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The U.S. Supreme Court on Monday declined to review a U.S. Army veteran's lawsuit alleging that Volvo fired her due to her military service and post-traumatic stress disorder (PTSD), leaving in place a Seventh Circuit decision that rejected a $7.8 million jury award in her favor.

Supreme Court's Denial Leaves Seventh Circuit Ruling Intact

The justices denied LuzMaria Arroyo's petition for certiorari, which she filed in August, arguing that the trial court wrongly set aside a 2016 jury verdict that had awarded her $2.6 million in compensatory damages and $5.2 million in punitive damages. Arroyo claimed her dismissal violated the Uniformed Services Employment and Reemployment Rights Act (USERRA) and the Americans with Disabilities Act (ADA). However, the Seventh Circuit earlier this year upheld U.S. District Judge Robert M. Dow's decision to grant a new trial on her USERRA claim and overturn the ADA verdict, concluding that the jury's initial award was driven by emotion rather than evidence.

Allegations of Military Bias and PTSD Discrimination

Arroyo, an Army veteran and reservist who took nearly 900 days of military leave over her six and a half years at a Volvo parts distribution center in Illinois, filed her original complaint in August 2012. She alleged that Volvo unlawfully terminated her in November 2011 due to her military service and a PTSD diagnosis acquired after multiple deployments to the Middle East. According to Arroyo, her supervisors frequently complained about her absences via email and subjected her to heightened scrutiny, allegedly to fabricate reasons for her termination.

However, Volvo contended that it had approved Arroyo's military absences for years without issue. The company argued that her termination was instead due to repeated tardiness, which violated its attendance policy.

Initial Verdict Overturned; Second Jury Favors Volvo

In the initial 2016 trial, a jury sided with Arroyo on both her USERRA and ADA claims, awarding her substantial damages. However, Judge Dow later granted Volvo's motion for judgment as a matter of law on the ADA claim, determining that the automaker consistently applied its attendance policy across all employees. He ordered a new trial for the USERRA claim, deeming the initial jury's verdict "grossly excessive" and unsupported by sufficient evidence, especially since Arroyo had only sought $1 million in total damages.

The retrial concluded in February 2022, with jurors finding that Arroyo failed to prove her military service was a motivating factor in her termination. The Seventh Circuit subsequently affirmed this verdict, agreeing that Judge Dow acted within his discretion in ordering a new trial and dismissing the ADA claim.

Volvo Worker's Military Bias Suit : Arroyo's Petition to the Supreme Court

In her petition to the Supreme Court, Arroyo argued that the USERRA mandates employers to reemploy disabled veterans, regardless of their qualifications for their prior positions. She contended that the Seventh Circuit failed to apply this standard, asserting that if Volvo determined she could not perform her old job, it should have reassigned her to a comparable position with similar seniority, status, and pay.

Volvo, in its response, argued that Arroyo never claimed the company failed to reemploy her. Instead, her allegations focused solely on her termination in November 2011. The company maintained that Arroyo continued in her role as a material handler after returning from her military duties until her termination over a year later due to attendance issues.

Volvo Worker's Military Bias Suit : Legal Representation

Arroyo was represented by John N. Maher of Maher Legal Services PC. Volvo was represented by William J. McMahon IV of Constangy Brooks Smith & Prophete LLP. Both parties did not immediately respond to requests for comment on the Supreme Court's decision.