Public-domain · open source
OpenJurist

2017 DNH 2

McPadden v. Walmart

New Hampshire District Court

Decided January 5, 2017

New Hampshire District Court · decided 2017-01-05

Applies 42 U.S.C. § 1981A

Relies on Sharon Pollard v. E I Pont Nemours & Company · Lussier v. Runyon · Williams v. Pharmacia, Inc.

Decided 2017-01-05

                    UNITED STATES DISTRICT COURT

                     DISTRICT OF NEW HAMPSHIRE


Maureen McPadden,
     Plaintiff

     v.                                   Case No. 14-cv-475-SM
                                          Opinion No. 
2017 DNH 002
Wal-Mart Stores East, L.P.,
     Defendant


                              O R D E R


     Following a five-day trial, a jury found in favor of

Maureen McPadden and against her former employer, Walmart, on

four state and federal workplace discrimination claims: gender

discrimination in violation of both Title VII and New

Hampshire’s Law Against Discrimination; unlawful retaliation in

response to McPadden’s having reported perceived workplace

safety issues; and common law wrongful termination.    The jury

awarded McPadden $31.2 million in compensatory, enhanced

compensatory, punitive, back pay, and front pay damages.    While

the jury’s verdict on liability was supportable, its total award

of damages was, to say the least, startling.     Walmart moved for

judgment as a matter of law on all claims or, in the

alternative, for a new trial.   Should those motions be denied,

Walmart sought remittitur of the jury’s awards of front pay,
compensatory damages, punitive damages, and enhanced

compensatory damages.



     The court denied Walmart’s motions for judgment as a matter

of law and for a new trial.   See First Post-Trial Order, dated

September 16, 2016 (document no. 186).   As for Walmart’s motion

seeking remittitur, the court held that although the jury’s

award of $500,000 in compensatory damages was “undeniably

generous,” it was not so grossly disproportionate to any injury

established by the evidence as to be unconscionable as a matter

of law.   
Id. at 9
.   Accordingly, the court allowed that aspect

of the jury’s award to stand.   With respect to Walmart’s motion

to remit the jury’s award of $15 million in enhanced

compensatory damages, as well as the jury’s (statutorily-

reduced) award of $300,000 in punitive damages,1 the court

deferred any ruling pending certification of several questions

of controlling state law regarding enhanced compensatory damages

to the New Hampshire Supreme Court.



     Finally, as to the jury’s award of more than one-half

million dollars in front pay, the court concluded that



1    Pursuant to 42 U.S.C. § 1981a(b)(3)(D), the court reduced
the jury’s award of punitive damages from $15 million to
$300,000.00.

                                  2
“remittitur,” as such, was neither necessary nor appropriate.

At the charging conference (prior to instructing the jury), the

court informed the parties that the question of whether to award

front pay (and, if so, in what amount) was an equitable issue

reserved to the court.   The court did, however, agree to give

the issue to the jury on an advisory basis.   Consequently, after

the jury returned its verdict, there was no need to “remit” its

advisory award of front pay - that was, after all, an issue the

court had very clearly stated was one for it to resolve.2



     So, the court considered the jury’s advisory verdict and

the evidence presented, as well as the jury’s exceedingly


2
     McPadden says she believed the court was seeking an
advisory verdict on front pay only as to her Title VII claims.
And, to be sure, a review of the transcript does disclose that
during a final discussion of the instructions outside the
presence of the jury, the court mentioned, in passing, Title
VII, but not the other state liability theories for which front
pay was sought:

     Court: . . . And with respect to a front pay award,
     any front pay award under Title VII, I believe that’s
     the province of the court to determine. And I’m
     submitting it to the jury on an advisory basis and
     I’ll consider their verdict in determining whether
     front pay should be awarded and to what extent.

See Transcript (Day 5, Morning) (document no. 152), at 158.
Nevertheless, the court is satisfied that, based upon all prior
discussions regarding jury instructions to be given, all counsel
understood, or should have understood, that the court’s view was
that front pay is an equitable remedy for the court to decide,
and that plaintiff’s “front pay” claim as to all liability
theories was being given to the jury only on an advisory basis.

