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IN THE UNITED STATES DISTRICT COURT"

.

FOR THE SOUTHERN DISTRICT OF INDIAN~~] Sf') ':' n

INDIANAPOLIS DIVISION

., . j PI] .1: 54

EQUAL EMPLOYMENT OPPORTUNITY

)

COMMISSION,

)

)

Plaintiff,

)

)

v.

)

)

KEN MADDOX HEATING & AIR

)

CONDITIONING, INC.

)

)

)

0 Defendan~ : ~7) -cy~)·

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CIVIL ACTION NO. COMPLAINT JURY TRIAL DEMAND

NATURE OF THE ACTION This is an action under Title VII ofthe Civil Rights Act of 1964 and Title I of the Civil Rights Act of 1991 to correct unlawful employment practices on the basis of sex and to provide appropriate relief to Derrick Oldham. The Commission alleges that Defendant maintains a health insurance policy which covers major medical expenses, but excludes coverage for expenses related to pregnancy and childbirth, in violation of Title VII.
JURISDICTION AND VENUE 1. Jurisdiction of this Court is invoked pursuant to 28 C.S.c. §§ 451, 1331, 1337, 1343 and 1345. This action is authorized and instituted pursuant to Section 706 (f)(l) and (3) of Title VII ofthe Civil Rights Act of 1964, as amended, 42 U.S.c. § 2000 e-5(f)(I) and (3) ("Title VII") and Section 102 of the Civil Rights Act of 1991, 42 U.S.C. § 1981a.

2.

The employment practice alleged to be unlawful was committed within the

jurisdiction of the United States Court for the Southern District ofIndiana, Indianapolis

Division.

PARTIES

3. Plaintiff, the Equal Employment Opportunity Commission (the "Commission"), is

the agency of the United States of America charged with the administration, interpretation allld

enforcement of Title VII, and is expressly authorized to bring this action by Section 706 (f)(l)

and (3) ofTitle VII, 42 U.S.C. § 2000e-5 (f) (I) and (3).

4. At all relevant times, Defendant, Ken Maddox Heating & Air Conditioning, Inc.,

(the "Employer"), purports to have continuously been an Indiana corporation, doing busine9S in

the State ofIndiana and the City ofIndianapolis, and has continuously had at least 15 employees.

5. At all relevant times, Defendant Employer has continuously been an employer

engaged in an industry affecting commerce within the meaning of Sections 701(b), (g) and (h) of

Title VII, 42 U.S.C. §§ 2000e(b), (g) and (h).

STATEMENT OF CLAIMS

6. More than thirty days prior to the institution of this lawsuit, Derrick Oldham filed

a charge with the Commission alleging violations of Title VII by Detendant Employer. All

conditions precedent to the institution of this lawsuit have been fulfilled.

7. Since at least May 1999, Defendant Employer has engaged in unlawful

employment practices at its Indianapolis, Indiana facility, in violation of Section 703(a) (I) of

Title VII, 42 U.S.C. §§ 2000e-2(a) (I). The unlawful practice includes maintaining a health

2

insurance policy which provides coverage for major medical expenses but excludes coverage for expenses for pregnancy and childbirth.
8. The effect of the practice complained of in paragraph 7 above has been to deprive Derrick Oldham of equal employment opportunities and otherwise adversely affect his status as an employee, because of his sex.
9. The unlawful employment practice complained of in paragraph 7 above was intentional.
10. The unlawful employment practice complained of in paragraph 7 above was done with malice or with reckless indifference to the federally protected rights of Derrick Oldham.
PRAYER FOR RELIEF Wherefore, the Commission respectfully requests that this Court: A. Grant a permanent injunction enjoining Defendant Employer, its officers, successors, assigns, and all persons in active concert or participation with it, from maintaining a health insurance policy which discriminates on the basis of sex and any other employment practice which discriminates on the basis of sex. B. Order Defendant Employer to institute and carry out policies, practices, and programs which provide equal employment opportunities for its employees, and which eradicate the effects of its past and present unlawful employment practices. C. Order Defendant Employer to make whole Derrick Oldham by providing compensation for past and future pecuniary losses resulting from the unlawful employment practice described in paragraph 7 above, including but not limited to medical expenses incurred
3

