Case 1:02-cv-01157-JDB Document 28 Filed 10/16/2003 Page 1 of 14

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF TENNESSEE
EASTERN DIVISION
---------------------------------------------------------------x

03 OCT I 6 P,'1 I: 48

EQUAL EMPLOYMENT OPPORTUNITY COMMISSION,
Plaintiff,

v.

Civil Action No. 1 - 02 - 1157-Br

Milan Box Corporation,

Defendant.
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JURY TRIAL DEMAND

CONSENT DECREE
Introduction Plaintiff, Equal Employment Opportunity Commission (hereinafter the "Commission"), has instituted this action alleging that Defendant Milan Box Corporation, allowed one of its supervisors to sexually harass female employees, and laid off and refused to recall or rehire two women in retaliation for their complaints about the harassment in violation of Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. Section 2000e et seq. (hereinafter "Title VII"). For purposes of settlement and compromise only, the parties have advised the Court that they wish to resolve the instant controversy without the expense, delay, and burden of further litigation; THEREFORE, it is the finding of this Court, made on the pleadings and on the record as a whole and upon agreement of the parties, that: (i) this Court has jurisdiction over the parties to and the subject matter of this action, (ii) the requirements of Title VII will be carried out by the

Case 1:02-cv-01157-JDB Document 28 Filed 10/16/2003 Page 2 of 14
implementation of this Decree, (iii) this Decree is intended to and does resolve all matters in controversy in this lawsuit among the parties, and (iv) the terms of this Decree represents a settlement of all issues in this lawsuit.
IT IS THEREFORE ORDERED, ADJUDGED, AND Decreed as follows: I. General Provisions
I. This Decree, being entered with the consent of the parties for purposes of settlement, shall not constitute an adjudication on the merits of this lawsuit and shall not be construed as an admission by Defendant of any violation of Title VII or any executive order, law, rule or regulation dealing with or in connection with sex discrimination in employment.
2. The Defendant, its officers, agents, employees, and all persons acting in concert with the Defendant are enjoined from discriminating on the basis of sex.
3. The Defendant, its officers, agents, employees, and all persons acting in concert with the Defendant are enjoined from discriminating against any employee because he or she has opposed discrimination based upon sex.
4. Defendant shall not discriminate or retaliate against any person because he or she has opposed any practices alleged in this action as unlawful under Title VII, has participated in an investigation conducted under Title VII with respect to this complaint, or because he or she has participated in this lawsuit or has benefitted in any way as a result of this Consent Decree.
II. Relief for Aggrieved Parties I. Defendant agrees to pay at total of $12,000 in gross backpay and $78,000 in compensatory damages to the women listed on Exhibits A and B, attached hereto, as described below.
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Case 1:02-cv-01157-JDB Document 28 Filed 10/16/2003 Page 3 of 14 2. Within thirty (30) days of the entry of this Decree, Defendant shall pay the
$12,000 in gross backpay and the first $38,000 in compensatory damages to some of the claimants as shown on Exhibit A.
3. Defendant has provided the Commission with a non interest-bearing promissory note in the form attached hereto as Exhibit C, signed by its President, as evidence of its intention to pay the remaining $40,000 in compensatory damages as shown on Exhibit B.
4. Within seven (7) months of the entry of this Decree, Defendant shall pay the $40,000 in compensatory damages as shown on Exhibit B.
5. As to checks designated as backpay, Defendant may reduce the gross amounts listed on Exhibit A by applicable deductions for the employee's portion of FICA and by applicable federal and state income tax withholding and may pay the claimant only the resulting net backpay amount.
6. Defendant will provide a statement itemizing the deductions from the backpay check to each claimant receiving such a check.
7. As to checks designated as damages, the full amount showns on Exhibits A and B are to be paid.
8. Copies of the checks and statements described above shall be contemporaneously forwarded to the EEOC's Regional Attorney in its Memphis, District Office. Upon receipt of all of the checks and statements, EEOC will forward to Defendant copies of the release form attached as Exhibit D, signed by each claimant.
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Case 1:02-cv-01157-JDB Document 28 Filed 10/16/2003 Page 4 of 14

III. Posting and Policies

1. Defendant shall post and cause to remain posted copies of the notice attached

hereto as Exhibit E in locations publicly visible to all employees in all facilities owned and

operated by Defendant, within the State of Tennessee for a period of three (3) years starting from

the date of entry of this Decree.

