Gentry, Lesley v. Export Packaging Co ( 2001 )


Menu:
  • In the
    United States Court of Appeals
    For the Seventh Circuit
    No. 00-2367
    Lesley Gentry,
    Plaintiff-Appellee,
    v.
    Export Packaging Company,
    Defendant-Appellant.
    Appeal from the United States District Court
    for the Central District of Illinois.
    No. 99-4012--Joe B. McDade, Chief Judge.
    Argued December 8, 2000--Decided January 25, 2001
    Before Flaum, Chief Judge, and Ripple and Evans,
    Circuit Judges.
    Flaum, Chief Judge. Export Packaging Company is
    appealing the jury verdict in favor of Lesley
    Gentry concerning a Title VII hostile work
    environment sexual harassment claim. For the
    reasons stated herein, we affirm.
    I.   Background
    Lesley Gentry was hired by Export Packaging
    Company ("Export") as a temporary employee in
    October of 1997. She became a permanent employee
    on December 1, 1997 and transferred into the
    technical services department in April of 1998,
    assuming the position of Administrative Assistant
    to Technical Services. In this new position, she
    served in a help desk capacity. Her immediate
    supervisor was Leo Broughton. During the last
    month of her employment, April of 1998, Gentry’s
    desk was in the same office as Broughton’s. Since
    Broughton began working at Export on July 5,
    1988, he has been the Technical Services
    Director. Broughton is considered to be middle
    management because he reports to Bryon Fernald,
    the company’s Chief Financial Officer and its
    Executive Vice President. During the eleven years
    prior to May 1, 1998, when Gentry stopped working
    for Export, Broughton attended two sexual
    harassment training sessions.
    Gentry contends that Broughton sexually harassed
    her. She claims that during a time span of
    approximately four months, with most of the
    harassment occurring in April of 1998, Broughton
    subjected her to 40 hugs, 15 shoulder rubs, a
    kiss on her cheek, and two instances where
    Broughton petted her cheeks. Just before Gentry’s
    desk was moved into Broughton’s office, Gentry
    heard Broughton’s supervisor, Fernald say that
    she was going to become a "sex"retary. One
    evening Broughton asked her to "try out the back
    counter" with him and Gentry believed that
    Broughton was requesting that she have sexual
    intercourse with him. On another occasion, she
    relates that he inquired about her staying the
    night with him. This time he said to her that her
    clothes would look better on the floor. In
    addition, she claims that Broughton gave her a
    single page "World of Love 1997, Mexico" calendar
    that depicted cartoon drawings of different
    sexual positions, one for each day, and Broughton
    asked her to pick out a couple of her favorite
    days. Gentry stated that she resisted Broughton’s
    advances and claims that on two occasions she
    spoke with Vicki Hanske, the Benefits Coordinator
    in the Human Resources department, about
    Broughton’s conduct. She sued Export asserting a
    variety of claims, including constructive
    discharge, retaliation, sex discrimination, and
    quid pro quo sexual harassment. While the
    majority of Gentry’s claims did not survive
    Export’s motion for summary judgment, the hostile
    work environment sexual harassment claim under
    Title VII of the Civil Rights Act of 1964, 42
    U.S.C. sec. 2000e et seq. withstood the said
    motion. The trial was held before a jury on April
    24, 2000 and the jury on April 26, 2000 returned
    a verdict in favor of Gentry and against Export
    in the amount of $25,000, consisting of $10,000
    for compensatory damages and $15,000 for punitive
    damages. Export now seeks a reversal of this jury
    award.
    II.    Discussion
    A.    Ellerth/Faragher Affirmative Defense
    Private employers under Title VII are prohibited
    from discriminating on the basis of sex: "It
    shall be an unlawful employment practice for an
    employer . . . to discriminate against any
    individual with respect to his compensation,
    terms, conditions, or privileges of employment,
    because of such individual’s . . . sex . . . ."
