeached, at least to the extent
    that that evidence comes from disinterested wit-
    nesses.
    
    Reeves, 530 U.S. at 151
    (2000) (internal quotation marks omit-
    ted); Empress 
    Casino, 831 F.3d at 822
    (in reviewing the denial of
    a motion for judgment as a matter of law, we construe the trial
    evidence strictly in favor of the party who prevailed before the
    jury); Tart v. Illinois Power Co., 
    366 F.3d 461
    , 464 (7th Cir. 2004)
    (once a jury has spoken, the court is obliged to construe the
    facts in favor of the parties who prevailed under the verdict).
    We will affirm if a reasonable jury would have a legally
    sufficient evidentiary basis to find for the party on a particular
    issue. Empress 
    Casino, 831 F.3d at 822
    . See also Lust v. Sealy, Inc.,
    No. 15-3311                                                   11
    
    383 F.3d 580
    , 583 (7th Cir. 2004) (noting that we will affirm a
    jury’s finding on causation when that finding cannot be said to
    be unreasonable).
    On the retaliation count, Gracia prevailed at trial and so we
    must credit the evidence in her favor on that claim and
    disregard all evidence favoring SigmaTron that the jury was
    not required to believe. Employing that standard, Gracia easily
    prevails on her retaliation claim, and the district court was
    right to deny SigmaTron’s motion for judgment as a matter of
    law. In order to make out a claim for retaliation, Gracia was
    required to prove (1) that she engaged in statutorily protected
    activity; (2) that her employer took an adverse employment
    action against her; and (3) that the protected activity and the
    adverse employment action are causally connected. Ripberger
    v. Corizon, Inc., 
    773 F.3d 871
    , 881 (7th Cir. 2014); 42 U.S.C.
    § 2000e-3(a). For the causation factor, Gracia was required to
    demonstrate that “the desire to retaliate was the but-for cause
    of the challenged employment action.” University of Texas Sw.
    Med. Ctr. v. Nassar, 
    133 S. Ct. 2517
    , 2528 (2013). “This requires
    proof that the unlawful retaliation would not have occurred in
    the absence of the alleged wrongful action or actions of the
    employer.” 
    Id. at 2533.
        There is no doubt that Gracia engaged in statutorily
    protected activity when she complained to SigmaTron’s human
    resources manager that her supervisor was sexually harassing
    her and when she filed her charge with the EEOC. Nor is there
    any question that SigmaTron took an adverse employment
    action against her when it terminated her employment. The
    company concedes these first two factors. Instead, SigmaTron
    argues that Gracia failed to demonstrate that she was fired
    12                                                    No. 15-3311
    because she engaged in protected activity. The company
    contends instead that she was terminated because of her record
    of tardiness and because she allowed an employee to use
    unleaded solder on a leaded circuit board.
    “[R]etaliatory motive may be established through circum-
    stantial evidence such as suspicious timing, ambiguous
    statements, evidence that the stated reason for the employment
    decision is pretextual and” other evidence from which an
    inference of discriminatory intent might be drawn. 
    Ripberger, 773 F.3d at 881
    . See also Castro v. DeVry University, Inc., 
    786 F.3d 559
    , 565 (7th Cir. 2015) (same). We may dispense with
    SigmaTron’s first explanation for the termination easily.
    SigmaTron did not rely on tardiness as a reason for the
    termination at trial. In fact, Fairhead, the person who decided
    to terminate Gracia, conceded at trial that he did not fire her on
    account of tardiness or attendance problems. R. 190, at 364 (“Q:
    You did not fire Maria on account of tardiness or attendance
    problems, did you? A: I did not.”). In pre-trial proceedings, the
    company assured the court that it was not relying on tardiness
    as a cause of the termination but was instead focusing solely on
    the “soldering incident.” In light of the company’s pre-trial
    concession and the unequivocal admission by the decision-
    maker at trial, SigmaTron’s repeated argument on appeal that
    tardiness was a cause for the termination is puzzling. With
    SigmaTron having conceded the point to the jury at trial, we
    may ignore the purported tardiness rationale on appeal.
    We turn to SigmaTron’s claim that Fairhead terminated
    Gracia because she allowed an employee to use the wrong
    solder and failed to respond appropriately when the problem