2.

Within thirty (30) days of the entry of this Decree, Defendant shall cause the

policy attached hereto as Exhibit F to be signed by its President and distributed to each and every

supervisor, and management official employed at all facilities owned and operated by Defendant

in the State of Tennessee. Defendant shall also cause all of the aforementioned officials to sign

the statement attached hereto as Exhibit G to indicate that they have received and read the policy.

IV. Training

I.

Defendant shall provide training in the workplace for its supervisors and

management staff regarding compliance with Title VII of the Civil Rights Act of 1964. In

addition, Defendant will notify the Commission within thirty days after it completes the training,

provide a copy of the training materials, and provide a list of the attendees at the training.

V. Reporting, Record-keeping, and Access

I.

Within forty-five (45) days of the entry ofthis Decree, Defendant shall prepare

and submit to the Commission's Regional Attorney in its Memphis District Office a letter

indicating as follows:

a.

that the notice has been posted as required by section III, paragraph 1,

above, and

b. that the Equal Employment Opportunity policy has been distributed as

required by section III, paragraph 2, above.

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The signed copies of Exhibit G shall be enclosed with the letter. 2. During the tenn of this Decree Defendant shall allow representatives ofthe
Commission to review Defendant's compliance with this Decree by inspecting and photocopying relevant documents and records, interviewing employees and management officials on their premises, and inspecting their premises. Such review of compliance shall be initiated by written notice to the Defendant's attorney of record at least three (3) business days in advance of any inspection of a Defendant's documents or premises.
VI. Term and Effect of Decree I. By entering into this Decree the parties do not intend to resolve any charges of discrimination currently pending before the Commission other than charge number 250-AO-I090. This Decree does, however, resolve all of the claims EEOC made or could have made in this litigation, including all sex discrimination claims based upon the alleged actions of Milburn Reed when Mr. Reed was employed by Defendant, including but not limited to the sexual harassment claims of Mildred Karen Willis, Phyllis Capps, Lorie Crowe, Nadine Herndon, Brenda Hickman, Michelle Fly, and Kimberly Fowler. 2. This Decree shall be binding upon the parties hereto, their successors and assigns. Defendant shall affinnatively notify any purchasers of the obligations of this Consent Decree prior to any sale which may take place. 3. This Decree constitutes the complete and exclusive agreement between the EEOC and Milan Box Corporation, with respect to the matters referred to herein. No waiver, modification or amendment of any provision of this Decree shall be effective unless made in writing. No representations or inducements to compromise this action have been made, other than those recited or referenced in this Decree.
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4. This Decree shall be for a period of three years and can only be extended for good cause shown. During the Decree's term the Court shall retain jurisdiction of this cause for purposes of compliance.
5. Each party shall bear that party's own cost .
DATE:OJ\~ ('+1 VeoJ

Approved: For Defendant Milan Box Corporation:

For Plaintiff Equal Employment Opportunity Commission:
ERIC S. DREIBAND General Counsel
JAMES L. LEE Deputy General Counsel
GWENDOLYN YOUNG REAMS Associate General Counsel

.' , . .
FAYE 'A. WILLIAMS (#11730)
Acting Regional Attorney

/

/ /.

THOMAS J. BOREK (IL 3127864)

Senior Trial Attorney

DRAGA G. ANTHONY (OH 4%524)

Trial Attorney

,

Equal Employment Opportunity Commission 1407 Union Avenue, Suite 620 Memphis, Tennessee 38104 (901) 544-0136

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Case 1:02-cv-01157-JDB Document 28 Filed 10/16/2003 Page 7 of 14
Exhibit A Initial Distribution (Within 30 days of Entry of Decree)

Name Phyllis Capps (Cheser)

Gross Backpay

Damages

~ $7,000.00

Lorie A. Crowe

Michelle Fly Nadine Herndon

$6,000.00

~

Brenda M Hickman

Mildred Karen Willis

$6,000.00

$31,000.00

Kimberly Fowler

Totals. . . . . . . . . . . . . . . . .. $12,000.00

$38,000.00

Grand Total: ........... .

