822 F.

2d 975

44 Fair Empl.Prac.Cas. 628,

44 Empl. Prac. Dec. P 37,319
Linda Lorie SPANIER, Plaintiff-Appellant, Cross-Appellee,
v.
MORRISON'S MANAGEMENT SERVICES, INC., a
corporation;
Morrison, Inc., a corporation,
Defendants-Appellees, Cross-Appellants.
No. 85-7562.

United States Court of Appeals,

Eleventh Circuit.
July 24, 1987.

Holly L. Wiseman, Markstein, Morris & Liles, Birmingham, Ala., for

plaintiff-appellant, cross-appellee.
Cornelius R. Heusel, Kullman, Inman, Bee & Downing, New Orleans,
La., Eldridge D. Lacy, Bradley, Arant, Rose & White, Birmingham, Ala.,
for defendants-appellees, cross-appellants.
Appeal from the United States District Court for the Northern District of
Alabama
Before GODBOLD, and HILL, Circuit Judges, and LYNNE* , Senior
District Judge.
GODBOLD, Circuit Judge:

This is an age discrimination suit.1 A jury found that Morrison's had willfully
violated the Age Discrimination in Employment Act (ADEA), 29 U.S.C. Sec.
621 et seq., and awarded damages. Morrison's moved for judgment n.o.v. and a
new trial. The district court granted Morrison's motion for judgment n.o.v. as to
the finding of willfulness, thus rendering Spanier ineligible for statutory double
damages, and in the alternative found that Morrison's had acted in good faith

and on that ground reduced the statutorily doubled damage award by half.
Morrison's motion was denied in all other respects. Spanier appeals and
questions the granting of this motion. Morrison's cross-appeal challenges the
ruling to the extent that its motion was denied. We reverse on the appeal and
affirm on the cross-appeal.
I. Facts
2

In 1974 Lorie Spanier was hired as an assistant manager by Morrison's

Management Services, Inc., which provides management services for cafeterias
maintained by institutions such as hospitals and factories. At that time Spanier
was 48 years old and had over 15 years experience in the food-services
industry. Previously she had held a similar position with another company.
Spanier was soon promoted to a position as manager and worked in that
capacity at a number of facilities over the next several years.

In 1976 Spanier was assigned to manage a cafeteria and box lunch program at
the U.S. Steel plant in Fairfield, Alabama. Although initially she was successful
in making the operation profitable, an economic downturn in the area caused
business to diminish steadily in 1979 and 1980. To counteract the loss of
business at that site Morrison's established an Alabama Commission on Aging
("ACOA") Meals-on-Wheels central kitchen there in 1981. Spanier was put in
charge. Although the position required her to work much longer hours she
continued to receive excellent performance evaluations and yearly bonuses and
merit pay increases. In August 1982, a year and a half after taking on the
ACOA program in addition to her duties at the U.S. Steel cafeteria, she received
a performance rating of 100% on the ACOA program and 90% on the cafeteria
program.

In 1983 Spanier was persuaded by her supervisor to transfer to the Morrison's

operation at Brookwood Lodge, an alcohol and drug rehabilitation center, to
work at an increased salary. Her replacement at U.S. Steel was her assistant
manager, a 46 year old. Several months later that person was replaced by a 26
year old. Spanier was then 58.

At trial employees of Morrison's testified that Spanier was transferred because

of complaints about her performance that were received from the state agency
for which Morrison's managed the ACOA facility. Complaints were also
received, however, about all of the ACOA kitchens, and none of the complaints
about Spanier was noted on her performance evaluations.

After Spanier had spent two months working at Brookwood Lodge the director

After Spanier had spent two months working at Brookwood Lodge the director
asked that Spanier be replaced. When Spanier's supervisor told her that she
would have to leave Brookwood he explained that the director there preferred
male managers and assured her that her removal was not based on her
performance. Spanier was replaced at Brookwood by a 23 year old. The
assistant manager who had supervised her, Roy Ramsey, was 27 years old. At
trial Ramsey testified that he had asked that Spanier be replaced because of her
job performance. Ramsey did not inform Spanier, however, of his concerns
about her performance or about the complaints he said he had received from
patients at Brookwood.

After leaving Brookwood Spanier was placed on "unassigned status." She

never again held a managerial position. She was transferred from facility to
facility for several months, and her annual pay was cut from $20,000 to
$18,500. One manager under whom she worked told Spanier that he had been
asked to evaluate her performance because Morrison's wanted to get rid of her,
and that he thought that she was being wronged. Tr. at 187.

