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COMPENSATORY DAMAGES

Cummings v. Premier Rehab Keller, P.L.L.C.

Issues

Are damages for emotional distress available under the Rehabilitation Act and the Affordable Care Act?

This case asks the Supreme Court to consider whether compensatory damages are available for emotional distress in victims of discrimination cases. Jane Cummings (“Cummings”) is deaf and legally blind, and she requested an ASL interpreter for physical therapy sessions. Premier Rehab Keller, P.L.L.C. (“Premier”) denied Cummings’ request for an ASL interpreter. Petitioner Cummings argues that under Title VI of the Civil Rights Act of 1964 and the statutes that incorporate its remedies for victims of discrimination, such as the Rehabilitation Act and the Affordable Care Act, compensatory damages are available for emotional distress. Respondent Premier counters that emotional distress damages are not appropriate remedies under the Rehabilitation Act and Affordable Care Act. The outcome of this case has important implications for victims of discrimination as well as for federal funding recipients.

Questions as Framed for the Court by the Parties

Whether the compensatory damages available under Title VI of the Civil Rights Act of 1964 and the statutes that incorporate its remedies for victims of discrimination, such as the Rehabilitation Act and the Affordable Care Act, include compensation for emotional distress.

In October 2016, Petitioner Jane Cummings contacted Respondent Premier Rehab Keller, P.L.L.C. (“Premier”) seeking physical therapy services. Cummings v. Premier Rehab Keller, P.L.L.C. at 674. Cummings was born deaf and legally blind, and she primarily communicates through American Sign Language (“ASL”) due to her difficulties speaking, reading, and writing in English.

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Goodyear Tire & Rubber Co. v. Haeger

Issues

Should there be a direct causal link between a litigant’s discovery misconduct and a compensatory sanction that a court imposes in response to such misconduct pursuant to the court’s inherent authority?

Respondents Leroy Haeger, et. al (“the Haegers”) were injured during a vehicle accident as a result of a failed tire, which was manufactured by Petitioner Goodyear Tire & Rubber Company (“Goodyear”). After the case settled, the Haegers discovered that Goodyear did not disclose several tests that it performed on the tire; the Haegers then moved the court to sanction Goodyear for its discovery misconduct. The district court relied on its inherent powers to sanction Goodyear and its counsel. Goodyear argues that the Supreme Court should limit inherent authority sanctions to those fees and costs directly caused by the claimed misconduct. The Haegers argue that although compensatory damages must be causally linked to the sanctioned misconduct, when the sanctionable misconduct is not limited to a single, discrete instance, but instead is so pervasive as to undermine or affect the whole litigation, an award of the entire amount of attorney’s fees and costs incurred by the party who is victim to the misconduct may be appropriate to compensate that party. The outcome of this case could potentially affect the scope of district courts’ inherent power to impose sanctions for discovery misconduct, when the courts cannot rely on the Rules or other statutory authority. The case will show whether a more exacting causation standard or a more discretionary standard should be used by the district court to impose sanctions under its inherent powers. 

Questions as Framed for the Court by the Parties

Is a federal court required to tailor compensatory civil sanctions imposed under inherent powers to harm directly caused by sanctionable misconduct when the court does not afford sanctioned parties the protections of criminal due process?

BACKGROUND

In June 2003, Leroy Haeger, et al. (“the Haegers”) suffered serious injuries when, as they were driving on a highway, a Goodyear G159 tire on their vehicle failed, causing the vehicle to swerve off the road and overturn. Haeger v. Goodyear Tire & Rubber Co., 813 F.3d 1233, 1238 (9th Cir. 2016). The Haegers sued Goodyear Tire & Rubber Company (“Goodyear”) in Arizona state court, but Goodyear removed the case to federal court.

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