Lead Opinion
In this case, plaintiff-appellant John Garrett, a black man, alleges that he was the object of both racial discrimination and slander during and after a shopping trip to a Radio Shack store. The district court dismissed the case in its entirety. We affirm the dismissal of the appellant’s race-discrimination claim but reverse as to his defamation claim.
I. BACKGROUND
This appeal stands or falls on the facts alleged in the amended complaint. SEC v. SG Ltd.,
A. Facts Alleged in the Amended Complaint.
On December 21, 1998, the appellant entered a Radio Shack store in Brunswick, Maine, seeking to purchase a police scanner. For the duration of his stay, he was the only African-American on the premises. Three employees — all of whom were white — monitored his movements, and at least one of them accompanied him throughout his visit. Upon inquiry, a clerk told the appellant that the scanner he wished to buy was not in stock. The appellant did find a book, a telephone, and some batteries that were to his liking. At the checkout counter, he bought those items and asked whether the scanner might be available at another branch. After calling around, the store manager, Steven Richard, responded in the negative. At that juncture, Richard requested the appellant’s name and address. The appellant obliged.
Soon after the appellant left, Richard discovered that a laptop computer worth approximately $2,000 was missing. Richard reported the purloined computer to the Brunswick police, told them that he suspected the appellant of the theft, and supplied the officers with the appellant’s address. The appellant lived in the nearby town of Bath, and the Brunswick police contacted their counterparts in that community. A Bath police officer thereafter went to the appellant’s home to investigate the reported theft. The appellant allowed the officer to search his dwelling and his car, but the officer found no trace of the stolen computer.
The appellant heard nothing further from the police. Although he became dissatisfied with some of the products that he had purchased, he did not try to return them for fear that he would again be accused of shoplifting.
B. Travel of the Case.
On April 22, 1999, the appellant filed an administrative complaint with the Maine Human Rights Commission (MHRC), charging Radio Shack with discrimination in a public accommodation. See Me.Rev. Stat. Ann. tit. 5, § 4612. On January 27, 2000, the MHRC concluded that reasonable grounds existed to believe that unlawful discrimination had occurred and issued a right-to-sue letter. The appellant eschewed further state proceedings and brought suit in the federal district court. His complaint premised federal jurisdiction both on the existence of a federal question, see 28 U.S.C. § 1331, and on diversity of citizenship, see id. § 1332(a). As amended, the body of the complaint contained three statements of claim. The first asserted violations of 42 U.S.C. §§ 1981 and 1982 (count 1). The second asserted a violation of the Maine Human Rights Act (MHRA), Me.Rev.Stat. Ann. tit. 5, § 4613(2)(B) (count 2). The third asserted a claim for defamation (count 3).
Radio Shack moved to dismiss the amended complaint for failure to state a claim upon which relief could be granted. See Fed.R.Civ.P. 12(b)(6). After briefing and argument, the district court granted the motion with respect to the first and third counts. Garrett v. Tandy Corp.,
II. ANALYSIS
We review the allowance of a motion to dismiss de novo, taking as true the well-pleaded facts contained in the complaint and drawing all reasonable inferences therefrom in the plaintiffs favor. Rogan v. Menino,
A. Racial Discrimination.
Count 1 of the amended complaint is predicated upon a federal statute that traces its origins to section 1 of the Civil Rights Act of 1866, 14 Stat. 27 (1866). This statute, now codified in 42 U.S.C. § 1981, prohibits both public and private racial discrimination in certain specified activities (including the making and enforcement of contracts). Runyon v. McCrary,
To state a claim under this statute, a plaintiff must show (1) that he is a member of a racial minority, (2) that the defendant discriminated against him on the basis of his race, and (3) that the discrimination implicated one or more of the activities enumerated in the statute. Morris v. Dillard Dep’t Stores, Inc.,
The appellant attempts to fulfill this requirement by alleging that Radio Shack’s discriminatory acts interfered with his right to make and enforce contracts. That right is one that falls within the prophylaxis of section 1981. See 42 U.S.C. § 1981 (quoted infra note 1). The critical question, however, is whether the facts alleged in the appellant’s complaint, taken in the light most flattering to his theory of the case, show a sufficient nexus between the asserted discrimination and some contractual right or .relationship.