After 10 months on unassigned status Spanier was asked by her supervisor to

resign. Although formerly she had been told that she had not been reassigned
because no openings had been available, on this occasion she was told that
Morrison's needed "younger people that were more qualified." Tr. at 215. When
Spanier refused to resign or retire she was fired.

The evidence at trial showed that during the 10 months that Spanier was
unassigned there were 12 managerial openings in her district. Spanier was
qualified for five of these, but all five were filled with younger, less
experienced employees. Morrison's contends that it filled each of these five
positions with someone other than Spanier for legitimate reasons other than
Spanier's age.

10

At the conclusion of trial the jury returned a general verdict for Spanier and
answered special interrogatories. The special interrogatories included the
following: "Did you find from a preponderance of the evidence that plaintiff's
termination resulted from age discrimination by the defendants?" The jury
answered in the affirmative. The jury also found by special interrogatory that
the age discrimination by Morrison's was a willful violation of the ADEA. The
jury set damages for lost wages and benefits at $25,895.

11

Morrison's then moved for judgment n.o.v. or a new trial. The district court
granted the motion for judgment n.o.v. only as to the jury's finding of
willfulness and made an alternative finding that Morrison's had acted in good

faith. The district court thus refused to award the liquidated "double damages"
due under section 626(b) of the ADEA. Spanier appealed and Morrison's filed a
cross-appeal.
II. Issues on Appeal
12

Spanier contends that the district court erred in granting Morrison's motion for
judgment n.o.v. on the issue of liquidated damages. We agree.

13

The ADEA provides for liquidated damage awards when an employer

"willfully" violates the Act. 29 U.S.C. Sec. 626(b). In TransWorld Air Lines,
Inc. v. Thurston, 469 U.S. 111, 105 S.Ct. 613, 83 L.Ed.2d 523 (1985), the
Supreme Court approved a definition of willful which states that a violation is
willful if "the employer either knew or showed reckless disregard for the matter
of whether its conduct was prohibited by the ADEA." Id. at 128, 105 S.Ct. at
625. Despite difficulties in application of this standard, this circuit has
forthrightly adopted the standard. See Reynolds v. CLP Corp., 812 F.2d 671,
675 (11th Cir.1987); Lindsey v. American Cast Iron Pipe Co., 810 F.2d 1094,
1100 (11th Cir.1987) (rejecting a Third Circuit case requiring "outrageous"
conduct). The jury charge in the instant case comported with this definition,2
and the jury found willfulness.

14

After reviewing the record in the light most favorable to Spanier, we conclude
that judgment n.o.v. was not warranted. As this court did in Reynolds, we
"conclude that there was substantial evidence of such quality and weight that
fair-minded jurors, exercising impartial judgment, could reasonably have
concluded" that Morrison's termination of Spanier resulted from age
discrimination and that Morrison's either knew that this action was unlawful or
showed reckless disregard for whether its action was prohibited by the Age
Discrimination in Employment Act. See 812 F.2d at 675.

15

The evidence in this case shows the following. Spanier had a splendid job
record. She was replaced at Brookwood Lodge by a 23 year old person and was
told that the director at Brookwood preferred male managers and that her
removal was not based on her performance. One manager under whom she had
worked told her that he had been asked to evaluate her performance because
Morrison's wanted to get rid of her and that he thought she was being wronged.
When she was asked to resign she was told that no openings had been available
when in fact there had been 12 openings, five of which she was qualified for,
and these five were filled with younger and less experienced employees. When
she was asked to resign or retire she was told that Morrison's needed "younger
people that were more qualified." This evidence is adequate to support the

jury's finding of willfulness. Because there was sufficient evidence to create a

jury issue as to willfulness, it was error for the district court to refuse to double
Spanier's damages as provided by Sec. 626(b).
16

In addition to the judgment n.o.v. on the issue of liquidated damages, the

district court held in the alternative that the liquidated damages should be
reduced by one-half. Prior to the decision in Thurston the law of this circuit
gave the district court discretion to reduce a liquidated ADEA damage award if
it found that the defendant had acted in good faith. See Hedrick v. Hercules,
658 F.2d 1088 (5th Cir. Unit B 1981); Hays v. Republic Steel Corp., 531 F.2d
1307 (5th Cir.1976). This discretion counterbalanced the breadth of this court's
definition of "willfulness" under the ADEA. See Elliott v. Group Med. & Surg.
Serv., 714 F.2d 556, 558 n. 2 (5th Cir.1983), cert. denied, 467 U.S. 1215, 104
S.Ct. 2658, 81 L.Ed.2d 364 (1984). Thurston disapproved this court's definition
of willfulness and, by implication, disapproved the discretion that this court had
vested in district courts to reduce the liquidated damages award on a finding of
good faith. We hold that the existence of a jury issue of willfulness under the
Thurston standard divests the district court of discretion to reduce an ADEA
liquidated damages award. On remand Spanier's damages must be doubled.