by Derrick Oldham for the birth of a child, out of pocket expenses, plus prejudgment interest, in amounts to be determined at trial.
D. Order Defendant Employer to make whole Derrick Oldham by providing compensation for past and future nonpecuniary losses resulting from the unlawful practice complained of in paragraph 7 above, including but not limited to physical and emotional pain and suffering, mental anguish, and loss of enjoyment of life, in amounts to be determined at trial.
E. Order Defendant Employer to pay Derrick Oldham punitive damages for its malicious and reckless conduct described in paragraph 7 above, in amounts to be determined at trial.
F. Grant such further relief as the Court deems necessary and proper in the public interest.
G. Award the Commission its costs of this action.
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JURY TRIAL DEMAND The Commission requests a jury trial on all questions of fact raised by its complaint.
Respectfully Submitted, ERIC S. DREIBAND General Counsel JAMES L. LEE Deputy General Counsel GWENDOLYN YOUNG REAMS
HELLE EISELE, #12070-4 Supervisory Trial Attor ey
Senior Trial Attorney EQUAL EMPLOYMENT OPPORTUNITY COMMISSION Indianapolis District Office 101 West Ohio Street, Suite 1900 Indianapolis, In 46204 Phone: (317) 226-7949 Fax: (317) 226-5571 Email: joann.farnsworth@eeoc.gov
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 IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF INDIANA
INDIANAPOLIS DIVISION

EQUAL EMPLOYMENT OPPORTUNITY

)

COMMISSION,

)

)

Plaintiff,

)

)

v.

)

)

KEN MADDOX HEATING & AIR

)

CONDITIONING, INC.

)

)

)

)

Defendant.

)

)

CIVIL ACTION NO. 1:03-CV-1435 LJM-WTL

SETTLEMENT AGREEMENT This action was instituted by the Equal Employment Opportunity Commission ("Commission") under the authority granted to it under Section 706(f)(1) of Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e-5(f)(1). The Commission's action was brought to correct alleged unlawful employment practices on the basis of sex. Specifically, the Commission alleged in its Complaint that Ken Maddox Heating & Air Conditioning, Inc., ("Ken Maddox"), maintains a health insurance policy which covers major medical expenses, but excludes coverage for expenses related to pregnancy and childbirth. The Commission alleged in its Complaint that as a result of this policy, Derrick Oldham was subjected to discrimination based on sex. The Commission and Ken Maddox, hereby stipulate to the jurisdiction of the Court over the parties and the subject matter of this action.

The parties have advised the Court that they desire to resolve the remaining allegations in the Complaint without the burden, expense, and delay of further litigation.
It is therefore the finding of this Court, made on the pleadings and the record as a whole, that: (1) the Court has jurisdiction over the parties and the subject matter of this action; (2) the purpose and provisions of Title VII will be promoted and effectuated by the entry of this Settlement Agreement; and (3) this Settlement Agreement resolves all the matters in controversy between the parties as provided in paragraphs 1 through 7 below.
It is therefore ORDERED, ADJUDGED AND DECREED as follows: 1. Defendant agrees that it will not maintain a health insurance policy that has the purpose or effect of discriminating against employees or applicants for employment on the basis of sex. 2. Defendant agrees that it will not discriminate or retaliate in any way against any person because of opposition to a practice made unlawful under Title VII or because of the filing of a charge, the giving of testimony, assistance or participation in any manner in an investigation, proceeding or hearing under Title VII. 3. Defendant agrees to pay Derrick Oldham or his heirs and assigns in the event of his death, $11,000.00 in damages as reimbursement for medical expenses. Defendant agrees that it will take no deductions from the settlement amount. A check in that amount shall be made payable to Derrick Oldham and sent to him by certified mail at 6353 Graybrook Court, Indianapolis, IN 46237. Fifteen days from the entry of this Settlement Agreement by the Court, the Commission will forward a release (see Appendix A) to Derrick Oldham for his execution. The Commission will notify counsel for Defendant on receipt of the release executed by Derrick
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Oldham. Then, within thirty days from the entry of this Settlement Agreement by the Court, Defendant shall mail the check, by certified mail, to Mr. Oldham. Defendant shall mail a copy of Derrick Oldham’s check and proof of its delivery to Derrick Oldham (a signed certified mail receipt) to the Commission. Upon receipt of proof of delivery of a check to Derrick Oldham, the Commission shall forward the release to counsel for Defendant.
4. Ken Maddox agrees to eliminate from the record of Derrick Oldham all references to his charge of discrimination and participation in this suit and shall make no mention of such charge or participation in the event it is contacted for references by Mr. Oldham’s prospective employers. Ken Maddox further agrees that if it is contacted for references, it will execute the letter of reference on behalf of Derrick Oldham attached as Appendix B. Ken Maddox further agrees that it will disclose only the information contained in Appendix B to any prospective employers of Derrick Oldham who make an inquiry to Ken Maddox Heating & Air Conditioning, Inc. This provision survives the expiration of this Settlement Agreement.
5. Ken Maddox agrees that it will immediately revise its health insurance policy, if it continues to provide a health insurance benefit to its employees, so that the policy includes coverage for pregnancy and childbirth. Ken Maddox further agrees to notify its employees in writing of the policy change. Copies of the revised health insurance policy and the written notification advising employees of the revision shall be provided to the EEOC within thirty days from the date this agreement is signed and approved by the Court.
6. Each party to this action shall bear its own costs and attorney fees.
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7. The Equal Employment Opportunity Commission and Ken Maddox Heating & Air Conditioning, Inc. have filed their Joint Motion to Approve and Enter Settlement Agreement.

