`FI LED
`IN CLERK'S OFFICE
`U.S. DISTRICT COURT E.D.N.Y.
`
`* JAN 1 9 2018 *
`
`LONG ISLAND OFFICE
`
`MEMORANDUM AND ORDER
`
`14 CV 3712
`(Wexler, J.)
`
`UNITED ST ATES DISTRICT COURT
`EASTERN DISTRICT OF NEW YORK
`-------------------------------------------------------){
`BARRY REITER,
`
`Plaintiffs,
`
`-against-
`
`MA){l-AIDS, INC. and ELLIOT ZARETSKY,
`in his individual and professional capacities,
`
`Defendants.
`-------------------------------------------------------){
`APPEARANCES:
`
`WIGDORLLP
`By: Lawrence M. Pearson, Esq., Tanvir H. Rahman, Esq. & Kenneth D. Sommer, Esq.
`85 Fifth Avenue
`New York, New York I 0003
`Attorneys for Plaintiff
`
`SILVERMAN ACAMPORA, LLP
`By: Keith J. Frank, Esq.
`I 00 Jericho Quadrangle
`Jericho,NewYork 11753
`Attorney for Defendants
`
`WE){LER, District Judge:
`
`In this employment discrimination case, Plaintiff Barry Reiter ("Plaintiff' or "Reiter")
`
`sought damages for injuries sustained when he was terminated from his employment with
`
`defendant Maxi-Aids, Inc. ("Maxi-Aids") by Maxi-Aids' principal, defendant Elliot Zaretsky
`
`("Zaretsky"). A jury trial was held, and the following claims were submitted to the jury-
`
`discrimination under the Americans with Disabilities Act ("ADA"), 42 U.S.C. § 12101 et seq.,
`
`discrimination under New York State Human Rights Law ("NYSHRL"), N. Y. EXEC. L. § 290 et
`
`seq., associational discrimination under the ADA, and retaliation under the ADA, NYSHRL, and
`
`the Family and Medical Leave Act ("FMLA"), 29 U.S.C. § 2601 et seq. The jury entered a
`
`verdict in Plaintiff's favor as to the ADA associational disability and NYSHRL discrimination
`
`
`
`Case 2:14-cv-03712-LDW-GRB Document 111 Filed 01/19/18 Page 2 of 17 PageID #: 3569
`
`claims, and in Defendants• favor on the remaining claims. The jury awarded compensatory
`
`damages in the amount of $0, and punitive damages in the amount of $400,000.
`
`Currently before the Court is Defendants' post-trial motion under pursuant to Federal
`
`Rule of Civil Procedure 50(b) for judgment as a matter oflaw or, alternatively, for a new trial
`
`pursuant to Rule 59 of the Federal Rules of Civil Procedure. Defendants argue that relief is
`
`warranted for the following reasons: ( 1) there was insufficient evidence to prove the claim of
`
`associational discrimination; (2) punitive damages are not available for an ADA associational
`
`discrimination claim; (3) there was insufficient evidence to support a punitive damages award;
`
`(4) punitive damages are subject to a statutory cap of $50,000; and (5) the punitive damages
`
`award was excessive and should be remitted. 1 See Motion, Docket Entry ("DE") [103]. In
`
`addition to opposing Defendants' motion, Plaintiff has submitted his motion for economic
`
`damages. See DE [100].
`
`I. BACKGROUND
`
`In brief, the testimony at trial revealed that Reiter was hired by Zaretsky and began
`
`working for Maxi-Aids in March 2012 with the job title Director of Business Development. His
`
`salary was $75,000 per year, plus commission of I% of sales over $15 million. The issue of
`
`Plaintiff's participation in the company health plan arose at his interview, but Plaintiff did not
`
`request coverage as he was covered by his wife's health insurance plan.
`
`Reiter had several medical conditions before and during his employment with Maxi-Aids.
`
`Prior to starting work with the company, he had been treated for lymphoma but was in remission
`
`at the time he began work. Plaintiff also suffered from colitis and mixed connective tissue
`
`disorder. He did not mention these conditions at the time of his hiring.
`
`1 Punitive damages are not available under the NYSHRL claim and thus may only be awarded if the ADA
`associational discrimination claim stands.
