SANDS V. MENARD, INC.
787 N.W.2d 384 (2010)
NATURE OF THE CASE: This is a review of a published decision of the court of appeals
affirming an arbitration award that, among other things, ordered Sands'(P) reinstatement to
her position as Vice President and Executive General Counsel following her wrongful
termination from Menard, Inc. (D).
FACTS: Sands (P) worked for Menard (D) in an in house legal capacity. P was unhappy with
compensation and asked for a pay raise. P sent the following email content: 'Not only do I
WANT to get paid more, but, in point of fact, I MUST be paid more (in both cash as well as
bonus) if you intend to avoid a lawsuit.' P believed that D was discriminatory to women. In
one meeting P responded, 'I've been sitting here working my butt off and I get nothing. I
just get all these promises. . . . What is that, just a big lie to make me keep working?'
Charlie Menard shrugged and said, 'Worked, didn't it?' Eventually D gave a final warning to
work out a deal or they were finished but returned just a few moments later and told her to
leave immediately. P asked if he was firing her. D stated that he was placing her on
administrative leave. Eventually documents stating she was terminated were received. P
claimed defamation and gender-based discrimination and then retaliation for claiming
discrimination. They initially attempted to settle their dispute independently. The
arbitration agreement bound both parties to resolve 'all disputes' arising from P's
employment with D. The panel determined that various Menard representatives attempted to
influence witnesses during the arbitration proceedings. P did not request to be reinstated
to her position at D, but instead sought two years of front pay. The panel found that P (1)
was the victim of pay discrimination under the Equal Pay Act ('EPA') and was discharged in
retaliation for her assertion of her statutory rights to be free from pay discrimination in
violation of the EPA, Title VII, and the Wisconsin Fair Employment Act. The panel awarded P
v $267,108 in back wages and an equal amount in liquidated damages for disparate pay and
willful violation of the EPA; $114,944.71 in back pay and bonus for lost wages due to
termination, as allowed by the EPA and Title VII; $100,000 in compensatory damages for
emotional distress; and $900,000 in punitive damages. D also was required to pay P's
attorneys' fees, which totaled $129,120.25. This totaled $1,778,280.96. The panel ordered
that P be reinstated to the position of Vice President and Executive General Counsel within
30 days of the date of the award with a salary of $166,250, to be increased to $175,000
effective January 1, 2008. The panel also ordered D to pay her a profit sharing bonus of 15%
of her 2007 earnings. D prepared a check for the full amount of the panel's monetary award
but refused to reinstate P. The trial judge confirmed the arbitration award in its entirety
and denied all motions to modify, correct, or vacate the award. D appealed, again arguing
that the arbitration panel disregarded the law by requiring reinstatement. The court of
appeals affirmed. It concluded that reinstatement is a statutory remedy under the EPA and
Title VII, and that neither provides an exception for in-house attorneys.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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