$50,000.00

Case 1:02-cv-01157-JDB Document 28 Filed 10/16/2003 Page 8 of 14

Exhibit B Final Distribution (Within Seven Months of Entry of Decree)

Name

Gross Backpay

Damages

Phyllis Capps (Cheser) Lorie A. Crowe

~~
~ $4,000.00

Michelle Fly Nadine Herndon BrendaMHickman Mildred Karen Willis Kimberly Fowler Totals ..................

~ $4,000.00
~ $14,000.00
A..}I{.}I{"A..}I{.}I{"}I{.}I{,,A..
~ $14,000.00
~~ ~ $4,000.00
~ $40,000.00

Grand Total: ............

$40,000.00

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Case 1:02-cv-01157-JDB Document 28 Filed 10/16/2003 Page 9 of 14 Exhibit C
PROMISSORY NOTE To evidence the agreement of Milan Box Corporation as to payments required of it in settlement of the case of Equal Employment Opportunity Commission v. Milan Box Corporation, No. 1-02-1157 (W.D. Tenn., Eastern Division) (the "Case"), the undersigned promises that Milan Box Corporation shall pay the following sums to the following persons within seven months of the date of entry of the Consent Decree to which this note is attached:
• $4,000 to Lorie A. Crowe, • $4,000 to Michelle Fly,
• $14,000 to Nadine Herndon, • $14,000 to to Brenda Mae Hickman, and • $4,000 to Kimberly Fowler.
IN WITNESS WHEREOF, this Note has been duly executed by the undersigned the day and year first above written. -----1\OCAN"BCtX CORPORAnON
By: Franklin Dedmon President
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Case 1:02-cv-01157-JDB Document 28 Filed 10/16/2003 Page 10 of 14
Exhibit D
Release Form In consideration of the payment to me pursuant to the Consent Decree entered in EEOC v. Milan Box Comoration, No. 1-02-1157 (W.D. Tenn., Eastern Division), of which this release is part, I hereby fully and forever release and discharge Milan Box Corporation, its successors and assigns, including its present and fonner directors, officers, employees and agents, from any claim or obligation based on discrimination or retaliation in violation of Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e, et seq., which was or could have been raised in such Civil Action No. 01-2332-GV. I have read this release and I execute it volnntarily, without coercion or threat of reprisal.

Date

Signature of (Claimant's Name)

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Case 1:02-cv-01157-JDB Document 28 Filed 10/16/2003 Page 11 of 14
Exhibit E NOTICE TO EMPLOYEES Federal law requires that there be no discrimination against any employee or applicant for employment because of the individual's sex, color, religion, race, national origin or age (40 and over) with respect to hiring, promotion, firing, compensation, or other terms, conditions or privileges of employment. Milan Box Corporation, supports and will comply with such Federal law in alI respects and will not take any action against employees because they have exercised their rights under the law. Milan Box Corporation will not expose any employee to unwelcome conduct of a suggestive or sexual nature. The prohibited conduct includes unwelcome sexual advances, requests for sexual favors, distribution of sexual literature, pictures, sculptures or other obj ects, and any other verbal or physical conduct of a sexual nature. Milan Box Corporation has adopted a policy on harassment. To ensure a safe, secure working environment for all employees, Milan Box Corporation will respond to all employee complaints of sexual harassment in accordance with that policy. If you believe that you have been exposed to prohibited sexual conduct in the workplace, you may address your complaint to any owner or manager without regard to any "chain-of-command." You may also calJ the United States Equal Employment Opportunity Commission at (901) 544-0153, or 90 4-0136.
o
Employees complaining bout discrimination shall not be punished or subjected to any adverse action as a result of t eir complaints.
""'~~ ~·4 .o~
President Milan Box Corporation
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Case 1:02-cv-01157-JDB Document 28 Filed 10/16/2003 Page 12 of 14 Exhibit F

Policy on Harassment

Pursuant to Title VII of the Civil Rights Act of 1964, as amended, it is unlawful for an employer to subject any employee to acts of harassment based upon the employee's sex, race, color, religion or national origin, or to permit or encourage a work environment in which such conduct occurs.