The case law suggests the nature of the requisite nexus. The Supreme Court originally gave section 1981 a narrow focus, declaring that the statute “does not apply to conduct which occurs after the formation of a contract and which does not interfere with the right to enforce established contract obligations.” Patterson v. McLean Credit Union,
We mention this history because the appellant’s central thesis is that the 1991 amendment elongates the reach of the statute sufficiently to link the two types of racially discriminatory treatment alleged here — the unwanted surveillance and the intrusion of the police into the appellant’s abode — to the appellant’s contract rights. The district court rejected both facets of this argument. It ruled that the surveillance was not actionable under section 1981 because the appellant “purchased his supplies and went home, without any inter
Although the 1991 amendment broadened the scope of section 1981, our own case law is unilluminating as to the extent of this expansion.
The preeminent case is Morris v. Office Max, Inc.,
To like effect is Hampton v. Dillard Dep’t Stores, Inc., 247 F.3d 1091, 1117-18 (10th Cir.2001), cert. denied, - U.S. -,
Another representative case is Morris v. Dillard Dep’t Stores, supra. There, an African-American woman had browsed in a department store without making any purchases.
In Youngblood v. Hy-Vee Food Stores, Inc.,
We are not comfortable with all of these outcomes, nor do we make a wholesale endorsement of the reasoning employed by these courts. Section 1981, insofar as it is pertinent here, pivots on contractual relationships, and the contours of what constitutes a “contract” (or a “contractual relationship,” for that matter) are properly found in state law. See Hampton,
In the last analysis, however, the doctrinal rule established in these cases seems sound, even if the application of the rule is questionable. The legislative history of the 1991 amendment makes it crystal clear that Congress did not intend to convert section 1981 into a general prohibition against race discrimination. See H.R.Rep. No. 40(11), at 37 (1991), reprinted in 1991 U.S.C.C.A.N. 549, 731 (“The Committee intends this jJrovision to bar all racial discrimination in contracts.”) (emphasis supplied). It follows, then, that in order to satisfy the foundational pleading requirements for a suit under section 1981, a retail customer must allege that he was actually denied the ability either to make,
Of course, section 1981, like many laws, is more easily interpreted at the polar extremes. The statute applies, for example, if a store refuses, on race-based grounds, to permit a customer to purchase its wares. By the same token, it does not apply if no contractual relationship is ever contemplated by either party (say, if a store manager makes a racially insensitive comment to a fireman who responds to a false alarm). The harder cases occupy the middle ground: cases in which a contract was made and the alleged discrimination bears some relation to it. The case at bar falls into this "middle" category. Particularly after the passage of the 1991 amendment, such situations call for careful line-drawing, case by case.
As said, the appellant has advanced two theories of liability under section 1981. The first theory posits that he was deprived of contractual rights when Radio Shack's staff put him under surveillance while he was in the store. This theory fails because the appellant has not alleged that the surveillance entailed harassment or otherwise interfered with his ability to make desired purchases. To the contrary, his amended complaint leaves no doubt but that, during his visit to the store, Radio Shack's employees were helpful and courteous; they facilitated his purchase of the items he selected, and even reached out to other branches in an effort to locate an out-of-stock product that he wished to buy.
