ALLEGHENY HOUSING REHABILITATION CORPORATION, Appellant, v. COMMONWEALTH of Pennsylvania, PENNSYLVANIA HUMAN RELATIONS COMMISSION, Appellee.
Supreme Court of Pennsylvania.
Submitted March 11, 1987. Decided Oct. 15, 1987.
532 A.2d 315
Elisabeth S. Shuster, Gen. Counsel, William R. Fewell, Jr., Asst. Gen. Counsel, Pennsylvania Human Relations Com‘n, Pittsburgh, for appellee.
Before NIX, C.J., and LARSEN, FLAHERTY, MCDERMOTT, HUTCHINSON, ZAPPALA and PAPADAKOS, JJ.
OPINION
ZAPPALA, Justice.
This is an employment discrimination case brought under
In July of 1978, Faith Hodge took up residence at Second East Hills Park, a housing development in Pittsburgh. She had lived at Second East Hills until May of that year, when she left her employment as a City of Pittsburgh police officer in order to move to California. After her return, Hodge inquired of the resident manager of Second East Hills about a job as a security officer at the development. Hodge had known the manager from work with several community organizations around Pittsburgh. The resident manager, an employee of the defendant/appellant Allegheny Housing Rehabilitation Corporation, hired Hodge as a security officer in mid-August of 1978. Within a month he had assigned her additional duties and told her she was being designated “security manager” at Second East Hills. By letter dated November 2, 1978, slightly more than two months after Hodge had been hired, Allegheny Housing‘s Director of Management, the resident manager‘s superior, advised Hodge that her “services as Security Manager [had] been terminated due to the realignment of our security force.”
Hodge filed a complaint with the Human Relations Commission alleging that she was discharged from her job because of her sex.
It shall be an unlawful discriminatory practice, unless based upon a bona fide occupational qualification ... [f]or any employer because of the ... sex ... of any individual to refuse to hire or employ, or to bar or to discharge from employment such individual, or to otherwise discriminate against such individual with respect to compensation, hire, tenure, terms, conditions or privileges of employment, if the individual is the best able and most competent to perform the services required.
The Human Relations Commission and the Commonwealth Court purported to follow the analytical model developed by the United States Supreme Court for Title VII cases in McDonnell Douglas Corp. v. Green, 411 U.S. 792,
In the Opinion accompanying its order, the Commission expressed the view that Hodge could meet her burden of establishing a prima facie case “by proving that she was discharged for reasons not having to do with her performance, and that males were subsequently hired to perform essentially the same duties as she performed prior to her discharge.” The Commonwealth Court offered a more specific statement of the elements: “(1) she is a member of a protected class (female), (2) that she was hired for a job for which she was qualified, (3) that she was discharged, and (4) that she was replaced with one or more males with equal or lesser qualifications.” 88 Pa.Comwlth. at 448-49, 489 A.2d at 1004.
Each of these formulations in isolation might be considered flawed for failing to eliminate several common, non-discriminatory reasons for discharge, the Commission‘s moreso than the court‘s. This “flaw” would become harmless, however, if the remainder of the analysis were properly applied to the entire case. This is because the nature of the burden that “shifts” to the defendant when a prima facie case is established is simply to produce evidence of a “legitimate, non-discriminatory reason” for the discharge.
There is bound to be confusion where, as here, part of the employer‘s explanation attacks the plaintiff‘s qualifications for the job. If a plaintiff must prove a prima facie case by producing the evidence of her qualifications before the defendant is obligated to proceed with a defense, there will almost of necessity be, at the close of the plaintiff‘s case in chief, evidence that she was qualified sufficient to avoid dismissal. At that point no evidence has been admitted on the other side. When the employer then produces evidence of disqualification, this could be understood either as an attack on the elements of the prima facie case, or as an attempt to meet the employer‘s burden of offering a legitimate, non-discriminatory reason. Regardless of its characterization, however, its impact is the same. The employer, understandably, would prefer not to have to offer a defense at all until a more substantial case had been presented against it. Nevertheless, in the interest of having the ultimate question of discrimination resolved on the merits rather than for procedural failings such as lack of specificity, given the importance of circumstantial proof in such cases, it is appropriate to the remedial purpose of the Act that the prima facie case not be an onerous one.