    42 U.S.C. sec. 2000e-2(a)(1). Employers can be
    held vicariously liable for a supervisor’s/1
    sexual harassment of a subordinate, but an
    employer may avoid such liability by proving an
    affirmative defense:
    An employer is subject to vicarious liability to
    a victimized employee for an actionable hostile
    environment created by a supervisor with
    immediate (or successively higher) authority over
    the employee. When no tangible employment action
    is taken, a defending employer may raise an
    affirmative defense to liability or damages,
    subject to proof by a preponderance of the
    evidence, see Fed. Rule Civ. Proc. 8(c). The
    defense comprises two necessary elements: (a)
    that the employer exercised reasonable care to
    prevent and correct promptly any sexually
    harassing behavior, and (b) that the plaintiff
    employee unreasonably failed to take advantage of
    any preventive or corrective opportunities
    provided by the employer or to avoid harm
    otherwise. While proof that an employer had
    promulgated an anti-harassment policy with
    complaint procedure is not necessary in every
    instance as a matter of law, the need for a
    stated policy suitable to the employment
    circumstances may appropriately be addressed in
    any case when litigating the first element of the
    defense. And while proof that an employee failed
    to fulfill the corresponding obligation of
    reasonable care to avoid harm is not limited to
    showing any unreasonable failure to use any
    complaint procedure provided by the employer, a
    demonstration of such failure will normally
    suffice to satisfy the employer’s burden under
    the second element of the defense. No affirmative
    defense is available, however, when the
    supervisor’s harassment culminates in a tangible
    employment action, such as discharge, demotion,
    or undesirable reassignment.
    Ellerth, 524 U.S. at 765; see also Faragher, 524
    U.S. at 807-08. The Ellerth/Faragher affirmative
    defense places the burden on the employer by
    requiring that an employer establish that: (1) it
    took both preventive and corrective steps to
    address sexual harassment; and (2) that the
    employee failed to take advantage of available
    preventive or corrective measures. See Johnson v.
    West, Jr., 
    218 F.3d 725
    , 731 (7th Cir. 2000)
    ("Johnson argues that even if the VA was entitled
    in principle to the Ellerth/Faragher affirmative
    defense, it did not meet its burden of proof.
    That burden requires the employer to establish
    two points, not just one.").
    As an appellate court, our review of the jury
    trial below is limited in nature. See Hennessy v.
    Penril Datacomm Networks, Inc., 
    69 F.3d 1344
    ,
    1347 (7th Cir. 1995) ("Appellate courts, viewing
    the sort of claims Penril is now making, must be
    mindful of their limited role in reviewing
    factual determinations made by juries and trial
    judges."). Questions of "credibility and weight
    of the evidence [are] within the purview of the
    jury, whose verdict cannot be lightly set aside
    so long as it has a reasonable basis in the
    record." Lippo v. Mobil Oil Corp., 
    776 F.2d 706
    ,
    716 (7th Cir. 1985). With this in mind, we
    examine Export’s contention that it met its
    burden under the Ellerth/Faragher affirmative
    defense.
    1.   Preventive Measures Taken by Export
    One of the first issues that must be addressed
    is whether Export had devised an effective sexual
    harassment policy. For our purposes, the relevant
    part of the Export policy reads:
    Any employee who believes that he or she has been
    subjected [to] or witness to sexual harassment
    should immediately report the conduct to the
    immediate supervisor, division manager, or Human
    Resource Representative, whichever the employee
    feels is appropriate, under the circumstances.
    The incident or behavior will then be referred to
    the Human Resource Director and a prompt and
    confidential investigation will be conducted.
    There will be no reprisals or retaliation of any
    kind against an employee who brings such an issue
    before management.
    Jennifer Gallagher, who at the time Gentry worked
    for the company was the Administrative Assistant
    to the Director of Human Resources, claims she
    read and explained the policy to Gentry during
    the latter’s initial job orientation. Gentry at
    trial acknowledged that she was aware of Export’s
    sexual harassment policy. According to Export,
    its policy was both appropriate and effective and
    provided for a bypass mechanism around an
    employee’s supervisor. Export contends that its
    sexual harassment policy provided Gentry with a
    means to voice her concerns about Broughton’s
    behavior and she chose not to do so.