`
`2
`
`
`
`Case 2:14-cv-03712-LDW-GRB Document 111 Filed 01/19/18 Page 3 of 17 PageID #: 3570
`
`In May 2013, Plaintiff told Zaretsky about the colitis, and subsequently suffered an acute
`
`outbreak that required treatment and doctor's appointments. Once informed, Zaretsky started to
`
`ridicule Reiter "both publically and privately about my health conditions." Trial Transcript
`
`("Tr.") at 102. Zaretsky referred to him as a "very sick person" who was lucky to have a job. Id
`
`Zaretsky told Plaintiff on several occasions that if he had known Reiter was sick at the interview,
`
`he never would have hired him.
`
`In December 2013, Plaintiff told Zaretsky that he needed to have himself and his family
`
`added to Maxi-Aids' health plan. Zaretsky refused this request, claiming that it was a condition
`
`of Reiter's employment that he would not get the company health insurance. Plaintiff asked
`
`again in January 2014, and testified that Zaretsky replied that Reiter was "too sick to be on the
`
`health plan, you make too much money to be on the health plan, it was a condition of your
`
`employment that you were never to have medical, you're basically unemployable." Tr. at 113.
`
`Reiter responded by telling Zaretsky that he could not discriminate against him because of his
`
`health conditions. Zaretsky maintained his position at the January meeting, but several weeks
`
`later, Reiter received an e-mail from an Human Resources representative and he was put on the
`
`Maxi-Aids' health plan effective March 1, 2014. His wife and three children, including his 16
`
`year old daughter Bailey Reiter ("Bailey") were also put on the plan at Plaintiffs cost. Tr. at
`
`116.
`
`The previous year, in the fall of 2013, Reiter's daughter Bailey began experiencing panic
`
`attacks that rendered her inconsolable and resulted in Reiter having to pick her up from school
`
`many times. She began seeing a therapist, started medication, and began entertaining thoughts of
`
`suicide. On March 19, 2014, Bailey suffered a panic attack and revealed to Plaintiff that she had
`
`been out on the roof earlier and had been on the internet looking for ways to kill herself. After
`
`3
`
`
`
`Case 2:14-cv-03712-LDW-GRB Document 111 Filed 01/19/18 Page 4 of 17 PageID #: 3571
`
`consultation with a psychiatrist, Bailey was taken to the emergency room and diagnosed as
`
`"actively suicidal, chronic depression and acute anxiety disorder." Tr. at 124. She stayed in the
`
`hospital overnight, and the next day was admitted to the adolescent suicidal ward at South Oaks
`
`Hospital. She was discharged on March 25, 2014.
`
`Plaintiff advised his supervisor, Larry DiBlasi, and Zaretsky of Bailey's situation within a
`
`day or so of its onset. On Friday, March 28, 2014, Plaintiff went to Zaretsky's office to discuss
`
`the situation and to request FMLA leave to care for Bailey. According to Plaintiff, Zaretsky
`
`responded that he had had an adolescent grandchild in a similar condition, and that it would
`
`require a lot of love, energy, and caring. Plaintiff claims that while Zaretsky acknowledged that
`
`Reiter needed to care for his family, he also told Plaintiff"if you're not here, you're useless to
`
`me." Tr. at 127.
`
`At the end of the next business day, Monday, March 31, 2014, Zaretsky terminated
`
`Plaintiffs employment, stating that the company was underperforming financially. Reiter
`
`offered to assume the duties of a newly hired warehouse manager, but Zaretsky said his mind
`
`was made up. Zaretsky testified that the sole reason Reiter was terminated was failure to make
`
`sales. There was testimony from both Zaretsky and DiBlasi regarding Reiter's failure to perform
`
`at expected levels. DiBlasi testified that Reiter wasn't performing to expectations, and that he
`
`was aware Reiter's 'job was in jeopardy for probably six months or so." Tr. at 216. DiBlasi did
`
`not know that Zaretsky was going to terminate Reiter on March 31, 2014. Tr. 23 7. Reiter
`
`testified that he never received any performance warnings. It was undisputed that there were no
`
`written warnings given to Reiter regarding his failure to meet sales expectations.
