SYLLABUS
(This syllabus is not part of the opinion of the Court. It has
been prepared by the Office of the Clerk for the convenience of the
reader. It has been neither reviewed nor approved by the Supreme Court. Please
note that, in the interests of brevity, portions of any opinion may not
have been summarized).
Plaintiff, Carol Tarr, began working for Mack Auto Mall in late July 1994
as a finance and insurance manager. She worked there until July 1995, when
she left, allegedly because of sexual harassment in the workplace. At trial, Tarr
described the extensive and pervasive sexual harassment that she endured from a group
of particularly offensive male employees during the course of her employment. She asserted
that although Grimaldi, the general manager, heard much of the abusive conduct, he
made no effort to stop it. In fact, Tarr testified that Grimaldi himself
had made inappropriate comments to her on more than one occasion. She stated
that the constant abuse made her feel extremely uncomfortable, prompting her to quit
in July 1995. She returned a short time later because she needed the
job and because her immediate supervisor, who also had been the subject of
sexual harassment, assured her that the situation would improve. When it did not,
Tarr left again, in April 1996. Tarrs testimony at trial was corroborated by
various witnesses, including her immediate supervisor and two other co-workers.
Defendant, Bob Ciasulli, was the sole owner of the Auto Group dealerships. Tarr
presented limited evidence of his direct involvement with the management of Mack Auto
Mall. Specifically, Tarr testified that Ciasulli held monthly meetings attended by all sales
personnel. In addition, Tarrs immediate supervisor testified that she telephoned Ciasulli directly when
her immediate supervisor was not able to resolve an issue. Finally, a former
manager at the auto mall testified that Ciasulli once directed him to fire
a salesperson following allegations of sexual harassment.
At the close of Tarrs case, the trial court dismissed her emotional
distress claims. The court ruled that the elements of emotional distress are the
same in both discrimination cases and in tort cases, and that the evidence
that Tarr was temporarily upset was insufficient to establish her claim. In addition,
at the close of all the evidence, the trial court dismissed the complaint
against Ciasulli, individually, and Auto Group. The case was submitted to the jury
solely against Tarrs employer, Mack Auto Mall. In answer to special interrogatories, the
jury found that Tarr had been the victim of sexual harassment in the
workplace, but that she had suffered no economic loss. The trial court concluded
that Tarr was entitled to attorney fees as a prevailing party because the
jury found in her favor on the sexual harassment and hostile workplace claims.
Tarr appealed the dismissals of her emotional distress damages claim and of her
complaint against Auto Group. All three defendants cross-appealed from the order awarding counsel
fees. In a reported decision, the Appellate Division reversed the order dismissing the
emotional distress damages and the complaint against Ciasulli individually. The panel remanded for
a determination of Ciasullis individual liability, ordered a new trial on damages, both
compensatory and punitive, and affirmed the orders dismissing the complaints against Auto Group
and awarding counsel fees to plaintiff.
The Supreme Court granted certification, and granted amicus curiae status to the National
Employment Lawyers Association of New Jersey.
HELD : In a hostile work environment and sexual harassment case brought under the
Law Against Discrimination, a victim of discrimination may obtain redress for mental anguish
and embarrassment, without limitation to severe emotional or physical ailments, and plaintiff in
this case presented sufficient evidence of emotional distress damages to submit that issue
to the jury; the trial court properly dismissed plaintiffs complaint against the owner
of the Auto Group inasmuch as plaintiff failed to establish that he had
aided and abetted the employees in their sexual harassment of her; to be
considered a prevailing party under the Law Against Discrimination for purposes of entitlement
to counsel fees, a party must receive some affirmative relief in the form
of damages, injunctive relief, or declaratory relief.
