*1 GEE, Before TATE, GARZA and Circuit Judges.
GEE, Circuit Judge: Following entry of a consent decree be- tween the Equal Employment Opportunity (EEOC) and Commonwealth Refining Company, (Common- Oil Inc. wealth) (settling charges EEOC wom- en and Puerto Ricans at Peneulas, Rico, facilities), Puerto Common- wealth filed suit in federal district court for fees under of Title § 2000e-5(k) (1976), asserting U.S.C. § it was the prevailing party and that EEOC’s suit was in bad faith. The district court determined that there genuine was no issue of material fact and granted the for summary EEOC’s motion judgment, 56(c). Fed.R.Civ.P. We find that the district court erred in granting summa- ry judgment holding without a full hearing to resolve the presented by issues Common- wealth’s claim: whether defendant “prevailed” so, whether EEOC acted bad faith pressed and/or frivolous claims. Therefore *2 efforts evidentiary hearing reorganization and Commonwealth’s for an we remand opinion. successful, with this findings plan in accordance and in June 1981 a proved approved by was bank- arrangement of Background I. Subsequently, company court. ruptcy was charge EEOC February In an action in federal district that alleging against filed Commonwealth the EEOC seeking attorney’s VII, 42 violating Title company alleging to of Title VII § discriminating seq., by 2000e et U.S.C. § (a) prevailed against it had EEOC that re- and Ricans with against women Puerto by the 1975 proceedings in the initiated promotion compensa- and spect hiring, to Rico, Peneulas, petro- proceed- Puerto had (b) tion at its and that the EEOC charge, fol- investigation An complex. chemical and no “in bad faith ed 1977 the is- February lowed in EEOC and legal of the factual and belief merits to finding a reasonable cause sued decision espoused.” it positions charge of the true. specific portions believe Complaint as- Amended Commonwealth’s efforts, compli- though conciliation Ensuing separate three “claims for relief” serted intervening in- cated Commonwealth’s by first purportedly prevailed. The which Chapter XI reorganization and solvency theories to conclude that advanced two led to a ultimately conciliation proceeding,1 had been the Commonwealth A entered agreement. consent decree was (a) that under the consent decree: and the bank- parties approved or remedy “no relief the decree contained 1981. ruptcy January court in many of the more substantial discrimi- decree set out procedures consent originally] been natory practices had [that whereby publicize Commonwealth in and alleged original charge the [EEOC’s programs, and equal employment policies subsequent determination]”; (b) and that monitoring compliance. provided and ultimately parties the decree entered rep- agreed Commonwealth to increase relief been offered afforded less than had Ricans in resentation of Puerto and women Commonwealth to the EEOC earlier entry positions opera- level in six different The second as- negotiations. conciliation departments, tional and contact local that serted Commonwealth was colleges Puerto agencies Rican referral (before entry in its future recruitment efforts. The de- in its successful effort identify, cree instituted procedures also decree) the consent EEOC’s defeat train, female even counsel and current attempt Chapter to evade XI’s automatic employees promotion into “tar- certain ll-44(a), R. stay provision, Bkrptcy. get jobs.” agreed area Commonwealth commencing from a Title barred EEOC $50,000 a efforts. budget year to fund these The third VII suit district court. assert- addition, provided decree consent been a ed that Commonwealth had relief women Puerto for all identifiable 77 of ini- ing party because names Ricans against whom Commonwealth victims tially likely past identified be- discriminated of the provisions February tween 1973 and the of the date were ultimately consent decree withdrawn. Special decree. The decree that a provided $525,000 sought in fees Master, empowered wages to award back plus the costs and incurred and preferential seniority prefer- and order itself. The EEOC filed action promotion, ential all hiring or would hear dismiss, or in alternative for motion cases resolve could not summary judgment, through A informal conciliation efforts. summary judgment. motion for filed cross fund of one million dollars was established no genu- district court concluded that any potential satisfy liability on existed, issues material fact denied past claims. ine seq. et U.S.C. § motion, granted persisted after its character as one of This followed. appeal EEOC. these has become clear. 434 U.S. at at 700. appeal, On Commonwealth asserts Both decisional authority and the prevailed against the EEOC on unequivocal language 706(k) itself, § claims advanced which were EEOC however, require plaintiff, equally with a either frivolous or undertaken in bad faith *3 defendant, to demonstrate that he is the and is therefore to an entitled award of “prevailing party” as a threshold for recov 706(k) attorney’s fees of Title ery fees. Our Court’s test of VII.