    In an attempt to prevent sexual harassment,
    there is no dispute that Export implemented a
    formal sexual harassment policy. "Title VII is
    designed to encourage the creation of
    antiharassment polices and effective grievance
    mechanisms." Ellerth, 524 U.S. at 764. However,
    a sexual harassment policy must provide for
    "effective grievance mechanisms" and therefore
    the mere creation of a sexual harassment policy
    will not shield a company from its responsibility
    to actively prevent sexual harassment in the
    workplace. The policy itself should provide for
    a meaningful process whereby an employee can
    express his or her concerns regarding an
    individual within a working environment. Thus,
    the question then becomes whether Export, with
    its sexual harassment policy in place, took
    reasonable care to prevent sexual harassment. See
    Shaw v. AutoZone, Inc., 
    180 F.3d 806
    , 812 (7th
    Cir. 1999) (". . . the law does not require
    success--it only requires that an employer act
    reasonably to prevent sexual harassment."). In
    this case, the policy itself raises concerns.
    During the period in which Gentry worked for
    Export, management did not post whom they
    considered to be a Human Resources
    Representative. John Bauersfeld, the Human
    Resources Director, acknowledged that he had not
    told Gentry or any other employee who had assumed
    the Representative position. This omission is
    notable because Export’s policy provided that an
    employee could report sexual harassment to a
    Human Resources Representative. While Gentry was
    employed at Export, there were five people
    working in the Human Resources department of the
    corporate office. Three of these individuals were
    supervisors, including John Bauersfeld, Jennifer
    Gallagher, and Vicki Hanske. Gallagher had a baby
    in early February of 1998 and took four weeks
    off. She then returned to work part-time until
    the end of April. Consequently, due to
    Gallagher’s absence and reduced schedule, Gentry,
    during the months of March and April of 1998, had
    the option to report her concerns primarily to
    Bauersfeld and Hanske. Bauersfeld, however, took
    the position that an employee could only report
    sexual harassment to himself or Gallagher. In
    contrast, Broughton testified that it would be
    proper for an employee to report sexual
    harassment to Hanske. Fernald, the Chief
    Financial Officer and Executive Vice President of
    Export, also said Hanske could be considered a
    Human Resources Representative and so reporting
    sexual harassment to her would be appropriate.
    Clearly, no consensus existed within the
    management of the company regarding who assumed
    the position of Human Resources Representative
    and Export never informed its employees of who
    held the position. Such divergence of opinions
    suggests that Export appears not to have taken
    the necessary steps to fully and effectively
    implement its sexual harassment policy. If Export
    desired its policy to provide a viable means by
    which an employee could report sexual harassment,
    then the company should have made it more evident
    who assumed the Human Resources Representative
    position. A reasonable jury could have found that
    such a deficiency in Export’s sexual harassment
    policy reveals that it failed to take appropriate
    steps to prevent sexual harassment.
    2.   Gentry’s Preventive or Corrective Action
    However, even assuming arguendo that Export’s
    policy was construed to be an acceptable one, we
    conclude that the jury’s rejection of Export’s
    position regarding the preventive or corrective
    actions Gentry pursued was not unreasonable.
    Export argues that Gentry never reported sexual
    harassment, as she claims, to Vicki Hanske, the
    Benefits Coordinator at Export. Hanske
    acknowledged that on two or three occasions she
    did speak with Gentry about her work related
    concerns. According to Hanske, Gentry "was upset,
    thinking that the employees mainly in the
    corporate office were spreading rumors and making
    stories up about her." While testifying, Hanske
    denied that Gentry informed her of any touching
    or sexual harassment that took place in the
    office. In addition, Hanske claims Gentry never
    suggested to her that Broughton was somehow
    involved in the situation. Basically, Hanske told
    Gentry that she should develop a thick skin with
    regard to the stories she believed were being
    told about her. Hanske contends that she learned
    about Gentry’s sexual harassment allegations,
    when in response to Bauersfeld’s request, she
    completed a statement discussing any
    conversations she had with Gentry. In this
    instance, Hanske said that Gentry would have had
    to say the term "sexual harassment" for her to
    report it to Bauersfeld or Gallagher because
    "[t]here was . . . nothing . . . that I had seen
    that would have brought me to think there was
    sexual harassment; otherwise, yes, she would have
    to say the words because I was not around her
    area to see anything." Hanske did remark that if
    Gentry had described events that she believed
    involved sexual harassment, she would have
    reported such information to Gallagher or
    Bauersfeld. Based upon Hanske’s testimony, Export
    advances the proposition that Gentry acted
    unreasonably by failing to report her allegations
    of sexual harassment while she still worked at
    the company.