                                 3
generous award of compensatory damages, and concluded that “an

award of front pay in the amount of $111,591.00 is near the

outer boundary of reasonableness in this case.”    First Post-

Trial Order, at 14.   That sum represented three years of front

pay, which the court concluded was “more than adequate time for

a person of McPadden’s age, skill, and training to obtain a

pharmacist position at a salary and with benefits comparable to

those she received at Walmart.”       Id.3



     McPadden now moves the court to reconsider the latter

aspect of its order, asserting that the court made two manifest

errors of law.   First, she says the question of whether to award

front pay (and, if so, how much) on her state law claims was a

jury question, protected by both New Hampshire law and the

Seventh Amendment to the United States Constitution.

Accordingly, says McPadden, the court erred by deciding the

front pay issue with regard to her state claims.   Instead, she

says, the court should have accepted the verdict on “front pay”

as binding (and, if appropriate, applied remittitur standards to

effect any reduction).   Second, McPadden asserts that Walmart



3     Parenthetically, the court notes that neither party
suggested that reinstatement of McPadden to her former (or a
comparable) job was a realistic option and both parties treated
the prospect as unworkable. Accordingly, the court followed
suit.

                                  4
waived its right to “challenge the jury trial by way of advisory

jury proceedings when it failed to file a timely motion pursuant

to Fed. R. Civ. P. 52(b)” to amend the judgment.      Plaintiff’s

Motion for Partial Reconsideration (document no. 190) at 1.



     Turning first to McPadden’s “waiver” theory, her argument

seems to go something like this: Following the jury’s verdict,

the clerk of court entered judgment (document no. 140) on that

verdict “in the total amount of $16,522,485.87,” which included

“Front Pay: $558,392.87.”   The judgment as entered on the docket

failed to note that the jury’s verdict on front pay was merely

advisory.   McPadden seems to argue that absent such

clarification, the judgment must be taken as binding with

respect to the front pay award.       And, she says, because Walmart

neglected to file a timely motion under Rule 52(b) to amend the

perhaps-misleading judgment, Walmart waived any “right” to an

advisory verdict on front pay.    The point seems to be that the

form of judgment as entered, coupled with Walmart’s failure to

seek an amendment, converted the advisory verdict into an actual

verdict.



     The court disagrees.   To the extent the judgment neglected

to note that the jury’s verdict on front pay was advisory only,

it “failed to reflect the court’s intention” and will be amended

                                  5
accordingly.   Companion Health Servs. v. Kurtz, 
675 F.3d 75, 87

(1st Cir. 2012) (citation omitted).    See generally Fed. R. Civ.

P. 60(a).   That Walmart did not move the court to amend that

judgment is entirely irrelevant.



     McPadden’s core argument is that the issue of front pay

with respect to her state law claims is, under New Hampshire

law, one for the jury to resolve and not the court.   See, e.g.,

Plaintiff’s Motion for Partial Reconsideration at 3 (“McPadden

is entitled to a jury on claims for front pay arising under New

Hampshire law.”).   Consequently, she argues, as to her state law

claims, the jury’s verdict on front pay was not advisory, but

controlling, notwithstanding the court’s repeated statements to

counsel that it intended to submit the front pay issue on an

advisory basis only.



     Although it is not entirely clear from McPadden’s

memorandum, her argument seems to conflate two separate and

substantively distinct remedies: “lost future earnings” and

“front pay.”   “Front pay” is well understood in the employment

discrimination context.   A wrongfully-fired employee is

generally entitled to equitable (injunctive) relief in the form

of an order reinstating the employee to her prior job.

Alternatively, if reinstatement is not feasible, the court may

                                   6
award front pay, as a substitute form of equitable relief (for

example, where the employment relationship has deteriorated to

the point of being unworkable).       Front pay consists of an award

of pay for a period of time sufficient to allow the wronged

employee an opportunity to obtain similar employment elsewhere.