It is obvious that Hodge, female, was hired and discharged. She testified to her educational background
Allegheny Housing, through the testimony of its vice president, supported by the deposition of the director of management, explained Hodge‘s dismissal as follows. While in the process of soliciting bids for security services for the development, Allegheny Housing was approached by certain residents of Second East Hills who were members of Certified Police Unit 644. C.P.U. 644 is a non-profit organization that functions as a hiring hall for individual security guards. Its members are all certified to carry firearms and have passed a psychological test administered by the state police. Unable to contract with a commercial security firm because of the HUD budget constraints, Allegheny Housing entered into an agreement with C.P.U. 644. Because HUD‘s involvement as mortgagee in possession was expected to be of short duration, perhaps several months, the agreement was not reduced to writing.
Under this agreement the security personnel hired as independent contractors by Allegheny Housing were to be drawn from the membership of C.P.U. 644. The actual hiring of individual guards was apparently delegated to the resident manager of the development. Despite the resident manager‘s awareness that only C.P.U. 644 members were to be considered, he hired Hodge, who was not a member, in mid-August, and later gave her supervisory duties over the other guards, who were all members of C.P.U. 644.3 When this hiring in violation of the agreement was brought to the attention of the director of management by members of
If the allocation of proof analysis is properly understood, the foregoing must be considered sufficient evidence of a “legitimate, non-discriminatory reason” for Hodge‘s dismissal to meet Allegheny Housing‘s burden of production. Whether or not the evidence is ultimately deemed credible, and whether or not it ultimately withstands the weighing of all the evidence, it is indisputably sufficient to raise a question of fact as to whether the employer intentionally discriminated against the employee.
Review of the Opinion of the Commission demonstrates that far from examining the evidence as a whole to decide the ultimate question of discrimination, the Commission, upon determining that a prima facie case had been made out, treated Hodge‘s evidence as established facts to be disproved, if possible, by Allegheny Housing. This approach is apparent in Conclusion of Law No. 8, where the Commission stated, “Respondent has failed to demonstrate that its conduct in terminating the Complainant did not violate the Act. Its explanations for the termination were pretextual.” Again, in its Opinion, the Commission stated, “[i]f she makes this showing [of a prima facie case], Respondent may still prevail by showing that its conduct did not violate the Act.”
The Commonwealth Court, having the benefit of Aikens and Burdine, recognized the error in this approach, characterizing it as coming “dangerously close to shifting the ultimate burden of persuading the trier of fact that the employer‘s motives were not discriminating upon the employer.” 88 Pa.Cmwlth. at 447 n. 3, 489 A.2d at 1003 n. 3 (emphasis in original). Nevertheless, the court‘s opinion
The transcript of the hearing in this case displays a kind of gamesmanship played out between the parties (more precisely, their counsel), with a primary objective being the
NIX, C.J., and LARSEN, J., filed a dissenting opinion in which PAPADAKOS, J., joined.
NIX, Chief Justice, dissenting.
As noted by Mr. Justice Larsen in his dissenting opinion, the issue in this appeal was one of credibility. There is no dispute as to the law applicable in this matter. The credibility of witnesses was assessed by the Human Relations Commission and their findings supported the award. The Commonwealth Court affirmed and I find no legitimate basis for this Court to disturb that order.
PAPADAKOS, J., joins in this dissenting opinion.
This is a case of employment discrimination under
Initially, appellee met her burden of establishing a prima facie case of employment discrimination under the McDonnell Douglas/Burdine/Aikens1 evidentiary guidelines and standards. That burden of proof was met when appellee established that she was a member of a protected class (female), that she was qualified for the positions in question (she was, in fact, hired as a security officer and promoted promptly to security manager), that she was discharged, and that, after her discharge, non-members of the protected class (males) of equal or lesser qualifications replaced her. The HRC found that appellee established each of these elements of the prima facie case, and that finding is supported by substantial evidence of record. The majority concedes that appellee met this initial burden of proof, stating that her “evidence was ... sufficient to put the employer in the position of offering a non-discriminatory reason for its action.” Majority op. at 131.