Harassment based upon sex, race, color, religion or national origin includes any verbal or other conduct that demeans, insults or intimidates an employee or a group of employees because of their sex, race, color, religion or national origin. Prohibited conduct includes, but is not limited to jokes, labels, names, or stories offensive to a particular group of persons under Title VII.

It is the policy of this employer to prohibit the types of harassment described above. All persons, including supervisors, officers, and owners, who are responsible for such conduct shall be disciplincd, and may ultimately be removed from positions involving contact with particular employees or terminated. All supervisors and other management employees are hereby instructed to promptly report to upper management whenever they become aware of any instance in which an employee may have been harassed unlawfully during working hours. Harassment or suspected harassment should be reported regardless of whether the alleged harasser is an owner, a manager, an employee, or a member of the public.

One particular type of prohibited harassment based upon sex is "sexual harassment," which is defined as any unwelcome sexual advance, unwelcome requests for sexual favors, or other unwelcome verbal or physical conduct of a sexual nature. Such conduct is always prohibited by Milan Box.

Employees also should be aware of the following:

I) That the unlawful harassment described above will not be tolerated or condoned by this company;

2) That persons subjected to such harassment may complain to the owners or to anyone in

management, and that within ten (10) calendar days an owner or manager who was not

involved in the alleged harassment shall conduct a full investigation, report back to the

complaining individual, and take appropriate action against an offending party;
..

3) Th

ns compla! 'ng in either way shall not be subjected to any adverse action as a

result of their complamts, d reasonable measures shall be taken to protect such persons from

further harassment or from etaliation by the person about whom they are complaining.

President, Milan Box Corporation

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Case 1:02-cv-01157-JDB Document 28 Filed 10/16/2003 Page 13 of 14

Exhihit G

Record of Policy Distribution

The undersigned managers employed by Milan Box Corporation, certifY that they have received a copy of their employer's policies relating to sex discrimination, and that they have read this policy by the date indicated.

NAME

TITLE

DATE

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Case 1:02-cv-01157-JDB Document 28 Filed 10/16/2003 Page 14 of 14
UNITED STATES DISTRICT COURT - WESTERN DISTRICT OF TENNESSEE
Notice of Distribution
This notice confirms a copy ofthe document docketed as number 28 in case 1:02-CV-01157 was distributed by fax, mail, or direct printing on October 16, 2003 to the parties listed.
Thomas J. Borek EQUAL EMPLOYMENT OPPORTUNITY COMMISSION 1407 Union Avenue Ste.621 Memphis, TN 38104
Katharine W. Kores EQUAL EMPLOYMENT OPPORTUNITY COMMISSION 1407 Union Avenue Ste.621 Memphis, TN 38104
Draga G. Anthony EQUAL EMPLOYMENT OPPORTUNITY COMMISSION 1407 Union Avenue Ste.621 Memphis, TN 38104
Lawrence Robert Kenyon EQUAL EMPLOYMENT OPPORTUNITY COMMISSION 50 Vantage Way Ste.202 Nashville, TN 37228
Charles M. Purcell WALDROP & HALL 106 S. Liberty Street P.O. Box 726 Jackson, TN 38302
Honorable J. Breen US DISTRICT COURT

 
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U.S. District Court Western District of Tennessee (Jackson) CIVIL DOCKET FOR CASE #: 1:02-cv-01157-JDB

51RA, TERMED

EEOC v. Milan Box Corp Assigned to: Judge J. Daniel Breen Demand: $0 Cause: 42:2000e Job Discrimination (Employment)

Date Filed: 06/28/2002 Jury Demand: Both Nature of Suit: 442 Civil Rights: Jobs Jurisdiction: U.S. Government Plaintiff

Plaintiff
Equal Employment Opportunity Commission TERMINATED: 10/16/2003

represented by Draga G. Anthony EQUAL EMPLOYMENT OPPORTUNITY COMMISSION 1407 Union Avenue Ste. 621 Memphis, TN 38104 901-544-0136 Fax: 544-0111 TERMINATED: 10/16/2003 LEAD ATTORNEY ATTORNEY TO BE NOTICED

