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Lowery v. Circuit City Stores, Inc.

Lowery v. Circuit City Stores, Inc.

United States Court of Appeals for the Fourth Circuit

December 1, 1999, Argued ; March 14, 2000, Decided

No. 97-1372, No. 97-1470, No. 97-1917, No. 98-1170

Opinion

 [*436]  HAMILTON, Senior Circuit Judge:

In this employment discrimination case, Renee Lowery (Lowery) and Lisa Peterson (Peterson), among [**3]  others, alleged that Circuit City intentionally refused to promote them on account of their race, African-American, in violation of 42 U.S.C. § 1981 and Title VII of the Civil Rights Act of 1964 (Title VII), 42 U.S.C. § 2000e-2(a)(1). The jury found in Lowery and Peterson's favor, awarding Lowery $ 12,500 in compensatory damages and $ 225,000 in punitive damages, and awarding Peterson $ 4,200 in compensatory damages and $ 47,000 in punitive damages. The district court entered judgments in conformity with the jury's verdict. Circuit City then made a renewed motion for judgment as a matter of law pursuant to Federal Rule of Civil Procedure 50(b) (Rule 50(b)), which the district court denied. Circuit City noted a timely appeal to this court. 1 On appeal, Circuit City argued, inter alia, that the district court erred in denying its Rule 50(b) motion with respect to Lowery and Peterson's prayer for punitive damages.

 [**4]  On appeal, inter alia, we upheld the compensatory damage awards with respect to both Lowery and Peterson, but vacated the award of punitive damages in favor of each on the ground that the record contained insufficient evidence "to conclude that Circuit City's conduct toward Lowery and Peterson was so egregious that it was appropriate to submit the issue of punitive damages to the jury." Lowery v. Circuit City Stores, Inc. (Lowery I), 158 F.3d 742, 766 (4th Cir. 1998). The Supreme Court subsequently granted the Plaintiffs' petition for writ of certiorari, vacated our judgment, and remanded the case to this court for further consideration in light of Kolstad v. American Dental Ass'n, 527 U.S. 526, 119 S. Ct. 2118, 144 L. Ed. 2d 494 (1999). See Lowery v. Circuit City Stores, Inc., 527 U.S. 1031, 144 L. Ed. 2d 790, 119 S. Ct. 2388 (1999).

In Kolstad, the Court clarified the circumstances under which a jury may consider a request for punitive damages under Title VII. See Kolstad, 527 U.S. 526, 119 S. Ct. 2118 at 2121, 144 L. Ed. 2d 494. In so doing, the Supreme Court rejected the District of Columbia Circuit's holding that eligibility for punitive damages can [**5]  only be described in terms of an employer's "'egregious' misconduct." See 119 S. Ct. at 2124.

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206 F.3d 431 *; 2000 U.S. App. LEXIS 3761 **; 82 Fair Empl. Prac. Cas. (BNA) 353; 77 Empl. Prac. Dec. (CCH) P46,294

RENEE LOWERY; LISA S. PETERSON, Plaintiffs-Appellees, and SHELBY MCKNIGHT; GREGORY FLEMING; SONYA HAIRSTON; DYNELLE JOHNSON; NADRA SMITH; PONNETTE SMITH; SHEILA SMITH; PATRICIA SPENCER; EDWARD STOKES, Plaintiffs, v. CIRCUIT CITY STORES, INCORPORATED, Defendant-Appellant. CHAMBER OF COMMERCE OF THE UNITED STATES OF AMERICA; WASHINGTON LEGAL FOUNDATION; EQUAL EMPLOYMENT ADVISORY COUNCIL; NATIONAL RETAIL FEDERATION; EQUAL EMPLOYMENT OPPORTUNITY COMMISSION; NAACP LEGAL DEFENSE AND EDUCATION FUND, INC., Amici Curiae. SHELBY MCKNIGHT; GREGORY FLEMING; RENEE LOWERY; NADRA SMITH; PONNETTE SMITH; SHEILA SMITH; PATRICIA SPENCER; EDWARD STOKES; LISA S. PETERSON, Plaintiffs-Appellants, and SONYA HAIRSTON; DYNELLE JOHNSON, Plaintiffs, v. CIRCUIT CITY STORES, INCORPORATED, Defendant-Appellee. CHAMBER OF COMMERCE OF THE UNITED STATES OF AMERICA; WASHINGTON LEGAL FOUNDATION; EQUAL EMPLOYMENT ADVISORY COUNCIL; NATIONAL RETAIL FEDERATION; EQUAL EMPLOYMENT OPPORTUNITY COMMISSION; NAACP LEGAL DEFENSE AND EDUCATION FUND, INC., Amici Curiae. SHELBY MCKNIGHT; RENEE LOWERY; LISA S. PETERSON, Plaintiffs-Appellees, and GREGORY FLEMING; SONYA HAIRSTON; DYNELLE JOHNSON; NADRA SMITH; PONNETTE SMITH; SHEILA SMITH; PATRICIA SPENCER; EDWARD STOKES, Plaintiffs, v. CIRCUIT CITY STORES, INCORPORATED, Defendant-Appellant. EQUAL EMPLOYMENT OPPORTUNITY COMMISSION; NAACP LEGAL DEFENSE AND EDUCATION FUND, INC., Amici Curiae. RENEE LOWERY, Plaintiff-Appellee, and SHELBY MCKNIGHT; GREGORY FLEMING; SONYA HAIRSTON; DYNELLE JOHNSON; NADRA SMITH; PONNETTE SMITH; SHEILA SMITH; PATRICIA SPENCER; EDWARD STOKES; LISA S. PETERSON, Plaintiffs, v. CIRCUIT CITY STORES, INCORPORATED, Defendant-Appellant.

Subsequent History:  [**1]  Certiorari Denied October 2, 2000, Reported at: 2000 U.S. LEXIS 5138.

Prior History: Appeals from the United States District Court for the Eastern District of Virginia, at Richmond. James R. Spencer, District Judge. (CA-95-964).

Disposition: AFFIRMED IN PART, VACATED IN PART, AND REMANDED WITH INSTRUCTIONS.

CORE TERMS

punitive damages, employees, promotion, reasonable juror, Recruiting, district court, good-faith, managerial capacity, federal law, anti-discrimination, light most favorable, associates, intentional discrimination, reasonable inference, attorney's fees, intentionally, positions, awarding, vacate, costs, Rights, hiring, prayer, customer service, matter of law, discriminatory, Conferences, decisions, egregious, prevails

Civil Procedure, Preliminary Considerations, Justiciability, General Overview, Trials, Judgment as Matter of Law, Remedies, Damages, Punitive Damages, Civil Rights Law, Protection of Rights, Public Versus Private Discrimination, Labor & Employment Law, Discrimination, Reconstruction Statutes, Contractual Relations & Housing, Equal Rights Under the Law (sec. 1981), Private Discrimination, Protected Classes, Remedies, Affirmative Action, Discrimination, Torts, Types of Damages, Punitive Damages, Aggravating Circumstances, Title VII Discrimination, Amendments, Proof of Discrimination, Public Discrimination, Availability, Employers, Measurement of Damages, Judicial Review, Vicarious Liability, Agency Relationships, Employers, Activities & Conditions, Civil Rights Violations, Scope of Employment, Factors, Appeals, Standards of Review, De Novo Review, Governmental Entities, Jurors, Selection, Jury Trials, Judgments, Relief From Judgments, Racial Discrimination, Scope & Definitions, Compensatory Damages