Because appellee established a prima facie case that her discharge was discriminatory and because the employer failed to advance any “legitimate, non-discriminatory” reasons for her discharge (i.e., the employer failed to advance any non-discriminatory reasons which the trier of fact, the HRC, found worthy of belief), appellee has sustained her burden of persuasion under the McDonnell Douglas/Burdine/Aikens standards. Those standards were summarized and clarified by the United States Supreme Court in Aikens:
By establishing a prima facie case, the plaintiff in a Title VII action creates a rebuttable “presumption that the employer unlawfully discriminated against” him ... To rebut this presumption, “the defendant must clearly set forth, through the introduction of admissible evidence, the reasons for the plaintiff‘s rejection.” ... In other words, the defendant must “produce evidence that the plaintiff was rejected, or someone else was preferred, for a legitimate, nondiscriminatory reason.” ...
But when the defendant fails to persuade the district court to dismiss the action for lack of a prima facie case, and responds to the plaintiff‘s proof by offering evidence of the reason for the plaintiff‘s rejection, the fact finder must then decide whether the rejection was discriminatory within the meaning of Title VII. At this stage, the McDonnell-Burdine presumption “drops from the case,” ... and “the factual inquiry proceeds to a new level of specificity.” ...
The “factual inquiry” in a Title VII case is “whether the defendant intentionally discriminated against the plaintiff.” ... As we stated in Burdine: “The plaintiff retains the burden of persuasion. [H]e may succeed in this either directly by persuading the court that a discriminatory reason more likely motivated the employer or indirectly by showing that the employer‘s proffered explanation is unworthy of credence.” ...
460 U.S. at 713-16, 103 S.Ct. at 1480-82 (citations omitted).
Here, the appellee‘s burden of persuasion was met by evidence which established a prima facie case of discrimination and which raised an inference that “a discriminatory motive more likely motivated the employer,”3 and by “indi-
Despite substantial evidence on the record to support the HRC‘s determination that appellee‘s discharge was discriminatory, the majority vacates the Commonwealth Court‘s affirmance because of perceived “flaws” in the application of the McDonnell Douglas/Burdine/Aikens standards by these tribunals. It is true that the HRC‘s articulation of these standards was less than exact and left something to be desired. As the Commonwealth Court observed, that articulation came “dangerously close to shifting the ultimate burden of persuading the trier of fact that the employer‘s motives were not discriminatory upon the employer.” 88 Pa.Comwlth. at 447, n. 3, 489 at 1003.4 However, as the Commonwealth Court recognized, this erroneous articulation of the standards amounted to harmless error under the circumstances, in light of the HRC‘s explicit rejection of the employer‘s purported non-discriminatory explanations for appellee‘s discharge as not worthy of belief.
The majority formulates the ultimate issue regarding the burden of persuasion as follows:
Has the plaintiff proven discrimination by a preponderance of the evidence? Stated otherwise, once the defendant offers evidence from which the trier of fact could rationally conclude that the decision was not discriminatorily motivated, the trier of fact must then “decide which party‘s explanation of the employer‘s motivation it believes.” Aikens, 460 U.S. at 716, 103 S.Ct. at 1482.
Majority op. at 131. It is clear that the HRC, the trier of fact, has done exactly that, as it decided to believe the appellee‘s explanation of the employer‘s actions and to disbelieve the employer‘s purported non-discriminatory explanations, finding them pretextual. I reiterate that, as the
The majority also faults the Commonwealth Court‘s articulation of the governing standards, specifically that court‘s statement that the employer‘s “failure to articulate a legitimate non-discriminatory motive for discharging Complainant obviated the need for Complainant to proceed with the ultimate burden of proving [the] intent to discriminate against her.” Majority op. at 134, citing Commonwealth Court opinion at 88 Pa.Comwlth. at 451-52, 489 A.2d at 1006 (emphasis in Commonwealth Court opinion). From this statement, the majority concludes:
The court‘s emphasis on the word “legitimate“, coupled with its review of the Commission‘s findings that the evidence failed to disprove discrimination, betrays a hidden understanding that the probative value of the employer‘s explanatory evidence is to be independently weighed; if it is found to be somehow lacking, the explanation may be disregarded as “not legitimate“, thus allowing the presumption arising from the prima facie case to stand as the only proof of the ultimate issue. As we have previously explained, this was error.