1. To prevail on a common law cause of action for intentional infliction
of emotional distress, a plaintiff must establish intentional and outrageous conduct by the
defendant, proximate cause, and distress that is severe. Our courts have long recognized
emotional distress damages as a component of various intentional torts and breach of
contract claims. (pp. 7-8)
2. The Legislature amended the LAD to authorize recovery of emotional distress damages
for discrimination claims. Emotional distress claims and damages need not be supported by
expert testimony. Rather, claims for emotional distress of varying degrees have been recognized
where a wrong is willful. A cause of action asserting discrimination is willful
rather than negligent. (pp. 8-12)
3. The purpose of the LAD is to eradicate discrimination in the workplace.
Underlying the LADs expansive language advocating the elimination of discrimination is also the
directive that victims of discrimination be compensated for economic and noneconomic injuries attributable
to an employers discriminatory conduct. (pp. 12-13)
4. The Legislature intended victims of discrimination to obtain redress for mental anguish,
embarrassment, and the like, without limitation to severe emotional or physical ailments. Given
the breadth of individual and societal harms that flow from discrimination and harassment,
to limit the LADs application to only those cases in which the victim
suffered serious psychological harm would be contrary to its remedial purpose. It is
the harassers conduct, not the plaintiffs injury, that must be severe or pervasive.
(pp. 13-15)
5. Compensatory damages for emotional distress, including humiliation and indignity resulting from willful
discriminatory conduct, are remedies that require a far less stringent standard of proof
than that required for a tort-based emotional distress cause of action. Thus, in
discrimination cases, which by definition involve willful conduct, the victim may recover all
natural consequences of that wrongful conduct, including emotional distress and mental anguish damages
arising out of embarrassment, humiliation, and other intangible injuries. Thus, that portion of
the Appellate Divisions judgment remanding for a new trial on damages is affirmed.
(p. 15)
6. In order to hold an employee liable as an aider or abettor
under the LAD, a plaintiff must show that the party whom the defendant
aids performs a wrongful act that causes an injury; the defendant must be
generally aware of his role as part of an overall illegal or tortious
activity at the time that he provides the assistance; and the defendant must
knowingly and substantially assist the principal violation. Applying those factors, the Court concludes
that Tarr failed to present evidence that Ciasulli aided and abetted the employees
in their sexual harassment of her. At best, the record discloses that Ciasulli,
as the supervisor in the network of auto dealerships, negligently supervised his employees,
which is insufficient to find substantial assistance to wrongdoers to impose individual liability
under the LAD. Thus, the Court affirms the trial courts dismissal of the
complaint against Ciasulli. (pp. 15-19)
7. A plaintiff who is awarded some affirmative relief by way of an
enforceable judgment against defendant or other comparable relief through a settlement or consent
decree is a prevailing party under the LAD. Moreover, a plaintiff who is
awarded nominal damages is a prevailing party under the LAD. In the case
of nominal damages, however, whether to award minimal attorneys fees or no fees
at all is left to the discretion of the trial court. (pp. 20-22)
Judgment of the Appellate Division remanding to the trial court for a
new trial on damages is AFFIRMED. Judgment of the Appellate Division imposing individual
liability on Ciasulli is REVERSED. Judgment of the Appellate Division affirming the award
of counsel fees to plaintiff is REVERSED and REMANDED for RECONSIDERATION of the
award of attorneys fees.
JUSTICE LaVECCHIA has filed a separate opinion, concurring in part and dissenting in
part, in which JUSTICE VERNIERO joins. Justice LaVecchia would not lessen the proof
requirements for compensatory damages in the absence of textual support in the LAD
for a lesser standard of proof than that which the Court established in
Taylor v. Metzger for the common law tort of infliction of emotional distress
committed in a harassment setting. While recognizing that the Court expanded the test
for intentional infliction of emotional distress where that cause of action was based
on discriminatory conduct and joined with causes of action for discrimination under the
LAD, Justice LaVecchia believed that the Court had not altered the basic requirement
that only severe distress will sustain an award of compensatory damages. Justice LaVecchia,
however, joins in the Courts reversal of the Appellate Divisions judgment that imposed
individual liability on Ciasulli, and further concurs in the Courts conclusion that to
recover attorneys fees as a prevailing party under the LAD, our courts should
employ the same standard as that used for such claims under
42 U.S.C.A. 1988.
CHIEF JUSTICE PORITZ and JUSTICES ZAZZALI and ALBIN join in JUSTICE WALLACEs opinion.
JUSTICE LaVECCHIA filed a separate opinion concurring in part and dissenting in part,
in which JUSTICE VERNIERO joins. JUSTICE LONG did not participate.
SUPREME COURT OF NEW JERSEY
A-
24 September Term 2003
CAROL TARR,
Plaintiff-Respondent,
v.