`
`II. RULE 59 MOTION
`
`A. Legal Standards
`
`4
`
`
`
`Case 2:14-cv-03712-LDW-GRB Document 111 Filed 01/19/18 Page 5 of 17 PageID #: 3572
`
`As provided by Rule 50(b ), defendants have renewed their motions for judgment as a
`
`matter of law made prior to verdict. "In ruling on a motion for judgment as a matter of law, a
`
`district court must consider the evidence in the light most favorable to the non-movant and draw
`
`all reasonable inferences the jury could have drawn." Cweklinsky v. Mobil Chem. Co., 364 F.3d
`
`68, 75 (2d Cir. 2004); see also Stevens v. Rite Aid Corp., 851 F.3d 224, 228 (2d Cir. 2017)
`
`("Judgment as a matter of law may not properly be granted under Rule 50 unless the evidence,
`
`viewed in the light most favorable to the opposing party, is insufficient to permit a reasonable
`
`juror to find in h[is] favor" (internal quotation omitted)), cert. denied, No. 17-227, 2017 WL
`
`3456814 (U.S. Oct. 16, 2017). The standard for granting a Rule 50 motion is high, and "[a] jury
`
`verdict should be set aside only where there is 'such a complete absence of evidence supporting
`
`the verdict that the jury's findings could only have been the result of sheer surmise and
`
`conjecture, or ... such an overwhelming amount of evidence in favor of the movant that
`
`reasonable and fair minded men could not arrive at a verdict against him."' Kosmynka v. Polaris
`
`Indus., Inc., 462 F.3d 74, 79 (2d Cir. 2006) (quoting Song v. Ives Labs., Inc., 957 F.2d 1041,
`
`1046 (2d Cir. 1992) (ellipsis in original) (internal quotations and citation omitted)). In
`
`evaluating the motion, the court "cannot assess the weight of conflicting evidence, pass on the
`
`credibility of the witnesses, or substitute its judgment for that of the jury." Tolbert v. Queens
`
`Coll., 242 F.3d 58, 70 (2d Cir. 2001) (quoting Smith v. Lightning Bolt Prods., Inc., 861 F.2d 363,
`
`367 (2d Cir.1988)). It is enough that this testimony was in evidence for the jury to consider.
`
`Where defendants' liability turns on the jury's credibility determinations, the Court "cannot
`
`disturb" that determination unless the verdict was "egregious." See James v. Melendez, 567 F.
`
`Supp. 2d 480, 484 (S.D.N.Y. 2008) (citing DLC Mgmt. Corp. v. Town of Hyde Park, 163 F.3d
`
`124, 134 (2d Cir. 1998)).
`
`5
`
`
`
`Case 2:14-cv-03712-LDW-GRB Document 111 Filed 01/19/18 Page 6 of 17 PageID #: 3573
`
`C. Associational Discrimination under the ADA
`
`Under the ADA, a party discriminates by "excluding or otherwise denying equal jobs or
`
`benefits to a qualified individual because of the known disability of an individual with whom the
`
`qualified individual is known to have a relationship or association." 42 U.S.C. §12212(b)(4)
`
`A claim for associational discrimination under this section requires plaintiff establish: that he
`
`was qualified for the job; 2) that he was subjected to an adverse employment action; 3) that he
`
`was known at the time of that action to have a relative or associate with a disability; and 4) that
`
`the adverse employment action "occurred under circumstances raising a reasonable inference
`
`that the disability of the relative or associate was a determining factor in the employer's
`
`decision." Graziadio v. Culinary Inst. of Am., 817 F.3d 415, 432 (2d Cir. 2016). Defendants
`
`argue that there was insufficient evidence to support the third and fourth elements.
`
`1. Qualified Disability
`
`Defendants first argue that there was no medical testimony supporting a finding that
`
`Bailey had, or was regarded as having, a qualifying disability under the ADA. They cite no legal
`
`authority, however, for the suggestion that medical evidence is necessary required to establish
`
`the existence of a qualifying disability in a case such as this. Upon review of the record, the
`
`Court finds that there was sufficient lay testimony for a jury to find that Bailey was disabled, or
`
`perceived to be disabled, within the meaning of the ADA.