    was pointed out to her. We detailed SigmaTron’s version of
    No. 15-3311                                                  13
    events above, namely, that Trujillo approached Silverman and
    reported that Gracia had refused to fix a soldering error, that
    Silverman then fixed the problem and reported the situation to
    Fairhead, who then interviewed Trujillo and decided to fire
    Gracia. But Gracia testified that when Trujillo told her an
    employee was using lead-free solder on a leaded board, she
    stopped the employee, segregated the product, redirected
    employees and sought out the source of the problem. She
    confirmed that Silverman never came to the production floor
    to address the incident. Trujillo denied that he ever spoke to
    Silverman about the incident and denied telling Fairhead that
    Gracia made the error. Both Trujillo and Gracia denied that
    Gracia ever took the matter lightly or said it was “no big deal”
    (as Silverman claimed she said to Trujillo) or that it “doesn’t
    matter” (as Fairhead claimed Silverman reported to him). The
    jury was free to credit the testimony of Trujillo and Gracia and
    conclude that Gracia did not mishandle the incident and that
    no one had reported that Gracia mishandled it.
    Moreover, even if Gracia had allowed the use of unleaded
    solder on a leaded circuit board, she presented evidence that
    such an error occurred with regularity at SigmaTron, at times
    with the tacit approval of the company’s management. She also
    presented evidence that the company had never terminated an
    employee on that ground. Michael Murphy, a former engineer-
    ing manager at SigmaTron, testified that, although the com-
    pany strived to use materials according to customer specifica-
    tions, leaded parts were sometimes used on unleaded circuit
    boards or vice versa. Inadvertent substitutions occurred on the
    assembly line and, at times, the wrong parts were used because
    of supply issues. He explained that, when the company had a
    14                                                 No. 15-3311
    supply of leaded parts and that lead-free versions had not yet
    come in, they would simply use the leaded parts in order to
    avoid wasting an expensive supply of leaded parts. Neverthe-
    less, during Murphy’s tenure, which overlapped with Gracia’s,
    incorrect parts were sometimes used and customers received
    fudged certifications representing that the correct parts had
    been used. Murphy testified that it was not a “big deal” to use
    unleaded solder on leaded boards but that it might present an
    ethical problem for the reverse to occur, i.e., to use leaded
    solder on an unleaded board. To his knowledge, no one had
    ever been fired for using the wrong solder. This was consistent
    with testimony from Trujillo and Gracia that no one had ever
    been fired for using the wrong solder.
    The jury was free to believe Gracia, Trujillo and Murphy,
    and it is apparent from the verdict that the jury credited their
    testimony on the retaliation claim. Equally importantly, the
    jurors were free to disbelieve Silverman, Fairhead and
    Miedema and conclude that their explanation for the termina-
    tion was a pretext. Gracia presented substantial evidence that
    she did not engage in the misconduct of which she was accused
    and that, even if she did, that conduct was not generally seen
    as cause for termination at the company. When a jury con-
    cludes that the employer’s stated reason for the termination is
    a pretext, the jury may consider that pretextual explanation as
    evidence of retaliatory motive. 
    Reeves, 530 U.S. at 147
    (“Proof
    that the defendant’s explanation is unworthy of credence is
    simply one form of circumstantial evidence that is probative of
    intentional discrimination, and it may be quite persuasive.”).
    In appropriate circumstances, the trier of fact can
    reasonably infer from the falsity of the explanation
    No. 15-3311                                                     15
    that the employer is dissembling to cover up a
    discriminatory purpose. Such an inference is consis-
    tent with the general principle of evidence law that
    the factfinder is entitled to consider a party's dishon-
    esty about a material fact as “affirmative evidence of
    guilt.” … Moreover, once the employer’s justifica-
    tion has been eliminated, discrimination may well be
    the most likely alternative explanation, especially
    since the employer is in the best position to put forth
    the actual reason for its decision.
    