______3__/3_0__/2_0__0_4_______
Date

___________________________________ Judge, United States District Court

Copies to:
Jo Ann Farnsworth, Senior Trial Attorney EQUAL EMPLOYMENT OPPORTUNITY
COMMISSION 101 W. Ohio Street, Suite1900 Indianapolis, IN 46204
Todd N. Nierman BAKER & DANIELS Suite 2700 300 North Meridian St. Indianapolis, IN 46204

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APPENDIX A
RELEASE In consideration of the payment to me by Ken Maddox Heating & Air Conditioning, Inc. of $11,00.00, and in consideration of the Settlement Agreement agreed to by the Equal Employment Opportunity Commission and Ken Maddox Heating & Air Conditioning, Inc. in
Civil Action No. 1:03-CV-1435LJM-WTL, entered by the Court on the ___3_0___ day of ____M__a_r_c_h____, 2004, of which this Release is a part, I, Derrick Oldham, hereby fully and
forever release and discharge Ken Maddox Heating & Air Conditioning, Inc., its successors and assigns, including its present and former directors, officers, employees and agents, from any claim or obligation based on the claim that Ken Maddox Heating & Air Conditioning Inc. maintained a health insurance policy which excluded from coverage benefits for pregnancy and childbirth in violation of Title VII, as raised in Civil Action No. 1:03-CV-1435LJM-WTL.
I agree that I will be solely and individually responsible for paying any and all taxes (including FICA or otherwise) which may be due and owing, if any, as a result of Defendant’s payment of the sum set forth above. I acknowledge that I have not relied on any representations made by Defendant or the EEOC relating in any way to the tax treatment of the payments pursuant to this agreement.

I have read this Release and I execute it voluntarily, without coercion or threat of reprisal.

IN WITNESS WHEREOF, this Release is signed and executed by me on the _______ day of _______________, 2004.

______________________________

County of

)

)SS

State of

)

Subscribed and sworn to before me this ______ day of ____________, 2004.

_____________________________ Notary Public

County of Residence__________________ My Commission Expires:_______________

APPENDIX B
To Whom It May Concern: Derrick Oldham was employed by Ken Maddox Heating & Air Conditioning, Inc., from
February 1, 1993 through October 2003. Mr. Oldham was employed as a Service Manager. Mr. Oldham’s job performance while at Ken Maddox Heating & Air Conditioning, Inc. was good. I feel that Mr. Oldham would be an asset to any company which is considering him for employment.
_____________________________ Ken Maddox, owner Ken Maddox Heating & Air Conditioning, Inc.

