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Equal Employment Opportunity Commssion v. Indiana Bell Telephone Co.
99-1155


IN THE UNITED STATES COURT OF APPEALS
FOR THE SEVENTH CIRCUIT


No. 99-1155


EQUAL EMPLOYMENT OPPORTUNITY COMMISSION,

Plaintiff-Appellee,

v.

INDIANA BELL TELEPHONE CO., INC.,
d/b/a AMERITECH INDIANA, and
AMERITECH CORPORATION,

Defendants-Appellants.



On Appeal from the United States District Court
for the Southern District of Indiana, Indianapolis Division
Honorable Larry J. McKinney, Judge


PETITION OF APPELLEE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
FOR REHEARING OR REHEARING EN BANC



C. GREGORY STEWART
General Counsel

PHILIP B. SKLOVER
Associate General Counsel

CAROLYN L. WHEELER
Assistant General Counsel

GEOFFREY L.J. CARTER
Attorney

EQUAL EMPLOYMENT OPPORTUNITY
COMMISSION
Office of General Counsel
1801 L Street, NW.
Washington, D.C. 20507
(202) 663-4728

TABLE OF CONTENTS

TABLE OF AUTHORITIES . . . . . . . . . . . . . . . . . . . . . ii

RULE 35(B) STATEMENT REGARDING REHEARING OR REHEARING
EN BANC 1

INTRODUCTION 1

THE PANEL DECISION 3

ARGUMENT 9

THIS COURT SHOULD GRANT THE COMMISSION'S PETITION FOR REHEARING
OR REHEARING EN BANC

A. The panel majority's opinion improperly alters the
standard for determining, in a co-worker sexual harassment case, whether
an employer took reasonable steps to prevent and rectify harassment of
its employees . . . . . . . . . 9

B. The panel majority's opinion incorrectly holds that the district
court erred in excluding Ameritech's arbitration evidence for purposes of
punitive damages, and improperly indicates that an employer may justify
its delay in responding to complaints of harassment by pointing to the
terms of a collective bargaining agreement . . . . . . . 12

CONCLUSION 15

CERTIFICATE OF SERVICE



TABLE OF AUTHORITIES

CASES PAGE(S)

Baskerville v. Culligan International Co., 50 F.3d 428
(7th Cir. 1995) . . . . . . . . . . . . . . . . . . . . 1, 9
10

Brooms v. Regal Tube Co., 881 F.2d 412 (7th Cir. 1989) . . . 9, 10

Eckles v. Consolidated Rail Corp., 94 F.3d 1041
(7th Cir. 1996) . . . . . . . . . . . . . . . . . . . . . . 14

EEOC v. Indiana Bell Tel. Co., ___ F.3d ___, 2000 WL 681007
(7th Cir. May 26, 2000) . . . . . . . . . . . . . . . . passim

McKenzie v. Illinois Department of Transportation, 92 F.3d 473
(7th Cir. 1996) . . . . . . . . . . . . . . . . . . . . . . 9

Trans World Airlines v. Hardison, 432 U.S. 63 (1977) . . . . 14


OTHER AUTHORITIES

W. Page Keeton et al., Prosser and Keeton on the Law of Torts
(5th ed. 1984) . . . . . . . . . . . . . . . . . . . . . . 11

Restatement (Second) of Torts (1958) . . . . . . . . . . . . 11, 12
RULE 35(B) STATEMENT REGARDING REHEARING OR REHEARING EN BANC

The Commission requests rehearing for the following reasons:

1. The panel majority's decision conflicts with this Court's decision
in Baskerville v. Culligan International Co., 50 F.3d 428, 432-33 (7th
Cir. 1995) and the fundamental principles that define negligence because
the panel majority's decision improperly holds that an employer's state of
mind must be considered when assessing the reasonableness of an employer's
response to a complaint of sexual harassment. Consideration by the full
court is necessary to secure and maintain the uniformity of this Court's
decisions.
2. The panel majority's decision raises a question of exceptional
importance because it incorrectly holds that the district court erred
in excluding Ameritech's arbitration evidence for purposes of punitive
damages, and improperly indicates that an employer may justify its
delay in responding to complaints of sexual harassment by pointing to
the terms of a collective bargaining agreement.

