Carmelo Melendez v. Illinois Bell Telephone CompanyCarmelo Melendez v. Illinois Bell Telephone Company
Carmelo Melendez filed a complaint in district court, alleging the defendant, Illinois Bell Telephone Company (“Illinois Bell”), violated
I.
In September 1988, Melendez, a Hispanic male, applied for the position of Manager of Urban Affairs at Illinois Bell. This job was a first-level management position that entailed analysis and investigation of issues in the urban environment that might have impacted Illinois Bell’s service to its Chicago-area Hispanic customers. The vacancy for which Melendez applied was created when the incumbent in that job, an Hispanic woman, was promoted to a higher level position.
At the time, Illinois Bell screened management candidates through a three-part process administered by its personnel department. The personnel department required candidates to complete a formal application for employment and to pass both a structured interview, the Management Selection Interview (“MSI”) and a standardized test, the Basic Skills Abilities Test (“BSAT”). Normally, candidates could interview with the particular department at Illinois Bell that was hiring only after successfully completing all three requirements. To accommodate schedules, however, Illinois Bell would occasionally have the hiring department interview candidates before they completed the tripartite screening process.
On September 21, 1988, before being screened by the personnel department, Melendez interviewed with two managers from the urban affairs department, John McDer-mott and Suzette Broom. Although Melendez did not particularly impress McDermott and Broom during his interview, McDermott directed Melendez to the personnel department for further processing. In the personnel department Melendez completed an employment application and passed the MSI. Melendez also had graduated in the top half of his class from college, which was another one of Illinois Bell’s objective qualifications for management positions. Melendez, however, failed the BSAT. Illinois Bell required
The BSAT is a standardized cognitive ability test, which Illinois Bell used to measure the learning potential of candidates for management positions. AT & T psychologists developed the BSAT in 1979 for telephone companies nationally. Local telephone companies, including Illinois Bell, implemented the BSAT in the early 1980’s. The examination is “speeded,” consisting of 100 multiple choice questions during a one hour time period. The BSAT tests four different skills: mathematics, grammar, reading comprehension, and following directions. The parties stipulated that the BSAT has a disparate impact against Hispanics. 2
To support the fairness and validity of the BSAT, AT & T psychologists conducted a validation study, which reported various statistical analyses of how the BSAT related to job performance. The validation study correlated test scores with actual job performance ratings and directly examined the BSAT by race for its ability to predict job performance. To review this validity evidence, Melendez introduced the expert testimony of Dr. Fred Bryant, Professor of Psychology at Loyola University of Chicago. Dr. Bryant received a Ph.D. in Social Psychology from Northwestern University and has numerous publications involving the statistical analysis of data. Dr. Bryant testified that, in the context of employment examinations, an examination is “valid” if it can pre-diet how people will perform on the job. Dr. Bryant opined that the BSAT is very poor at predicting job performance and therefore lacks validity. In Dr. Bryant’s opinion, the statistical evidence from the validation study convincingly showed that BSAT scores and job performance are unrelated for Hispanics. Moreover, Dr. Bryant concluded that the great weight of statistical evidence from the validation study demonstrated that there is no relationship between BSAT scores and job performance for whites. Dr. Bryant likewise found little evidence that the BSAT predicted job performance for African-Americans. Dr. Bryant also attacked the methodology of the validation study, asserting that the study improperly pooled data from different racial subgroups, which caused inflated validity data for the overall group. Even if one uses the inflated overall data, the BSAT predicts job performance only 3 percent better than chance alone. Indeed, prior to this litigation, psychologists hired by Illinois Bell to review its management hiring process concluded that “there is little or no support for the validity of BSAT scores in predicting the core areas of management performance....” Importantly, the data from the validation study illustrates that, despite a statistically significant difference in test scores between whites and Hispanics, there is no significant difference in job performance between the two groups.
In December 1988, Melendez filed a charge with the EEOC, alleging that the BSAT had an unlawful disparate impact on Hispanics. On August 28, 1990, Melendez filed the current action in district court. While his charge was pending before the EEOC, Illinois Bell formed a consortium with other local telephone companies to revise or replace the BSAT. Illinois Bell’s representative to the consortium was Dr.
Dr. Morris was personally involved with the development of the BSAT-R. On January 11, 1991 he wrote the following to various Illinois Bell department heads:
I am writing this letter to inform you that the [] Consortium to revise the BSAT is finally getting near the point of completing a contract and starting work. A primary goal of this project is to develop a test with item content that is much more job related than was the case with BSAT....
I will be sure to keep you posted on the status of the project as it progresses and on more details related to your involvement as soon as possible.