    Reeves, 530 U.S. at 147
    -48 (internal citations omitted). The jury
    could reasonably conclude that SigmaTron’s stated reason for
    the termination was a pretext, and it was then free to infer that
    the company gave a false reason in order to cover up a
    discriminatory purpose.
    Gracia also provided circumstantial evidence of the com-
    pany’s retaliatory motive through the timing of her discharge.
    Although suspicious timing alone is rarely enough to create an
    inference of retaliatory motive, it can sometimes raise an
    inference of a causal connection, especially in combination with
    other evidence. Magyar v. St. Joseph Reg’l Med. Ctr., 
    544 F.3d 766
    , 772 (7th Cir. 2008); O'Leary v. Accretive Health, Inc.,
    
    657 F.3d 625
    , 635 (7th Cir. 2011). “We have rejected any
    bright-line rule about how close the events must be to establish
    causation, but in cases where there is ‘corroborating evidence
    of retaliatory motive,’ an ‘interval of a few weeks or even
    months may provide probative evidence of the required causal
    nexus.’” 
    Castro, 786 F.3d at 565
    . In this instance, only two
    weeks after SigmaTron received Gracia’s EEOC charge, the
    company terminated her, claiming falsely that she had engaged
    16                                                 No. 15-3311
    in misconduct. Additionally, Murphy testified that others had
    engaged in similar conduct (using incorrect parts) or worse
    (certifying falsely to customers that correct parts had been
    used) and had not been fired. Gracia thus presented all three
    kinds of circumstantial evidence of retaliatory motive men-
    tioned in the case law: suspicious timing, a pretextual explana-
    tion for the termination, and evidence that similarly situated
    employees were treated differently. 
    Castro, 786 F.3d at 565
    .
    That was a legally sufficient evidentiary basis upon which a
    reasonable jury could find retaliatory motive. Empress 
    Casino, 831 F.3d at 822
    .
    For the sake of completeness, we add that the person who
    brought Gracia’s supposed infraction to Fairhead’s attention
    was none other than the manager Gracia had accused of sexual
    harassment only weeks earlier in her EEOC charge and in her
    conversations with Miedema and Fairhead. Although the
    company was aware that Gracia had accused Silverman of
    sexual harassment, Fairhead conducted a perfunctory investi-
    gation into Silverman’s claim that Gracia had allowed the use
    of the wrong solder and had refused to take the incident
    seriously. Although Trujillo did not confirm Silverman’s story,
    Fairhead terminated the highly regarded employee almost
    immediately. All of this evidence was more than sufficient to
    prove the causal link between Gracia’s protected conduct and
    the company’s decision to terminate her employment.
    B.
    The jury awarded Gracia $57,000 in compensatory damages
    and $250,000 in punitive damages. Because the statute caps
    total damages at $300,000 for a defendant with more than 500
    No. 15-3311                                                  17
    employees, and because the parties agreed that any reduction
    should be made to the compensatory part of the award, the
    district court remitted the compensatory damages to $50,000.
    See 42 U.S.C. § 1981a(b)(3). SigmaTron argues that the district
    court erred when it failed to order a further remittitur of both
    the compensatory and punitive damages awards, which the
    company characterizes as excessive, unjustified by the evidence
    and inconsistent with awards in similar cases. We review for
    abuse of discretion the district court's decision not to grant a
    motion for remittitur of compensatory damages. E.E.O.C. v.
    AutoZone, Inc., 
    707 F.3d 824
    , 833 (7th Cir. 2013); Thompson v.
    Memorial Hosp. of Carbondale, 
    625 F.3d 394
    , 408 (7th Cir. 2010);
    Houskins v. Sheahan, 
    549 F.3d 480
    , 496 (7th Cir. 2008). We
    review challenges to punitive damages de novo when constitu-
    tional issues are raised. Cooper Indus., Inc. v. Leatherman Tool
    Group, Inc., 
    532 U.S. 424
    , 435 (2001); Kapelanski v. Johnson,
    