INTRODUCTION

In this case, a jury returned a verdict for the Commission and awarded
compensatory and punitive damages against Indiana Bell Telephone Co.,
et al. ("Ameritech") for the sexual harassment of Debbie Wentland,
Lori Everts, and Wendy Pollard. EEOC v. Indiana Bell Tel. Co., ___
F.3d ___, 2000 WL 681007 at *5 (7th Cir. May 26, 2000). The claims
against Ameritech "stem from a course of sexually offensive conduct
that former Ameritech employee Gary Amos ["Amos"] directed at several
of his female co-workers." Id. at *1. From 1975 to November 21, 1991,
Amos harassed at least thirteen female co-workers at Ameritech, exposing
his penis to and/or rubbing his erect penis against at least nine of
these individuals. See id. at *1-2. Each of these women complained
to Ameritech, and almost all of their complaints were placed in Amos'
personnel file. See id. Despite this history, Ameritech only issued
warnings or did nothing to discipline Amos for his misconduct, except
in 1990, when it suspended Amos for two weeks and revoked his sales
award after six women complained about Amos' misconduct. See id.
Amos continued sexually harassing his female co-workers after November
21, 1991. In 1992, Jennifer Rice complained that "Amos rubbed himself
against her, rubbed her neck, and made inappropriate comments about her
body." Id. at *2. Again, Ameritech simply warned Amos and allowed him
to remain in the office. See id. Amos thus was able to sexually harass
Wentland in 1992 (on one occasion rubbing his erect penis through his
pants while he spoke with her), causing her to complain to Ameritech
on November 25, 1992. See id. Ameritech decided to fire Amos for his
misconduct, but did not do so because its employees went on vacation
and missed the thirty-day limitation for taking such action. See id. at
*2-3.
After botching the effort to fire Amos after Wentland's complaint,
Ameritech's officials "agreed that the next complaint against Amos would
result in an immediate suspension pending investigation in order to
avoid missing any deadlines." Id. at *3. When that opportunity came
in April 1993, when Everts filed a charge of discrimination stating
(among other things) that Amos "brush[ed] up against her with his penis
erect," Ameritech did not investigate. Id. Instead, Ameritech concluded
that Everts' complaint was without merit, and did not discipline Amos.
See id.
Ameritech did suspend Amos for thirty days in June 1993, when he
wrote a note to supervisor Patricia Wolter that read: "Patti, you
look so sexy today." Id. at *4. Again, however, Ameritech allowed
Amos to return to the office, where in late 1993, he began harassing
Pollard by touching and grabbing her hair and shoulders, staring at
her, and showing her pictures of topless women and women in lingerie.
See id. Ameritech finally fired Amos in March 1994 after Pollard saw
Amos masturbating his fully exposed penis while sitting at his desk.
See id.; Tr. 975.

