In Abner v. The Kansas City Southern Railroad Co., the 5th Circuit reviewed a case under Title VII for employment discrimination. The facts are pretty bad for the Railroad...lots of "n-word" references in the evidence, along with KKK references and pictures of a noose. The jury found that the Plaintiffs were subjected to a "hostile working environment", but did not award any compensatory damages. In other words, the Plaintiffs didn't lose a job, lose a raise or promotion, or fail to receive some other benefit because of the color of their skin. But, the jury was outraged by the conduct (apparently) because it awarded each Plaintiff $125,000 in punitive damages.
The general reaction from lawyers about such an award would be that it could not stand. Punitive damages, generally, are not permissible unless there are compensatory damages. But, to my surprise, the 5th Circuit followed other circuits that have held that Title VII permits punitive damages without compensatory damages. The only prerequisite is that there be a Constitutional violation.
The reason this is permitted is two-fold. First, there is a high threshold for liability (a plaintiff must show "malice" or "conscious indifference"). Second, there is a cap on punitive damages - a system that insures that the punitive award won't be so high as to implicate due process concerns. From a plaintiff's viewpoint, this is a welcome reading of the law -- but one that I believe is highly influenced by the horrible facts. Less egregious actions in the workplace would probably not be so convincing to the 5th Circuit. From a defense standpoint, it is probably a case that is limited to its facts. I don't see any of the Circuits as likely to "binge" on punitive damages just because of this case.
The general reaction from lawyers about such an award would be that it could not stand. Punitive damages, generally, are not permissible unless there are compensatory damages. But, to my surprise, the 5th Circuit followed other circuits that have held that Title VII permits punitive damages without compensatory damages. The only prerequisite is that there be a Constitutional violation.
The reason this is permitted is two-fold. First, there is a high threshold for liability (a plaintiff must show "malice" or "conscious indifference"). Second, there is a cap on punitive damages - a system that insures that the punitive award won't be so high as to implicate due process concerns. From a plaintiff's viewpoint, this is a welcome reading of the law -- but one that I believe is highly influenced by the horrible facts. Less egregious actions in the workplace would probably not be so convincing to the 5th Circuit. From a defense standpoint, it is probably a case that is limited to its facts. I don't see any of the Circuits as likely to "binge" on punitive damages just because of this case.
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