    390 F.3d 525
    , 534 (7th Cir. 2004). If no constitutional issue is
    raised, our review of punitive damages is for abuse of discre-
    tion. 
    Cooper, 532 U.S. at 433
    . It is unclear whether SigmaTron’s
    challenge to the punitive damages award is based on constitu-
    tional or non-constitutional grounds. In this instance, however,
    the standard of review does not affect the outcome.
    We begin with the challenge to the compensatory damages
    award. In reviewing the district court’s refusal to remit
    compensatory damages, we consider, among other things,
    whether the award is “monstrously excessive,” whether there
    is a rational connection between the award and the evidence,
    and whether the award is roughly comparable to awards made
    in similar cases. 
    AutoZone, 707 F.3d at 833
    ; 
    Thompson, 625 F.3d at 408
    ; Marion Cty. Coroner's Office v. E.E.O.C., 
    612 F.3d 924
    ,
    18                                                   No. 15-3311
    930-31 (7th Cir. 2010). See also Farfaras v. Citizens Bank & Trust
    of Chicago, 
    433 F.3d 558
    , 566 (7th Cir. 2006). SigmaTron asserts
    that Gracia’s only evidence of non-economic damages was her
    statement to the jury, “It was hard. I was just depressed. I have
    always been used to working.” SigmaTron suggests that the
    award be remitted to $0 or at least be reduced significantly.
    “An award for nonpecuniary loss can be supported, in
    certain circumstances, solely by a plaintiff’s testimony about
    his or her emotional distress.” Tullis v. Townley Engineering &
    Manufacturing Co., 
    243 F.3d 1058
    , 1068 (7th Cir. 2001);
    Merriweather v. Family Dollar Stores of Ind., Inc., 
    103 F.3d 576
    ,
    580 (7th Cir. 1996). Juries are responsible for evaluating the
    credibility of witnesses who testify to emotional distress, and
    we do not disturb those credibility determinations on appeal.
    
    Tullis, 243 F.3d at 1068
    ; Bruso v. United Airlines, Inc., 
    239 F.3d 848
    , 857 (7th Cir. 2001). The jurors here were able to observe
    Gracia as she testified and they apparently found her testi-
    mony to be sincere and sufficient to convince them that she
    merited the award they gave her. 
    Tullis, 243 F.3d at 1068
    .
    Moreover, as the district court noted, the jury considered her
    testimony in the context of other evidence presented at trial:
    Gracia testified that she had worked continuously from the age
    of sixteen; SigmaTron’s own witnesses conceded that, prior to
    her termination, Gracia had been a spectacular employee at the
    company; and after her termination, at the height of the
    recession, Gracia remained unemployed for sixteen months
    despite her extensive efforts to find another job. Even if
    Gracia’s testimony regarding her distress was succinct and to
    the point, “brevity and self-control in a judicial proceeding
    need not be interpreted as a weak case, and the jury and trial
    No. 15-3311                                                    19
    judge were entitled to take that view.” Deloughery v. City of
    Chicago, 
    422 F.3d 611
    , 620 (7th Cir. 2005). It was the jury’s job
    to gauge Gracia’s distress and determine an appropriate
    amount to compensate her. SigmaTron has given us no reason
    to disturb the jury’s determination.
    The district court also correctly concluded that the compen-
    satory damages awarded to Gracia were roughly comparable
    to other Title VII awards. In making the comparison, courts are
    not required to “completely analogize the damage award in
    this case to an identical case with either a similar or dissimilar
    verdict.” 
    Farfaras, 433 F.3d at 566
    .
    Awards in other cases provide a reference point that
    assists the court in assessing reasonableness; they do
    not establish a range beyond which awards are
    necessarily excessive. Due to the highly fact-specific
    nature of Title VII cases, such comparisons are rarely
    dispositive.
    
