intentional torts

In March 1989 the Exxon Valdez supertanker grounded on Bligh Reef in Prince William Sound, Alaska, releasing millions of gallons of crude oil. Exxon Shipping Company, the vessel's owner and now known as SeaRiver Maritime, Inc., together with its parent Exxon Mobil Corporation, confronted widespread liability from the spill. The company settled a class action brought by more than 32,000 commercial fishermen, Native Americans, landowners, and others for $2.5 billion in compensatory damages. Exxon also pleaded guilty to violations of the Clean Water Act, the Migratory Bird Treaty Act, and the Refuse Act, paying $150 million in criminal fines, and spent an additional $2.1 billion on cleanup. Respondents, other persons whose businesses and livelihoods were disrupted by the spill, filed this civil action seeking punitive damages. The United States District Court for the District of Alaska divided the plaintiffs into three classes and conducted a three-phase trial. In the first phase the jury found Exxon Shipping Company and Captain Joseph Hazelwood, the ship's master, reckless and therefore potentially liable for punitive damages. In the second phase the jury awarded $5 billion in punitive damages against Exxon. The District Court later reduced the punitive award to $2.5 billion. On appeal the Ninth Circuit reinstated the jury's original $5 billion punitive damages award. The Supreme Court granted certiorari to consider whether the $2.5 billion punitive damages award was excessive under maritime law.

The University of Texas Southwestern Medical Center, a teaching hospital affiliated with the University of Texas, hired Naiel Nassar, a physician of Middle Eastern descent, first as a medical resident in 2001 and later as an assistant professor in the Department of Internal Medicine in 2006. Nassar's direct supervisor was Dr. Michael Levine, the Chief of Infectious Disease Medicine, and he also worked with Dr. Brian Becherer, the Medical Director of the hospital's employee health clinic. In 2007 and 2008, Nassar complained to his supervisors that he was being subjected to discrimination and harassment by Levine on the basis of his religion and ethnic heritage. In July 2008, Nassar was offered and accepted a position as a full-time faculty member in the Department of Internal Medicine. In August 2008, Nassar resigned from his faculty position in a letter stating that the primary reason for his departure was the hostile work environment created by Levine's harassment. After Nassar resigned, Becherer sent a letter to the state medical board reporting that Nassar had resigned while under investigation for professional misconduct involving alleged improper billing practices. Nassar filed suit in the United States District Court for the Northern District of Texas alleging two claims under Title VII: status-based discrimination on the basis of his race, religion, and national origin, and retaliation for complaining about Levine's conduct. The case proceeded to trial before a jury. The District Court instructed the jury that Nassar could prevail on his retaliation claim if he showed that retaliation was a motivating factor in the hospital's decision to send the letter to the medical board. The jury found for Nassar on both claims and awarded him $3,000 in backpay and $400,000 in compensatory damages, which the District Court reduced to $300,000 pursuant to the statutory cap. The hospital appealed to the Fifth Circuit, which affirmed the retaliation verdict on the theory that the motivating-factor standard applied. The Supreme Court granted certiorari.

