McDaniel v. Scotch & Soda USA

Background

Romaine McDaniel sued Scotch & Soda Retail LLC and Scotch & Soda LLC, alleging race discrimination and retaliation under Title VII of the Civil Rights Act of 1964, the New York State Human Rights Law, and the New York City Human Rights Law. The court had previously entered default against both defendants and sent the damages issue to Magistrate Judge Robyn F. Tarnofsky for an inquest, which is a process for determining the amount of damages.

Because the defendants defaulted, the court treated the complaint’s well-supported liability allegations as true, but McDaniel still had to prove the amount of her damages. The report concluded that McDaniel adequately established retaliation claims under all three laws but did not adequately establish discrimination claims. It also recommended $3,520 in back pay, $30,000 in emotional-distress damages, $11,130 in attorneys’ fees, $1,112 in costs, and post-judgment interest. The report recommended no punitive damages under Title VII or the New York City Human Rights Law, and stated that punitive damages were unavailable under the New York State Human Rights Law.

Objections

McDaniel objected to two recommendations. First, she argued that her emotional-distress award should be increased from $30,000 to $100,000. The court recognized that she reported anxiety, depression, and loss of sleep after experiencing rude and allegedly retaliatory treatment and termination. It nevertheless found that the treatment lasted less than four months and was less severe and less extensively documented than cases involving higher awards. The court denied the objection.

Second, McDaniel sought $500,000 in punitive damages under the New York City Human Rights Law. The court explained that such damages require willful or wanton negligence, recklessness, or conscious disregard of rights. It found no sufficient showing of that level of misconduct, noting that the motives for the mistreatment were unclear, the evidence did not show harsh or extensive mistreatment, and it was unclear who decided to terminate McDaniel or what that person intended. The court also found no evidence of violence, deceit, or intentional malice and denied this objection.

Disposition

Judge Denise Cote adopted the November 22 report and recommendation in its entirety. The court denied McDaniel’s objections and directed the Clerk of Court to enter judgment against Scotch & Soda Retail LLC and Scotch & Soda LLC for $3,520 in back pay, $30,000 in emotional-distress damages, $11,130 in attorneys’ fees, $1,112 in costs, and post-judgment interest.