`
`Anxiety disorder may qualify as a disability. See Spillers v. City of New York Health &
`
`Hosps. Corp., No. 15-CV-06472, 2017 WL 4326505, at *4, n.5 (E.D.N.Y. Sept. 28, 2017)
`
`(noting that "depression, psychosis, and generalized anxiety disorder can qualify as a disability
`
`under the ADA" (citing cases)); see also Cody v. Cnty. of Nassau, 577 F. Supp. 2d 623, 639
`
`(E.D.N.Y. 2008) (anxiety disorder impairing the ability to work recognized as impacting major
`
`6
`
`
`
`Case 2:14-cv-03712-LDW-GRB Document 111 Filed 01/19/18 Page 7 of 17 PageID #: 3574
`
`life activity), affd, 345 F. App1x 717 (2d Cir. 2009). Attendance at school constitutes a major
`
`life activity under the ADA. See Weixel v. Bd. of Educ. of City of New York, 287 F .3d 138, 14 7
`
`(2d Cir. 2002) (including "attending school" as a major life activity). There was ample lay
`
`testimony regarding Bailey's condition, which had been ongoing since the previous fall. For
`
`example, she testified that on numerous occasions, she had to leave school because of panic
`
`attacks. Reiter testified that at the time of the March 2014 incident leading to her hospitalization,
`
`Bailey was diagnosed as "actively suicidal, chronic depression and acute anxiety disorder." Tr.
`
`at 124.
`
`Defendants make the additional argument that there was a lack of evidence that Bailey's
`
`condition was nothing more than a minor or transitory state not covered by the ADA. The record
`
`belies this argument as well. Bailey testified that the panic attacks led to her seeking therapy
`
`starting in the fall of 2013, evidencing a condition that had already persisted for a period of
`
`months. In addition, there was evidence that Zaretsky perceived Bailey as disabled and believed
`
`that her condition was serious and could be of long duration. Zaretsky testified that he had a
`
`granddaughter who was admitted to a psychiatric hospital. Reiter testified that during that
`
`conversation on Friday, March 28, 2014, Zaretsky indicated that based on his own experience "it
`
`would require a lot more time and love and energy and caring than I had any idea about." Tr. at
`
`127. Thus there was evidence to support a jury finding that Bailey's condition was not transitory
`
`and/or that Zaretsky perceived it to be long-lasting.
`
`2. A Determining Factor
`
`As to the fourth element, Defendants acknowledge that there was evidence that they were
`
`aware of Bailey's claimed disability, but argue that there was no evidence that this knowledge
`
`was the reason for Plaintiffs termination. The Court disagrees.
`
`7
`
`
`
`Case 2:14-cv-03712-LDW-GRB Document 111 Filed 01/19/18 Page 8 of 17 PageID #: 3575
`
`Temporal proximity between the employer's knowledge and the adverse employment
`
`action may by itself constitute sufficient evidence of causality where the proximity is "very
`
`close." See Clark Cnty. Sch. Dist. v. Breeden, 532 U.S. 268, 273, 121 S. Ct. 1508, 149 L. Ed. 2d
`
`509 (2001) (noting that "cases that accept mere temporal proximity between an employer's
`
`knowledge of protected activity and an adverse employment action as sufficient evidence of
`
`causality to establish a prima facie case uniformly hold that the temporal proximity must be
`
`'very close'"); see also Zann Kwan v. Anda/ex Grp. LLC, 737 F.3d 834, 845 (2d Cir. 2013) (in
`
`Title VII case, finding three-week period between plaintiff's complaint and termination was
`
`"sufficiently short to make a prima facie showing of causation indirectly through temporal
`
`proximity"). Here, there was substantial evidence regarding the close temporal proximity
`
`between Defendants' acquisition of knowledge regarding Bailey's condition and their decision to
`
`terminate Plaintiff's employment. Defendants' awareness of Bailey's disability coupled with the
`
`their decision less than two weeks later to end Plaintiff's employment is sufficient evidence to
`
`allow a reasonable jury to infer that the disability of Plaintiffs daughter was a determining factor
`
`in the decision to terminate him.
