According to the Fifth Circuit, Title VII’s damages caps apply per person, not per claim.  In Black v. Pan American Laboratories, LLC, et al., — F.3d. —, 2011 WL 2763096 (5th Cir. July 11, 2011) (not yet released for publication), the employee brought 3 claims of sex discrimination and retaliation against her former employer.  A jury rendered a verdict in the employee’s favor and awarded her $600,000 in compensatory damages and $2.4 million in punitive damages.  Applying Title VII’s damages cap, the trial court reduced the compensatory and punitive damages award to $200.000.

On appeal, the plaintiff argued that because she brought 3 claims, she was entitled to $600,000, not $200,000, in compensatory and punitive damages.  Following the Sixth, Seven, and Tenth Circuits, the Fifth Circuit held that Title VII’s damages caps apply per person, not per claim.  Accordingly, the Court affirmed the part of the trial court’s judgment reducing the award of compensatory and punitive damages to $200,000.

As a result of the Fifth Circuit’s ruling, Texas employers will be able to assess with greater certainty the potential risks of a multiple-claim case brought against them under Title VII.