BOB CIASULLI and BOB CIASULLI'S MACK AUTO MALL, INC.,
Defendants-Appellants,
and
BOB CIASULLI AUTO GROUP, INC., MONMOUTH HONDA JEEP EAGLE, PATRICK GRIMALDI, JOHN DESANTIS,
STEVEN FUENTAS, JOSEPH ANGELINI and JOHN DOE ONE THROUGH TEN,
Defendants.
Argued March 2, 2004 Decided August 9, 2004
On certification to the Superior Court, Appellate Division, whose opinion is reported at
360 N.J. Super. 265 (2003).
Resa T. Drasin and Bradley M. Wilson argued the cause for appellants (Woehling
& Freeman and Nowell Amoroso Klein Bierman, attorneys).
Ronald L. Lueddeke argued the cause for respondent (Mr. Lueddeke and Lynda Lee,
attorneys).
Kathleen A. Dunnigan submitted a brief on behalf of amicus curiae, National Employment
Lawyers Association of New Jersey (Dwyer & Dunnigan, attorneys; Ms. Dunnigan, Frederic J.
Gross and Nancy E. Griffin, on the brief).
JUSTICE WALLACE delivered the opinion of the Court.
This case involves claims of hostile work environment and sexual harassment under New
Jerseys Law Against Discrimination (LAD), N.J.S.A. 10:5-1 to -49. Plaintiff filed a complaint
against Bob Ciasulli (Ciasulli) and various of his wholly-owned corporations and their employees.
Prior to trial, all defendants were dismissed except for Ciasulli, Bob Ciasulli Auto
Group (Auto Group), and Bob Ciasullis Mack Auto Mall, Inc. (Mack Auto Mall).
At trial, the court dismissed plaintiffs claim for emotional distress damages and the
claim against Ciasulli individually. The jury found Mack Auto Mall liable for sexual
harassment in the workplace, but did not find that plaintiff suffered any damages.
Despite her failure to prove damages, the court awarded attorney fees to plaintiff
as a prevailing party. The Appellate Division reversed in part, and affirmed in
part. Tarr v. Bob Ciasullis Mack Auto Mall, Inc.,
360 N.J. Super. 265
(2003).
We granted certification,
178 N.J. 29 (2003), and granted amicus curiae status to
the National Employment Lawyers Association of New Jersey (amicus). We now affirm in
part, and reverse in part. We hold that plaintiff presented sufficient evidence of
emotional distress damages to submit that issue to the jury, that the trial
court properly dismissed the complaint against Ciasulli, and that to be considered a
prevailing party under the LAD for purposes of entitlement to counsel fees, a
party must receive some affirmative relief in the form of damages, injunctive relief,
or declaratory relief.
[Id. at 440.]
This Court affirmed the damage award, similarly relying on the 1990 amendment to
the LAD authorizing emotional distress damages, and rejected the defendants contention that expert
testimony or independent corroborative evidence was necessary to support the award of emotional
distress damages. Rendine, supra, 141 N.J. at 312.
[Tarr, supra, 360 N.J. Super. at 276-77.]
Our dissenting colleagues invoke Taylor v. Metzger,
152 N.J. 490 (1998), to reach
a contrary conclusion concerning the standard of proof for emotional distress damages under
the LAD. There, the Court found sufficient evidence of workplace discrimination for plaintiff
to proceed on her claim of LAD racial discrimination. Further, the Court clarified
the test for an intentional infliction of emotional distress cause of action as
set forth in Buckley, id. at 508-09, and found that the plaintiffs evidence
was sufficient to support that cause of action as well, id. at 521.
There was no need for the Court to address the issue we face
today because the evidence . . . relevant to [the] plaintiffs claim of
emotional injury would overlap, if not duplicate, that proffered to establish her LAD
claim. Id. at 509. Here, plaintiffs claim is limited to her proofs under
the LAD, and if she prevails, she may recover attorney fees that are
not available for a cause of action for intentional infliction of emotional distress.
This Court noted long ago that [g]iven the breadth of individual and societal
harms that flow from discrimination and harassment, to limit the LADs application to
only those cases in which the victim suffered, or could have suffered, serious
psychological harm would be contrary to its remedial purpose. Lehmann, supra, 132 N.J.
at 609. It is the harassers conduct, not the plaintiffs injury, that must
be severe or pervasive. Id. at 610.