THE PANEL DECISION

On February 21, 1995, the Commission filed this Title VII action
against Ameritech. Id. at *4. After a jury returned a verdict for the
Commission, the district court awarded compensatory and punitive damages
based on Wentland's, Everts' and Pollard's sexual harassment claims.
Id. at *5. The district court denied Ameritech's motions for judgment
as a matter of law, new trial, and remittitur beyond the reduction
in damages specified in its order. Id. Ameritech appealed. Id.
By a 2 to 1 vote, a panel of this Court reversed the decision below.
See id. at *11 (panel majority); id. at *23 (Rovner, J., dissenting).
The panel majority began its opinion by holding that the district court
properly denied Ameritech's motion for judgment as a matter of law on
punitive damages and liability. The panel majority explained that,
in light of Amos' history of harassment, "a reasonable jury could have
concluded that Ameritech acted with 'malice or reckless indifference,'"
and noted that this holding regarding punitive damages precluded any
challenge to whether a reasonable jury could find that Ameritech acted
negligently and was therefore liable for the sexual harassment. Id. at
*6-7.
The panel majority next addressed "the district court's decision to
exclude evidence regarding Ameritech's obligations under its collective
bargaining agreement and the effect those obligations had on the timing
of Amos' dismissal." Id. at *8. Ameritech argued that the district
court should have admitted this evidence as relevant to whether Ameritech
(1) responded reasonably to the sexual harassment and (2) acted with
the state of mind required for punitive damages. Id. In the panel
majority's view, the district court excluded Ameritech's evidence about
arbitration and the collective bargaining agreement as a matter of
law because it believed this evidence "could not be introduced in the
face of conflicting duties under Title VII." Id. The panel majority
rejected that proposition, holding that Title VII does not always trump
the provisions of a collective bargaining agreement. See id. at *8-9.
Because the panel majority believed that the district court based its
decision to exclude Ameritech's evidence about arbitration on an error
of law, the panel majority concluded that the district court abused
its discretion. See id. at *9.
The panel majority rejected the Commission's argument that, assuming
the district court erred in excluding Ameritech's arbitration evidence,
the error was harmless. In the panel majority's view, although the jury
heard evidence about the collective bargaining agreement's thirty-day
limit on disciplinary action, Ameritech was prevented from presenting
"potentially significant evidence as to [its] state of mind and to the
reasonableness of its actions," including evidence of its fear that,
if it discharged Amos in a manner inconsistent with the collective
bargaining agreement, Amos might be reinstated. Id. Believing that
Ameritech could have used this evidence to "counter the jury's impression
that it acted negligently or with 'malice or reckless indifference,'"
the panel majority held that it could not say that "the outcome of the
trial would have been the same had the jury been permitted to hear this
evidence." Id. at *10. Accordingly, the panel majority concluded that
the district court's erroneous evidentiary ruling was not harmless,
and reversed the judgment of the district court. See id. at *11.
Judge Rovner dissented from the panel majority's holding that the
district court committed reversible error when it excluded "evidence
of Ameritech's professed concern for the outcome of arbitration that
might have ensued had the company fired Amos sooner than it did."
Id. at *11. In Judge Rovner's view, the panel majority erred in holding
that Ameritech was entitled to present this evidence because Title VII
places an "unequivocal duty on employers to take reasonable measures
to stop harassment" that cannot be modified by a collective bargaining
agreement or concerns about how an arbitrator might interpret such
an agreement. Id.
Initially, Judge Rovner identified several flaws in Ameritech's argument
that it faced a conflict between its obligations under Title VII and
the collective bargaining agreement. First, Judge Rovner noted that
Ameritech caused one of the purported clashes between its Title VII
and labor agreement responsibilities. Id. at *13. Indeed, despite its
awareness of Amos' history of harassment and the fact that (as Ameritech
claims) an arbitrator would not have permitted the company to discharge
Amos after the deadline, Ameritech missed the 30-day deadline for
imposing discipline after Wentland's complaint. Id. Because of these
circumstances, Judge Rovner explained that the only pertinent question
regarding "the reasonableness of Ameritech's actions and state of mind
is what Ameritech did during those thirty days." Id. at *14. It also
was within the district court's discretion "to prevent Ameritech from
attempting to pin the failure to discharge Amos on the likelihood that
an arbitrator would order him reinstated," because such an explanation
"would make Ameritech no less culpable for missing the deadline." Id.
Second, Judge Rovner observed that, despite its arguments to the
contrary, "Ameritech was able to explain that it did not discharge
Amos in response to Debbie Wentland's complaint because it did not
effectuate that decision within the thirty-day time frame specified
by the collective bargaining agreement." Id. The thirty-day limit
was discussed on several occasions during the trial, and because the
attorneys and witnesses "uniformly presumed that the time limit was
inviolable," the jury was aware that "there was no way around the
thirty-day deadline." Id. "The notion that there was a compelling
need for the arbitration evidence is therefore a fallacy." Id.
Third, Judge Rovner questioned Ameritech's argument that the "just
cause" standard for discharges under the collective bargaining agreement
prevented it from firing Amos after his June 1993 "you look so sexy"
note to Patti Wolter. Id. at *15. Judge Rovner agreed that the note,
if viewed in isolation, probably would not provide just cause for
discharging Amos, but explained that there was no evidence that an
arbitrator applying the just cause standard would not consider Amos'
history of harassment and "the proven ineffectiveness of all disciplinary
measures short of discharge in stopping Amos' harassment" in determining
whether discharge was appropriate. Id. at *16. Consequently, the
"just cause" standard did not warrant discussion at trial because no
evidence suggested it posed an obstacle to discharging Amos. Id.<1>
Judge Rovner next explained that, even assuming that Ameritech did face
an irreconcilable conflict between the collective bargaining agreement
and Title VII, she was "not convinced that Ameritech's obligation
to protect its employees from harassment necessarily had to yield to
the constraints imposed by its contract with the union." Id. at *18.
Judge Rovner acknowledged the precedent holding that Title VII and the
ADA do not require an employer to interfere with the seniority rights
of other employees (see id. at *18-19), but explained that the panel
majority's opinion represents a significant leap from that precedent
insofar as the cases discussing seniority rights do not speak to the
issue of whether the provisions of a collective bargaining agreement may
trump an employer's duty under Title VII to deal with sexual harassment.
See id. at *20. Judge Rovner also expressed concern that the panel
majority "articulate[d] no limits on what types of collective bargaining
agreement provisions trump an employer's obligation to remediate
discrimination," thereby allowing Ameritech and any other unionized
employer to "hold up the collective bargaining agreement as a fig leaf
for its own inaction," irrespective of the importance of the provision
in question to the collective bargaining process. Id. at *21.
Last, Judge Rovner stated that, "even if the district court did err
in excluding evidence as to the collective bargaining agreement and
Ameritech's fears of unfavorable arbitration, that error does not require
us to overturn the jury's verdict." Id. at *22. First, "[o]verwhelming
evidence supports the jury's finding that Ameritech's response to the
harassment was negligent," as Ameritech, despite its knowledge that it
had a dangerous employee on its hands, was "half-hearted, bumbling, and
wholly ineffective" in its response. Id. Second, the jury's punitive
damages award should stand because Ameritech displayed "a reckless
indifference to the plight of the company's female workers" with its
failure to check Amos' employment history, increase the discipline from
what had been imposed before, and impose discipline after Wentland's
complaint before the deadline passed. Id. at *22.

