Lead Opinion
Appellant, David L. Kirk, a white male, brought this action against his employer, Rockwell International Corporation (Rockwell) for the violation of his civil rights. Appellant asserts that Rockwell discriminated against him on account of his race in violation of Title VII of the Civil Rights Act of 1964
This appeal raises two issues: (1) whether a state statute of limitations applies to private actions under Title VII, and (2) whether Johnson v. Railway Express Agency, Inc.,
I) Facts
In his complaint, appellant alleges that in 1949 he was employed by Rockwell in California as a Radio and 'Radar Mechanic. Eventually, Rockwell promoted him to Material Review Engineer, but, in February, 1971, Rockwell demoted him to Inspector.
On or about April 27,1971 appellant filed a charge with the Equal Employment Opportunity Commission (EEOC). He alleged that Rockwell, when it reduced its staff, systematically demoted whites on the basis of race,
The EEOC referred the charge to the California Fair Employment Practices Commission (FEPC). On about May 26, 1971, the FEPC declined to proceed, and the EEOC assumed jurisdiction of the charge.
On March 30, 1972 the EEOC sent a “Notice of Charge of Employment Discrimination” to Rockwell. Without disclosing appellant’s name, the Notice informed Rockwell that it had been charged with discriminating against its employees on the basis of race in “wages, demotion, seniority, qualification/testing, benefits, terms and conditions.” The Notice informed Rockwell of the date and place of the violation and included this statement:
“No action on your part is necessary at this time . . Section 1602.14 of the Commission’s Regulations requires the preservation of all relevant personnel records until this charge is resolved.” (emphasis added).
Beginning in 1971, appellant made many inquiries on the status of his charge against Rockwell. Not until August 5, 1976 did he learn that he could demand a “Right to Sue Letter” from the EEOC. On August 17, 1976 he received a “Right to Sue Letter” from the EEOC. This was more than 5 years after the date the charge was filed.
The letter notified appellant that the EEOC had not found reasonable cause to believe his charge of discrimination by Rockwell; but, if Kirk wanted to pursue the charge and bring an action against Rockwell, he would have to bring it within 90 days, or he would forfeit his Title VII claim.
Appellant then retained counsel and filed an action within 90 days after he received the letter. In his complaint appellant sought relief under Title VII, and, in a separate count, under 42 U.S.C. § 1981.
Rockwell moved to dismiss the action for failure to state a claim. Rockwell argued that appellant’s claims under Title VII and § 1981 were barred by California’s statute of limitations.
Rockwell asserts that the longest applicable California statute of limitations is 3 years and that appellant’s action filed more than 5 years after the discriminatory act is therefore barred. Rockwell relied on the rule that a federal cause of action for which Congress did not provide a period of limitations borrows the relevant state statute of limitations. E. g., Runyon v. McCrary, 427
The District Court agreed with Rockwell and dismissed the action.
II) The Title VII Period of Limitations
Appellant contends that the filing and notice requirements of Title VII constitute a built-in period of limitations, so that it is unnecessary to borrow a state statute. Appellant also asserts that borrowing a state statute of limitations is inappropriate here because it would interfere with the federal policy, expressed in Title VII, of encouraging an aggrieved party to pursue administrative conciliation.
(A)
Title VII was enacted as part of the Civil Rights Act of 1964.
As enacted, Title VII required an aggrieved party to file his charge of discrimination with the EEOC within 90 days of the discriminatory act.
If, after the 30 days, the EEOC determined that conciliation was unlikely, it was required to notify the aggrieved party. The aggrieved party then had 30 days to file an action.
(B)
The legislative history of the 1964 Act shows that the requirement of filing a charge within 90 days of the discriminatory act was intended to serve as a statute of limitations.
In 1964, the House Judiciary Committee favorably reported the bill
“No civil action (by an aggrieved party) shall be based on an unlawful employment practice occurring more than six months prior to the filing of the charge with the Commission and the giving of notice thereof to the respondent, unless the person aggrieved thereby was prevented from filing such charge by reason of service in the Armed Forces, in which event a period of military service shall not be included in computing the six-month period.”