    Farfaras, 433 F.3d at 566
    . Both the plaintiff and the defendant
    proposed cases to the court that they contended were compara-
    ble, as they did on appeal. The district court concluded that the
    damages awarded here were in line with those awarded in
    
    Tullis, 243 F.3d at 1067-68
    (affirming an award in excess of
    $80,000 for retaliatory discharge that caused a dedicated
    employee who remained out of work for ten months to feel
    “low” and “degraded”); 
    Deloughery, 422 F.3d at 620
    (affirming
    $175,000 award of compensatory damages for emotional
    distress in a failure to promote case where a highly motivated
    female police officer with a family heritage in law enforcement
    was frustrated in her quest for greater responsibility simply
    20                                                    No. 15-3311
    because she asserted her right to be free from discrimination);
    Harvey v. Office of Banks & Real Estate, 
    377 F.3d 698
    , 714 (7th Cir.
    2004) (affirming compensatory damages in range of $50,000 to
    $150,000 for emotional distress for African American employ-
    ees denied promotions on account of race); and David v.
    Caterpillar, 
    185 F. Supp. 2d 918
    , 923-24 (C.D. Ill. 2002) (remitting
    compensatory damage award to $50,000 for plaintiff who felt
    depressed, robbed and cheated by a discriminatory failure to
    promote). SigmaTron did not even attempt to distinguish the
    cases on which the district court relied. “Abuse of discretion
    exists only where the result is not one that could have been
    reached by a reasonable jurist or where the decision of the trial
    court strikes us as fundamentally wrong or is clearly unreason-
    able, arbitrary, or fanciful.” Greviskes v. Universities Research
    Ass'n, Inc., 
    417 F.3d 752
    , 758 (7th Cir. 2005). A reasonable jurist
    could refuse to grant a further remittitur on compensatory
    damages in this case and so we must affirm.
    We turn to the punitive damage award of $250,000. In
    reviewing punitive damages, the Supreme Court has set forth
    three guideposts to assess the award: the degree of
    reprehensibility of the defendant’s conduct; the disparity
    between the harm suffered by the plaintiff and the punitive
    damages award; and the difference between the award in this
    case and the penalties imposed in comparable cases. BMW of
    North America, Inc. v. Gore, 
    517 U.S. 559
    , 574-75 (1996);
    
    Kapelanski, 390 F.3d at 534
    . The BMW case involved a fraud
    claim in a state where there was no statutory cap on punitive
    damages. We have noted that, when “Congress sets a limit,
    and a low one, on the total amount of damages that may be
    awarded, the ratio of punitive to compensatory damages in a
    No. 15-3311                                                      21
    particular award ceases to be an issue of constitutional dig-
    nity[.]” 
    Lust, 383 F.3d at 590
    .
    The purpose of placing a constitutional ceiling on
    punitive damages is to protect defendants against
    outlandish awards, awards that are not only irratio-
    nal in themselves because out of whack with any
    plausible conception of the social function of puni-
    tive damages but potentially catastrophic for the
    defendants subjected to them and, in prospect, a
    means of coercing settlement. That purpose falls out
    of the picture when the legislature has placed a tight
    cap on total, including punitive, damages and the
    courts honor the cap.
    
    Lust, 393 F.3d at 590-91
    . A “statutory cap suggests that an
    award of damages at the capped maximum is not outlandish.”
    