    In addition, Export notes that Gentry
    consciously decided not to report her allegation
    of sexual harassment. During the trial, Gentry
    said "a big reason" she was "really troubled" was
    that she believed co-workers were talking about
    her; specifically, that they were saying that she
    was having an affair. Gentry stated that she
    never formally used the term sexual harassment
    because she "was wanting to keep quiet about it
    so [she] would not get it out in the office and
    [she] wouldn’t lose [her] job." As a consequence,
    she said she desired to be "discreet" about the
    situation when talking with Hanske, even though
    she knew saying the term "sexual harassment"
    would get a reaction from the person listening to
    her. Export points out that Gentry’s fear does
    not relieve her of her responsibility to report
    the sexual harassment. See Shaw, 
    180 F.3d at 813
    ("[A]n employee’s subjective fears of
    confrontation, unpleasantness or retaliation do
    not alleviate the employee’s duty under Ellerth
    to alert the employer to the allegedly hostile
    environment."). Therefore, Export argues that
    Gentry’s failure to report the sexual harassment
    to an appropriate individual according to
    Export’s sexual harassment policy was
    unreasonable.
    However, the jury did not accept Export’s
    version of the reporting requirement. Gentry
    testified that she called Hanske on two separate
    occasions. During the first conversation,
    according to Gentry, she told Hanske that she was
    uncomfortable with some of the discussions in the
    office and there was a lot of shoulder rubbing,
    touching, and interoffice dating. Gentry also
    mentioned that from her perspective one "either
    had to be dicking one of the bosses or maybe go
    along with their routines in order to do well in
    that company." After receiving a hug from
    Broughton that upset her, Gentry again in late
    April of 1998 called Hanske and told her that she
    was "really uncomfortable with the touching and
    the rubbing and the hugging" in the office and
    inquired about the possibility of transferring
    out of the office. Gentry told Hanske that
    someone she worked frequently and closely with
    was the source of her problems, and this is when,
    according to Gentry, that Hanske "knew it was Leo
    because she actually came up with the name Leo."
    Hanske responded, Gentry claims, by saying that
    this was "his personality, that was how he
    worked. He-had-been-there-for-years type thing.
    There was really nothing that had ever been done
    about it and she didn’t think that there ever was
    [going to be anything done.]" While it is true
    that Gentry never used the term "sexual
    harassment" when she spoke with Hanske,
    Bauersfeld said it would not be necessary to
    employ the term to activate Export’s policy. If
    an employee said he or she was uncomfortable with
    Broughton’s touching and would like a transfer to
    another department, this comment would be enough,
    according to Bauersfeld, to establish an employee
    was complaining about sexual harassment.
    We cannot conclude that the jury was
    unreasonable in believing Gentry’s testimony that
    she did in fact report sexual harassment to
    Hanske. During oral argument, counsel for Export
    suggested that even if Gentry had told Hanske
    that she was concerned about hugging and touching
    in the workplace, that this type of complaint was
    not detailed and clear enough to notify Hanske
    that Gentry was making a sexual harassment
    complaint. According to counsel, Gentry failed to
    say that she was being sexually harassed. Export
    urges the position that a company should not have
    to surmise an employee’s concerns in this area of
    the law. While certainly not an untenable
    position, it must be noted that there is no legal
    mandate that an employee use the specific term
    "sexual harassment" in order to inform his or her
    employer about a harasser in the workplace. Some
    employees may not be conversant or comfortable
    with the term and we should not place a specific
    language requirement on an employee when he or
    she is already presumably facing a difficult
    situation. Gentry’s comments about touching and
    hugging in the workplace should have raised
    suspicions. When an employee complains about
    behavior, such as the kind described in this
    case, this should be sufficient to alert an
    employer about a potential harasser, assuming the
    proper sexual harassment policy and training are
    in place. Therefore, we will not disturb the
    jury’s decision, which found wanting Export’s
    Ellerth/Faragher affirmative defense.
