ARTICLE
25 April 2025

Idaho Federal Court Denies Beauty Product Manufacturer's Bid To Strike Punitive Damages In EEOC Retaliation Suit

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Duane Morris LLP

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On April 15, 2025, in EEOC v. Elevation Labs, LLC, No. 23-CV-00318, 2025 U.S. Dist. LEXIS 73702 (D. Idaho Apr. 15, 2025), Judge Lynn Winnmill of the U.S. District Court for the District of Idaho...
United States Idaho Litigation, Mediation & Arbitration

Duane Morris Takeaways: On April 15, 2025, in EEOC v. Elevation Labs, LLC, No. 23-CV-00318, 2025 U.S. Dist. LEXIS 73702 (D. Idaho Apr. 15, 2025), Judge Lynn Winnmill of the U.S. District Court for the District of Idaho denied Elevation Lab's untimely motion to strike punitive damages for the EEOC's failure to comply with Idaho state law. The EEOC lawsuit asserts allegations of retaliation after a former employee complained of discrimination.

This ruling illustrates the significance of asserting timely defenses and that federal courts analyze procedural motions, including motions to strike, with strict adherence to the operative federal rule of civil procedure. In this case, the Court relied on Defendant's failure to demonstrate striking the EEOC's prayer for punitive damages was warranted under procedural rules.

Case Background

On July 7, 2023, the EEOC, on behalf of charging party Rachel Johnson, filed a lawsuit against her former employer, Elevation Labs, LLC ("Elevation") regarding allegations of retaliation under Title VII of the Civil Rights Act of 1964. The EEOC alleged Elevation retaliated against Ms. Johnson after she complained of discrimination. Id. at *2. The EEOC's Complaint included allegations for punitive damages against Elevation within its prayer of relief. Id.

On September 18, 2023, Elevation answered the Complaint. Id. After the parties litigated for over a year-and-a-half and engaged in discovery, Elevation moved to strike Plaintiff's prayer for punitive damages under Federal Rule of Civil Procedure 12(f) on February 26, 2025. Id. Elevation argued the EEOC did not comply with Idaho Code § 6-1604(2), which requires plaintiffs to "obtain court permission before including a request for punitive damages in the complaint," before it filed suit. Id.

The Court's Order

The Court denied Elevation's motion to strike and found the motion failed on two independent grounds, including: (1) the motion was untimely and (2) the motion lacked merit. Id. at *1.

First, under Federal Rule of Civil Procedure 12(f), a party may file a motion to "strike from a pleading an insufficient defense or any redundant, immaterial, impertinent, or scandalous matter." Id. at *3. In addition, a party must move to strike "within 21 days after being served with the pleading." Id. Elevation however did not move to strike until almost 17 months after service of the Complaint, and therefore, the Court denied the motion as untimely. Id.

Second, the Court held that, even if it considered the merits of the motion to strike, Elevation's motion still failed. Id. In liberally applying Rule 12(f), the Court determined "whether the prayer for punitive damages should be stricken because the EEOC did not comply with the gatekeeping mechanism in [the] Idaho Code § 6-1604(2) – the motion lacks merit." Id at *4. The Court opined that the EEOC asserted a federal claim in federal court, "[w]hich of course means that federal law governs the substance and procedure of its claim." Id. Elevation did not dispute this rule but nevertheless contended federal law "is silent with respect to any pleading standard or procedural prerequisite," so the Idaho Code must fill "the silence." Id.

The Court disagreed. The Court instead held the only prerequisite to requesting punitive damages in Title VII cases requires the EEOC to plead "sufficient factual matter to permit a reasonable inference that defendant engaged in intentional discrimination with malice or reckless indifference to plaintiff's federally protected rights." Id. at *5. The Court further held that Federal Rule of Civil Procedure 8(a)(3) fills the silence and enables litigants to seek "different types of relief" in their pleadings permitting plaintiffs to seek punitive damages without first seeking court permission. Id.

In sum, the Court determined that state procedural law on the ability to request punitive damages had no place in federal court proceedings involving federal law claims. See id. Instead, federal substantive and procedural law exclusively govern such claims. See id. at *6. Therefore, the Court denied Elevation's motion to strike the EEOC's prayer of relief for punitive damages finding Elevation's reliance on Idaho state law was misplaced and its motion was untimely. Id.

Implications For Employers

The Court's ruling in Elevation Labs signals the EEOC's continued litigation enforcement efforts in federal courts for retaliation claims and its pursuit of all available damages.

This case demonstrates the pitfalls of moving under inapplicable state court rules in federal court. Here, the Court rejected Elevation's attempt to inject state court procedural requirements and the Court disagreed that state statutory requirements impact federal claims under Title VII.

Employers, when embroiled in EEOC litigation, must analyze their defenses swiftly to assert a timely defense and to ensure that defense is applicable. Otherwise, Employers may find themselves moving too late and, without defenses, creating exposure in already difficult litigation.

Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.

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