“Front pay,” as a substitute for injunctive relief, is no less

an equitable remedy than an order of reinstatement.      See, e.g.,

Kramer v. Logan Cty. Sch. Dist. No. R-1, 
157 F.3d 620, 626
 (8th

Cir. 1998) (“[F]ront pay is not so much a monetary award for the

salary that the employee would have received but for the

discrimination, but rather the monetary equivalent of

reinstatement, to be given in situations where reinstatement is

impracticable or impossible.”) (emphasis supplied).      And,

because front pay is an equitable remedy, there is no doubt that

it lies within the court’s discretion - not a jury’s - to

determine whether such relief is warranted.      See, e.g., Lussier

v. Runyon, 
50 F.3d 1103, 1108
 (1st Cir. 1995) (“[F]ront pay,

within the employment discrimination universe, is generally

equitable in nature.   It follows a fortiori from the equitable

nature of the remedy that the decision to award or withhold

front pay is, at the outset, within the equitable discretion of

the trial court.”) (citations omitted).      See also City of

Manchester v. Anton, 
106 N.H. 478, 479
 (1965) (Kennison, C.J.)

(“[F]or many years it has been well settled here that in equity

                                  7
there is no constitutional right to trial by jury.”) (quoting

Dion v. Cheshire Mills, 
92 N.H. 414, 416
 (1943)).   It follows,

then, that under New Hampshire law front pay is an equitable

remedy for the court, not a jury, to award.



     “Lost future earnings,” on the other hand, is an entirely

distinct remedy.   While front pay is equitable in nature and is

to be used “during the period between judgment and reinstatement

or in lieu of reinstatement,” Pollard v. E. I. du Pont de

Nemours & Co., 
532 U.S. 843, 846
 (2001), “lost future earnings”

are compensatory in nature, not equitable.    Recovery of lost

future earnings compensates an employee for the effects of an

unlawful termination, effects which might include “a lifetime of

diminished earnings resulting from the reputational harms . . .

suffered as a result of [the employer’s] discrimination.”

Williams v. Pharmacia, Inc., 
137 F.3d 944, 953
 (7th Cir. 1998).

See also Teutscher v. Woodson, 
835 F.3d 936, 959
 (9th Cir. 2016)

(Smith, J. Concurring) (noting that “front pay is the functional

equivalent of the equitable remedy of reinstatement.   Future

lost earnings, on the other hand, are compensatory damages

calibrated to actual monetary losses after the date of judgment”

and observing that while front pay “pays [the plaintiff] as if

he had been reinstated,” lost future earnings “encompass

reputational harms, loss of experience, and other forward-

                                 8
looking aspects of the injury caused by the discriminatory

conduct”) (citation omitted).   So, unlike “front pay,” “lost

future earnings” are a component of compensatory damages,

properly decided by a jury.



     McPadden confuses those two distinct remedies when, for

example, she argues that with respect to her wrongful

termination claim, “it is NH practice to have the jury calculate

front pay awards.”   Plaintiff’s Motion for Partial

Reconsideration, at 3 (citing Porter v. City of Manchester, 
151 N.H. 30, 44
 (2004)).   That statement of the law is incorrect and

her reliance upon Porter is misplaced.   The Porter court began

by holding that a wrongful termination claim is properly

characterized under New Hampshire law as a tort.   And, as noted,

an award of lost future earnings is compensatory and, therefore,

can be recovered in tort as an element of compensatory damages.

Indeed, the employee in Porter sought, literally, “lost future

earnings” (not “front pay”), as unmistakably recognized by the

New Hampshire Supreme Court.    The court captioned its relevant

discussion as “Lost Future Earnings,” and wrote:


          Given that we have held that wrongful termination
     is a cause of action in tort, we conclude that Porter
     was entitled to submit his claim for lost future
     earnings to the jury. In a wrongful termination case,
     the recovery of lost future earnings will restore the
     employee as nearly as possible to the position the

                                  9
       employee would have been in if the employee had not
       been wrongfully terminated. Accordingly, we reject
       the city’s argument that an at-will employee is barred
       from recovering lost future earnings.


Porter, 
151 N.H. at 44-45
 (emphasis supplied) (citation

omitted).   Porter did not involve, and the New Hampshire Supreme

Court did not consider, any issues related to “front pay.”

