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Employment & Labor Law for Public Safety Agencies
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Damages, Remedies and Enforcement of Settlements
Mointhly Law Journal Article:
Validity of Settlement
Agreements Containing a "Will Not Reapply for Employment" Provision,
2009 (8) AELE Mo. L. J. 201.
Federal merit board
rejects an attempt to set aside a settlement agreement. The employee's
assertion that a medical condition prevented him from having the mental
capacity necessary to enter into a valid settlement agreement did not meet
the heavy burden of proof required or outweigh the sworn statements of
the agency's witnesses present during the negotiations. Parks v. U.S. Postal
Service, #AT-0752-06-0166-C-1, 2010 M.S.P.B. 6, 2010 MSPB Lexis 164 (MSPB
2010).
California Supreme
Court limits punitive damage awards. The justices ruled that the maximum
permissible punitive award should be 1.4 times the amount of compensatory
damages. The plaintiff alleged that she was wrongfully terminated because
of a medical condition and a related disability (panic attacks and medication-induced
body odor). Although public employers in California are exempt from punitive
awards, managers and supervisors are not. Roby v. McKesson Corp., #S149752,
47 Cal.4th 686, 2009 Cal. Lexis 12374.
Settlement agreements negotiated between
a N.Y. police union and the city manager are enforceable, without further
approval by the city council. Under N.Y. bargaining laws, there is no requirement
that legislative approval is needed to formalize a labor-management legal
obligation. Patrolmen's Benev. Assn. v. City of Long Beach, Index No. 10692/06,
2007-07305, 2008 NY Slip Op 9573, 868 N.Y.S.2d 306, 2008 N.Y. App. Div.
Lexis 9328 (2nd Dept.).
"... in the absence of a showing of
fraud, duress, or other circumstances suggesting that the settlement was
not knowing or voluntary, the district court need not examine the circumstances
surrounding the settlement ... Buyer's remorse, however, cannot undo a
contract to which all parties have given their assent and for which all
of the conditions precedent have been fulfilled." Newkirk v. Vil.
of Steger, #06-3140, 2008 U.S. App. Lexis 16608 (7th Cir.).
In a 5-to-3 decision, the Supreme Court reduced
a large punitive damage award to 100% of the amount of compensatory relief
that was paid. The litigation followed an oil spill caused by the negligence
of an employee. Exxon Shipping Co. v. Baker, #07-219, 125 S.Ct. 2605, 2008
U.S. Lexis 5263.
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.