The bill also provided for a private action if the aggrieved party obtained permission from the EEOC, and required the EEOC to give notice of the charge to the employer.
The House approved the bill, and it was submitted to the Senate.
Senators Clark and Case, floor managers of Title VII of the bill, explained the filing requirement to the Senate:
“The suit . . . would have to be based on an unlawful employment practice occurring within 6 months prior to the filing of the charge with the Commission . . . This limitation will avoid the pressing of stale claims.” 110 Cong. Rec. 7213 (1964) (emphasis added).
(C)
In 1972, Title VII was amended by the Equal Employment Opportunity Act of 1972.
Unlike the 1964 Act, the amendments gave the EEOC the power to bring an enforcement action. The amendments also extended the time to file a charge of employment discrimination from 90 to 180 days,
Congressman Erlenborn, who sponsored the 1972 amendments in the House explained to his colleagues that the specific time limit was for the purpose of:
“. . . giving notice to the party charged (so) that he would have an opportunity to gather and preserve the evidence . .” 117 Cong.Rec. 31972 (1971).
In Occidental Life Insurance Co. v. EEOC,
“Congress did express concern for the need of time limitations in the fair operation of the Act, but that concern was directed entirely to the initial filing of a charge with the EEOC and prompt notification thereafter to the alleged violator ff
“The fact that the only statute of limitations discussions in Congress were directed to the period immediately preceding the filing of an initial charge is wholly consistent with the Act’s overall enforcement structure — a sequential series of steps beginning with the filing of a charge with the EEOC. Within this procedural framework, the benchmark, for purposes of a statute of limitations, is not the last phase of the multistage scheme, but the commencement of the proceeding before the administrative body.” Occidental Life Insurance Co. v. EEOC, supra,432 U.S. at 371-372 ,97 S.Ct. at 2457-58 .
Appellant filed his charge of discrimination with the EEOC months before the 1972 amendments became effective. Therefore, Rockwell did not receive notice of the charge for about 13 months after the discriminatory act. In urging the application of a state statute of limitations, Rockwell argued that “the charge could pend before the EEOC almost indefinitely only to explode upon . . . respondent as a law
We conclude that Title VII does not borrow state statutes of limitations because the time limits for filing a charge and giving notice to the employer are a Congressionally established statute of limitations. Accord, Draper v. United States Pipe & Foundry Co.,
(D)
In the 1972 amendments, Congress directed the EEOC to complete its investigation of a charge within 120 days “so far as practicable.”
(1) if the EEOC dismisses the charge as unfounded, or
(2) if within 180 days the EEOC has not commenced an action, or
(3) if within 180 days the EEOC has been unable to complete a conciliation agreement.
The aggrieved party has 90 days after “such notice” within which to file an action.
It may be that Congress designed Section 706(f)(1) to give additional protection to the employer by directing the EEOC to issue a “Right to Sue Letter” no later than 180 days after the charge was filed.
These decisions reflect an awareness that:
“. . . Title VII, as established by Congress, relies upon laymen, operating without legal assistance, to initiate both administrative complaints and lawsuits. Congress did not intend that such laymen, not schooled in the finer points of legal procedure, be presumed to know exactly what procedural step they must next take in order to perfect their claims ...” Mahroom v. Hook,563 F.2d 1369 , 1375 (9th Cir. 1977).
It would be inconsistent with Title VII to hold that an aggrieved party who pursued his claim as diligently as appellant loses his right to file an action because, unknown to him, the state statute of limitations had run.
The judgment dismissing the Title VII claim is reversed.
Ill) The Section 1981 Claim
The District Court dismissed appellant’s § 1981 claim on the ground that it was barred by California’s statute of limitations.
In Johnson, the Supreme Court came to the opposite conclusion. It determined that Title VII and § 1981 provide “separate, distinct, and independent” remedies for employment discrimination.
In Johnson, the Court applied its ruling to the facts of that case even though the ruling denied the petitioner any relief. Here, application of the rule announced in Johnson leaves appellant an alternative remedy under Title VII.
