Opinion ID: 157797
Heading Depth: 2
Heading Rank: 3

Heading: Willamette's Response

Text: 15 In response to these incidents, Willamette took the following action: After being told by Mr. Elliot that there was graffiti concerning herself and Mr. Elliott, Ms. Baty reported this fact to Dale McGinnis, who told her it would be taken care of. Appellee's Supp.App. Vol. I at 65. In April 1994, when Ms. Baty complained about Mr. Harper's bouncing Betty comments, Mr. Harper was told to apologize to Ms. Baty. On July 8, 1994, Willamette management was told that more graffiti concerning Ms. Baty had appeared on the men's bathroom wall. Willamette contacted a handwriting expert that day, and, over the next month, the company collected four handwriting samples by placing metal plates over the graffiti, and then removing them and replacing them with fresh plates once they were written on. The handwriting samples of graffiti, along with the job applications of eighty-four male hourly employees, were then sent to a handwriting expert for analysis. The authors of the graffiti were never identified. 16 In early July 1994, Willamette's toll-free hot-line received an anonymous call complaining about sexual harassment at the Kansas City plant. Regional Personnel Manager Jim Mertes and his assistant, Jean Wolfe, went to the plant to investigate. On July 14 and 15, Mr. Mertes and Ms. Wolfe spoke with every female employee at the plant, including Ms. Baty, with whom they met at a nearby hotel at Ms. Baty's request. Ms. Baty testified she informed Mr. Mertes and Ms. Wolfe of the incidents of sexual harassment. 2 17 Mr. Mertes left Kansas City, and returned in late July for four days of continued investigation into Ms. Baty's complaints and to conduct sexual harassment training. Mr. Mertes spoke with every male employee about whom Ms. Baty had complained, and all either denied the particular conduct or stated that Ms. Baty was a willing participant. Mr. Mertes conducted two 45-minute sexual harassment training sessions, one for management and one for non-management employees. Mr. Mertes instructed the employees on sexual harassment law, gave examples of sexual harassment, and showed a video. He reminded everyone that Willamette would not tolerate sexual harassment, and that such conduct would be severely punished, including by termination. After conducting his investigation, Mr. Mertes concluded that no sexual harassment had in fact occurred. This finding was communicated to Ms. Baty. No Willamette employee was ever disciplined in connection with Ms. Baty's allegations. 18 Willamette has a written policy prohibiting sexual harassment. Ms. Baty and other Willamette employees testified that they never saw it, or received training on it, until Mr. Mertes' visit in July 1994. Mr. Lankard testified that it was posted on a bulletin board in the factory in February 1992. Mr. Brown testified that a compliance manual including information about Willamette's sexual harassment policy was distributed at a voluntary all-plant meeting in January 1994. Appellee's Supp.App. Vol. II at 515, 568-69. He also testified, however, that prior to July 1994, he had never received any training on how to investigate a complaint of sexual harassment. Appellee's Supp.App. Vol. III at 910. Mr. Elliott testified that even after the sexual harassment training by Mr. Mertes, he still did not understand what sexual harassment was. Appellee's Supp.App. Vol. I at 253. 19 The oil room graffiti was reported to management on August 18, 1994. Ms. Baty testified that general manager Gary Brown was genuinely concerned and embarrassed about the graffiti, and he apologized to Ms. Baty and told her the perpetrator would be disciplined up to and including termination. Appellee's Supp.App. Vol. I at 132-33, 168-69. Mr. Brown and Ms. Baty called the Kansas City Police Department, Mr. Brown interviewed three employees who may have been in the oil room, and the oil room was torn down shortly after the graffiti incident. 20 Also on August 18, Ms. Baty reported to Mr. Brown that Mr. Thurston had made unwelcome comments to her. Mr. Brown talked with Mr. Thurston that day, and Mr. Thurston denied all comments except the one concerning the golf ball, which he claimed he made because Ms. Baty had made a similar statement to him some months before. On August 22, Mr. Brown, Ms. Baty, Mr. Thurston and the Union president met to discuss Ms. Baty's allegations. Mr. Thurston denied making the comments, and Mr. Brown told Ms. Baty and Mr. Thurston to be polite, to keep their conversations strictly to business matters, and that Ms. Baty should immediately report any problems. Appellee's Supp.App. Vol. II at 548. Mr. Brown testified he received no further complaints from Ms. Baty about Mr. Thurston. Id. at 548-49. 21 In September 1994, someone tore off a plate in the men's bathroom, thereby exposing some graffiti written earlier. No further graffiti appeared. 