You work as an associate in a medium-size law firm which represents corporations in employment litigation. Part of your duties include interviewing potential clients with a partner, gathering pertinent information, and providing an analysis of potential exposure to one of the firm’s partners who will review your work and advise the client. You recently sat in on an interview with one of the firm’s long-time clients, Jim Sharp of Sharp Manufacturing. Sharp has recently received a timely charge of discrimination from the EEOC which was filed by Georgia Perry, a former employee. The partner has already discussed mediation with the client and has agreed to participate in the EEOC’s mediation program. The purpose of the meeting was to go over the facts with the client in order to have a good estimate of potential exposure, if any. The discussion with Jim Sharp shows the following. Berry is a 42-year-old African American female who had been employed by Sharp Manufacturing for a period of 8 years. She is a single mother of four, with three children in the home ranging from 12-17 years of age. She has her GED. Sharp is a family-owned company with only one facility. The corporation has a total 198 employees. Berry was terminated on April 11, 2019 under Sharp’s progressive discipline policy for two separate safety offenses. The first had resulted in a 2-day suspension and final warning in December of 2018, and the second offense had occurred in late March of 2019, resulting in her discharge. Sharp’s progressive discipline policy authorizes termination for two safety offenses within a six-month period. (Berry had never received any formal discipline except for a couple of verbal counselings for absenteeism due to sick children). Both of these write-ups were administered by Production Manager George Becker, Berry’s supervisor since November of 2018. Becker is white. Becker is new to the Sharp operations and was brought in to “shape things up”, including production and safety. Sharp acknowledges that non-African-Americans have committed safety violations in the past offenses without being terminated, but that was some time ago and under an old Production Manager who “let things slide”. Berry’s replacement is white. According to the information on file with the EEOC, since her termination Berry has been unable to find alternative employment although she indicates she has exercised reasonable diligence in looking for work by sending out applications and applying with the State Unemployment Office. While employed at Sharp, Berry made $25.00 per hour, averaging $60,000.00 annually with overtime. Also according the EEOC information, Berry states that as a result of her termination she has extreme emotional distress, including depression, anxiety, sleeplessness, and weight gain, which was aggravating her diabetes and hypothyroidism. She has not, however, seen any counselor for these emotional issues, although her family physician would be available to testify that she has had increased anxiety and he has prescribed medication for her issues. (Along this line, Sharp indicates Berry has a number of other personal issues, including an abusive ex-husband, an adult child in jail, and the others in and out of trouble with juvenile authorities). On the surface, it appears to you that Berry might have decent case for potential race discrimination under Title VII. Even though the case won’t go to court for another year, in order to be prepared for the mediation, and before conducting a legal analysis on the merits, you want to take a look at the potential exposure under a worst-case scenario for Sharp. You would really like to show your best work – and possibly “second chair” if the case doesn’t settle and goes to trial. Under these facts, calculate what a worst-case damages scenario would be for Sharp Manufacturing in Berry’s case against Sharp under Title VII. In other words, what is her “best day in court”? (For purposes of this exercise, do not include attorney’s fees). Prepare your memo, including the following:
1) TOTAL “WORST CASE” DAMAGES EXPOSURE: $___________
2) HOW DID YOU CALCULATE THIS?
3) WHAT ARE THE COMPONENTS OF YOUR ESTIMATE – BOTH IN TERMS OF LEGAL