III. Issues on Cross-Appeal

17

Morrison's contends that its motion for new trial should have been granted
because the jury was improperly instructed as to the burdens of proof. It also
contends that its motion for judgment n.o.v. should have been granted as to
liability.

A. Jury Instruction
18

The jury was charged that Spanier had to show by a preponderance of the
evidence that her age was a determining factor in Morrison's decision to
discharge her. The jury was also instructed that, even if Spanier carried her
burden of proof, the verdict should be for Morrison's if Morrison's showed by a
preponderance of the evidence that it would have discharged Spanier even if it
had not discriminated on the basis of age. See Mt. Healthy City Bd. of Educ. v.
Doyle, 429 U.S. 274, 285-87, 97 S.Ct. 568, 575-76, 50 L.Ed.2d 471 (1977).3

19

Morrison's contention is twofold. First, Morrison's contends that it was error to

give the Mt. Healthy charge without informing the jury to ignore that portion of
the charge unless it first found discrimination on the basis of credible, direct
evidence. Secondly, Morrison's argues that even if it was proper to give the Mt.
Healthy instruction the court gave it in such a way that the jury was confused as

to which party was to bear the burden of proof as to Spanier's case-in-chief.

20

Morrison's first point assumes that a Mt. Healthy defense is available only
where the jury has based its finding of discrimination on direct evidence alone.
This assumption is unwarranted. Such a rule would irrationally penalize
defendants whose discrimination has been shown by circumstantial evidence.4

21

Morrison's second point is based on an apprehension that the jury may be

confused by a charge that combines an instruction on the burden shifting
structure derived from McDonnell Douglas Corp. v. Green, 411 U.S. 792, 93
S.Ct. 1817, 36 L.Ed.2d 668 (1973) with an instruction on the Mt. Healthy
defense. The apprehension is that the jury might confuse the role of
nondiscriminatory reasons articulated at the second stage of the McDonnell
Douglas analysis with the role those reasons play in a Mt. Healthy defense. As
to the first, the defendant bears only a burden of production, as to the second a
burden of persuasion.5

22

Morrison's apprehension is misplaced. The record reveals that the jury charge
did not include an instruction to analyze the evidence according to the
McDonnell Douglas scheme. This omission was proper, for

23
When
the court has allowed both parties to develop their full proof, the analysis of
the evidence should look to whether plaintiff has met the ultimate burden of
persuading the trier of fact that he has been the victim of intentional discrimination.
[citation omitted]. In such a case, neither the trial court nor this court need parse the
evidence in accordance with the ebb and flow of shifting [McDonnell Douglas ]
burdens.
24

Smith v. Farah Mfg. Co., 650 F.2d 64, 68 (5th Cir.1981). Still less should a
jury be put to such a task. See Krieg v. Paul Revere Life Ins. Co., 718 F.2d 998,
999 (11th Cir.1983).

25

The record shows that there was little danger that the jury might have
misunderstood the placement of the burden of proof as to Spanier's case-inchief. The court charged the jury no fewer than 11 times that Spanier had to
show by a preponderance of the evidence that age was a determining factor in
Morrison's decision to terminate her. The instruction as to the Mt. Healthy
defense was sufficiently distinct and precise to prevent confusion.

B. Judgment N.O.V.
26
27

Morrison's contends that its motion for judgment n.o.v. should have been

27

Morrison's contends that its motion for judgment n.o.v. should have been
granted both as to Spanier's case-in-chief and as to its own Mt. Healthy rebuttal.