Generally a judicial decision which announces a new rule will not be applied retroactively unless retroactive application will promote the purpose of the rule and produce an equitable result. Chevron Oil Co. v. Huson,
Under these criteria, the Fifth Circuit Court in a thorough and well reasoned opinion held that Johnson applies retroactively even though Johnson has overruled clear precedent. Williams v. Phil Rich Fan Manufacturing Co.,
In this Circuit, there is no such precedent. We conclude that Johnson applies to appellant’s case.
Appellant filed this action in which he asserted his § 1981 claim more than 5 years after the discriminatory act. Under any applicable California statute of limitations,
The District Court’s dismissal of the Title VII claim is reversed, and the dismissal of the § 1981 claim is affirmed.
REVERSED AND REMANDED.
Notes
. 42 U.S.C. § 2000e et seq. (1970 and Supp.V). 42 U.S.C. § 2000e-2 (1970) provides:
“(a) It shall be an unlawful employment practice for an employer—
(1) . . .to discriminate against any individual with respect to his compensation, terms, conditions or privileges of employment, because of such individual’s race, color, religion, sex, or national origin . . ”
. 42 U.S.C. § 1981 (1970). Section 1981 provides:
“All persons within the jurisdiction of the United States shall have the same right in every State and Territory to make and enforce contracts . . . and to the full and equal benefit of all laws . . for the security of persons and property as is enjoyed by white citizens . . .”
. Appellant alleged in the charge:
“Under the specific circumstances now existing (the large reduction in the work force over an extended period of time) it is an extreme discrimination to remove long time qualified employees to replace them with ‘minority’ people who must be trained to qualify.”
. Pub.L. No. 88-352, 78 Stat. 241.
. Section 706(d), 78 Stat. 260. If the aggrieved party first filed a charge with a state employment discrimination agency, he had to file his charge with the EEOC within 30 days of receipt of notice that the State agency had ended its proceedings, or within 210 days of the discriminatory act, whichever was earlier.
. Section 706(a), 78 Stat. 259.
. Section 706(e), 78 Stat. 260.
. Id.
. H.R. 7152, 88th Cong., 2nd Sess. (1964).
. 110 Cong.Rec. 12707 (1964).
. 110 Cong.Rec. 12813-12814 (1964).
. Pub.L. No. 92-261, 86 Stat. 103.
. Section 706(e), 42 U.S.C. § 2000e-5(e) (Supp.V 1975). If the aggrieved party first files his charge with an appropriate state agency, he has 300 days from the date of the discriminatory act, or 30 days from receiving notice that the state agency has terminated proceedings, whichever is earlier, to file his charge with the EEOC.
. Id.
. Section 706(b), 42 U.S.C. § 2000e~5(b) (Supp.V 1975).
. Section 706(f)(1), 42 U.S.C. § 2000e-5(f)(l) (Supp.V 1975).
. An EEOC regulation provides that if, after 180 days, the EEOC has not acted on a charge, the EEOC nevertheless will not issue a “Right to Sue Letter” unless the aggrieved party asks for one. 29 C.F.R. § 1601.25b (1977).
. “The Commission is expected, at the commencement and at other appropriate stages of the proceedings, to fully notify the aggrieved party in clear and understandable fashion of the various procedural rights and steps open to him. Too often a person files a charge but then blunders along, lost in the bureaucratic process.” S.Rep. No. 92-415, 92nd Cong., 1st Sess. at 27 (1971).
. Section 340(3) of the California Code of Civil Procedure provides a 1-year period of limitation for “injury to one caused by the wrongful act or neglect of another . . Section 338(1) provides a 3-year period for “an action upon a liability created by statute, other than a penalty or forfeiture”. This provision has been applied to employment discrimination actions under 42 U.S.C. § 1983. E. g., Bradshaw v. Zoological Society of San Diego,
Concurrence Opinion
concurring specially:
Although I agree with the result reached by the majority, I cannot concur with the reasoning. The majority opinion’s discussion of Johnson v. Railway Express Co. (1975)
Kirk is a white man who seeks to sue his employer, Rockwell International Corporation (Rockwell), for alleged racial discrimination in demoting him from a professional to a non-professional job rank in February, 1971. The essence of Kirk’s claim is that Rockwell systematically disadvantaged whites in order to favor minorities when it reduced personnel in 1971.' Kirk timely filed a complaint of discrimination with the
I
Johnson v. Railway Express Agency, supra, held that state statutes of limitation would be “borrowed” to fill the limitation gap left in Section 1981. (
If Johnson applies to Kirk’s case, his Section 1981 action is barred under any applicable California limitations statute because more than five years elapsed after the alleged discriminatory acts.