On this point, then, the appellant's case boils down to the claim that he iras watched carefully while on the premises. Unadorned, that claim cannot succeed. In a society in which shoplifting and vandalism are rife, merchants have a legitimate interest in observing customers' movements. So long as iratchfulness neither crosses the line into harassment nor impairs a shopper's ability to make and complete purchases, it is not actionable under section 1981. See Office Max,
The appellant's second theory presents a closer call. He posits that Richard branded him a potential thief and reported him to the police for no reason other than the color of his skin, and that, as a result, he was deprived of the enjoyment of his purchases when the police subsequently intruded on his sanctuary. The difficulty with this theory is that the appellant fully consummated the contract while he was in the store (i.e., he completed the purchase of a book, a telephone, and some batteries) and thereafter retained the items that he acquired. His own complaint makes clear that he made these purchases without impedance and thenceforth enjoyed the use and ownership of the goods without interruption. The alleged harassment-the ap
The appellant attempts to parry this thrust by arguing that his contractual relationship with Radio Shack extended to a possible return of the purchased items, and that the visit from the police dampened his ardor for effectuating such a contract modification. The first part of this compound allegation is true: the right to return merchandise is incident to, and, thus, part of, the prototypical retail contract. The second part of the allegation, however, is a non-sequitur. In order to state a claim upon which relief can be granted under section 1981, a complaint must allege the actual loss of a contract interest, not simply the theoretical loss of a possible future opportunity to modify the contract. Morris,
In the first place, the appellant has not alleged that he took any steps to modify the purchase contract, that is, he never notified Radio Shack of his desire to return the goods, nor did he attempt in any way to effectuate their return. We do not think that a customer can hold a merchant liable for denying the right to a refund that the customer never pursued. Furthermore, the amended complaint alleges no facts from which it fairly can be inferred that the indignity of a visit from the police somehow hindered the appellant from seeking to return the purchased wares. The naked assertion that a party might have elected to return a previously purchased product had he believed the environment to be more welcoming is simply too ephemeral a hook from which to hang a cause of action under 42 U.S.C. § 1981. See Office Max,
For these reasons, we conclude that the amended complaint fails to state an actionable claim under 42 U.S.C. § 1981. When the appellant was in the store, he faced no hostility from the staff. By the time that he returned home, his contract with Radio Shack had been fully performed, and he
There is one loose end that we must secure. Count 1 of the amended complaint also mentions 42 U.S.C. § 1982, which prohibits racial discrimination in the purchase of property. Like section 1981, section 1982 has its roots in section 1 of the Civil Rights Act of 1866. Due to the statutes’ similar wording and common lineage, sections 1981 and 1982 are traditionally construed in pari materia. See Runyon,
To say more with respect to this count would be supererogatory. For the reasons elucidated above, we affirm the district court’s decision to dismiss the appellant’s federal claims.
B. Defamation.
This leaves the slander claim (count 3). Under Maine law, a cause of action for defamation arises from (1) the defendant’s unprivileged publication to a third party (2) of a false statement pertaining to the plaintiff (3) through fault amounting at least to negligence, (4) as long as the statement either is defamatory per se or causes special harm. Rippett v. Bemis,
Speech is constitutionally protected, however, see U.S. Const. amend. I, and not all false statements are actionable. In this regard, settled First Amendment jurisprudence distinguishes, inter alia, between statements of fact and statements of opinion. Levinsky’s, Inc. v. Wal-Mart Stores, Inc.,
The seminal case on the subject of First Amendment protection for expressions of opinion is Milkovich v. Lorain Journal Co.,
Against this backdrop, we return to the case at hand. The amended complaint alleges that, following Radio Shack’s discovery of the missing computer, the store manager, “without having performed a reasonable investigation and in bad faith,” singled out the appellant and “informed the Brunswick, Maine Police De
To suspect is to surmise, based on little or no evidence. The statement’s very uncertainty stops it from implying anything defamatory (for example, it does not imply that the manager actually saw [the appellant] stealing the computer). Rather, if it implies any factual assertions at all, they are not defamatory (for example, it might imply underlying assertions such as that [the appellant] was at the store before the computer was discovered missing, or, more seriously but still not defamatory, that [the appellant] had behaved in some way the manager deemed suspicious).
Id. at 121 (footnote omitted). On this basis, the court dismissed count 3 of the amended complaint.
The appellant takes issue with this reasoning. An accusation that X “suspects” Y of having committed a crime, he argues, is not necessarily a non-actionable statement of opinion, but, rather, a statement that implies the existence of underlying facts that can be proven true or false (and, thus, potentially actionable). Building on this foundation, he posits that the district court acted prematurely in dismissing the defamation claim on the face of the pleadings.