status as “prevailing party” in civil rights II. The “Prevailing Party” Test cases, laid down early and reaffirmed in to Defendants
Applied
case,
case after
declares: “The proper focus
is
plaintiff
whether the
has been successful
706(k)
provides:
Section
of Title VII
on the central issue ... as exhibited by the
action or
proceeding
fact that he
acquired
has
the primary relief
court,
discretion,
subchapter
in its
sought.”
Iranian Students Ass’n v. Ed
may
prevailing party,
allow the
other
wards,
352,
604 F.2d
(5th Cir.1979)
353
than the Commission or
the United
J.)
(Goldberg,
(emphasis added). See also
States, a
part
fee as
Sterrett,
v.
Taylor
663,
640
(5th
F.2d
669
costs,
and the Commission and the
Cir.1981) (identical
language, citing Ed
United States shall be liable for costs as a
wards);
v.
Coen Harrison County School
private person.
Bd.,
24,
(5th Cir.1981) (identical
638 F.2d
26
(Emphasis added).
known,
well
As is
Su-
language, citing
cases).2
Edwards and other
preme
decisions,
Court
most notably Chris-
We have applied this' test of “prevailing
tiansburg Garment
Equal
Co. v.
Employ-
status
equally
plaintiffs
to both
ment Opportunity
434 U.S.
defendants.
Kimbrough
See EEOC v.
In
412,
694,
98
(1978),
S.Ct.
tion
decree,
concluded
the consent
plaintiff Commission—whether
it be re-
I.
garded as having won “substantial
relief”
has most recently
Court
(as to
apparent
did)
me is
or instead as
summarized the
to the
principles
apply
achieving “only
(as
limited success”
Com-
award of
fees to the
claims)
monwealth
is the
civil
Title VII litiga-
(which
and entitled to
thus
tion:
far it
sought).
has not
The defendant Com-
monwealth,
having lost
the merits on
prevailing plaintiff ‘should ordinari
“[A]
some of the “significant
issues” advanced
ly
recover an
unless
special
is thus not entitled to
circumstances would render such an award
”
recover
attorney’s fees:
Commission’s
unjust.’
Commonwealth,
“suit” against
which did
— U.S. —, —,
1933, 1937,
L.Ed.2d
obtain relief ending employment discrimi-
“
(1983).
‘plaintiffs
con
nation, was, if
only because
the Commis-
sidered
“prevailing parties”
*5
success,
“vexatious,
sion’s
frivolous,
not
or
purposes
they
any signifi
succeed
brought
to harass or embarrass” so as to
cant issue in
litigation
achieves some
relief,
entitle
even if
sought
the benefit the
in
bringing
the
had been
prevailing
”
U.S. at —,
suit.’
103
S.Ct. at 1939
in
party
litigation.
(emphasis added).
“A
defendant
For these simple
easily
administered
attorney’s
recover an
fee only where
tests, the majority
post-judg-
substitutes a
frivolous,
the suit
vexatious,
or brought
ment procedure whereby a court may
to harass or embarrass
the defendant.”
employer
award a
defendant
at —,
at
—U.S.
103 S.Ct.
1937 (empha
fees,
though
the Title VII claimant
sis added). With
regard
present
won
substantial
relief
the basis of the
litigation, where the
did
plaintiff
not recov
employer’s past discrimination. Deduced
er on the
merits on all
claims advanced
from a few
decisions of this
scattered
cir-
suit,
the Court stated:
issues,
cuit on quite different
the majority
Where the
has
plaintiff
prevail
failed to
that,
finds
after the
of the litiga-
conclusion
on a claim that is
in all respects
distinct
tion affording employment-discrimination
claims,
from his
successful
hours
relief against
employer,
the court may
spent on the unsuccessful claim should be
employer
determine that the
is the
considering
excluded in
the amount of a
(and
thus entitled to
fee. Where
lawsuit consists
fees),
enunciating for
first
time a re-
claims,
of related
plaintiff
who has won quirement
that,
merit-litigation
after
con-
substantial relief should not have his at-
cludes,
weigh the
the court must
claims
torney’s fee
simply
reduced
because the
advanced
the Commission
adopt
district court did
each
obtained,
not
conten-
then
successful results
deter-
tion
where
plaintiff
raised. But
mine
claims
rejected
whether the
were friv-
success,
olous,
achieved only
vexatious,
limited
the district
to harass
or
only
employer. Pretermitting
court should
defiance
award
amount of
alia,
pay
it allotted one million dollars to
discrimination.