 
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CLOSED, CMP
U.S. District Court Southern District of Indiana (Indianapolis) CIVIL DOCKET FOR CASE #: 1:03-cv-01435-LJM-WTL

EQUAL EMPLOYMENT OPPORTUNITY COMMISSION v. KEN MADDOX HEATING & AIR CONDITIONING, INC. Assigned to: Judge Larry J. McKinney Referred to: Magistrate Judge William T. Lawrence Cause: 42:2000e Job Discrimination (Employment)

Date Filed: 09/30/2003 Date Terminated: 05/13/2004 Jury Demand: Plaintiff Nature of Suit: 442 Civil Rights: Jobs Jurisdiction: U.S. Government Plaintiff

Plaintiff
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

represented by Eric S. Dreiband EEOC 101 West Ohio Street Suite 1900 Indianapolis, IN 46204 ATTORNEY TO BE NOTICED

Gwendolyn Young Reams EEOC 101 West Ohio Street Suite 1900 Indianapolis, IN 46204 317-226-7949 Fax: 317-226-5571 ATTORNEY TO BE NOTICED

James L. Lee EEOC 101 West Ohio Street Suite 1900 Indianapolis, IN 46204 ATTORNEY TO BE NOTICED

Jo Ann Farnsworth EEOC 101 West Ohio Street Suite 1900 Indianapolis, IN 46204 (317)226-7949 Fax: (317)226-5571 Email: joann.farnsworth@eeoc.gov ATTORNEY TO BE NOTICED

Laurie A. Young EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

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V.
Defendant KEN MADDOX HEATING & AIR CONDITIONING, INC.

101 W. Ohio Street Suite 1900 Indianapolis, IN 46204 (317)226-7202 Fax: (317)226-7203 Email: legal.station@eeoc.gov ATTORNEY TO BE NOTICED
Michelle Eisele EEOC 101 W. Ohio Street Suite 1900 Indianapolis, IN 46204 (317)226-7212 Fax: (317)226-7953 Email: michelle.eisele@eeoc.gov ATTORNEY TO BE NOTICED
represented by Todd M. Nierman LITTLER MENDELSON PC First Indiana Plaza 135 North Pennsylvania Street Suite 1250 Indianapolis, IN 46204 (317) 287-3520 Fax: (317) 636-0712 Email: tnierman@littler.com ATTORNEY TO BE NOTICED
Katherine J. Stotler BAKER & DANIELS 300 North Meridian Street Suite 2700 Indianapolis, IN 46204 (317) 237-8254 Fax: (317) 237-0300 Email: katie.stotler@bakerd.com ATTORNEY TO BE NOTICED

Date Filed 09/30/2003

#

Docket Text

1 COMPLAINT against KEN MADDOX HEATING & AIR CONDITIONING, INC. with JURY DEMAND, filed by Plaintiff, EQUAL EMPLOYMENT OPPORTUNITY COMMISSION.(KLS, ) (Entered: 09/30/2003)

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09/30/2003 09/30/2003 09/30/2003 09/30/2003 10/06/2003 10/21/2003 10/21/2003 10/28/2003
11/21/2003 11/25/2003 12/15/2003 12/15/2003 12/29/2003
12/30/2003 01/26/2004

