This verdict of $910,000 is a reminder that employers are required to take prompt action when they become aware an employee is being sexually harassed. Autozone’s failure to take action when it knew of the sexual harassment resulted in the highest sexual harassment verdict in North and South Carolina in 2018. The jury awarded $100,000 for emotional distress damages for Defendant’s violation of Title VII based on sexual harassment. It awarded $600,000 in punitive damages for the Title VII violation. In addition, the jury determined that the company was liable for intentionally inflicting emotional distress on the Plaintiff, awarding $150,000 in damages for severe emotional distress, and an additional $60,000 in punitive damages. Because Title VII caps allowable damages, the verdict was initially reduced to a total of $510,000.
AutoZoners, LLC appealed the verdict, asking for a new trial, and alternatively asking the Court to throw out $150,000 in emotional distress damages, along with $260,000 in punitive damages. The Court of Appeals for the Fourth Circuit found there was no basis for a new trial, and that the jury’s award of damages for emotional distress under Title VII and “severe” emotional distress for Intentional Infliction of Emotional Distress was not duplicative. Thus, the Court upheld Plaintiff’s emotional distress damages award totaling $250,000, for violating Title VII and for intentionally inflicting emotional distress, only vacating the punitive damages award, because of the standards for holding a company legally responsible for such damages.