`
`There was also evidence that the financial reasons offered for Reiter' s termination by
`
`Zaretsky were pretextual. Viewing the evidence in Plaintiff's favor, there was certainly
`
`sufficient evidence to support ajury's determination that Reiter'sjob performance was not the
`
`sole reason for his discharge, and that Zaretsky relied upon a manufactured financial reason to
`
`cover his real motivation for his actions - the association between Reiter and Bailey.
`
`The jury was instructed that it could find that Maxi-Aids associated plaintiff with his
`
`daughter's disability if either Maxi-Aids believed, rightly or wrongly, that covering Bailey
`
`through the company health insurance policy would be expensive, or if Maxi-Aids feared that
`
`8
`
`
`
`Case 2:14-cv-03712-LDW-GRB Document 111 Filed 01/19/18 Page 9 of 17 PageID #: 3576
`
`Plaintiff would be distracted or inattentive at work due to Bailey's disability. There was
`
`sufficient evidence to support the jury's verdict under either theory.
`
`There was significant testimony regarding Zaretsky's view on the health of his employees
`
`or potential employees and the resulting impact on the company's insurance policy. Reiter
`
`testified that the issue of his own health and need for health insurance was addressed at his
`
`interview by Zaretsky. Moreover, Zaretsky routinely asked this question of all interviewees. As
`
`to Reiter's own health issues, Reiter testified that Zaretsky noted he was lucky to have a job
`
`since he "was so sick that [he] would be unemployable" and that ifReiter had disclosed his
`
`conditions at the interview, Zaretsky wouldn't have hired him. Tr. at 102. As to the impact on
`
`Maxi-Aids' health plan, Reiter testified that prior to his joining the plan, Zaretsky had remarked
`
`that it was "lucky" Reiter was not on Maxi-Aids' health plan because "it would cost so much to
`
`take care of you that you would ruin the plan for everybody else in the company." Tr. at 110.
`
`According to Reiter, Zaretsky initially refused Reiter's requests to be added to the company
`
`health plan in December 2013 and January 2014, and it was only after Reiter complained that
`
`barring him from the company health plan was discriminatory that he was added effective March
`
`1, 2014. While there was no direct testimony regarding any comments allegedly made by
`
`Zaretsky regarding the impact of Bailey's condition on the company health plan, the evidence of
`
`Zaretsky's attitudes coupled with the timing of Reiter's termination permit the jury to make the
`
`reasonable inference that Zaretsky was concerned about the effect of Bailey's condition on the
`
`plan and that this concern was a determining factor in the termination decision. Thus, the jury
`
`could determine that Zaretsky's concerns regarding the expense of Bailey's coverage to the
`
`company's health insurance policy, whether well-founded or not, led to his decision to terminate
`
`Reiter.
`
`9
`
`
`
`Case 2:14-cv-03712-LDW-GRB Document 111 Filed 01/19/18 Page 10 of 17 PageID #: 3577
`
`There was also testimony that Zaretsky believed Reiter would be distracted by Bailey's
`
`condition. At the Friday meeting preceding Reiter's Monday termination, Reiter testified that
`
`Zaretsky, referencing his own experiences with his granddaughter, indicated that "it would
`
`require a lot more time and love and energy and caring than I had any idea about." Tr. at 127.
`
`According to Reiter, Zaretsky went on to acknowledge that Reiter needed "to do what you need
`
`to do," but continued that "if you're not here, you're useless to me." Id. This evidence supports a
`
`finding that Zaretsky prospectively feared that Reiter would be distracted from his work during
`
`Bailey's treatment and recovery.
`
`D. Punitive Damages
`
`1. Availability of, and Evidentiary Support for, Punitive Damages Award
`
`A party prevailing upon a claim of unlawful intentional discrimination under the ADA
`
`may recover punitive damages "if the complaining party demonstrates that the respondent
`
`engaged in a discriminatory practice or discriminatory practices with malice or with reckless
`
`indifference to the federally protected rights of an aggrieved individual." 42 U.S.C. §
`
`1981a(b)(l). Defendants argue that punitive damages are not available in an ADA associational
`
`discrimination claim, citing a case in this district that noted that "it is an open question in this
`
`circuit whether a plaintiff can seek punitive or compensatory damages for a violation of the anti(cid:173)
`
`retaliation provisions of the ADA." Infantolino v. Joint Indus. Bd. of Elec. Indus., 582 F. Supp.