In sum, we are satisfied that compensatory damages for emotional distress, including humiliation
and indignity resulting from willful discriminatory conduct, are remedies that require a far
less stringent standard of proof than that required for a tort-based emotional distress
cause of action. We hold that in discrimination cases, which by definition involve
willful conduct, the victim may recover all natural consequences of that wrongful conduct,
including emotional distress and mental anguish damages arising out of embarrassment, humiliation, and
other intangible injuries. Accordingly, we affirm that portion of the Appellate Divisions judgment
remanding for a new trial on damages.
[Id. at 111-12, 113 S. Ct. at 573,
121 L. Ed 2d at
(internal citations omitted) (first alteration in original).]
The Court held that a party who receives only nominal damages is still
deemed to be a prevailing party in the context of awarding attorneys fees
under
42 U.S.C.A.
§1988. Id. at 113, 113 S. Ct. at 574,
121 L. Ed 2d at ___. However, the Court also concluded that the nominal
damages bear on the propriety of fees awarded under § 1988, id. at 114,
113 S. Ct. at 574,
121 L. Ed 2d at ___, because the
degree of the plaintiffs overall success goes to the reasonableness of a fee
award, ibid., 113 S. Ct. at 574,
121 L. Ed 2d at ___
(citation and internal quotation marks omitted). There, the plaintiffs received one dollar in
damages and the Court affirmed the denial of attorneys fees, observing that [a]
plaintiff who seeks compensatory damages but receives no more than nominal damages is
the type of prevailing party that is entitled to no [attorneys] fee[s] at
all. Id. at 115, 113 S. Ct. at 575,
121 L. Ed 2d
at ___. The Court concluded that there must be a relationship between the
extent of success and the amount of the fee award. Id. at 115-16,
113 S. Ct. at 575,
121 L. Ed 2d ___ (quoting Hensley, supra,
461 U.S. at 438, 103 S. Ct. at 1941,
76 L. Ed 2d
at ___).
We are persuaded by the reasoning of the United States Supreme Court and
hold that a plaintiff who is awarded some affirmative relief by way of
an enforceable judgment against defendant or other comparable relief through a settlement or
consent decree is a prevailing party under N.J.S.A. 10:5-27.1 of the LAD. Moreover,
in our view, a plaintiff who is awarded nominal damages is a prevailing
party under the LAD. In the case of a nominal damages award, however,
we leave to the discretion of the trial court whether to award minimal
attorneys fees or no fees at all.
CAROL TARR,
Plaintiff-Respondent,
v.
BOB CIASULLI and BOB
CIASULLIS MACK AUTO MALL,
INC.,
Defendants-Appellants,
and
BOB CIASULLI AUTO GROUP,
INC., MONMOUTH HONDA JEEP
EAGLE, PATRICK GRIMALDI,
JOHN DESANTIS, STEVEN
FUENTAS, JOSEPH ANGELINI
and JOHN DOE ONE THROUGH
TEN,
Defendants.
JUSTICE LaVECCHIA, concurring in part and dissenting in part.
This appeal requires us yet again to interpret the Law Against Discrimination, N.J.S.A.
10:5-1 to 49 (LAD). Specifically, we must determine whether the LAD carries its
own standard of proof for an award of compensatory damages for emotional distress
caused by sexual harassment in the workplace. In my view, such a LAD
claimant must demonstrate entitlement to damages for infliction of emotional distress caused by
sexual harassment under the proof requirements set forth in our decision in Taylor
v. Metzger,
152 N.J. 490 (1998). In the absence of textual support in
the LAD for a lesser standard of proof than that which we established
in Taylor for the common law tort of infliction of emotional distress committed
in a harassment setting, I would not lessen the proof requirements for compensatory
damages.
I.
The cause of action for intentional infliction of emotional distress, which we first
recognized as part of our common law in Buckley v. Trenton Saving Fund
Society,
111 N.J. 355 (1988), was reformulated for the specific context of harassment
claims under LAD in Taylor, supra, 152 N.J. at 508-21. Taylor squarely brought
before the Court the standard to be applied to claims of intentional infliction
of emotional distress where that cause of action is based on discriminatory conduct
and joined with causes of action for discrimination under the LAD. Writing for
the Court, Justice Handler expanded the test for intentional infliction of emotional distress
articulated in Buckley, supra, which required a plaintiff to establish intentional and outrageous
conduct by the defendant, proximate cause, and distress that is severe. 111 N.J.
at 366.