1. Case-in-Chief
28

Morrison's contends that the district court erred in denying, on grounds of Lee
v. Russell County Bd. of Educ., 684 F.2d 769 (11th Cir.1982), its motion for
judgment n.o.v. Lee states that the McDonnell Douglas structure need not be
followed where the ultimate issue of discrimination is proved by credible, direct
evidence. Lee does not state what standard is to be applied to determine
whether the issue of discrimination may be decided by the jury. The propriety
of granting a motion for judgment n.o.v. is determined according to the
standard announced in Boeing Co. v. Shipman, 411 F.2d 365 (5th Cir.1969) (en
banc). According to Boeing a motion for judgment n.o.v. must be denied unless
the quality and weight of all the evidence--"in the light and with all reasonable
inferences most favorable" to the non-movant--is such that "reasonable and
fair-minded" jurors in the exercise of "impartial judgment" could not reach a
verdict in favor of the non-movant. We find that the evidence in this case was
properly submitted to the jury and that the district court did not err in denying
Morrison's motion for judgment n.o.v.

2. Mt. Healthy Defense

29

Morrison's contends that it was entitled to judgment n.o.v. on the basis of its
Mt. Healthy defense. We disagree. Morrison's evidence of mixed motivation
was not so strong that a "reasonable and fair-minded" jury could not conclude
that Morrison's would not have discharged Spanier in any event for legitimate,
non-discriminatory reasons. Boeing.

30

AFFIRMED in part, REVERSED in part and REMANDED with instructions.

HILL, Circuit Judge, concurring:

31

I concur in the judgment affirming the judgment of the district court. However,
I write separately to express my concern with the lack of direction that
Congress has given to the judiciary regarding the imposition of liquidated
damages under section 626(b) of the ADEA.

32

To prove any violation of the ADEA, the individual plaintiff must show that
the defendant intentionally discriminated on the basis of the plaintiff's age. The
motive for the action must be the age of the employee/plaintiff. Yet, Congress
has stated that liquidated damages are to be awarded only where a violation of

the Act is "willful." An intentional act is, by any reasonable interpretation of

the word, a "willful" act. Thus, in practically all ADEA cases, a plaintiff with a
meritorious claim will show that the defendant acted "willfully."
33

The Supreme Court has ascertained that Congress did intend to establish a twotier damage arrangement under the ADEA. In Trans World Airlines, Inc. v.
Thurston, 469 U.S. 111, 105 S.Ct. 613, 83 L.Ed.2d 523 (1985), the Court
indicated that, in certain cases, a distinction could be made between intentional
acts and willful acts. The court held that where an employer adopts a program
which adversely impacts employees because of their relatively advanced age,
sincerely believing, as a result of responsible research and inquiry, that the
policy is not prohibited by the ADEA, then the willful implementation of such
a program, though potentially violative of the Act, is not "willful" conduct
justifying an award of liquidated or punitive damages under section 626(b).

34

It thus appears one can, at least in disparate impact cases, differentiate

intentional discrimination from willful discrimination. However, the type of
personnel program challenged in the Thurston case will rarely appear in court.
The usual ADEA case involves an employer whose discrete personnel actions
are directed at one employee. Generally, the only issue presented is whether the
action (failure to promote or dismissal) was taken because of the plaintiff's age
or for an innocent reason. It is difficult to imagine a finding that an employer's
action against an employee, taken on account of his or her age, violates the
ADEA but is somehow not a "willful" violation. As we noted in Lindsey v.
American Cast Iron Pipe Co., 810 F.2d 1094, 1100 (11th Cir.1987), "there is no
logical way to square a finding of intentional discrimination with a finding of
good faith on the employer's part."

35

In studying the ADEA and cases brought under it, I have concluded that where
a defendant loses a typical case, the employer has necessarily been found guilty
of a willful violation of the ADEA, and liquidated damages are required.
Disparate impact cases such as Thurston are the only conceivable exception. If
this result is not what Congress intended, then that branch of the government
must alter the language of the ADEA.1 Given the plain meaning of the
language used in Sec. 626(b), I see only one way to apply it. I therefore join in
affirming the district court.
LYNNE, Senior District Judge, concurring:

36

I concur and add only a few words for my fellow laborers in the trenches. Not
every violation of the ADEA will meet the Thurston standard of willfulness,

which this circuit has forthrightly adopted, and require the submission of such
issue to a jury. By applying the ubiquitous Boeing test to the evidence the
Court may be constrained to grant a motion for a directed verdict in a jury trial,
or a motion to dismiss in a bench trial. It is crystal clear that the plaintiff
employee bears the burden of satisfying the fact finder by a preponderance of
the evidence that in terminating or demoting him or her the defendant employer
acted in reckless disregard of the requirements of the ADEA in order to recover
liquidated damages.
37

Unfortunately, it is manifestly impossible to formulate for the guidance of the

lower courts a suggestion as to what evidence, qualitatively or quantitatively,
will satisfy the Thurston standard. That is a familiar task for the Court on a
case by case basis.