back-
wage
past employment
and other
claims
1388
(or
supple-
of those
any) issue
the central
jurisprudence
circuit
Court
Supreme
(and
common
County
v. Harrison
School
of a Likewise Coen
“prevailing party”
as a
characterization
Cir.1981), where the
Board,
(5th
638 F.2d
substan
against whom
employer
defendant
prevailed on
had not
ordered,
rights plaintiffs
civil
procedural
tial
relief was
a “prevailing
were
arguably
but
in the face merit-trial
envisaged fly
and issues
scheme
had been
sought
the relief
because
injunction
recent
Court’s
filed, the
after suit was
voluntarily granted
re
supra,
“[a]
test, but never-
issue
result
cited the central
not
fees should
quest
all
nomi-
the denial of
but
affirmed
— U.S.
theless
major litigation.”
in a second
the suit was not
fees because
nal
—,
at 1941.
S.Gt.
about.
major
“a
factor
[success]
II.
at-
may not collect
rights plaintiff
A civil
demanding that a state
fees for
torney’s
this curious conclu-
majority reaches
he would have done
officer do what
decisions
inapposite
sion on the basis of
It relies on the test contrary majority seems to Edwards, present 604 F.2d Association v. Students present case. majority’s position Cir.1979) the civil (5th —where Opportunity Com- Employment Equal in which we stated plaintiffs prevailed ,— Compa- Kimbrough Investment mission v. whether focus is proper that “[t]he em- (5th Cir.1983), an F.2d ny, 703 on the central has successful been (unlike on the merits ployer relief acquired primary issue” or “has but employer), defendant added). (emphasis at 503 sought.” 604 F.2d fees as a nevertheless denied in this that the issue overlooks ap- the strict test party” under whether inapposite decision was VII defendants —that to Title plicable after a which had obtained relief plaintiff, meritless, frivolous, “unreasonable, order, suit be could be re- temporary restraining though vexatious,” F.2d at 103—even as a in the absence garded *6 previ- merits and won on the employer the on the showing “probable of a of success had thereto, alia, government the inter tried). Id. ous (had fully the case been merits” offer of settlement rejected employer’s “a holding actual was that The court’s action of an affirmative through adoption ‘prevailing party’ can be a the Commission though and even plan, only he though the relief has obtained substantially evidence that used statistical is the re- preliminary or [citation omitted] pointed value. The court probative lacked I am unable sult of a consent decree.” Id. “investigation government’s out that holding or of this language to read from the unlawful discrimina- for potential showed a civil any implication decision was of the evidence and that some tion” defendant, whom relief has been against hiring “[discriminatory] of ordered, “probative” can become the somehow therefore and it concluded practices,” might have because the defendant ing party F.2d at was not vexatious.” “the case did. actually lost more than he 103. upon by other decisions relied The VII defend- Thus, Kimbrough, a Title in to the similarly inapposite are
majority
on the merits
after trial
Sterrett,
640 ant who
In
Taylor
issue.
to
in
held not entitled
(5th Cir.1981), where
was
F.2d
669-70
applica-
the strict test
fees under
test,
reiterating
rights plaintiff
a civil
defendants,
govern-
because
for
to such
(who
fees
ble
had been awarded
vexa-
held
be
action could not be
merits)
attorney’s ment’s
success on the
was denied
upon
had relied
government
in
tious where the
supplementary
proceedings
evidence
rejected)
(but eventually
probative
prevail
which he did not
on the merits
Here,
discriminatory hiring practices.
I.
Context
Facts
February
Equal Employment Op-
In
an
did
the Title VII defendant not
not
portunity
charge
against
filed
was
merits,
prevail on
but
consent
Refining Company alleg-
the Commonwealth Oil
ing
decree
ordered to end discriminatory
company
discriminating against
was
that the
respect
hiring,
women and Puerto Ricans with
practices and to allot one million dollars for
promotion
compensation
Peneulas,
and
its
potentially owed because of them.
backpay
petrochemical complex.