ARGUMENT

THIS COURT SHOULD GRANT THE COMMISSION'S PETITION FOR REHEARING OR
REHEARING EN BANC

A. The panel majority's opinion improperly alters the standard for
determining, in a co-worker sexual harassment case, whether an employer
took reasonable steps to prevent and rectify harassment of its employees
It is well established that "[w]hen an employee is harassed by a
co-worker, the employer may be held responsible only if 'the employer
knew or should have known about an employee's acts of harassment and
fails to take appropriate remedial action.'" McKenzie v. Illinois Dep't
of Transp., 92 F.3d 473, 480 (7th Cir. 1996) (quoting Brooms v. Regal
Tube Co., 881 F.2d 412, 421 (7th Cir. 1989)). Under this standard, an
employer in a co-worker sexual harassment case may fulfill its legal duty
under Title VII if it "takes reasonable steps to discover and rectify
the harassment of its employees." McKenzie, 92 F.3d at 480 (citing
Baskerville v. Culligan Int'l Co., 50 F.3d 428, 431 (7th Cir. 1995)).
Specifically, "[a]n employer's response to alleged instances of employee
harassment must be reasonably calculated to prevent further harassment
under the particular facts and circumstances of the case at the time the
allegations are made." Brooms, 881 F.2d at 421. See also Baskerville,
50 F.3d at 432 (explaining that "what is reasonable depends on the
gravity of the harassment," as all other things being equal, "an employer
is required to take more care . . . to protect its employees from serious
sexual harassment than to protect them from trivial harassment").
The panel majority's opinion in this case must be corrected because it
improperly alters this framework for assessing the reasonableness of
an employer's response to a complaint of harassment. In reversing the
judgment of the district court, the panel majority held that Ameritech's
state of mind is relevant to the question of whether it acted negligently
in failing to respond adequately to the complaints it received about
Amos' sexual misconduct. See Indiana Bell, 2000 WL 681007 at *8 n.5, 10
(holding that the district court erred when it prevented Ameritech from
presenting evidence about its fears concerning arbitration to "counter
the jury's impression that it acted negligently"). This Court now
should correct the panel majority's reasoning on this issue because it
cannot be reconciled with this Court's pre-existing case law and the
definition of negligence.<2>
The panel majority's holding that Ameritech's state of mind is relevant
to the question of whether it acted reasonably in response to the
various complaints of harassment conflicts with this Court's decision in
Baskerville, 50 F.3d at 432-33. In Baskerville, this Court confronted
an issue similar to the one in this case when it addressed the question
of whether it could be "reasonable" in a sexual harassment case for an
employer simply to ignore charges of sexual harassment if the charges
were made against one of the employer's "highly valued" employees.
Id. at 433. Although it is conceivable that an employer might act
with such a state of mind, this Court rejected the proposition that the
employer's subjective motivations for its inaction warrant consideration
in assessing the reasonableness of its response to harassment. See id.
Instead, this Court compared the employer's proffered subjective
explanation to "saying it might be reasonable for an automobile driver
to drive without regard to the hazards of pedestrians because he was in
a hurry," and then explained that the reasonableness of the employer's
conduct in the sexual harassment context must be assessed in relation to
the legal duty of care it owes to employees victimized by a co-worker's
sexual harassment. Id. The panel majority's holding that Ameritech's
state of mind is relevant to negligence conflicts with this analysis
in Baskerville.
The panel majority's reasoning also conflicts with the definition
of negligence. As defined in the Restatement (Second) of Torts � 282
(1958), "negligence is conduct which falls below the standard established
by law for the protection of others against unreasonable risk of harm."
As is evident from this definition, "[n]egligence is conduct, and not
a state of mind," and thus may result from either inadvertence (e.g.,
lack of awareness of the possible consequences of one's actions)
or a considered, but ill advised, decision. W. Page Keeton et al.,
Prosser and Keeton on the Law of Torts � 31, at 169 (5th ed. 1984).
The essence of negligence, therefore, "is not necessarily the absence of
solicitude for those who may be adversely affected by one's actions but
instead behavior which should be recognized as involving unreasonable
danger to others." Id. See also Restatement (Second) of Torts � 283
(explaining that an actor must conform to the standard of conduct "of
a reasonable man under like circumstances" to avoid being negligent).
The panel majority's analysis undermines these fundamental principles,
because it improperly characterizes negligence as a state of mind, rather
than (as the treatises indicate) a type of objectively unreasonable
conduct.
Because the panel majority's ruling on the relevance of Ameritech's
state of mind to the question of whether it responded reasonably to the