    AutoZone, 707 F.3d at 840
    . In assessing punitive damages on
    appeal, “[t]he judicial function is to police a range, not a point.”
    Mathias v. Accor Economy Lodging, Inc., 
    347 F.3d 672
    , 678 (7th
    Cir. 2003).
    SigmaTron notes that Gracia requested a total of $200,000
    in punitive damages for both her sexual harassment and
    retaliation claims. Although the jury found in favor of
    SigmaTron on the sexual harassment claim, it awarded Gracia
    $50,000 more in punitive damages than she requested in total.
    SigmaTron cites that disparity as evidence that the award is the
    result of bias. The company asserts that the award should have
    been remitted to $0 or to a far lesser sum than $250,000. The
    company also argues that its conduct was not reprehensible or
    malicious, continuing to assert that Gracia was terminated not
    22                                                   No. 15-3311
    in retaliation for reporting sexual harassment but because she
    knowingly allowed employees to use the incorrect solder.
    SigmaTron also argues that the award is disproportionate to
    the harm Gracia suffered, suggesting that the jury erroneously
    awarded punitive damages for both of Gracia’s claims even
    though she succeeded only on the retaliation claim. Finally, the
    company contends that the award is inconsistent with those
    assessed in comparable cases.
    We must begin by pointing out again that SigmaTron does
    not come to terms with the facts as found by the jury. Any
    argument that Gracia was terminated for allowing an em-
    ployee to use the wrong solder was soundly rejected by the
    jury. SigmaTron’s continued refusal to acknowledge the
    appropriate standard of review on appeal, even after the
    plaintiff cited the correct standard in her brief, is puzzling. We
    must assess the reprehensibility of SigmaTron’s conduct by
    viewing the facts as the jury found them. The jury had more
    than enough evidence to conclude that SigmaTron terminated
    Gracia because she complained about sexual harassment and
    filed a charge with the EEOC. Upper management then created
    documents falsely accusing Gracia of wrongdoing and assert-
    ing that the cause of termination was legitimate. The company
    persisted in asserting that false reason for the termination and
    the false accusation of wrongdoing throughout the litigation.
    The jury was also aware that when Gracia tried to explain the
    extent of Silverman’s conduct to Fairhead in the October 24th
    meeting, he spoke over her, denying her an opportunity to
    fully report the conduct. Fairhead’s response to Gracia’s
    complaint was to ignore the claim and force her to shake hands
    No. 15-3311                                                          23
    with her harasser.10 A scant two weeks after Gracia filed an
    EEOC charge asserting that Silverman sexually harassed her,
    Silverman himself falsely accused Gracia of wrongdoing. And
    Fairhead claimed to have accepted the truth of that suspect
    accusation, falsely claiming that Trujillo had confirmed
    Silverman’s story. Although it was undisputed that Silverman
    repeatedly sent Gracia photos of partially nude women in
    degrading poses, the company never disciplined Silverman for
    this deplorable conduct towards a female subordinate. Yet it
    quickly terminated a stellar female employee on trumped up
    charges shortly after she filed a charge of sexual harassment
    with the EEOC.
    And that version of the facts adequately supports the jury’s
    award of punitive damages. A complaining party may recover
    punitive damages in a Title VII case by demonstrating that the
    employer “engaged in a discriminatory practice or discrimina-
    tory practices with malice or with reckless indifference to the
    federally protected rights of an aggrieved individual.”
    42 U.S.C. § 1981a(b)(1); Kolstad v. American Dental Ass’n, 
    527 U.S. 526
    , 535 (1999). “Applying this standard in the context of
    § 1981a, an employer must at least discriminate in the face of
    a perceived risk that its actions will violate federal law to be
    liable in punitive damages.” 
    Kolstad, 527 U.S. at 536
    . Fairhead’s
    conduct in response to the report of sexual harassment in the
    October 24th meeting and the EEOC charge meets the statutory
    10
    Both Miedema and Fairhead conceded at trial that, when Gracia told
    them about Silverman’s unwelcome late night party invitation, neither
    investigated Silverman’s claim that it was David Niemi and not Silverman
    who had placed the call.
    24                                                  No. 15-3311
    standard for punitive damages. As the district court noted, this
    standard is met when the employer engages in the act of
    retaliatory discharge and then makes efforts to hide it, in this
    case creating a false paper trail that included manufactured
    details of reports and meetings with Trujillo and other manag-
    ers in an effort to hide the true nature of the discharge. One of
    the purposes of punitive damages is to limit the defendant's
    ability to profit from its wrongful conduct by escaping detec-
    tion. 
    Mathias, 347 F.3d at 677
    . See also Lampley v. Onyx Accep-
    tance Corp., 
    340 F.3d 478
    , 486 (7th Cir. 2003) (where the evi-
    dence supports a finding that the employer engaged in a cover-
    up in flagrant violation of Title VII, a large punitive damage
    award is warranted). Gracia thus meets the first guidepost, the
    degree of reprehensibility of the defendant’s conduct.
    The second guidepost asks us to assess the disparity
    between the harm the plaintiff suffered (as indicated by the
    compensatory damages) and the punitive damage award. As
    we noted, when Congress sets a limit on the total amount of
    damages that may be awarded, “the ratio of punitive to
    compensatory damages in a particular award ceases to be an
    issue of constitutional dignity.” 
    Lust, 383 F.3d at 590
    . In this
    case, the jury awarded Gracia punitive damages that are five
    times the amount of compensatory damages. A 5:1 ratio is well
    within the range we have approved in other cases. See 
    Mathias, 347 F.3d at 678
    (affirming a 37:1 ratio); 
    Kapelanski, 390 F.3d at 534
    (finding a 3.3:1 ratio easily permissible); 
    Lampley, 340 F.3d at 485-86
    (finding a 9:1 ratio acceptable). As we have noted,
    Title VII cases are very fact-specific, and we will not normally
    disturb an award of damages at or under the statutory cap
    because the decision is largely within the province of the jury.
    No. 15-3311                                                      25
    