See footnote 1
Our expansion of
Buckley in Taylor was manifest;
See footnote 2 however, we did not alter
the basic requirement that only severe distress will sustain an award of compensatory
damages under our common law, and mentioned specifically that the plaintiff in
Taylor
both sought medical treatment for [her] emotional anguish and claimed to suffer harm
that was both severe and enduring. Id. at 515. Although we did not
hold that a claim for compensatory damages for emotional distress arising in the
context of a LAD discrimination claim specifically required expert or medical corroboration as
a matter of law, we held that that the plaintiff had submitted sufficient
evidence to permit[] a rational factfinder to conclude that she suffered severe emotional
distress. Ibid. Cf. Rendine v Pantzer,
141 N.J. 292, 312-13 (1995) (citing Bolden
v. Southeastern Pa. Transp. Auth.,
21 F.3d 29, 34 (3d Cir. 1994) (noting
that LAD claim for emotional distress damages, like analogous federal civil rights claims,
does not require, as matter of law, expert testimony to corroborate claimants alleged
emotional distress)).
In my view, the majoritys decision renders Taylor, which post-dated the 1990 LAD
amendments that the majority and the Appellate Division find to be so persuasive,
a nullity. In Taylor, Justice Handler painstakingly analyzed the circumstances in which a
plaintiff brings both a claim of discrimination under the LAD and a common
law claim for intentional infliction of emotional distress, and both claims arise from
the same discriminatory conduct. It is curious that our Court would have gone
to such lengths to canvass decisions from around the country concerning claims of
intentional infliction of emotional distress based on discrimination if one of the very
causes of action then before it, a discrimination claim under the LAD, subsumed
the entire analysis. The Courts careful analysis in Taylor is now inoperative in
that the majority holds that the LAD authorizes a standard for obtaining compensatory
damages for emotional distress that is far below that articulated in Taylor. As
demonstrated below, this case is indistinguishable from, and should be controlled by, our
holding in Taylor.
II.
Plaintiffs seven-count Complaint included three counts against Bob Ciasulli Mack Auto Mall, Inc.
(Mack): Count I for hostile work environment created by sexual harassment and discrimination,
in violation of the LAD; Count II for constructive discharge based on sexual
harassment and discrimination, in violation of the LAD; and Count VII for intentional
infliction of emotional distress. Each count demand[ed] judgment against [Mack] as follows: (1)
Compensatory Damages[;] (2) Punitive Damages[;] (3) Equitable relief to the fullest extent permitted
by the LAD; (4) Costs of Suit; (5) Attorneys Fees to the fullest
extent permitted by the LAD and the law; (6) Lawful Interest; [and] (7)
Such other relief as the Court deems equitable and appropriate.
Before trial, Mack filed a motion for summary judgment to dismiss Count VII
for common law intentional infliction of emotional distress, and to compel discovery concerning
the nature of plaintiffs asserted emotional trauma. Plaintiff did not oppose the motion
to dismiss Count VII.
See footnote 3 Thus, we note that the common law emotional distress
claim was dismissed from plaintiffs action, and she proceeded to trial only on
Counts I and II.
The ensuing jury trial spanned nearly two weeks. During trial, there was ample
testimony concerning the outrageously hostile and discriminatory environment at Macks place of business,
which both the majority,
ante at ___ (slip op. at ___), and the
Appellate Division have well detailed. Tarr, supra, 360 N.J. Super. at 268-70. The
vivid portrayal of an abusive environment that plaintiff endured in the workplace was
fairly described by the Appellate Division as despicable, insulting, reprehensible, crude, gross, demeaning,
and contemptible[.] Id. at 270. Despite that portrayal, plaintiffs
testimony respecting her response . . . was not extensive. Although she apparently
had mental health care after leaving Mack . . ., she chose not
to offer expert testimony. She testified only to her acute embarrassment and humiliation,
[caused by one co-workers] remarks in the presence of persons not employed by
the dealership, [that] made her turn beet red and want to crawl under
my desk.
The jury returned a verdict finding that plaintiff was the victim of sexual
harassment, including that the working environment was intimidating, hostile and abusive. However, the
jury did not award any compensatory damages to plaintiff, based on its determination
that she suffered no past or future lost earnings as a result of
defendants sexual harassment. Therefore, no punitive damages were awarded.