various complaints it received about Amos' misconduct conflicts with
this Court's decision in Baskerville and the definition of negligence,
it must be corrected.
B. The panel majority's opinion incorrectly holds that the district
court erred in excluding Ameritech's arbitration evidence for purposes of
punitive damages, and improperly indicates that an employer may justify
its delay in responding to complaints of sexual harassment by pointing
to the terms of a collective bargaining agreement
As Judge Rovner observed (see supra pp. 5-7), the panel majority's
conclusion that Ameritech should have been allowed to present evidence of
its fears about arbitration to a jury for purposes of punitive damages
is marred by several flaws. First, Ameritech's arbitration evidence
is not relevant to whether a jury could find that Ameritech acted with
malice or reckless indifference when it missed the thirty-day deadline
for discharging Amos after Wentland's complaint despite being aware of
Amos' history of harassment. Indeed, Ameritech's supposed fears about
arbitration did not develop until after it missed the deadline.
Second, to the extent that the panel majority believed that Ameritech
was not able to explain why it did not discharge Amos after Wentland's
complaint (see id.), it is grossly mistaken. Through testimony at trial,
the jury was well aware that Amos could not have been discharged after
the thirty-day deadline. Ameritech's case, therefore, was not harmed by
the omission of evidence that at most would have reiterated that fact.
Third, to the extent that Ameritech's arbitration evidence might have
been relevant to why it did not discharge Amos after he wrote the "you
look so sexy today" note to Wolter, the evidence has no bearing on
Ameritech's state of mind in failing to discharge Amos because: (1) the
Wolter incident occurred after Ameritech missed the earlier opportunities
to address Amos' misconduct after Wentland's and Everts' complaints;
and (2) the evidence would not have altered the jury's finding that
Ameritech acted with malice or reckless indifference to Pollard's Title
VII rights in allowing Amos to stay in the office despite at least two
opportunities (both before the Wolter incident) to discharge him.
In addition, rehearing or rehearing en banc is necessary because the
panel majority improperly indicates that an employer may justify its
delay in failing to respond to known sexual harassment in the workplace
by pointing to the terms of a collective bargaining agreement.
In reversing the district court's decision, the panel majority
asserted that "it is incorrect to hold, as the district court did,
that obligations under Title VII always trump obligations under valid
labor agreements." Indiana Bell, 2000 WL 681007 at *9. While that
general statement is true, it does not follow that the line of cases
establishing that principle should apply in a sexual harassment case
such as this one. As Judge Rovner recognized, the Supreme Court's
decision in Trans World Airlines v. Hardison, 432 U.S. 63 (1977)
"holds simply that Title VII does not require an employer to interfere
with the seniority rights of some employees in order to accommodate
the religious needs of others." Indiana Bell, 2000 WL 681007 at *19.
See also id. (explaining that the decision in Eckles v. Consolidated
Rail Corp., 94 F.3d 1041, 1051 (7th Cir. 1996) "sounds the same theme"
in the context of reasonable accommodation under the ADA). Unlike the
TWA and Eckles decisions, however, the federally protected statutory
rights of Amos' female co-workers to work in an environment free
of sexual harassment did not conflict with any countervailing right
(certainly none comparable to the seniority rights at issue in TWA
and Eckles) that the collective bargaining agreement bestowed on Amos.
At most, the only terms at issue were the thirty-day limit for imposing
discipline, which was entirely within Ameritech's capacity to avoid,
and the just cause provision, which, as Judge Rovner noted, may be
voided if an arbitrator invokes it in a manner that conflicts with the
public policy against workplace harassment. See Indiana Bell, 2000 WL
681007 at *20 (collecting cases). Notwithstanding these differences
from the seniority rights cases, the panel majority held that Ameritech
should be allowed to introduce evidence of its purported concern about
the collective bargaining agreement and arbitration as a justification
for its delay in discharging Amos, a known serial harasser.
The panel or the full court should correct the panel majority's decision
because, if accepted, it would allow employers to put to the trier of
fact the improper question of whether, due to the terms of a contract,
an employer was justified in knowingly violating federal law by allowing
sexual harassment to continue. The Commission is not aware of any case
that countenances such a defense, for purposes of punitive damages or
otherwise. In addition, the panel majority's decision is devoid of any
standards that identify when this defense should be available, and thus
opens the door for similar arguments based on any contractual provision,
no matter how trivial. Again, such a result would be unprecedented
and damaging to the Title VII rights of countless employees.

