In a ruling that may be useful to Massachusetts employers, the Supreme Judicial Court in October made clear that puntive damages can only be awarded to discrimination plaintiffs when their employer’s conduct is “outrageous or egregious.” Punitive damages are, after all, available only to punish bad actors, not to permit windfall awards to discrimination victims who are generally entitled only to recover what they lost in wages and what they suffered from proven emotional injuries.
Apparently recognizing the subjective natures of the terms “outrageous” and “egregious” — who, after all can define either with more than a modicum of confidence — the court did what it often does. It created a list of factors that should be considered by judges and juries when evaluating whether to issue punitive damage awards. As always, the list is intended as a guideline only. Other factors that are relevant in particular cases can always be considered. The five punitive damages factors created by the SJC are:
1. Whether there was a conscious effort to demean;
2. Whether the employer was aware serious harm would occur;
3. The level of harm the employee suffered;
4. What the employer did after it learned of any harm it caused;
5. How long the misconduct occurred and whether it was concealed by the employer.
The case decided was called Haddad v. Wal-Mart Stores, Inc. It involved a female pharmacist who claimed she was fired for supposed misconduct that male pharmacists got away with. She won huge damages — $1 million in punitives and another $733,000 for an incredible 19 years worth of front pay. The Supreme Judicial Court affirmed both awards. In justifying them, it cited to Wal-Mart’s bad behavior, the damage Wal-Mart did to Haddad’s ability to find comparable work, and Haddad’s plan to work at her new, lower paying job until age 65. Interestingly, Haddad actually made more per hour at her new job but took home less money because fewer hours of work were available to her.
Massachusetts employment lawyer Attorney Jack Merrill provides legal services to employees, employers and businesses throughout the Boston metro west and Worcester County region including Ashland, Dedham, Framingham, Franklin, Hopkinton, Maynard, Marlborough, Milford, Natick, Needham, Newton, Shrewsbury, Sudbury, Waltham, and Worcester, Massachusetts.