The contract for PSI’s consulting services was executed on March 11, 1991 and identified Dr. Morris as a recipient of contract notices. In an April 4, 1991 letter, Dr. Morris again wrote to various department heads: “As you are all aware, we are involved in a consortium effort to build a replacement for the BSAT. The time frame for its introduction is mid-year 1992.” The BSAT-R project included examining the validity evidence for the BSAT as well as collecting additional data relevant to the validity of the BSAT.
While the replacement test for the BSAT was being formulated, Melendez attempted to obtain information relevant to the BSAT’s validity through discovery. On November 6, 1990, Melendez requested the production of documents “that constitute, refer or relate to the decision to use the BSAT, or to discussions or analyses concerning its use.” Although the trial court ordered Illinois Bell to respond to this request by December 21, 1990, Illinois Bell produced no documents until January 14, 1991. The BSAT-R project was not disclosed, and Illinois Bell failed to produce many BSAT-related documents. When Melendez moved to compel production of these documents, Illinois Bell represented to the district court that production of the BSAT would cause irreparable harm because there was only one form. 4 On March 15, 1991, upon discovering that there were at least two different versions of the BSAT, the district court imposed Rule 11 sanctions on Illinois Bell and ordered Illinois Bell to produce various BSAT-related documents. Illinois Bell produced additional BSAT-related materials on May 17,1991, but did not reveal the BSAT-R project.
Illinois Bell intended to call Dr. Morris at trial as an expert witness to testify that the BSAT is a valid employment examination. Testifying for Illinois Bell as an expert witness was one of Dr. Morris’s duties in his position at Ameritech Services. Melendez deposed Dr. Morris numerous times prior to trial. Despite specific deposition questions directed at any investigations of the BSAT, Dr. Morris failed to disclose the existence of the BSAT-R project. On November 7,1991, Melendez subpoenaed Ameritech Services, requesting, among other records, “[a]ll documents, including drafts, that constitute, refer to or relate to validation studies in which the [BSAT] was reviewed and considered in any way.” After Illinois Bell’s motion to quash this subpoena was denied, Ameritech Services produced voluminous documents unrelated to the BSAT-R.
The
The
After the jury trial, the district court considered the merits of plaintiffs Title VII claims, which alleged both disparate treatment and disparate impact against Hispanics.
5
Holding that it was bound by any factual issues decided by the jury, and that both
II.
On appeal, defendant presents four main grounds for reversing the district court’s judgment for plaintiff on the Title VII disparate impact claim. With respect to the merits of the disparate impact claim, defendant contends first that plaintiff failed to establish a prima facie case of disparate impact because he was unqualified for a management position. Second, defendant argues that the district court’s finding that defendant had no legitimate business reason to use the BSAT is clearly erroneous. Next, defendant asserts that the jury verdict on the
A.
Illinois Bell argues that a single plaintiff, such as Melendez, must prove as part of his prima facie case of disparate impact that he was qualified for the position he sought. Technically, after trial, the issue of prima facie case in the specialized Title
In the present case, Melendez presented extensive direct evidence that he was not hired because he failed the BSAT. Illinois Bell’s personnel department informed Melendez that his failing score on the BSAT disqualified him from further consideration. Illinois Bell also suggested to Melendez that he could retake the BSAT in six months. Suzette Broom testified that once she and John McDermott discovered plaintiff had failed the BSAT, there was no need to pursue employment possibilities with Melendez. Although McDermott testified that he would not have hired Melendez even if he had passed the BSAT, the district court found McDermott’s version of events to be an ex post facto justification for Illinois Bell’s decision.
7
After reviewing the entire record, we must agree with the district court’s assessment. Because plaintiff has sufficiently dem
Illinois Bell next contends that the district court erred in finding that the BSAT’s discriminatory impact was unjustified by Illinois Bell’s legitimate business needs, a finding which we review for clear error only.
Daniels v. Pipefitters’ Ass’n Local Union No. 597,
B.
Illinois Bell further asserts that even if plaintiff presented sufficient evidence to support his Title VII claim, the jury’s
On the other hand, the elements of proof for disparate treatment and disparate impact claims under Title VII are significantly different. A plaintiff may demonstrate a violation of Title VII under the disparate impact theory without proving discriminatory intent.
Wards Cove Packing Co. v. Atonio,
C.
The defendant argues that the district court abused its discretion by barring Dr. Morris from testifying under
Illinois Bell argues that, at most, it made an honest mistake when it failed to produce the BSAT-R, and therefore the district court should not have visited sanctions upon it. Illinois BeU asserts that the district court erred by ascribing bad faith motives to it. Bad faith, however, is not required for a district court to sanction a party for discovery abuses. Sanctions are proper upon a finding of wilfidness, bad faith, or fault oh the part of the noncomplying litigant.