Majority op. at 134.
The majority‘s concerns that the Commonwealth Court applied some “hidden understanding” of the party‘s respective burdens of production of evidence and of persuasion are unfounded. First, as the majority acknowledges, the “offending” passage is evaluated out of its context, which context was the rebuttal of appellant‘s argument that appellee had proven her case solely on certain hearsay evidence. Second, and more important, the Commonwealth Court ex-
First, as stated above, Complainant has the burden of proving by the preponderance of the evidence a prima facie case of discrimination. The essential elements of Complainant‘s prima facie case of discrimination on the basis of sex are that (1) she is a member of a protected class (female), (2) that she was hired for a job for which she was qualified, (3) that she was discharged, and (4) that she was replaced with one or more males with equal or lesser qualifications.
If the Complainant, succeeds in proving the prima facie case, there is a rebuttable presumption of sex discrimination, and the burden shifts to the defendant to articulate a legitimate non-discriminatory reason for the employee‘s discharge. If the defendant succeeds in rebutting the presumption of discrimination, it is the Complainant‘s obligation to prove by a preponderance of the evidence that the reasons offered by the defendant were pretextual. The ultimate burden of persuading the trier of fact that the defendant intentionally discriminated against the Complainant is always the Complainant‘s.
88 Pa.Comwlth. at 448-49, 489 A.2d at 1004 (emphasis added).
Finally, it seems to me that the majority improperly invades the province of the trier of fact and substitutes its evaluation of the credibility of the evidence in stating:
If the allocation of proof analysis is properly understood, the foregoing [reasons for discharge proferred by the employer] must be considered sufficient evidence of a “legitimate, non-discriminatory reason” for [appellee‘s] dismissal to meet [the employer‘s] burden of production. Whether or not the evidence is ultimately deemed credible, and whether or not it ultimately withstands the weighing of all the evidence, it is indisputably sufficient
to raise a question of fact as to whether the employer intentionally discriminated against the employee.
Majority op. at 133.
The employer‘s evidence in this case was ultimately deemed incredible by the HRC. The HRC, therefore, determined that such evidence was entitled to little or no weight, and the question of fact was in fact resolved against the employer. Simply because the employer is able to espouse some neutral explanation for an adverse employment decision does not automatically elevate that explanation to a “legitimate, non-discriminatory reason.”
For the foregoing reasons, I would affirm the Commonwealth Court order affirming the order and award of the Pennsylvania Human Relations Commission.
PAPADAKOS, J., joins in this dissenting opinion.
Notes
88 Pa.Comwlth. at 450-51, 489 A.2d at 1005.The HRC in its adopted opinion, listed and disposed of three allegedly non-discriminatory reasons offered for Complainant‘s discharge at the hearing. In response to AHRCO‘s [the employer‘s] assertion that it was compelled to discharge Complainant from her position as Security Manager because there was no such position under the rules and regulations provided to AHRCO by the Federal Department of Housing and Urban Development, the HRC stated that such explanation ignores the plain language of Complainant‘s letter of termination which advised she was being terminated from the position of Security Manager and was mere pretext. Similarly, it rejected AHRCO‘s assertion that the “realignment” which it offered as explanation to Complainant in its letter to her informing her of her discharge was prompted by economic necessity as the “realignment” resulted in more rather than fewer security officers working at Second East Hills Park. Finally, it rejected, also as pretext, AHRCO‘s assertion that it was obligated to discharge Complainant because she was not a member of Certified Police Unit 644 (CPU 644) with whom AHRCO allegedly had an exclusive “hiring hall” arrangement with regard to its security staff. The HRC found as fact that Complainant had never been informed, either prior or subsequent to hire that membership in CPU 644 was a condition of employment and that if, indeed, there was such an exclusive relationship, no documentary evidence to support the assertion had been produced.