Katharine W. Kores EQUAL EMPLOYMENT OPPORTUNITY COMMISSION 1407 Union Avenue Ste. 621 Memphis, TN 38104 901-544-0151 Email: katharine.kores@eeoc.gov TERMINATED: 10/16/2003 LEAD ATTORNEY ATTORNEY TO BE NOTICED

Lawrence Robert Kenyon, II EQUAL EMPLOYMENT OPPORTUNITY COMMISSION 50 Vantage Way Ste. 202 Nashville, TN 37228 931-486-2572 Fax: 736-2107 TERMINATED: 12/27/2002 LEAD ATTORNEY ATTORNEY TO BE NOTICED

Thomas J. Borek

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V.
Defendant Milan Box Corporation TERMINATED: 10/16/2003

EQUAL EMPLOYMENT OPPORTUNITY COMMISSION 1407 Union Avenue Ste. 621 Memphis, TN 38104 901-544-0136 Fax: 544-0111 TERMINATED: 10/16/2003 LEAD ATTORNEY ATTORNEY TO BE NOTICED
represented by Charles M. Purcell WALDROP & HALL 106 S. Liberty Street P.O. Box 726 Jackson, TN 38302-0726 731-424-6211 Fax: 731-423-4732 Email: dabbsgoldenr@waldrophall.com TERMINATED: 10/16/2003 LEAD ATTORNEY ATTORNEY TO BE NOTICED

Date Filed 06/28/2002 08/13/2002 10/02/2002 10/15/2002 11/01/2002
11/06/2002

#

Docket Text

1 COMPLAINT (Summons(es) issued) - CJT (GN) (Entered: 07/01/2002)
2 ANSWER by defendant Milan Box Corp to [1-1]; jury demand - cjt (EJS) (Entered: 08/13/2002)
3 SETTING LETTER ; scheduling conference set for 2:30 10/31/02, Rm 345 U S Courthouse Jackson before MagJBreen (BPH) (Entered: 10/02/2002)
4 NOTICE OF FILING OF Report of Parties' Planning Meeting by plaintiff EEOC, defendant Milan Box Corp (SKP) (Entered: 10/15/2002)
5 SCHEDULING ORDER 16(b) Mag Judge J. D. Breen ; motion filing deadline set for 5/16/03 ; discovery deadline set for ptf r26 expert 03/04/03, dft r26 expert 04/11/03, doc prod - interr - req for adm 03/28/03, depos 5/30/03 ; proposed pretrial order to be entered on 8/8/03 ; jury trial set for 8/18/03; deadline for joining parties and amending pleadings set for ptf 01/17/03 and dft 2/17/03, final lsts of wit/exh for ptf 07/18/03 and dft 08/08/03. (cc: all counsel) (EJS) (Entered: 11/04/2002)
6 ORDER SETTING CASE FOR TRIAL by Chief Judge James D. Todd jury trial 9:30 08/18/03, jpto due 08/08/03 (cc: all counsel)CJT, Ct Reporter, Case Mgr, Jury Deputy, SP (BPH) (Entered: 11/06/2002)

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11/12/2002 12/24/2002 12/27/2002 12/31/2002 12/31/2002 12/31/2002 03/31/2003 04/04/2003 05/21/2003 05/21/2003 05/21/2003 05/21/2003 05/29/2003
06/13/2003 06/19/2003