CONCLUSION

For the foregoing reasons, the Commission respectfully requests that
this Court grant this petition.
Respectfully submitted,

C. GREGORY STEWART
General Counsel GEOFFREY L.J. CARTER
Attorney
PHILIP B. SKLOVER
Associate General Counsel EQUAL EMPLOYMENT OPPORTUNITY
COMMISSION
CAROLYN L. WHEELER Office of General Counsel
Assistant General Counsel 1801 L Street, NW
Washington, D.C. 20507
June 29, 2000 (202) 663-4728

CERTIFICATE OF SERVICE

I, Geoffrey L.J. Carter, hereby certify that on this 29th day of
June, 2000, two copies of the attached petition, and one copy of the
attached petition on digital media, were sent by first class mail,
postage prepaid, to the following counsel of record:

Kenneth J. Yerkes, Esq.
Michael A. Moffatt, Esq.
Stanley C. Fickle, Esq.
Blake J. Burgan, Esq.
Barnes & Thornburg
11 South Meridian St.
Indianapolis, IN. 46204



GEOFFREY L.J. CARTER
Attorney

EQUAL EMPLOYMENT OPPORTUNITY
COMMISSION
Office of General Counsel
1801 L Street, NW
Washington, D.C. 20507
June 29, 2000 (202) 663-4728




1 Judge Rovner also noted that, even if an arbitrator ordered Amos'
reinstatement, Ameritech could have: (1) challenged such a ruling in court
based on the public interest in eliminating sex discrimination; and/or
(2) terminated him in the future if and when he resumed his harassment.
See id. at *17 (collecting cases).

2 The panel majority may have been relying on the language in Brooms,
881 F.2d at 421, that states that the reasonableness of an employer's
response should be determined according to whether it was "reasonably
calculated to prevent further harassment under the particular facts and
circumstances of the case at the time the allegations are made." See
also Indiana Bell, 2000 WL 681007 at *8 (quoting this passage). It is
clear enough that the reasonableness of the employer's response depends
on facts such as the nature of the harassment (see Baskerville, 50 F.3d
at 432), but the Commission is not aware of any case holding that the
employer's state of mind should be considered when assessing whether the
employer acted reasonably. Consequently, the panel majority's decision
represents a substantial departure from the law as stated and applied
in other sexual harassment cases.

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