2 CIVIL COVER SHEET filed by Plaintiff, EQUAL EMPLOYMENT OPPORTUNITY COMMISSION. (KLS, ) (Entered: 09/30/2003)
3 MAGISTRATE JUDGE's NOTICE of Availability to Exercise Jurisdiction (KLS, ) (Entered: 09/30/2003)
4 MAGISTRATE JUDGE'S Summary of CMP Notice issued. (KLS, ) (Entered: 09/30/2003)
5 Summons Issued as to KEN MADDOX HEATING & AIR CONDITIONING, INC. c/o Ken Maddox, Owner and Resident Agent. (KLS, ) (Entered: 09/30/2003)
6 RETURN of Service by CMRRR by EQUAL EMPLOYMENT OPPORTUNITY COMMISSION. KEN MADDOX HEATING & AIR CONDITIONING, INC. served on 10/2/2003. (YOL, ) (Entered: 10/07/2003)
7 NOTICE of Appearance by Todd M. Nierman of the law firm Baker & Daniels on behalf of KEN MADDOX HEATING & AIR CONDITIONING, INC -cs. (EAH, ) (Entered: 10/23/2003)
8 NOTICE of Parties' First Extension of Time to answer or otherwise respond by KEN MADDOX HEATING & AIR CONDITIONING, INC -cs. (EAH, ) (Entered: 10/23/2003)
9 SCHEDULING ORDER: Initial Pretrial Conference set for 12/29/2003 08:30 AM in room #277 before Judge William T. Lawrence. The parties shall file the CMP no less than seven days prior to the pretrial conference. Signed by Judge William T. Lawrence on 10/28/2003. c/m WTL (TMA) (Entered: 10/28/2003)
10 ANSWER to Complaint by KEN MADDOX HEATING & AIR CONDITIONING, INC..(Nierman, Todd) (Entered: 11/21/2003)
11 ORDER designating case for Electronic Filing. All future documents in this case are to be filed electronically using the Court's ECF system. Signed by Judge Larry J. McKinney on 11/25/2003. (KJM) (Entered: 11/25/2003)
12 CASE MANAGEMENT PLAN TENDERED by EQUAL EMPLOYMENT OPPORTUNITY COMMISSION. (Farnsworth, Jo Ann) (Entered: 12/15/2003)
13 NOTICE of Service of Initial Disclosures by EQUAL EMPLOYMENT OPPORTUNITY COMMISSION (Farnsworth, Jo Ann) (Entered: 12/15/2003)
14 SCHEDULING ORDER: Initial Pretrial Conference set for 12/29/03 is VACATED and RESCHEDULED for 1/23/2004 01:00 PM in room #277 before Judge William T. Lawrence. Signed by Judge William T. Lawrence on 12/29/2003. c/m WTL (TMA) (Entered: 12/29/2003)
15 NOTICE of Service of Initial Disclosures by KEN MADDOX HEATING & AIR CONDITIONING, INC. (Nierman, Todd) (Entered: 12/30/2003)
16 SCHEDULING ORDER: Initial Pretrial Conference Re-set for 2/17/2004 08:30 AM in room #277 before Judge William T. Lawrence. Signed by Judge William T. Lawrence on 1/26/04 -cm. (EAH, ) (Entered: 01/26/2004)

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02/11/2004 02/17/2004
02/17/2004 02/25/2004 02/25/2004 03/04/2004 03/23/2004 03/30/2004

17 NOTICE of Appearance by Katherine J. Stotler on behalf of KEN MADDOX HEATING & AIR CONDITIONING, INC. (Stotler, Katherine) (Entered: 02/11/2004)
18 ENTRY - Parties appear by counsel for initial pretrial conference. Conference held and concluded without further order. SCHEDULING ORDER: Status Conference set for 4/6/2004 01:00 PM in room #277 before Judge William T. Lawrence. Signed by Judge William T. Lawrence on 02/17/2004. c/m WTL (TMA, ) (Entered: 02/17/2004)
19 ORDER: CASE MANAGEMENT PLAN APPROVED AS SUBMITTED. SCHEDULING ORDER: Dispositive Motions due by 8/30/2004. Signed by Judge William T. Lawrence on 02/17/2004. c/m WTL (TMA) (Entered: 02/17/2004)
20 SCHEDULING ORDER: Final Pretrial Conference is set for 3/11/2005 at 9:00 AM in room #204 and Jury Trial is set for 3/28/2005 at 9:30 AM in courtroom #202 before Judge Larry J. McKinney. Signed by Judge Larry J. McKinney on 02/25/2004. (GJQ) (Entered: 02/25/2004)
21 Unopposed MOTION for Extension of Time to File Preliminary Witness and Exhibit Lists and Statement of Special Damages by EQUAL EMPLOYMENT OPPORTUNITY COMMISSION. (Attachments: # 1 Text of Proposed Order)(Farnsworth, Jo Ann) (Entered: 02/25/2004)
22 ORDER granting 21 Plaintiff's Motion for Extension of Time, thru 3/29/04, to File Preliminary Witness and Exhibit Lists and Statement of Special Damages. Signed by Judge William T. Lawrence on 03/04/2004. c/m WTL (TMA, ) (Entered: 03/04/2004)
23 Joint MOTION to Approve and Enter Settlement Agreement by EQUAL EMPLOYMENT OPPORTUNITY COMMISSION. (Attachments: # 1 proposed settlement agreement)(Farnsworth, Jo Ann) (Entered: 03/23/2004)
24 ORDER granting 23 Joint MOTION to Approve and Enter Settlement Agreement. cm Signed by Judge Larry J. McKinney on 3/30/04. (YOL, ) (Entered: 03/30/2004)

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