New York’s Highest Court Establishes Lowered Threshold for Punitive Damages Under New York City Law
Authors: Shabri Sharma (New York City), Aaron Warshaw (New York City)
Published Date: December 1, 2017
In Chauca v. Abraham, No. 113 (November 20, 2017), the New York State Court of Appeals clarified the standard for awarding punitive damages under the New York City Human Rights Law (NYCHRL). Unlike Title VII of the Civil Rights Act of 1964, which provides for punitive damages where a plaintiff proves malice or reckless indifference, the NYCHRL does not articulate such a standard. In rejecting the Title VII standard for punitive damages, the New York State Court of Appeals held that “the standard for determining punitive damages under the NYCHRL is whether the wrongdoer has engaged in discrimination with wilful [sic] or wanton negligence, or recklessness, or a ‘conscious disregard of the rights of others or conduct so reckless as to amount to such disregard.’”
In the case, Chauca sued her former employer and two of her supervisors in the U.S. District Court for the Eastern District of New York for sex and pregnancy discrimination under, inter alia,Title VII and the NYCHRL. At trial, the district court judge denied Chauca’s request for a jury instruction on punitive damages under the NYCHRL because her evidence did not meet the legal standard under Title VII. Chauca appealed the denial of a jury instruction on punitive damages, and the Second Circuit Court of Appeals certified the question to the New York State Court of Appeals. In rejecting the district court’s approach, the court of appeals focused on the legislative intent of the NYCHRL and held that “’the provisions of [the NYCHRL] shall be construed liberally . . . regardless of whether federal or New York State civil or human rights laws . . . have been so construed.’”
This decision serves as a reminder that courts are required to construe the NYCHRL more liberally and broadly in favor of discrimination plaintiffs than its federal and state counterparts, Title VII and New York State Human Rights Law. Employers may want to carefully consider their employment practices within New York City in light of this decision.
Shabri Sharma is an Associate in the New York City office, where she represents and advises management in all aspects of employment law. Ms. Sharma has experience in advising and counseling employers regarding employment discrimination claims, mandatory arbitration policies, independent contractor audits, terminations, severance agreements, recent legal developments, and other related employment issues. Ms. Sharma also delivers employment training to hundreds of employees. Prior to joining...
Aaron Warshaw is a founding attorney of Ogletree Deakins’ New York City office. Aaron’s first-chair experience includes representing companies ranging from Fortune 500 to small businesses in single-plaintiff and class-action employment cases. He has actively litigated and appeared in jurisdictions throughout New York State, including before federal courts, appellate courts, state courts, and administrative agencies. In addition, Aaron is a trusted advisor for management in...