None of the exceptions to the general rule that judicial decisions are both retrospective and prospective in operation is applicable here. (See, e. g., Linkletter v. Walker (1965)
Kirk argues that his case falls within the limited set of circumstances in which a decision should not be given retrospective application because it is a radical departure from prior law and falls inequitably upon parties who relied upon the old rule. (E. g., Chevron Oil Co. v. Huson, supra,
II
Private individuals aggrieved by employer practices may bring a civil action to enforce these rights under Title VII, if they comply with certain statutory requisites. They must first file a complaint with the EEOC within 180 days of the alleged discrimination (42 U.S.C. § 2000e-5(e)) and the EEOC must thereupon notify the employer within 10 days and conduct an investigation of the charge. (Id. § 2000e-5(b).) Longer periods for filing the complaint — up to 300
A private individual’s civil action under Title VII thus requires the timely filing of the complaint with the EEOC and the filing of a civil action in the federal district court within 90 days of notification of the termination of EEOC proceedings through receipt of a right to sue letter. (See id. (90-day period commences on date of actual receipt of the letter).) In the interim, the matter is committed to the EEOC for administrative processing, and the Supreme Court in Occidental Life Insurance Co., supra, affirmed this court’s holding that such processing was subject to no time limitations. (
Rockwell contends that any statute which gives a private individual a right to sue another must contain an absolute time limitation period, running from the date of the accrual of the cause of action to the date of the filing of the complaint in court. As Title VII contains no such overall time limitation, it says that a limitation period must be borrowed from state law to fill the “gap” as in Johnson v. Railway Express Co., supra,
The question presented was explicitly left open in this court’s decision in Occidental Life Insurance, supra,
District courts outside this Circuit have uniformly held that state statutes of limitation do not bar private litigants’ Title VII action which otherwise comply with its filing provisions. (Pierce v. Catalytic, Inc. (E.D.Pa.1977)
We agree with the Sixth Circuit and the district courts which have held that Title VIPs time provisions fully define the steps which must be taken by a Title VII litigant to preserve his or her right to sue. State statutes of limitation are not borrowed because there is no gap to fill and applying them to private individuals would interfere with the effective administration of Title VII for reasons stated in Occidental Life Insurance, supra.
In Occidental Life Insurance Co. v. EEOC, supra, the Supreme Court held that the requirements that an employee file a complaint with the EEOC within a limited period of time and that the EEOC then notify the employer of the charge were “the benchmark, for purposes of a statute of limitation.” (
“[T]he Court has not mechanically applied a state statute of limitations simply because a limitations period is absent from the federal statute. State legislatures do not devise their limitations periods with national interests in mind, and it is the duty of the federal courts to assure that the importation of state law will not frustrate or interfere with the implementation of national policies. ‘Although state law is our primary guide in this area, it is not, to be sure, our exclusive guide.’ Johnson v. Railway Express Agency,421 U.S. 454 , 465,95 S.Ct. 1716 , 1722,44 L.Ed.2d 295 . State limitations periods will not be borrowed if their application would be inconsistent with the underlying policies of the federal statute.”432 U.S. at 367 ,97 S.Ct. at 2455 .
The Court concluded that application of state law would frustrate the federal scheme. The Court read the legislative history of the 1972 amendments to Title VII as reflecting congressional awareness of the lengthy delays involved in EEOC proceedings and concluded that Congress had made a positive decision to permit such delay in the interest of obtaining the other economies which could be achieved by using this method of dispute resolution — reduced litigation costs, conservation of scarce judicial resources, and the establishment of national standards for employer practices. (Id. at 369-71,
“ . . . if within one hundred and eighty days from the filing of such charge or the expiration of any period of reference . . . , whichever is later, the Commission has not filed a civil action under this section . . . [nor] entered into a conciliation agreement to which the person aggrieved is a party, the Commission . . . shall so notify the person aggrieved [and issue a right to sue letter].”