Puerto Rico
An investi-
gation followed,
February
Kimbrough,
applicable,
contrary
in ra-
in
and
the Com-
decision, finding
mission
issued
result to
majority’s holding.3
tionale and
charge
Ensuing
cause to believe the
true.
concil-
efforts, though complicated by
Conclusion
iation
Common-
intervening insolvency
Chapter
wealth’s
and
XI
perhaps
For
the reasons
too lengthily
reorganization proceeding, ultimately led to a
agreement.
conciliation
A consent decree was
stated,
opinion
in
majority
my
ignores
parties
approved by
entered
and
the bank-
controlling
jurisprudence
holding
January
ruptcy court in
the Title VII
employer,
defendant
provided procedures
consent
decree
whereby
publicize equal
Commonwealth,
could
Commonwealth was to
conceivably
employment policies
programs,
and
and for moni-
litigation,
prevailing party
this
toring
compliance
its
therewith. Commonwealth
a consent decree remedy-
concluded
agreed
representation
to increase the
of Puerto
entry
positions
past
Commonwealth’s
Ricans and women
level
discriminatory
in six
operational departments,
different
contact
practices
requiring
it to allot one mil-
colleges
agencies
local Puerto Rican
and referral
lion
those
pay
aggrieved
dollars
claims of
in its future recruitment efforts. The decree also
procedures
counsel,
identify
employment
discrimination.
instituted
past
employees
promotion
train current
female
views,
Under these
it is irrelevant
to dis-
“target
jobs”.
into
area
certain
$50,000
agreed
budget
year
fund
these
upon
cuss the issues
which Commonwealth
addition,
provided
efforts.
the consent decree
prevailed. However,
claims to have
be-
relief for all
women
Puerto Ricans that Com-
glides
cause the
so lightly
by them
against
past
monwealth had discriminated
in the
(in hiring
February
or
between
litigation,
the context
the entire
I am
decree)
and the date of the
that the Commission
attaching
litigation
an overview of the
identify.
provided
was able to
The decree
that a
these
as an
to this
appendix
opinion,
issues
Master,
Special
empowered to award back
wages, preferential seniority
preferen-
and order
of subsequent
the benefit
en banc or
promotion,
tial
would hear all cases that
I
Supreme Court review. Were
to reach
through
not resolve
could
informal
merits
Commonwealth’s contentions
conciliation
One
efforts.
million dollars was al-
satisfy
past
lotted to
claims.
I
would be inclined to
regard,
view
reorganization
proved
efforts
light
them as insubstantial
successful,
plan
arrange-
June
and in
1981 a
jurisprudence
attempting
insofar as
to de-
bankruptcy
approved
ment was
court.
company
Subsequently,
brought an action in
pict
Commonwealth as a
party.
seeking
federal district court
an allowance of
I respectfully
dissent.
the Commission
2000e-5(k),
to
alleging
of Title
§
U.S.C. §
Appendix
(a)
prevailed against
*7
it had
the Com-
majority
Neither the
nor the dissent felt to be
proceedings
mission in the course of the
initiated
significance
relevant
the actual content and
by
(b)
charge, and
the 1975
that the Commission
upon
the issues
which Commonwealth claims to
proceeded
had
ble belief
“in bad faith and
no
reasona-
prevailed.
view,
my
have
In
in the context of the
legal
merits
and
in the
of the factual
litigation,
upon
the issues
which Commonwealth
positions
espoused”.
it
prevailed
claims to have
are insubstantial. For
$525,000
sought
plus
Commonwealth
in fees
might
the benefit of those who
be interested in
the costs and fees incurred in
the fee
aspect
us,
setting
the
issues before
I am
action itself. The
a
Commission filed motion to
Facts;
forth: I.