    Lampley, 340 F.3d at 486
    ; Fine v. Ryan International Airlines,
    
    305 F.3d 746
    , 755 (7th Cir. 2002).
    Finally, we are aware of no rule prohibiting a jury from
    awarding more in damages than a plaintiff requests and
    SigmaTron cites no authority for this claim. See, e.g., Dresser
    Industries, Inc. v. Gradall Co., 
    965 F.2d 1442
    , 1447 (7th Cir. 1992)
    (affirming a jury award that exceeded the plaintiff’s request).
    So long as the award has a reasonable basis in the evidence, a
    jury has wide discretion in determining damages. 
    Id. “This is
    especially so where the trial judge, who had the opportunity to
    hear the evidence and observe the jury, has seen fit to uphold
    the award in the face of a post-trial challenge.” 
    Id. We also
    note
    that it is unlikely the jury was biased in Gracia’s favor as it
    found against her on the sexual harassment claim. Apparently,
    the jury simply had a different view than the plaintiff regard-
    ing the amount necessary to punish SigmaTron’s conduct and
    deter future wrongdoing. 
    Merriweather, 103 F.3d at 581
    (noting
    that we will set aside an award of punitive damages only if it
    exceeds an amount necessary to serve the objective of deter-
    rence and punishment). We see no reason to disturb the jury’s
    award here.
    C.
    Finally, in kitchen-sink fashion, SigmaTron argues that it is
    entitled to a new trial because (1) the jury awarded excessive
    damages; (2) the district court permitted a venire person to
    remain on the jury who should have been stricken for cause; (3)
    SigmaTron was wrongly prohibited from presenting a witness;
    and (4) Gracia presented a doctored and prejudicial exhibit to
    26                                                    No. 15-3311
    the jury. None of these issues has any merit and we will
    address them summarily.
    As we have just concluded, the jury did not award exces-
    sive damages. The district court did not abuse its discretion in
    refusing to exclude the prospective juror because nothing the
    juror said evinced an irrational or unshakeable bias that would
    prevent him from ruling impartially on the case. Griffin v. Bell,
    