    B.   Hostile Work Environment
    A plaintiff pursuing a hostile work environment
    claim must show that his or her work environment
    was both subjectively and objectively offensive;
    "one that a reasonable person would find hostile
    or abusive, and one that the victim in fact did
    perceive to be so." Faragher, 524 U.S. at 787.
    "For sexual harassment to be actionable, it must
    be sufficiently severe or pervasive to alter the
    conditions of [the victim’s] employment and
    create an abusive working environment." Meritor
    Savings Bank, FSB v. Vinson, 
    477 U.S. 57
    , 67
    (1986) (internal citations and quotation marks
    omitted). One can determine whether an
    environment is hostile or abusive "by looking at
    all the circumstances," including the "frequency
    of the discriminatory conduct; its severity;
    whether it is physically threatening or
    humiliating, or a mere offensive utterance; and
    whether it unreasonably interferes with an
    employee’s work performance. The effect on the
    employee’s psychological well-being is, of
    course, relevant to determining whether the
    plaintiff actually found the environment abusive.
    But while psychological harm, like any other
    relevant factor, may be taken into account, no
    single factor is required." Harris v. Forklift
    Sys., Inc., 
    510 U.S. 17
    , 23 (1993). "[S]imple
    teasing, offhand comments, and isolated incidents
    (unless extremely serious) will not amount to
    discriminatory changes in the terms and
    conditions of employment." Faragher, 524 U.S. at
    788 (internal citations and quotation marks
    omitted).
    Export argues that even if it cannot establish
    its Ellerth/Faragher affirmative defense, the
    conduct alleged by Gentry against Broughton does
    not rise to the level of a hostile work
    environment. Export claims that one female co-
    worker of Gentry’s testified that she received a
    hug from Broughton while at Export and did not
    consider the hug to be sexual harassment.
    According to this individual, hugs can be "good
    things" on "[s]tressful days." Likewise, Export
    notes that male Export employees rubbed the
    shoulders of at least three female co-workers and
    these women did not consider this behavior to be
    sexual harassment. Export claims that such
    testimonials establish that hugs and shoulder
    rubs do not create a hostile work environment.
    Also, Export contends that the conduct Gentry
    complained of is not severe or pervasive sexual
    harassment in an objective sense. Export further
    argues that Gentry herself must not have
    considered any of the alleged conduct to be
    sexual harassment because she did not report the
    conduct until after she no longer was employed by
    Export and she never used the words "sexual
    harassment" to describe the conduct until she
    contacted her attorney. Taken together, Export
    claims that Gentry never perceived her
    environment as hostile nor would a reasonable
    person conclude her working environment was
    hostile.
    Upon our review of the record in this case, we
    conclude that the jury understandably was not
    persuaded by Export’s position that Gentry failed
    to make out an objective and subjective claim
    that her working environment was hostile. It is
    challenging to precisely define what constitutes
    a hostile work environment. "On one side lie
    sexual assaults; other physical contact, whether
    amorous or hostile, for which there is no consent
    express or implied; uninvited sexual
    solicitations; intimidating words or acts;
    obscene language or gestures; pornographic
    pictures. On the other side lies the occasional
    vulgar banter, tinged with sexual innuendo, of
    coarse or boorish workers." Baskerville v.
    Culligan Int’l Co., 
    50 F.3d 428
    , 430 (7th Cir.
    1995) (internal citations omitted). Perhaps no
    single description can fully take into account
    the divide between a hostile work environment and
    one which is not. However, in this case, we do
    have some rather strong indicators that the
    environment was hostile in that Broughton
    frequently touched Gentry, he invited her
    implicitly to have sex with him, and he showed
    her arguably "off color" pictures. See
    Baskerville, 
    50 F.3d at 431
    . At the time this all
    happened, Gentry was nineteen years old and
    Broughton was her thirty-eight year old
    supervisor. From an objective standpoint, a
    reasonable person could have concluded that
    Broughton’s behavior constituted sexual
    harassment.