Context
and II. The Issues
summary judgment,
dismiss and/or for
and Com-
Upon
to
Commonwealth
Have Pre-
summary
Which
Claims
a
monwealth filed
cross motion for
judgment (accompanied
affidavit,
by
vailed.
page
a 40
ney’s
plain-
against
3. The
also cites
States
fees
VII
United
v. Alle-
unsuccessful Title
Industries,
gheny-Ludlum
(5th
F.2d 742
558
Cir.
tiffs could be assessed on the same basis as
1977),
(1)
which
remanded
claim of an
defendants,
against
a stance the
unsuccessful
employer (which
appeal)
on an
to
panel
forced
568 F.2d
was later
to rescind.
the
prevailed
whether
district
to determine
it had
Cir.1978)
(5th
(on
rehearing).
petition
1073
for
‘significant
pro-
“a
discrete’
on
and
I am
see
of this deci-
unable to
relevance
(relating
ceeding”
to
of an
dismissal
interven-
sion to the
issues.
tion),
(2)
558 F.2d at
held that attor-
record,
by
the entire
mission on the merits
women and Puerto Ricans
the relief achieved
the Com-
(to
employment of
increase
in-
prepared
a
of Commonwealth’s
member
level,
entry
a
history
staff, detailing
the Title
legal
house
VII
pages
$1,000,000
past
allotment for claimants of
dis-
controversy,
appending several hundred
$50,000
crimination,
year
programs
exhibits).
documentary
The district
group)
promote
of this
can-
recruit and
members
genuine
materi-
no
issues of
court concluded
insignificant, nor could it be
not be considered
existed,
56(c), denied Com-
Fed.R.Civ.P.
al fact
not,
at the
concluded that
Commission
motion,
granted
that of
monwealth’s
least,
catalytic
very
significant
factor in effect-
appeal
This
followed.
Commission.
ing
might be
such relief.1 While Commonwealth
pre-
appeal,
asserts that
On
Commonwealth
ameliorating
been successful in
said to have
defeats to
cannot be considered the
on claims either
the Commission
vailed
Commission,
such reduced losses
faith, and is there-
in bad
or undertaken
frivolous
fore entitled to'
upon
success
pursu-
fees
an award of
be based.
which award of
706(k) of Title VII.
ant to
1Although
claims that
Commonwealth
Upon
Commonwealth
Issues
Which
II. The
early
willing
negotiations
in its
with the
Prevailed
to Have
Claims
voluntarily comply
with certain
Commission
of the Commission’s
Complaint
asserted three
demands,
deny
it does not
purported-
separate
relief’ in which it
“claims for
response
were made in direct
that such offers
ly prevailed:
proceedings, nor that the
to the Commission’s
con-
two theories to
A. The first advanced
precipitating
was the
cause of ei
Commission
had been the
early
clude that Commonwealth
ing party
offers or the remedial action to
ther these
which
(1)
that the
ultimately
consent decree:
under the
consented
many
remedy
or relief for
decree contained “no
to the decree.
discriminatory practices
more substantial
of the
rejected chances of a
Even if the Commission
alleged
originally]
(as
[Commis-
had been
advantageous
[that
more
wealth
settlement
Common
subsequent
original charge and
determina-
asserts)
sion’s
negotiation
or Commonwealth’s
ultimately
tion]”;
(2)
contends,
did,
successfully preserve
entered
ability
that the decree
as it
many
foreign
employment
than had been
afforded less relief
features of a
service
important
program (that
Commission
it considered
and as
offered
earlier conciliation
subject
negotiations.
of attack
the Commis
serts was
sion
interim victories and defeats
ment
ultimate issue
negotiations),
during
parties’
conciliation
asserted that Commonwealth
B.
second
within the settle
prevailing party against the Commis-
been a
had
sion because
negotiation process are immaterial
to the
initially identi-
109 names
plaintiff
of whether a
instead of a
past
likely
under
fied as
victims of
prevailing party
the settle
defendant is the
decree,
provisions
were ulti-
of the consent
along
Settlement efforts refused
ment reached.
the
mer,
mately withdrawn.
way
v. Lim
are “of no moment”. Fernandes
that Commonwealth
C. The third asserted
denied,
(5th Cir.1981),
cert.
663 F.2d
prevailing party in
effort to
was a
its successful
U.S. —,
ARCO/POLYMERS, Oil, INC. and Chemi-
cal Union, & Atomic AFL-CIO, Workers 4-227,
Local No. Defendants-Appellants.
No. 82-2505.
United States Court of Appeals,
Fifth Circuit.
Dec.