`
`2d 351, 362 (E.D.N.Y. 2008). An associational discrimination claim, however, arises from
`
`§12212 of the ADA, the discrimination provision, and not from §12203, the provision governing
`
`retaliation and coercion. As such, punitive damages may be awarded. The Court now turns to
`
`analysis of whether punitive damages are appropriate in this case and if so, a resolution of issues
`
`regarding that award.
`
`10
`
`
`
`Case 2:14-cv-03712-LDW-GRB Document 111 Filed 01/19/18 Page 11 of 17 PageID #: 3578
`
`An award of punitive damages is appropriate only upon evidence that the employer
`
`"discriminated (or retaliated) against him with conscious knowledge it was violating the law, or
`
`that it engaged in egregious or outrageous conduct from which an inference of malice or reckless
`
`indifference could be drawn." Tepperwien v. Entergy Nuclear Operations, Inc., 663 F.3d 556,
`
`573 (2d Cir. 2011) (internal quotations and citation omitted). "Malice and reckless indifference
`
`refer to 'the employer's knowledge that it may be acting in violation of federal law, not its
`
`awareness that it is engaging in discrimination.'" Farias v. Instructional Sys., Inc., 259 F.3d 91,
`
`101 (2d Cir. 2001)(quoting Kolstad v. Am. Dental Ass'n, 527 U.S. 526, 535, 119 S. Ct. 2118,
`
`144 L.Ed. 2d 494 (1999)). To establish malice or reckless indifference, "a plaintiff need not
`
`show that the defendant committed egregious or outrageous acts" but rather "need only
`
`demonstrate that the defendant had the 'requisite state of mind' of malice or reckless
`
`indifference.,, Cush-Crawford v. Adchem Corp., 271 F.3d 352, 356 (2d Cir. 2001) (citing
`
`Kolstad, 527 U.S. at 538).
`
`The federal rights secured by the ADA were well-established before the events forming
`
`the basis of this case. The Maxi-Aids handbook containing the company's policies regarding
`
`compliance with the ADA includes a specific provision asserting the company's commitment to
`
`not discriminating against an employee "because they are related to or associated with a person
`
`with a disability." There is sufficient evidence ihat Zaretsky acted with reckless indifference to
`
`rights provided under the ADA. As discussed above, there was evidence of numerous incidents
`
`demonstrating Zaretsky' s cavalier attitude regarding the provision of health insurance to his
`
`employees -- his practice of questioning interviewees on their need for coverage, his attitude
`
`about Reiter's own issues, and his initial refusal to add Reiter to the company health plan
`
`because he was "too sick." Reiter had previously raised the issue of discrimination with
`
`11
`
`
`
`Case 2:14-cv-03712-LDW-GRB Document 111 Filed 01/19/18 Page 12 of 17 PageID #: 3579
`
`Zaretsky when faced with the latter's first denial of the request to add him to the Maxi-Aids
`
`health plan. In addition, there is evidence of Zaretsky's concern regarding the effect of a 'sick'
`
`person on the company plan. Faced with Reiter's request to join the company plan, Zaretsky
`
`immediately asked ifReiter had cancer. These incidents taken together paint a picture of
`
`hostility towards the rights of employees that demonstrate, at the very least, a callous
`
`indifference to those rights. The jury's determination that Reiter's termination was done with the
`
`requisite state of mind of malice or reckless indifference is thus supported.
`
`Defendants claim that there was absolutely no evidence supporting a finding that
`
`Zaretsky acted with malice or reckless indifference specific to Reiter's associational disability
`
`rights when he terminated Reiter's employment. Defendants essentially suggest that the jury was
`
`required to disregard any evidence regarding Zaretsky's attitudes regarding employee health as
`
`irrelevant as to the associational disability claim. Viewing the evidence in Plaintiff's favor,
`
`however, his termination was not an isolated incident of discriminatory behavior in violation of
`
`the ADA, but rather part of a pattern of discrimination and/or disregard for rights demonstrated
`
`by Zaretsky. Additional evidence of Zaretsky's malice or reckless indifference could be found in
`
`his conscious statement ofa pretextual reason for Reiter's termination. Crediting the jury's
`
`verdict, the evidence supports the conclusion that Zaretsky was, at least, more than merely
`
`negligent, and that he acted with knowledge or with reckless indifference to the fact that his
`
`conduct would violate Reiter's rights.
