Arroyo v. Volvo: Seventh Circuit Upholds Rulings on ADA and USERRA Claims

LuzMaria Arroyo began working for Volvo Group North America, LLC in June 2005. During her employment, she also served in the Army Reserves, which required her to take time away from work to fulfill her military obligations. Arroyo was diagnosed with post-traumatic stress disorder (PTSD), and Volvo was aware of both her military status and her condition. She remained employed until November 2011, when her employment was terminated.

Volvo maintained an attendance policy that imposed occurrences for late arrivals. After returning from a tour of duty in 2010, Arroyo accrued multiple occurrences, many for being late by only a few minutes. She was ultimately terminated after exceeding the number of occurrences allowed under company policy. Volvo asserted that her dismissal was based solely on these violations, while Arroyo maintained it was due to her military status and disability.

Initial Proceedings

In August 2012, Arroyo filed suit against Volvo alleging discrimination under Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA), the Rehabilitation Act, and the Uniformed Services Employment and Reemployment Rights Act (USERRA). She also raised a state-law claim of intentional infliction of emotional distress. The district court granted summary judgment to Volvo on all claims, which Arroyo appealed.

The Seventh Circuit reversed the decision in part, allowing Arroyo’s ADA and USERRA claims to proceed to trial. At trial, the jury ruled in Arroyo’s favor, awarding her $2.6 million in compensatory damages and $5.2 million in punitive damages under the ADA. The jury also found Volvo had willfully violated USERRA. Following post-trial motions, the district court reduced the ADA damages to $300,000 in compliance with statutory caps and awarded Arroyo back pay, front pay, and related compensation.

Judgment as a Matter of Law and New Trial

Volvo moved for judgment as a matter of law or, alternatively, for a new trial. The district court granted Volvo’s motion regarding the ADA claim, finding Arroyo had not established that she was a qualified individual under the statute because she did not meet Volvo’s essential job function of regular and timely attendance. The court also granted a new trial on the USERRA claim, concluding that the jury’s verdict had been influenced by passion and prejudice tied to the ADA claim.

In February 2022, a second trial was held on the USERRA claim. The district court excluded evidence of Arroyo’s PTSD diagnosis and treatment, ruling it irrelevant to the USERRA claim, which focuses solely on military status discrimination. The second jury ruled in favor of Volvo.

Appeal to the Seventh Circuit

Arroyo appealed, challenging the district court’s rulings on the ADA claim, the new trial order on the USERRA claim, and the exclusion of PTSD-related evidence in the second trial. The Seventh Circuit reviewed the district court’s rulings.

The court affirmed judgment as a matter of law on the ADA claim, holding that Volvo’s attendance policy demonstrated that punctuality was an essential job function and that Arroyo failed to meet it. It further concluded that the district court acted within its discretion in ordering a new trial on the USERRA claim, given the lack of evidence supporting the original jury’s damages award and the risk that passion and prejudice had affected liability findings. Finally, the appellate court upheld the exclusion of PTSD evidence in the second trial, explaining that USERRA only prohibits discrimination based on military status, not conditions resulting from service.

Court’s Ruling

The Seventh Circuit affirmed the district court’s rulings in their entirety. Arroyo’s ADA claim was dismissed, and the second jury’s verdict for Volvo on the USERRA claim stood.

Assistance with USERRA Matters

If you have experienced issues related to reemployment rights or military service discrimination, Whitcomb, Selinsky PC handles cases involving USERRA. Contact us to learn how our team can assist with your claim.