Tarr, supra, 360 N.J.
Super. at 267; see generally N.J.S.A. 2A:15-5.13c (stating that punitive damages are available
only if compensatory damages, rather than nominal damages, have been awarded). The trial
court did award plaintiff attorneys fees pursuant to N.J.S.A. 10:5-27.1, concluding that because
plaintiff had proved a sexually harassing hostile workplace, she was a prevailing party
despite her failure to prove damages. Tarr, supra, 360 N.J. Super. at 267.
In a motion for a new trial pursuant to Rule 4:49-1(a), plaintiff again
raised the issue of compensatory damages for emotional distress, asserting that 1990 amendments
to the LAD created a lower threshold for obtaining compensatory damage for emotional
distress. The trial court denied plaintiffs motion, ruling from the bench, in relevant
part, as follows:
[T]he [1990] amendments . . . I interpret pretty clearly as not expanding
the types of damages that somebody can have, but basically recognizing that an
employee would have damages that might reasonably flow from an act of discrimination
that could be compensable and that could be the subject of compensatory damages.
What are the purposes of compensatory damages? Compensatory damages are intended to make
a litigant whole for a loss, no more, no less. Compensatory damages are
not intended to punish a litigant for the wrongdoing but rather to make
a party whole. Really, the plaintiff did not testify as to any other
types of loss.
* * * *
The Legislature never intended to create a new form of damages not recognized
in common law, but [it] did intend to codify the availability of damages
that were normally available to the plaintiff as a function of common law
in a personal injury type of action, tort or contract. The reason is
that you have to remember why they did what they did in 1990,
and that was to respond to the Shaner[ v. Horizon Bancorp.,
116 N.J. 433 (1989)] decision which raised, in effect, almost like as an afterthought the
question of whether or not damages that are recognized at common law should
be the prime focus of [the LAD].
So Im not saying that emotional distress damages have to be proven by
expert testimony, although that would be preferable, or that the plaintiff has to
show that she sought treatment or anything for it. But she has to
testify as to something that is related to the incident in question and
it has to be something more than just sort of a passing problem.
And thats what happened in this case was that she made a passing
reference to crying in the car and there was basically no testimony to
indicate that that was related to the incident in question or to other
problems or that it was substantial, that it was significant or that it
caused her any continuing emotional distress.
The Appellate Division reversed the trial court on the issue of compensatory damages
for emotional distress by relying on Gray v. Serruto Builders, Inc.,
110 N.J.
Super. 297, 316-17 (Ch. Div. 1970), in which a chancery court awarded nominal
damages to a plaintiff based on racial discrimination, and Zahorian v. Russell Fitt
Real Estate Agency,
62 N.J. 399, 412 (1973), in which this Court affirmed
an incidental award [to the plaintiff] for pain and suffering recommended by a
Hearing Examiner with the New Jersey Division on Civil Rights (Division) and adopted
by the Division Director. From those earlier decisions, the Appellate Division extrapolated that
a plaintiff does not have to prove severe and substantial emotional harm to
reach the jury on compensatory damages for emotional distress in the context of
the LAD. Id. at 276-77. It found that the 1990 amendments to the
LAD confirmed the authority of Gray and Zahorian. Id. at 273. We granted
defendants petition for certification.
178 N.J. 29 (2003).
III.
Persons seeking redress under the LAD either may file a complaint (1) with
the Division or (2) in the Superior Court of New Jersey, by jury
trial if requested. N.J.S.A. 10:5-13. Pursuant to the LAD, [a]ll remedies available in
common law tort actions shall be available to prevailing parties. These remedies are
in addition to any provided by this act or any other statute. Ibid.
(emphasis added). Those two sentences mandate that for LAD claims, in addition to
the equitable remedies available to courts and the Division under N.J.S.A. 10:5-17, prevailing
parties also may seek traditional tort remedies. Plaintiffs thesis is that that language
in N.J.S.A. 10:5-13 expresses a legislative intent to lower, in LAD actions, the
proof standard that otherwise would apply in a common law tort action to
obtain compensatory damages for emotional distress caused by discriminatory conduct. However, that theory
is not supported by text, legislative history, or prior decisional law.