    694 F.3d 817
    , 826 (7th Cir. 2012). Nor did the court abuse its
    discretion in barring SigmaTron from presenting a witness
    whose testimony the court deemed cumulative under Federal
    Rule of Civil Procedure 403. Moreover, SigmaTron failed to
    preserve the alleged error for appeal when it failed to make an
    offer of proof regarding the excluded witness’s expected
    testimony. Wilson v. City of Chicago, 
    758 F.3d 875
    , 885 (7th Cir.
    2014); Fed. R. Evid. 103(a)(2). And finally, the district court did
    not abuse its discretion in allowing Gracia to present the
    challenged exhibit. The exhibit consisted of one of the explicit
    photos that Silverman had emailed to Gracia, but for the trial
    version of the email, the plaintiff had removed the forwarding
    chain in order to hide the fact that Gracia had forwarded the
    email to her attorney. The court remedied the matter by
    allowing the defendant to present the full email and cross-
    examine the plaintiff on the matter. Any error in allowing the
    exhibit into evidence was harmless in light of the court’s
    corrective actions. There is no merit in any of SigmaTron’s
    remaining arguments and no new trial is warranted.
    AFFIRMED.
    

Document Info

Docket Number: 15-3311

Citation Numbers: 842 F.3d 1010

Judges: Rovner

Filed Date: 11/29/2016

Precedential Status: Precedential

Modified Date: 1/12/2023

Authorities (25)

Gerald P. Lampley v. Onyx Acceptance Corp. , 340 F.3d 478 ( 2003 )

Dolores Deloughery v. City of Chicago , 422 F.3d 611 ( 2005 )

Jennifer Farfaras v. Citizens Bank and Trust of Chicago, a ... , 433 F.3d 558 ( 2006 )

Mark J. Bruso v. United Airlines, Incorporated, Cross-... , 239 F.3d 848 ( 2001 )

William G. Tullis v. Townley Engineering & Manufacturing Co.... , 243 F.3d 1058 ( 2001 )

renard-j-harvey-and-robbie-clark-as-personal-representative-of-ralph , 377 F.3d 698 ( 2004 )

Grace M. Kapelanski and Stanley J. Kapelanski v. Scott ... , 390 F.3d 525 ( 2004 )

Lamarce Tart and David Curtis v. Illinois Power Company and ... , 366 F.3d 461 ( 2004 )

Angelita Greviskes v. Universities Research Association, ... , 417 F.3d 752 ( 2005 )

Magyar v. Saint Joseph Regional Medical Center , 544 F.3d 766 ( 2008 )

Marion County Coroner's Office v. Equal Employment ... , 612 F.3d 924 ( 2010 )

Thompson v. Memorial Hosp. of Carbondale , 625 F.3d 394 ( 2010 )

Phyllis MERRIWEATHER, Plaintiff-Appellee, v. FAMILY DOLLAR ... , 103 F.3d 576 ( 1996 )

burl-mathias-and-desiree-matthias-plaintiffs-appelleescross-appellants-v , 347 F.3d 672 ( 2003 )

Dresser Industries, Inc., Waukesha Engine Division v. The ... , 965 F.2d 1442 ( 1992 )

O'LEARY v. Accretive Health, Inc. , 657 F.3d 625 ( 2011 )

Houskins v. Sheahan , 549 F.3d 480 ( 2008 )

Tracey Lust v. Sealy, Inc. , 383 F.3d 580 ( 2004 )

Lisa S. Fine v. Ryan International Airlines, Cross-Appellee , 305 F.3d 746 ( 2002 )

David v. Caterpillar, Inc. , 185 F. Supp. 2d 918 ( 2002 )

View All Authorities »