    Subjectively, it is evident that Gentry
    perceived her environment as hostile. Gentry told
    Broughton to stop his behavior and because of his
    actions she found it hard to concentrate on her
    work. By the time she left her job, she hated it
    and often cried when she went to work. A co-
    worker saw or heard Gentry cry on several
    different occasions. Gentry also complained about
    Broughton’s behavior to Hanske. She sought
    medical care and was treated for anxiety and
    depression caused by the oppressive workplace
    environment. Finally, a trier of fact could
    reasonably conclude that the harassment was
    severe or pervasive because of the frequency of
    the incidents. At oral argument, Gentry’s counsel
    said that Broughton hugged Gentry with two-armed
    embraces almost every other working day in March
    and April, which was the period when most of the
    hugging occurred. 
    Id.
     ("The infrequency of the
    offensive comments is relevant to an assessment
    of their impact."). When viewed in its totality,
    it was reasonable for the jury to believe that
    Gentry worked in a hostile environment because of
    Broughton’s conduct.
    C.   Punitive Damages
    Export claims that the district court erred
    when it submitted to the jury punitive damages
    instructions. We review jury instructions
    "essentially for abuse of discretion (though the
    specific standard for jury instructions cautions
    us to make sure that the law was fairly stated to
    the jury)." Molnar v. Booth, 
    229 F.3d 593
    , 597
    (7th Cir. 2000). For a court to impose punitive
    damages, "[t]he employer must act with malice or
    with reckless indifference to [the plaintiff’s]
    federally protected rights. The terms ’malice’ or
    ’reckless indifference’ pertain to the employer’s
    knowledge that it may be acting in violation of
    federal law, not its awareness that it is
    engaging in discrimination." Kolstad v. American
    Dental Ass’n, 
    527 U.S. 526
    , 535 (1999) (internal
    citations, quotation marks, and emphasis
    omitted).
    Although Export did not frame the issue as
    such, it is essentially contending that there was
    insufficient evidence to find that it acted with
    malice or reckless indifference with regard to
    Gentry’s Title VII rights. According to Export,
    Bauersfeld promptly and to the best of his
    ability investigated Gentry’s sexual harassment
    allegation. Export suggests that it learned of
    Gentry’s sexual harassment complaint when her
    attorney sent correspondence on May 18 and May
    20, 1998 to Bauersfeld concerning the issue.
    Bauersfeld responded to Gentry’s claim of
    harassment in a May 28 letter, in which he stated
    that "[t]he only way the company can investigate
    your allegations of sexual harassment and take
    disciplinary action if it is found that sexual
    harassment has occurred in order to prevent its
    reoccurrence is for you to first make a charge of
    sexual harassment under the company’s sexual
    harassment policy." On June 2, Gentry sent a
    letter to Bauersfeld describing conduct that she
    asserted was sexual harassment. In this letter,
    she requested that further contact with her be
    directed through her legal counsel. Bauersfeld
    then tried to contact Gentry by telephone at her
    residence three times and left a message on her
    answering machine each time. Gentry did not
    respond to any of Bauersfeld’s messages.
    According to Export, it decided to go ahead with
    its investigation even though Gentry refused to
    participate and it issued a written report on
    June 15, 1998. The investigation occurred over a
    three day period, during which Bauersfeld spoke
    to a co-worker, Broughton, and Hanske. Broughton
    as a result of the investigation received a
    written reprimand stating: "TOUCHING SHOULD NOT
    BE DONE TO CO-WORKERS, NO MATTER HOW INNOCENT
    THE ACTION MAY SEEM. FURTHER ACTIONS COULD RESULT
    IN FUTURE STEPS." Export contends that it did
    all it could to investigate and address Gentry’s
    allegations of sexual harassment against
    Broughton under the circumstances--that is,
    Gentry’s unwillingness to actively participate in
    the process. Even if Gentry contends she reported
    the sexual harassment and Export did not respond
    appropriately, this claim is not viable,
    according to Export, because it at most shows
    that Hanske was negligent in failing to recognize
    Gentry’s sexual harassment claim. By contrast,
    Gentry contends that Export had knowledge of
    Broughton’s behavior and failed to take any
    action, resulting in her being subjected to
    sexual harassment by Broughton.