38

Unless the Congress sees fit to ameliorate the harshness of the rule which
mandates the award of punitive damages on a finding of willfulness* without
regard to the enormity of the wrong, double damages must be awarded. See
note 22 to Thurston, 469 U.S. at 128, 105 S.Ct. at 625.

Honorable Seybourn H. Lynne, Senior U.S. District Judge for the Northern
District of Alabama, sitting by designation

Spanier's complaint also alleged sex discrimination. This count was tried to the
court, which found for Morrison's. See Spanier v. Morrison's Management
Servs., 611 F.Supp. 642 (N.D.Ala.1985). Spanier does not question this finding

The charge included the following:

What determines whether or not an employer willfully violated the Act is
determined by whether the employer knew, or showed reckless disregard for
the matter of whether its conduct was prohibited by the ADEA, or Age
Discrimination in Employment Act.
If the employer knew, or showed reckless disregard for the matter of whether
its conduct was prohibited by the Age Discrimination in Employment Act, its
actions, if they were guilty of age discrimination, would be willful.
If they did not know or did not show reckless disregard for the matter of
whether its conduct was prohibited by the Age Discrimination in Employment
Act, their conduct would not be willful.

Trial Transcript at 458.

3

Although the Mt. Healthy defense originated in a first amendment case, it has
been applied in Title VII cases, see, e.g., Lee v. Russell County Bd. of Educ.,
684 F.2d 769 (11th Cir.1983). The affinity between Title VII and the ADEA
has been noted, see, e.g., Lorillard v. Pons, 434 U.S. 575, 584, 98 S.Ct. 866,
872, 55 L.Ed.2d 40 (1978); Marshall v. Goodyear Tire & Rubber Co., 554 F.2d
730, 735 (5th Cir.1977), overruled in part on other grounds, Brown v. A.J.
Gerrard Mfg. Co., 715 F.2d 1549 (11th Cir.1983) (en banc), and no reason
appears why a Mt. Healthy defense should not be available in an ADEA case.
Accord Smallwood v. United Air Lines, Inc., 728 F.2d 614, 618-20 (4th Cir.),
cert. denied, 469 U.S. 832, 105 S.Ct. 120, 83 L.Ed.2d 62 (1984)

The record does not reveal which party requested the Mt. Healthy instruction in
the first instance. It is possible that a defendant might decide as a tactical matter
to forego a Mt. Healthy defense. We express no view as to whether such a
tactical calculation would provide defendant a good ground for objecting to the
giving of a Mt. Healthy charge

There is another difference that should be noted. In the McDonnell Douglas

context these reasons serve to suggest the absence of discriminatory motive. In
the Mt. Healthy context--in which a discriminatory motive has already been
found to have been a determining factor--these same reasons may serve to show
that there was a mixture of legal and illegal motives and that the legal motives
standing alone would have brought about the plaintiff's dismissal. See NLRB v.
Transportation Management Corp., 462 U.S. 393, 400 n. 5, 103 S.Ct. 2469,
2473 n. 5, 76 L.Ed.2d 667 (1983). By allowing a defendant to avoid liability
even though his illegal motive was a substantial factor in causing injury, Mt.
Healthy provides a defense that has no analogue in the law of torts. Compare
Mt. Healthy, 429 U.S. at 285, 97 S.Ct. at 575, with Restatement (Second) of
Torts Sec. 432

It is perhaps not inappropriate to observe that persons discriminated against on

account of age have a better remedy, by virtue of Sec. 626(b) of the ADEA,
than those discriminated against on account of race, sex, or religion who seek
relief under 42 U.S.C. Sec. 2000e et seq. ("Title VII"). Section 2000e-5 of that
statute does not authorize an award of punitive damages. Richerson v. Jones,
551 F.2d 918 (3rd Cir.1977); White v. Washington Public Power Supply
System, 692 F.2d 1286 (9th Cir.1982)

If the issue of willfulness is submitted to a jury on a special interrogatory, the

following wording is suggested: Do you find from a preponderance of the
evidence that in (demoting) (terminating) plaintiff the defendant acted in

reckless disregard of the requirements of the ADEA?