Jackson v. Education & Employment Ministry, 686 F. App'x 577

Background

TEEM, a nonprofit serving disadvantaged Oklahomans, faced chronic financial deficits and reorganized in 2012–2013 to narrow services and reduce administrative costs.
After restructuring, Michael Jackson and James Moore (both Black) were terminated in August 2013; their positions were eliminated and duties reassigned to remaining staff paid largely by outside funding.
No replacements were hired for Jackson or Moore; the executive team shrank from six to four members, three of whom were Black.
Plaintiffs filed EEOC complaints and sued under 42 U.S.C. §§ 1981, 1985, and 1986, plus state-law breach of contract (Jackson) and breach of fiduciary duty claims.
The district court granted summary judgment for TEEM, finding plaintiffs failed to establish a prima facie discrimination case or show pretext, and dismissing the contract claim under Oklahoma’s statute of frauds and the fiduciary claim for lack of supporting authority.
The Tenth Circuit affirmed: plaintiffs’ circumstantial evidence was insufficient to create a genuine dispute of pretext or discriminatory motive; related § 1985 claims failed; the oral two‑year contract was barred by the statute of frauds; no fiduciary relationship was shown.

Issues

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether plaintiffs established a prima facie case of racial discrimination under McDonnell Douglas via circumstantial evidence	Jackson and Moore argued terminations and reassignment of duties (to largely nonplaintiff staff) support an inference of racial animus	TEEM argued positions were eliminated for legitimate financial/restructuring reasons tied to funding and strategic refocus	Held: Plaintiffs failed to show circumstances giving rise to inference of discrimination; prima facie not established or pretext not shown
Whether TEEM’s stated nondiscriminatory reason (financial restructuring) was pretext	Plaintiffs pointed to later organizational growth and reassignment of duties to argue positions weren’t truly eliminated	TEEM emphasized documented deficits, payroll borrowing, and use of outside-funded staff to absorb duties	Held: Plaintiffs offered only conjecture; record supports TEEM’s honest belief in need to restructure; no genuine issue of pretext
Whether § 1985 conspiracy claims survive if § 1981 claims fail	Plaintiffs claimed a conspiratorial scheme to racially discriminate	TEEM argued § 1985 requires class-based animus and cannot stand absent § 1981 violation	Held: § 1985 claims fail because underlying § 1981 claims fail
Whether Jackson’s alleged oral two‑year executive‑director contract is enforceable despite Oklahoma statute of frauds	Jackson argued defendants bore burden to prove minutes didn’t memorialize the contract	TEEM argued the oral agreement falls within the statute of frauds and plaintiffs offered no facts to take it out of the statute	Held: Oral contract falls within statute of frauds; plaintiffs failed to allege facts to avoid it; claim dismissed
Whether plaintiffs adequately alleged a fiduciary duty owed by TEEM	Plaintiffs argued a fiduciary relationship existed (as employees/donors)	TEEM argued no authority or evidence shows such a fiduciary relationship under Oklahoma law	Held: Plaintiffs produced no evidence or controlling authority; fiduciary‑duty claim dismissed

Key Cases Cited

McDonnell Douglas Corp. v. Green, 411 U.S. 792 (framework for burden‑shifting in circumstantial employment discrimination)
Adamson v. Multi Cmty. Diversified Servs., Inc., 514 F.3d 1136 (10th Cir. 2008) (summary‑judgment standard and McDonnell Douglas application)
Tabor v. Hilti, Inc., 703 F.3d 1206 (10th Cir. 2013) (view facts in plaintiff’s favor on summary judgment)
Plotke v. White, 405 F.3d 1092 (10th Cir. 2005) (McDonnell Douglas prima facie discussion)
Bennett v. Windstream Commc’ns, Inc., 792 F.3d 1261 (10th Cir. 2015) (elements of prima facie case)
Lounds v. Lincare, Inc., 812 F.3d 1208 (10th Cir. 2015) (burden shifts to employer to provide legitimate nondiscriminatory reason)
Dewitt v. Sw. Bell Tel. Co., 845 F.3d 1299 (10th Cir. 2017) (standard for proving pretext)
Young v. Dillon Cos., 468 F.3d 1243 (10th Cir. 2006) (court will not second‑guess honest business judgments)
Bisbee v. Bey, 39 F.3d 1096 (10th Cir. 1994) (§ 1985 requires class‑based or racial animus)
Wells v. Colo. Dep’t of Transp., 325 F.3d 1205 (10th Cir. 2003) (pretext evidence may be used to help establish prima facie case)
Quinlan v. Koch Oil Co., 25 F.3d 936 (10th Cir. 1994) (party asserting fiduciary relationship bears burden of proof)