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NADEAU v. RAINBOW RUGS5/7/1996
Defendant, Rainbow Rugs, Inc. ("Rainbow"), appeals from the judgment entered in the Superior Court (Cumberland County, Mills, J.) following a jury-waived trial finding Rainbow liable for unlawful sexual harassment in violation of 5 M.R.S.A. § 4572 (Pamph. 1995). Rainbow contends that the court erred in finding that one incident of harassment created a hostile work environment. Rainbow further contends that even if a hostile work environment was created, it should not be held liable for the unauthorized acts of its employee. Finally, Rainbow challenges the award of attorney fees. Finding no error in the court's determination that a hostile work environment existed and its award of attorney fees, we affirm the judgment.
The facts presented at the trial may be summarized as follows. Plaintiff Joyce Nadeau worked as an administrative assistant at Rainbow's office, which was located in the Kennebunk home of Jere Scola, the president of Rainbow Rugs. Scola's wife also worked in the office as the manager. Nadeau and Scola worked in the same room and he supervised all of her work. Scola was the
In June 1991 Nadeau's husband left her. Without her husband's income, her job at Rainbow was the only source of support for her and her three children. Nadeau's distress over her family difficulties was visible at work. Scola asked her to accompany him on a few short car trips from the office to Rainbow's warehouse, which was preparing to open for business, and on the trips he asked her personal questions about her marriage and her financial situation. Nadeau testified that she felt intimidated by Scola and that the questioning made her feel uncomfortable.
One month after Nadeau's husband left her, Scola again questioned Nadeau about her financial situation. She told him that she was receiving public assistance but was having difficulty making ends meet. He suggested that there were other options available to her but that he needed some time alone with her to discuss them. Nadeau testified that this suggestion provided her with a "glimmer of hope" that he had legitimate business ideas for improving her financial situation. The next day Scola asked Nadeau to lunch and she accepted his invitation based on their discussion the previous day.
At lunch he discussed his own marital difficulties and then suggested that they leave the restaurant. On the way back to Rainbow's warehouse he told Nadeau that he had tested negatively for AIDS and then offered to give her money in exchange for sex. He told her that he could fly her to any city, give her money for shopping, and pay to have her hair done. He told her he did not love her and that he had no intention of leaving his wife — the affair would simply be a "hobby." Because Scola's wife also worked in the office, he told Nadeau that she would have to act "cold" so that his wife would not suspect anything.
Nadeau immediately rejected the proposal. Scola told her that her refusal would not jeopardize her position and that she could continue to work at the office. He asked her to let him know if she changed her mind. She worked at the warehouse for the rest of the day and she reported the incident to Cindy Staples, a friend and supervisor of the warehouse. She did not report the incident to anyone else because Scola was her only supervisor. Rainbow had no personnel policies, no policy regarding
She filed a complaint with the Human Rights Commission and ultimately the Commission issued a finding that there were reasonable grounds to believe that unlawful discrimination had occurred. Thereafter she brought this action pursuant to 5 M.R.S.A. § 4572(1)(A) (Pamph. 1995), claiming that the harassment caused her work environment to bec
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