7 NOTICE of compliance with rule 26 by defendant Milan Box Corp - CJT (EJC) (Entered: 11/13/2002)
8 MOTION by plaintiff EEOC for substitution of counsel - cjt wpo (EJS) (Entered: 12/26/2002)
9 ORDER by Chief Judge James D. Todd granting motion for [8-1] substituion of Atty Draga Anthony for Atty Lawrence Kenyon. (cc: all counsel) (EJS) (Entered: 12/27/2002)
10 JOINT MOTION by plaintiff EEOC, defendant Milan Box Corp to extend time to file motion to compel discovery responses - cjt wpo (EJS) (Entered: 12/31/2002)
11 MEMORANDUM by plaintiff EEOC, defendant Milan Box Corp in support of motion to extend [10-1] - cjt (EJS) (Entered: 12/31/2002)
12 ORDER by Chief Judge James D. Todd granting motion to extend [10-1] time to file motion to compel - if necessary, to be filed on or before 01/20/03. (cc: all counsel) (EJS) (Entered: 01/02/2003)
13 ORDER by Chief Judge James D. Todd Case reassigned to Judge J. D. Breen per admin order #03-09. (cc: all counsel) (EJS) (Entered: 04/01/2003)
14 SETTING LETTER - pursuant to Administrative Order 03-09 notification to parties re: reassignment of case to Judge Breen and trial setting (BPH) (Entered: 04/04/2003)
15 MOTION by plaintiff, defendant to amend scheduling order - CJB w/p/o (EJC) (Entered: 05/22/2003)
16 MEMORANDUM by plaintiff EEOC, defendant Milan Box Corp in support of motion to amend scheduling order [15-1] - (document incorporated in motion) CJB (EJC) (Entered: 05/22/2003)
17 CERTIFICATE of counsel by defendant Milan Box Corp - CJB (EJC) (Entered: 05/22/2003)
18 PROPOSED order modifying scheduling order submitted by defendant Milan Box Corp - OJB (EJC) (Entered: 05/22/2003)
19 ORDER MODIFYING SCHEDULING ORDER by Judge J. D. Breen granting motion to amend scheduling order [15-1] ..ddl depositions 6/30/03; dispositive motion filing ddl set 7/30/03 ; pla's final list of witnesses & exhs 9/18/03; ddl dft's final list of witnesses & exhs 10/3/03; ddl joint pretrial order is to be set by the court; ddl trial date to be set by the court. (cc: all counsel) (EHG) (Entered: 05/30/2003)
20 SETTING LETTER : telephone status conference set for 6/19/03 at 11:00 (EHG) (Entered: 06/13/2003)
21 MINUTES: Telephone Status conference held 6/19/03 . Parties to engage in private mediation. Discovery stayed for 60 days. A follow-up status conf to be set by phone at end of Aug. or first of Sept. 03. Mr. Purcell w/submit order to the court. Presiding Judge: Breen PLA Atty: T. Borek DFT Atty: C. Purnell, J. Craig C/R: none (EHG) (Entered: 06/20/2003)

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06/24/2003 07/17/2003 07/17/2003 07/22/2003
07/22/2003 09/09/2003 10/16/2003

22 SETTING LETTER ; telephone/scheduling conference set for 4:00 8/28/03 (EHG) (Entered: 06/25/2003)
23 MOTION by plaintiff EEOC, defendant Milan Box Corp to continue status conference - cjb (EJS) (Entered: 07/18/2003)
24 CERTIFICATE by plaintiff EEOC, defendant Milan Box Corp of consultation cjb (EJS) (Entered: 07/18/2003)
25 ORDER STAYING DISCOVERY by Judge J. D. Breen ..ddls including but not limited to depositions, dispositive motions, final list of witnesses and exhs, the joint pretrial order and trial of this matter are stayed for 60 days from 6/19/03 in order for mediation to take place between the parties. Mediation scheduled for 9/4/03.. granting motion to continue [23-1] ; scheduling conference set for 8/28/03 @ 4:00 p.m. before Mag Judge Breen is RESCHEDULED for 9/16/03 @ 9:00 a.m. (cc: all counsel) (EHG) (Entered: 07/22/2003)
26 SETTING LETTER ; telephone/scheduling conference set for 9:00 9/16/03 (EHG) (Entered: 07/22/2003)
27 NOTICE OF FILING OF MEDIATION SESSION REPORT - copy JB, Venita Griffin (SKP) (Entered: 09/12/2003)
28 CONSENT JUDGMENT by Judge J. D. Breen dismissing party Milan Box Corp, party EEOC , terminating case pursuant to settlement, parties to be bound by terms of consent decree (judgment) (cc: all counsel) (EJS) (Entered: 10/16/2003)

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