22 On November 21, 1994, Ms. Baty met with Mr. Brown and Dale McGinnis and was told that her employment was terminated. Ms. Baty testified that Mr. Brown told her that she had been promoted to the supervisor trainee position in April in anticipation that she would fill Carl Lankard's position, since Mr. Lankard planned to retire at the end of the year. Appellee's Supp.App. Vol. I at 141. Mr. Lankard had decided not to retire, however, so there was no position for Ms. Baty to fill. 3 Moreover, she testified she was told that production at the plant was expected to decline in the next year because of a world-wide paper shortage, and the plant could not afford her salary. Id. As it turns out, while production decreased somewhat, prices and revenues increased in 1995. Appellee's Supp.App. Vol. II at 555-58. All employees received a bonus. Moreover, the 1995 plant budget, approved by Dale McGinnis and others three days before Ms. Baty's termination, projected increased production. No other Willamette employee was terminated because of the anticipated paper shortage. Id. at 576. 23 Ms. Baty testified that the incidents of sexual harassment caused her embarrassment and humiliation, and caused her to suffer headaches, weight fluctuations, and crying episodes. Appellee's Supp.App. Vol. I at 143. She testified that the male employees at Willamette made her day-to-day life hell. Id. at 142. She presented testimony from a psychologist, Dr. Irma Rahtjen, that she suffered from post-traumatic stress disorder beginning approximately in late spring or early summer 1994 and continuing until at least August 1996. 24 After receiving her notice of right to sue from the EEOC, Ms. Baty instituted this action against Willamette, alleging sexual harassment and retaliation in violation of Title VII, as well as state law negligence claims. Willamette filed a motion for summary judgment, which the district court granted with respect to Ms. Baty's state law claims and denied with respect to her Title VII claims. The Title VII claims were then tried to a jury. At the close of evidence, Willamette moved for judgment as a matter of law, which the district court denied except that it ruled Ms. Baty had failed to prove a continuing violation and would therefore not be permitted to recover damages for sexual harassment occurring before June 16, 1994. 25 The jury returned its verdict for Ms. Baty, awarding her: (1) compensatory damages of $120,000 and punitive damages of $500,000 for sexual harassment; and (2) compensatory damages of $25,000, punitive damages of $500,000, back pay of $40,000 and front pay of $165,000 for retaliation. Willamette renewed its motion for judgment as a matter of law or, alternatively, for a new trial or remittitur. The court denied the motion in large part, finding the evidence sufficient to support the jury's verdict on both sexual harassment and retaliation and sufficient to support the award of damages. In so ruling, the court noted that it found plaintiff to be a very credible witness; a distinct lack of credibility, on the other hand, predominated among defendant's witnesses. Baty, 985 F.Supp. at 997. 26 The court did, however, reduce the jury's separate awards of compensatory and punitive damages for the sexual harassment and retaliation claims to a single capped award of $300,000, based upon its interpretation of 42 U.S.C. § 1981a. It also vacated the jury's awards of back and front pay, holding that those are properly determined by the court, not the jury, and entered lesser amounts of $38,063 in back pay and $22,420 in front pay. These appeals followed. 27 Willamette argues: (1) its prompt and effective remedial action stopped the sexual harassment, thereby precluding a finding of liability as a matter of law; (2) alternatively, it took reasonable steps to end the sexual harassment; (3) the evidence failed to show retaliation; (4) the evidence was insufficient to support awards of compensatory or punitive damages; (5) alternatively, the awards of compensatory and punitive damages were excessive; (6) the judgment violates the First Amendment; and (7) alternatively, the case should be reversed and remanded for a new trial because of various prejudicial errors. 28 On cross-appeal, Ms. Baty argues: (1) the evidence is sufficient to support both a hostile work environment sexual harassment and a retaliation claim; (2) the evidence is sufficient to support separate awards for compensatory and punitive damages; (3) she is entitled to separate capped awards of $300,000 each for her sexual harassment and her retaliation claims; (4) the district court did not abuse its discretion in denying remittitur or a new trial; (5) the First Amendment does not shield Willamette from intentional discrimination or retaliation; and (6) the district court did not abuse its discretion in its rulings on jury instructions or admission of evidence, except it should have found a continuing violation. The Center for Individual Rights, as amicus curiae in support of Willamette, urges reversal of the district court's judgment on the ground that Willamette employees engaged in protected First Amendment activity, and because Title VII harassment laws, in general and particularly as applied in this case, are too vague.