Marrocco v. General Motors Corp.,
The testimony at the sanctions hearing demonstrates that Illinois Bed’s trial counsel was aware of the BSAT-R project’s existence. Dr. Morris was Illinois Bell’s representative to the consortium, which was’ formed to develop a replacement for the BSAT. At the beginning of this Utigation, Dr. Morris informed Illinois Bed’s trial counsel that such a project was underway. Dr. Morris also periodieaUy updated IUinois -Bell’s counsel regarding the time frame for the completion of the BSAT-R. Moreover, the plaintiffs discovery requests clearly encompassed the BSAT-R. The BSAT-R project involved a collection of data relevant to .the validity of the original BSAT, and, almost by necessity, entailed a reexamination of the previously assembled validity evidence for the BSAT. Given the trial’s focus on the invalidity of the BSAT, the BSAT-R project was patently relevant to plaintifPs
Defendant next contends that the district court’s choice of sanctions was draconian and an abuse of discretion. Illinois BeU .argues that the district court could not have formulated a more severe sanction than bar.ring the expert testimony of Dr. Morris, which Illinois BeU equates with the entry of default judgment against it. Illinois BeU then attempts to rely on caselaw indicating
In
our review of the propriety of
Ironically, the importance of the BSAT’s validity to plaintiffs case is also the justification for the severity of the district court’s sanction. Because the BSAT-R project involved an examination of evidence relevant to the validity of the BSAT, plaintiff was greatly prejudiced by Illinois Bell’s non-disclosure of the BSAT-R project until the eve of trial. Moreover, the district court was under no obligation to postpone the trial to allow plaintiff to wade through the quagmire of statistical data that was finally produced. Given Illinois Bell’s earlier failure to produce the BSAT and the testimony indicating Dr. Morris’ complicity in Illinois Bell’s wrongful failure to disclose the BSAT-R project, the district. court did not abuse its discretion in barring Dr. Morris from testifying at trial. Able to reflect on the procedural history of the case as well as the prejudice suffered by plaintiff, the district court was in the best position to select a fitting sanction. Although we might not have chosen so severe a sanction, Illinois Bell has, quite simply, not met its demanding burden of demonstrating that no reasonable person could agree with the district court’s assessment of the appropriate sanction.
For all the foregoing reasons, the judgment of the district court is AFFIRMED.
Notes
. Illinois Bell did not require internal candidates for first level management positions to take the BSAT.
. In fact, Illinois Bell statistics show that in 1979, 77 percent of whites, but only 22 percent of African-Americans and 47 percent of Hispanics passed the test. Similarly, 1987-88 statistics reflect a pass rate of 87 percent for whites, but only 57 percent for African-Americans and 53 percent for Hispanics. Illinois Bell presented no evidence that these statistical disparities could be explained by educational differences. With respect to the 1979 sample, 97 percent of those tested had college degrees. Melendez’s expert also testified that the 1987-88 sample included people of similar background and education.
. Dr. Morris was actually employed by Ameri-tech Services, Inc., a subsidiary of Illinois Bell. He was Director of Selecting Standards and Testing and was responsible for the personnel selection processes for Illinois Bell and other local telephone companies.
. Illinois Bell professed their need to avoid dissemination of particular test questions.
. Because both the conduct at issue and the filing of the complaint occurred prior to the passage of the Civil Rights Act of 1991, the Title VII claims could not be tried before the jury.
Landgraf v. USI Film Products,
U.S. -,
. Other circuits have imposed this same qualification requirement on individual plaintiffs who allege a violation of Title VII under a disparate impact theory. See
Coe v. Yellow Freight Sys., Inc.,
. The district court questioned why McDermott would have steered Melendez to the personnel department for a further interview and test if McDermott had already decided not to hire him.
. In any event, we could not deem the district court’s finding that Melendez was qualified to be clear error. Other than failing the BSAT, Melendez satisfied all of the objective requirements for a management position-passing the MSI and graduating in the top half of his class from college.
. Illinois Bell cursorily argues that the district court abused its discretion by relying on the testimony of Dr. Bryant. Illinois Bell maintains that Dr. Bryant was not qualified to testify as an expert because he had never previously validated an employment test. Dr. Bryant, however, has a doctorate in social psychology and has published in the area of statistical analysis. Thus, "[h]is expertise came from experience, education, and training; all acceptable bases of expertise under Rule 702." United States v. Stevenson, 6 F.3d 1262, 1267 (7th Cir.1993). The district court did not abuse its discretion in qualifying Dr. Bryant as an expert witness.
. Although the rule itself is clear, the source of the rule is not completely apparent. Compare
Artis,
. Concretely, a
. This rule provides that if a party fails to obey an order to permit discovery, the district court may sanction the party by, among other alternatives, prohibiting the introduction of certain matters into evidence.
. Although this request for documents may have preceded any significant progress on the BSAT-R project,
. In the context of the other arguments that Illinois Bell has presented on appeal, we find its insistence that the district court's sanction was tantamount to the entry of default judgment somewhat disingenuous. The jury returned a verdict in favor of Illinois Bell on the