Consequently, the Porter decision is not inconsistent with the

general rule, followed in New Hampshire, that equitable remedies

(like reinstatement or, alternatively, an award of front pay)

are for the court, not a jury.   See generally Anton, 
106 N.H. at 479
.



       In short, then, McPadden’s argument that she had a right

under state law and/or the United States Constitution to have

the jury determine the issue of “front pay” is incorrect.

Moreover, it is inconsistent with both the jury instructions

McPadden requested (document no. 104) and the special verdict

form she proposed (document no. 105).



       On the special verdict form (both as proposed by plaintiff

and as actually given by the court), the jury was instructed

that if it found in McPadden’s favor as to any one or more of

her state and/or federal claims, it was to break out, as

separate awards, “Front Pay” and “Compensatory Damages.”    That

                                 10
is consistent with the recognition that they are distinct

remedies (the former having been presented to the jury on an

advisory basis).   “Lost future earnings,” however, are merely

one component of compensatory damages.   Hence, there was never

any need to ask the jury to make a separate award of them.   Had

McPadden argued to the jury that she was entitled to lost future

earnings, any such award would have been included in the jury’s

award of “compensatory damages.”



     As to the jury instructions, plaintiff’s counsel limited

her requests, as well as her argument to the jury on damages, to

“front pay.”   She also made it clear that she understands that

“front pay” damages are distinct from, and not a component of,

“compensatory damages.”   See, e.g., Plaintiff’s Proposed Jury

Instructions, at 32 (“[Y]ou may award compensatory damages, in

addition to . . . front pay and benefits.”) (emphasis supplied).

Plaintiff’s counsel did not request an instruction regarding

“lost future earnings” as an element of compensatory damages,

and she did not argue to the jury that she was entitled to lost

future earnings.   Instead, she sought only the equitable remedy

of “front pay.”



     Now, after the fact, counsel seems to suggest that, for

equitable purposes (she concedes that front pay under Title VII

                                11
is equitable in nature), the advisory verdict is just that,

advisory.   But with respect to her state law “front pay” claims,

the verdict should be construed as a controlling award of lost

future earnings or compensatory damages, albeit subject to

remittitur.   That is to say, she seems to be arguing, at least

implicitly, that the same front pay verdict should be taken as

both advisory (equitable) as to her federal claim, and binding

(compensatory) as to her state claims.



     Plaintiff’s argument is without merit.   The jury’s front

pay verdict was advisory because front pay is an equitable

remedy, regardless of the legal cause of action; because

plaintiff sought only “front pay,” and not “lost future

earnings”; and because the court gave the front pay claim to the

jury exclusively on an advisory basis.



     At this point, it probably bears noting that there was

nothing unusual about giving the issue of front pay to the jury

(on an advisory basis) with respect to all of McPadden’s

eligible claims.   Front pay is plainly a remedy available in

lieu of an injunctive order of reinstatement in state gender

discrimination cases.   See N.H. Rev. Stat. Ann. (“RSA”) 354-

A:21, II(d) and 21-a, I (The Commission for Human Rights may

issue an order of reinstatement and a court may award all relief

                                12
that could have been awarded by the Commission.).    So, in that

regard, front pay (in lieu of reinstatement) is an available

equitable remedy.   Similarly, with respect to McPadden’s state

whistleblower claim, it is clear that front pay is available as

an equitable remedy in lieu of an injunctive order of

reinstatement.   See RSA 275-E:2, II (“An aggrieved employee may

bring a civil suit within 3 years of the alleged violation of

this section.    The court may order reinstatement and back pay as

well as reasonable attorney fees and costs, to the prevailing

party.”).   Finally, as to McPadden’s common law wrongful

discharge tort claim, neither party questions whether “front

pay” is available as an additional remedy.   And there is no

reason to think that it is not.    See generally Walsh v. Town of

Millinocket, 
28 A.3d 610
 (Me. 2011); Stafford v. Electronic Data

Systems Corp., 
749 F. Supp. 781
 (E.D. Mich. 1990).   In any

event, McPadden certainly proceeded on the assumption that front

pay is available to a plaintiff claiming to have been wrongfully

discharged.