    While Export claims it made a good faith effort
    to address Gentry’s concerns, there is evidence
    that supports a contrary conclusion. Broughton
    knew that sexual harassment was against the law
    and that a female employee could consider his
    conduct to be sexual harassment. He also thought
    it was common knowledge among some of the
    management that he hugged female employees at
    Export. Likewise, management members Fernald,
    Bauersfeld, and Gallagher were cognizant that
    sexual harassment was against the law. Despite
    this recognition, the record supports the
    assessment that each of these individuals may
    have failed to address his or her attendant
    responsibility. Bauersfeld testified that he saw
    Broughton hug or rub a co-worker’s shoulders
    during the 1997 and 1998 time frame. Broughton
    had hugged Gallagher and she witnessed Broughton
    rub an employee’s shoulders as well. Broughton
    testified that he believed that management,
    particularly Bauersfeld, was aware that he hugged
    and rubbed the shoulders of female employees.
    These hugs involved two-armed embraces. Fernald,
    second in command at the time, said he saw
    Broughton give Gentry a shoulder rub between
    January and May of 1998. Among management,
    Fernald said that Broughton’s behavior of giving
    shoulder rubs to female employees "wasn’t
    hidden." Fernald overhead a male employee refer
    to Gentry as Broughton’s "sex"retary while she
    worked for Export and he himself once referred to
    her by such a name. Bauersfeld said that when he
    mentioned the "sex"retary comment to Fernald
    during his investigation of Gentry’s complaint,
    Fernald chuckled. In the early 1990’s, Bauersfeld
    talked to Broughton about his hugging, and
    rubbing, of female employees’ shoulders because
    he felt that such behavior was "somewhat
    inappropriate" in the workplace. Another female
    employee complained in October of 1997 about
    Broughton’s behavior and no action was taken with
    regard to her complaint. A jury could reasonably
    conclude that these facts reflect that Export
    acted with malice or reckless disregard because
    it had knowledge of Broughton’s inappropriate
    behavior./2 Hence, the district court did not
    abuse its discretion when it decided to give a
    punitive damages instruction to the jury.
    III.   Conclusion
    Because there is a reasonable basis in the
    record to support the jury’s conclusions, the
    jury award on behalf of Gentry will not be
    disturbed. Further, we find that the district
    court judge did not abuse his discretion when he
    instructed the jury on punitive damages.
    Therefore, we Affirm the jury’s decision finding
    that Export did not meet its burden under the
    Ellerth/Faragher affirmative defense and Affirm the
    award of compensatory and punitive damages.
    FOOTNOTES
    /1 Neither party suggests that Broughton was not
    Gentry’s supervisor; therefore, we have analyzed
    Gentry’s hostile work environment sexual
    harassment claim under the supervisor standard of
    liability set forth in Burlington Indus., Inc. v.
    Ellerth, 
    524 U.S. 742
     (1998) and Faragher v. City
    of Boca Raton, 
    524 U.S. 775
     (1998).
    /2 In light of the above evidence, we cannot
    conclude that Gentry’s failure to directly
    participate in the investigation of Broughton
    somehow hampered Export’s efforts to correct the
    situation. Gentry in her letter did discuss her
    various concerns regarding the behavior of
    particular employees at the company. At the end
    of the letter she said, "The counseling I am
    receiving is helping yet I also need to continue
    being removed from the situation so that I may
    progress. Any further contact I ask that you
    please direct through my attorney, Marlita
    Greve." While we recognize the importance of a
    company receiving information from the person
    making a sexual harassment complaint, under these
    circumstances a face-to-face meeting with the
    complainant seems less critical.