`
`2. Apo Ii cation of the Damages Cap
`
`By statute, an award of punitive damages in intentional discrimination employment cases
`
`is capped to specific amounts based upon the number of employees at the company. Plaintiff
`
`concedes that if imposition of the cap is proper, damages in this case would be limited to
`
`$50,000 under 42 U.S.C. §1981a(b)(3)(A). He argues, however, that defendants have waived
`
`12
`
`
`
`Case 2:14-cv-03712-LDW-GRB Document 111 Filed 01/19/18 Page 13 of 17 PageID #: 3580
`
`their right to assert the cap because they failed to raise it as an affirmative defense. Affirmative
`
`defenses serve the purpose of putting a plaintiff on notice of legal defenses asserted by a
`
`defendant. In this case, the damages cap is plainly set forth on the face of the statute and
`
`application of its limitations cannot constitute any unfair surprise or prejudice to plaintiff. The
`
`Court finds that the cap set forth in§ l 98.la(b)(3) "is not an affirmative defense and is not
`
`waivable." Oliver v. Cole Gift Ctrs, Inc., 85 F. Supp. 2d 109, 112 (D. Conn. 2000).2
`
`The damages-capping statute "envisions that the level of punitive damages to be awarded
`
`will initially be set by the jury" and then reduced if necessary by the court to ensure that it
`
`conforms to the "relevant cap for an employer of the defendant's size." Luciano v. Olsten Corp.,
`
`110 F.3d 210, 221 (2d Cir. 1997). Accordingly, the Court finds that any punitive damages award
`
`in this case is capped at $50,000.
`
`3. Remittitur
`
`Having determined that any punitive damages award is capped at $50,000, the Court
`
`turns to defendants' argument that punitive damages of any amount are not supported by the
`
`evidence. They claim that since the since the jury awarded no compensatory damages, the
`
`punitive damages award should be remitted in total and set aside.
`
`The amount of a punitive damages award must be reasonable and "rational in light of
`
`their purpose to punish what has occurred and to deter its repetition." Vasbinder v. Scott, 976
`
`F.2d 118, 121 (2d Cir. 1992)(quoting Pacific Mui. Life Ins. Co. v. Haslip, 499 U.S. 1, 21, 111 S.
`
`Ct. 1032, 113 L.Ed. 2d 1 (1991)). A punitive damages award should only be reversed if is "so
`
`high as to shock the judicial conscience and constitute a denial of justice." Hughes v.
`
`Patrolmen 's Benevolent Ass 'n, 850 F.2d 876, 88.3 (2d Cir. 1988) (internal quotation and citation
`
`2 The Court further notes that the issue of the statutory cap was discussed with counsel duringjury
`deliberations as part of a discussion of a jury question posed by note. At that time, Plaintiff's counsel did
`not dispute the applicability of the cap, but rather expressed only that the jury not be told about it.
`
`13
`
`
`
`Case 2:14-cv-03712-LDW-GRB Document 111 Filed 01/19/18 Page 14 of 17 PageID #: 3581
`
`omitted). The Court must also keep in mind the purpose of punitive damages, which "'are given
`
`to the plaintiff over and above the full compensation for the injuries, for the purpose of punishing
`
`the defendant, of teaching the defendant not to do it again, and of deterring others from following
`
`the defendant's example."' Stampfv. Long Island R.R. Co., 761 F.3d 192, 209 (2d Cir. 2014)
`
`(quoting Prosser and Keeton on the Law of Torts§ 2, at 9 (5th ed.1984)). The Court may
`
`consider several factors in assessing the reasonableness of an award. See generally BMW of N.
`
`Am., Inc. v. Gore, 517 U.S. 559, 575, 116 S. Ct. 1589, 134 L.Ed. 2d 809 (1996) (suggesting
`
`"guideposts" for consideration such as the degree of reprehensibility of the conduct, the disparity
`
`between harm suffered and the award, and the difference betvieen the award and civil penalties
`
`imposed in comparable cases).