Kimberly Ellerth worked as a salesperson for Burlington Industries in its Chicago office from March 1993 until May 1994. During this period her supervisor Ted Slowik, a midlevel vice president based in New York, made repeated boorish and offensive remarks and gestures toward her. In the summer of 1993, while on a business trip, Slowik invited Ellerth to a hotel lounge and, after she gave no encouragement to his remarks about her breasts, told her he could make her life very hard or very easy at Burlington. In March 1994, when Ellerth was being considered for a promotion, Slowik expressed reservations during the promotion interview because she was not "loose enough." The comment was followed by his reaching over and rubbing her knee. Ellerth did receive the promotion; but when Slowik called to announce it, he told Ellerth, "you're gonna be out there with men who work in factories, and they certainly like women with pretty butts/legs." In May 1994, Ellerth called Slowik asking permission to insert a customer's logo into a fabric sample. Slowik responded, "I don't have time for you right now, Kim . . .— unless you want to tell me what you're wearing." A day or two later, Ellerth called Slowik to ask permission again. This time he denied her request, but added something along the lines of, "are you wearing shorter skirts yet, Kim, because it would make your job a whole heck of a lot easier." A short time later, Ellerth's immediate supervisor cautioned her about returning telephone calls to customers in a prompt fashion. In response, Ellerth quit. She faxed a letter giving reasons unrelated to the alleged sexual harassment. About three weeks later, however, she sent a letter explaining she quit because of Slowik's behavior. Ellerth did not inform anyone in authority about Slowik's conduct despite knowing Burlington had a policy against sexual harassment. In October 1994, after receiving a right-to-sue letter from the Equal Employment Opportunity Commission (EEOC), Ellerth filed suit in the United States District Court for the Northern District of Illinois, alleging Burlington engaged in sexual harassment and forced her constructive discharge, in violation of Title VII. The District Court granted summary judgment to Burlington. The Court of Appeals en banc reversed in a decision which produced eight separate opinions and no consensus for a controlling rationale. The Supreme Court granted certiorari to assist in defining the standards of employer liability.

Between 1985 and 1990, while attending college, petitioner Beth Ann Faragher worked part time and during the summers as an ocean lifeguard for the Marine Safety Section of the Parks and Recreation Department of respondent, the City of Boca Raton, Florida (City). During this period, Faragher's immediate supervisors were Bill Terry, David Silverman, and Robert Gordon. In June 1990, Faragher resigned. In 1992, Faragher brought an action against Terry, Silverman, and the City, asserting claims under Title VII, Rev. Stat. § 1979, 42 U. S. C. § 1983, and Florida law. So far as it concerns the Title VII claim, the complaint alleged that Terry and Silverman created a "sexually hostile atmosphere" at the beach by repeatedly subjecting Faragher and other female lifeguards to "uninvited and offensive touching," by making lewd remarks, and by speaking of women in offensive terms. The complaint contained no allegation that Terry or Silverman threatened or effected any "tangible" alteration in Faragher's employment status, such as discharge, demotion, or denial of any economic benefit. Following a bench trial, the United States District Court for the Southern District of Florida found that throughout Faragher's employment with the City, Terry served as Chief of the Marine Safety Division, with authority to hire new lifeguards (subject to the approval of higher management), to supervise all aspects of the lifeguards' work assignments, to engage in counseling, to deliver oral reprimands, and to make a record of any such discipline. Silverman was a Marine Safety lieutenant from 1985 until June 1989, when he became a captain. Gordon began the employment period as a lieutenant and at some point was promoted to the position of training captain. The District Court found that Terry and Silverman were agents of the City, and that their conduct created a hostile work environment. The District Court also found that the city had knowledge of the harassment. In February 1986, the City adopted a sexual harassment policy, which it stated in a memorandum from the City Manager addressed to all employees. Although the City may actually have circulated the memos and statements to some employees, it completely failed to disseminate its policy among employees of the Marine Safety Section, with the result that Terry, Silverman, Gordon, and many lifeguards were unaware of it. In May 1990, two months before Faragher's resignation, the city revised its policy on sexual harassment and for the first time included a procedure that allowed employees to bypass their supervisors when registering a complaint. In April 1990, however, two months before Faragher's resignation, Nancy Ewanchew, a former lifeguard, wrote to Richard Bender, the City's Personnel Director, complaining that Terry and Silverman had harassed her and other female lifeguards. The Court of Appeals for the Eleventh Circuit, sitting en banc, reversed. The Court of Appeals held that the city could not be held liable under Title VII for the sexual harassment of its supervisory employees. The Supreme Court granted certiorari, 522 U. S. 1046 (1998), and reversed the judgment of the Court of Appeals, remanding for further proceedings.