Although the statute appears to mandate that the EEOC divest itself of jurisdiction, the Court agreed with the circuit courts which had concluded that the provision merely entitled the complainant to withdraw the charge from EEOC jurisdiction if he or she wished to pursue a civil action rather than await the outcome of EEOC proceedings. (
The same courts have concluded that this provision gives the complainant the option of extricating the charge from the “administrative quagmire which occasionally surrounds a case caught in an overloaded administrative process” (Committee Report, supra, 1972 U.S.Code Cong. & Admin.News at 2147-48; noting delays of 2-3 years), but it does not require that the complainant do so. (E. g., Occidental Life Insurance Co. v. EEOC, supra,
If Rockwell were right, a complainant would be forced to demand a right to sue letter and to abandon EEOC jurisdiction to avoid destruction of the complainant’s right to a civil action whenever a state limitations statute threatened to expire. That interpretation would frustrate the congressional scheme of Title VII. Congress established a carefully integrated set of time periods keyed to the procedural steps of the statute. (See Machlin v. Spector Freight Systems, Inc. (1973)
Contrary to Rockwell’s argument, our interpretation of Title VII does not thwart state policy against the prosecution of stale claims and the use of stale evidence. Title VII requires timely filing and notice before the institution of administrative proceedings. (Occidental Life Insurance Co. v. EEOC, supra,
Title VII adequately accommodates the competing interests of the employer and employee. The employer receives prompt notice of the pendency of a Title VII charge and is assured that if the EEOC decides not to act, the employee must sue promptly or be barred from recovery. The employee is given the opportunity to have the charge resolved administratively, but also obtains a right to sue if the EEOC is unable or unwilling to resolve the problem. If any abuses do occur, the court in exercise of its equitable powers may restrict the granting of relief. (
. Under the version of Title VII then in effect, Kirk was required to file a complaint with the EEOC within 90 days of the alleged discrimination. He filed on April 27, 1971, approximately 70 days after the act of February 17, 1971 he challenges.
. The 1972 amendments to Title VII require that notice to the employer be given within 10 days of the filing of the complaint by the aggrieved individual. (42 U.S.C. § 2000e-5(b) (1972). See Occidental Life Ins. Co. v. EEOC, supra,
. Rockwell concedes that Kirk complied in all respects with Title VII’s provisions and diligently attempted to obtain prompt EEOC action on his complaint.
. Prior to this time Kirk, a non-lawyer, represented himself and received no legal advice. He was unaware that he could demand a right to sue letter before August, 1976. (See Mah-room v. Hook (9th Cir. 1977)
. The longest period potentially applicable to 42 U.S.C. § 1981 actions is three years. (Cal. Code Civ.Proc. § 338(1) (actions for liability created by statute).) We have no occasion to
. “Administrative tribunals are better equipped to handle the complicated issues Involved in employment discrimination cases. * * * The sorting out of the complexities surrounding employment discrimination can give rise to enormous expenditures of judicial resources in already overburdened Federal district courts. * * * Moreover, administrative tribunals are less subject to technical rules governing such matters as pleadings and motion practice — which afford opportunities for dilatory tactics- — and are less constrained by formal rules of evidence — which give rise to a lengthier (and more costly) process of proof.” (Id. at 2146.)
. As the completion of administrative proceedings are a jurisdictional requisite to the existence of the individual’s right to sue, it would appear that any state limitation period would be tolled during the pendency of EEOC proceedings in any event. (Cf. Chambers v. Omaha Public School District (8th Cir. 1976)
. The suggestion that a precautionary suit be filed and then delayed pending EEOC deliberations as the Court suggested in Johnson v. Railway Express, supra,
. See also Occidental Life Ins. Co. v. EEOC, supra,
. See also EEOC v. Occidental Life Ins. Co., supra,
. 42 U.S.C. § 2000e-5(c)-(e). See Davis v. Valley Distributing Co. (9th Cir. 1975)