`
`Although the disparity in the amounts of compensatory and punitive damages may be
`
`considered when assessing a punitive damages award, the jury's decision to award no
`
`compensatory damages is not dispositive in an employment discrimination context. The Second
`
`Circuit has found that in Title VII cases, "[a]n award of actual or nominal damages is not a
`
`prerequisite for an award of punitive damages." Cush-Crawford, 271 F.3d at 357. The
`
`reasoning set forth in that decision is equally applicable in the ADA employment discrimination
`
`context. The Second Circuit further observed that "[t]here is some unseemliness for a defendant
`
`who engages in malicious or reckless violations of legal duty to escape either the punitive or
`
`deterrent goal of punitive damages merely because either good fortune or a plaintiff's unusual
`
`strength or resilience protected the plaintiff from suffering harm." Id. at 359. Furthermore, in
`
`light of the testimony about Zaretsky's apparent disregard of his employees' rights, the jury
`
`could well have found that punitive damages were warranted to meet the deterrence goal of such
`
`an award.
`
`14
`
`
`
`Case 2:14-cv-03712-LDW-GRB Document 111 Filed 01/19/18 Page 15 of 17 PageID #: 3582
`
`As to the amount of the award, Plaintiff has provided citations to ADA cases in which
`
`punitive damages awards in far greater amounts were.awarded. See, e.g., Brady v. Wal-Mart
`
`Stores, Inc., 531 F.3d 127, 132 (2d Cir. 2008) (affirming reduction of punitive damages from $5
`
`million to statutory cap amount of$300,000). Defendants do not provide any case law
`
`suggesting that $50,000 is an unreasonable amount, relying instead upon their argument that a
`
`punitive damages award of any amount is unsustainable in the face of the jury,s failure to award
`
`compensatory damages. Upon review of the record and the cases, the Court finds that an award
`
`of the statutory cap amount of $50,000 does not shock the conscience or violate due process, and
`
`is supported by the evidence.
`
`III. RULE 59 MOTION FOR A NEW TRIAL
`
`Defendants move alternatively under Rule 59, which allows the court to grant a new trial
`
`on all or.some of the issues "for any reason for which a new trial has heretofore been granted in
`
`an action at law in federal court.', FED. R. C1v. P. 59 (a)(l)(A). This standard is "less stringent',
`
`than that required for relief under Rule 50. Olsen v. Cnty. of Nassau, 615 F. Supp. 2d 35, 39
`
`(E.D.N.Y. 2009). "In comparison to a Rule 50 motion, the Second Circuit has held that the
`
`standard for a Rule 59 motion is less onerous for the moving party in two ways: first, '[u]nlike
`
`judgment as a matter of law, a new trial may be granted even if there is substantial evidence
`
`supporting the jury's verdict.' Second, in deciding a Rule 59 motion 'a trial judge is free to weigh
`
`the evidence himself, and need not view it in the light most favorable to the verdict winner."'
`
`Welch v. United Parcel Serv., Inc., 871 F. Supp. 2d 164, 174 (E.D.N.Y. 2012)(quoting DLC
`
`Mgmt. Corp., 163 F.3d at 134). While the court may independently weigh the evidence, a
`
`motion for a new trial should only be granted if the court is convinced that the jury reached a
`
`seriously erroneous result or that the verdict is a miscarriage of justice and that the verdict is
`
`15
`
`
`
`Case 2:14-cv-03712-LDW-GRB Document 111 Filed 01/19/18 Page 16 of 17 PageID #: 3583
`
`against the weight of the evidence. Manley v. AmBase Corp., 337 F.3d 237, 244-45 (2d Cir.
`
`2003).
`
`Weighing the evidence, the Court cannot conclude that the jury's verdict constituted a
`
`seriously erroneous result or a miscarriage of justice. In particular, the Court found Zaretsky's
`
`testimony lacked credibility. Much of his testimony at trial stretched believability and often
`
`conflicted with prior sworn testimony given by him. Finding no reason to disturb the jury's
`
`verdict, the motion for a new trial is denied.
`
`IV. CONFIDENTIAL TRIAL MATERIAL
`
`Defendants seek an order "maintaining the confidenti