AELE LAW LIBRARY OF CASE SUMMARIES:
Employment & Labor Law for Public Safety Agencies


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Damages, Remedies and Enforcement of Settlements

     Oregon's split recovery statute, under which 60 percent of all punitive damages awarded in a state law tort action are allocated to the state, does not violate the Fifth Amendment's prohibition against taking private property by public use, without just compensation. Engquist v. Oregon Dept. of Agriculture, #07-474, 2008 U.S. Lexis 4705.
     An award of compensatory damages need not accompany punitive damages awards under Title VII or 42 U.S. Code §1981. Abner v. KCS RR, # 06-30476, 2008 U.S. App. Lexis 27, 102 FEP Cases (BNA) 616 (5th Cir.).
     In a wrongful termination action brought by a former sheriff's employee, a federal court can enforce the intent of a Rule 68 consent judgment and enjoin the plaintiff from pursuing claims for similar relief in state court. Fafel v. DiPaola, 04-1718, 399 F.3d 403, 2005 U.S. App. Lexis 3747 (1st Cir. 2005). {N/R}
     NYPD officer who was awarded, in a sexual harassment case, $400,000 in compensatory damages against two superiors and $1 million in punitive damages against the city, cannot recover punitive damages from the city. Krohn v. N.Y. City Police Dept., #2004-22, 2004 N.Y. Lexis 926 (2004). {N/R}
     Fourth Circuit affirms an award of $410,000 in back pay and interest to a wrongfully demoted employee, and a punitive damages award of $100,000. Although there was no award of compensatory damages, punitive damages are allowed to compliment a back-pay award. Corti v. Storage Technology Corp., #01-1833, 304 F.3d 336, 2002 U.S. App. Lexis 19228, 89 FEP Cases (BNA) 1477 (4th Cir. 2002). {N/R}
     President signs H.R. 169, requiring federal agencies to pay the settlement costs for discrimination an whistleblower cases from agency budgets. Notification and Federal Anti-Discrimination and Retaliation Act, 5 U.S. Code §2301 (§101 et seq.), Pub. L. No. 107-174 (2002). [2002 FP Aug]
     The statutory cap on Title VII compensatory and punitive damages does not apply to front pay awards or to claims under state law. Hemmings v. Tidymans, #99-35932, 285 F.3d 1174, 88 FEP Cases (BNA) 945, 2002 U.S. App. Lexis 6686 (9th Cir. 2002). [N/R]
     Supreme Court holds that damages for "front pay" awarded against an employer is not limited by the $300,000 maximum liability for civil rights discrimination claims. Pollard v. E. I. du Pont de Nemours, #00-763, 121 S.Ct. 1946, 85 FEP Cases (BNA) 1217, 2001 U.S. Lexis 4123, 69 L.W. 4419. [2001 FP 99-100]
     U.S. Supreme Court holds that the test for federal courts of appeals is to apply a de novo, rather than abuse of discretion standard when reviewing district court determinations of the constitutionality of punitive damages awards. Cooper Industries v. Leatherman Tool Group, #99-2035, 532 U.S. 424, 121 S.Ct. 1678, 2001 U.S. Lexis 3520, 69 L.W. 1679 (5/14/01). {N/R}
     Federal appeals court reiterates a four-part test for honoring settlement agreements between an employee and employer, that are not negotiated and or approved by their attorneys:
     (1) whether the complaining party, the employer, and any other pertinent parties have agreed to be bound;
     (2) whether the settlement is reasonable in light of the nature of the violations alleged, the risks inherent in litigation, and the stage of the litigation;
     (3) whether there has been any fraud, coercion, or duress by any of the parties in reaching the settlement; and
     (4) whether the employer has a history of labor law violations or has breached previous settlement agreements.
     Beverly California Corp. v. NLRB, #99-4121, 253 F.3d 291, 2001 U.S. App. Lexis 11890, 167 LRRM (BNA) 2409 (7th Cir.). {N/R}
     The 1991 Civil Rights Act cap on compensatory damages applies to each lawsuit, and not to each successful claim. Fogg v. Ashcroft, #00-5138, 254 F.3d 103, 2001 U.S. App. Lexis 13924, 85 FEP. Cases (BNA) 1705 (D.C. Cir 2001). {N/R}
     Supreme Court decision on punitive damages in ADA cases applied to a Chicago verdict. To recover, a claimant must prove that management knew that its was violating federal law. Gile v. United Airlines, #99-2509, 2000 U.S. App. Lexis 11354 (7th Cir). [2000 FP 117-8]
     N.Y. Court of Appeals holds that a public employee's verdict against his employing agency is not to be reduced by the amount of funds received from collateral sources. Iazzetti v. City of N.Y., 94 N.Y.2d 183, 723 N.E.2d 81, 1999 N.Y. Lexis 3750 (1999). {N/R}
     A public entity in California cannot be sued for fraudulently inducing an applicant to relocate for employment purposes. Govt. Code 818.8 immunizes a city or county from damages arising from misrepresentations, whether negligent or intentional. Burden v. Co. of Santa Clara, #H019329, 00 C.D.O.S. 4429, 2000 Cal.App. Lexis 440. {N/R}
     Joining the Second Circuit and disagreeing with the Fifth Circuit, the Fourth Circuit holds that a volunteer fire department is a state actor for purposes of 42 U.S. Code 1983. Goldstein v. Chestnut Ridge Vol. Fire Co., 218 F.3d 337 (4th Cir. 2000). {N/R}
     Agreeing with four circuits but disagreeing with the Sixth Circuit, the Seventh Circuit holds that the cap on compensatory damages in 42 U.S. Code 1981a(b)(3) does not apply to front pay awards. Pals v. Schepel Buick & GMC Truck Inc., 220 F.3d 495 (7th Cir. 2000). {N/R}
     Punitive damages may be awarded for Title VII violations. Kolstad v. Amer. Dental Assn., 119 S.Ct. 2118, #98-208 (1999). {N/R}
     Kansas statute which limits noneconomic damages to $2500,000 is not invalid under the ADA or Equal Protection Clause, because it applies to all plaintiffs. Patton v. TIC United, 64 LW 2562 (10th Cir. 1996). {N/R}
     Supreme Court disallows use of "after acquired evidence" to avoid liability in discrimination cases, but later-discovered evidence which impairs a plaintiff's fitness for continued employment bars reinstatement or front pay and limits the amount of back pay due. McKennon v. Nashville Banner, 115 S.Ct. 879 (1995). [1995 FP 52-3]
     $40 million in punitive awards for two workers who complained of racial discrimination is erroneous per se. New trial ordered. Lane v. Hughes Aircraft, 66 FEP Cases (BNA) 1122 (Cal. Super. 1994). {N/R}
     Supreme Court upholds punitive damage awards; they do not violate the eighth amendments "excessive fines" clause. Browning-Ferris Industries of Vt., Inc. v. Kelco Disposal, Inc., 57 L.W. 4985, 109 S.Ct. 2909 (6/26/89).
     Supreme court allows punitive damages in civil rights suits without a showing of malicious intent; could affect termination cases. Smith v. Wade, 103 S.Ct. 1625 (1983).
     See also: Civil Liability; Wrongful Discharge Damage Awards.


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