     All of this is to say that “front pay” — an alternative

equitable remedy in lieu of an order of reinstatement — was an

available remedy under each of plaintiff’s federal and state

theories of recovery.   It was, then, entirely appropriate for

the court to give that equitable issue to the jury (on an

                                  13
advisory basis) with respect to all of McPadden’s theories of

liability.



       As a practical matter, however, all of this is of little

moment.   Even if McPadden were to prevail on her argument that

the jury’s advisory front pay verdict could be recast as

equitable to the extent it relates to relief in lieu of

reinstatement, but compensatory to the extent it relates to an

implied claim of “lost future earnings,” it is doubtful that she

would obtain any real benefit.   First, even if treated as an

award of “lost future earnings,” that aspect of the verdict

would be included in the jury’s already very generous award of

compensatory damages (bringing the total award of compensatory

damages to more than $1 million).     That, in turn, would have

subjected that compensatory damages award to renewed remittitur

scrutiny.    And a very substantial remittitur would be in order,

given the general lack of evidence in the record supporting any

claim of lost future earnings (e.g., long-lasting professional

reputational injury arising from the circumstances of

plaintiff’s discharge).   See generally Williams, 
137 F.3d at 953
.   See also Hite v. Vermeer Mfg. Co., 
361 F. Supp. 2d 935, 947
 (S.D. Iowa 2005) (declining to award any lost future

earnings because “Plaintiff has not provided competent evidence

suggesting that her injuries have narrowed the range of economic

                                 14
opportunities available to her, nor has she shown that

[defendant’s] retaliation for FMLA usage has caused a diminution

in her ability to earn a living . . . [and] offered nothing to

support the assertion that her unlawful discharge taints her

employment record”) (citations and internal punctuation

omitted).



     Second, if the jury’s verdict included “lost future

earnings” on McPadden’s state law claims, that would

meaningfully influence the court’s assessment of whether any

equitable award of front pay would be justified.   As noted

previously, when a compensatory award is adequate to redress

plaintiff’s injury, the court may exercise its discretion to

decline to award equitable relief in the form of front pay.    See

First Post-Trial Order, at 14; see also, Carey v. Mt. Desert

Island Hosp., 
156 F.3d 31, 41
 (1st Cir. 1998).   In other words,

any additional recovery of “lost future earnings” likely would

have been offset by remittitur, the complete elimination of

“front pay” damages, or both.



                                Conclusion

     McPadden is incorrect in asserting that she had a state law

and/or constitutionally protected right to have the jury

determine entitlement to “front pay” on her state law claims.

                                 15
Front pay is an equitable form of relief.   New Hampshire follows

the commonly understood principle that there is no right to a

jury trial in equity.   Consequently, the issue of front pay (on

all of McPadden’s claims) was for the court, not the jury.     And,

neither counsel’s perceptions or expectations, nor the form of

the judgment entered on the verdict, can serve to convert an

advisory verdict into a binding one.   Nor can a persistent claim

for “front pay” be converted into a claim for “lost future

earnings” well after the trial is completed.



     As noted in the court’s First Post-Trial Order, the jury’s

award of front pay with respect to all claims was advisory.

While a reasonable award of front pay is supportable in this

case, the jury’s advisory award of $558,392.87 was plainly

excessive under the circumstances.   And, as noted previously,

the court awarded McPadden front pay at what it considers “the

outer boundary of reasonableness in this case.”   Id. at 14.



     McPadden’s Motion for Partial Reconsideration (document no.

190) is denied.4


4
     Plaintiff moves the court to certify a question to the New
Hampshire Supreme Court aimed at determining whether “front pay”
is an issue for the jury under state law. As it is clear that
front pay is not a jury question, the requested certification is
unnecessary and would pose an unwarranted burden on that Court.
The request is denied.

                                16
      SO ORDERED.


                                       ____________________________
                                       Steven J. McAuliffe
                                       United States District Judge

January 5, 2017

cc:   Richard E. Fradette, Esq.
      Robert S. Mantell, Esq.
      Holly A. Stevens, Esq.
      Lauren S. Irwin, Esq.
      Joseph A. Lazazzero, Esq.
      Christopher B. Kaczmarek, Esq.




                                17

/2017/dnh/2 · .json · Public domain