EEOC v. Northern Star Hospitality, Inc.

In Title VII action alleging that plaintiff was terminated in retaliation for making discrimination complaint, Dist. Ct. did not err in finding that two entities controlled by defendant-employer’s owner could be held liable under successor liability principles for plaintiff’s damages, and that plaintiff was also entitled to additional damages associated with increased tax liability resulting from receipt of back-wage award. By time of trial, defendant had dissolved, and instant entities, which were exclusively owned by defendant’s owner and employed over half of defendant’s employees, satisfied requirement for successor liability where: (1) entities had notice of instant lawsuit; (2) defendant could have provided relief for plaintiff prior to dissolution, but could not provide said relief after its dissolution; and (3) instant entities carried on same business as defendant and at same location as defendant. Moreover, award for increased tax liability was proper, where record supported Dist. Ct.’s finding that plaintiff’s receipt of lump sum $43,500 back pay award would bump him into higher tax bracket than what he would have been paid had he received said wages evenly throughout time of lawsuit.