We find this argument persuasive. “Words may sometimes be chameleons, possessing different shades of meaning in different contexts.” United States v. Nippon Paper Indus. Co.,
We are not the first court to find a speaker’s use of a preface such as “I suspect” or “I believe” or “I think” to be non-dispositive for purposes of a defamation claim. Judge Friendly observed two decades ago that “[i]t would be destructive of the law of libel if a writer could escape liability for accusations of crime simply by using, explicitly or implicitly, the words T think.’ ” Cianci v. New Times Pub’g Co.,
If any doubt remained, Milkovich dispelled it. Discussing the same phenomenon, the Court offered the following example:
If a speaker says, “In my opinion John Jones is a liar,” he implies a knowledge of facts which lead to the conclusion that Jones told an untruth. Even if the speaker states the facts upon which he bases his opinion, if those facts are either incorrect or incomplete, or if his assessment of them is erroneous, the statement may still imply a false assertion of fact. Simply couching such statements in terms of opinion does not dispel these implications; and the statement, “In my opinion Jones is a liar,” can cause as much damage to reputation as the statement, “Jones is a liar.”
Based on these authorities, we conclude that Richard’s use of the term “I suspect” is not determinative of whether his statement to the police is actionable. To answer that question, we must know more about the context. The amended complaint, however, does not take us very far. It reveals only that the appellant employed the terms “suspect” and “suspicion” in a general sense, seeking to convey the idea that Richard had contacted the police to tell them of the theft and of his belief — at what level of certitude is unclear — that the appellant was the culprit.
This lack of certainty is telling. The method of Rule 12(b)(6) requires courts (not only the district court, but also this court on appellate review) to resolve all realistic possibilities in the pleader’s favor. See, e.g., Dartmouth Rev. v. Dartmouth Coll.,
[T]he statement, “I think Jones lied,” may be provable as false on two levels. First, that the speaker really did not think Jones had lied but said it anyway, and second that Jones really had not lied. It is, of course, the second level of falsity which would ordinarily serve as the basis for a defamation action, though falsity at the first level may serve to establish malice where that is required for recovery.
Milkovich,
We need not paint the lily. The facts alleged in the amended complaint leave open the possibility that Richard called the police and accused the appellant of pilfering merchandise without a reasonable basis in fact. That possibility is neither fanciful nor wildly improbable. Thus, the appellant is entitled to discovery in order to clarify exactly what was said and to develop the facts necessary to put what was said in a meaningful context. Whether or not the claim can then survive summary judgment is another question — and one as to which we take no view.
III. CONCLUSION
We summarize succinctly. We hold, as did the court below, that the amended complaint states no cognizable claim for relief under federal law. The complaint does, however, state a potential claim for defamation under Maine law, as the challenged statement may falsely have implied that Richard had a reasonable basis for suspecting Garrett of the theft. Thus, the district court erred in granting Radio Shack’s motion to dismiss the defamation claim. See Haworth v. Feigon,
We need go no further. For the reasons stated above, we affirm in part, reverse in part, and remand for further proceedings consistent with this opinion. In view of the changed circumstances, the appellant is free, on remand, not only to pursue count 3 of the amended complaint but also to seek reinstatement of count 2.
Affirmed in part; reversed in part; remanded. No costs.
Notes
. Section 1981, as amended, reads in pertinent part:
All persons within the jurisdiction of the United States shall have the same right in every State and Territory to make and enforce contracts....
For purposes of this section, the term "make and enforce contracts” includes the making, performance, modification, and termination of contracts, and the enjoyment of all benefits, privileges, terms, and conditions of the contractual relationship.
42 U.S.C. § 1981 (a)-(b).
. We have discussed the import of this amendment on only one occasion. See Danco, Inc. v. Wal-Mart Stores, Inc.,
. Although we can find no Maine law on what constitutes a contract in a retail sale context, the decisions of other state courts are uniform in this regard. See, e.g., Fender v. Colonial Stores, Inc.,
. We think it is important that the appellant does not allege that Radio Shack had the police scanner in stock and refused to sell it to him.
. To be sure, one court has read section 1981 rather expansively. See, e.g., Christian, 252 F.3d at 873 (stating that a "plaintiff need only show that she intended to make a purchase and was asked to leave the establishment in order to prevent her from making the purchase on account of her race in order to satisfy the 'make and enforce contracts' clause of § 1981”). This case does not require us to delve into the soundness of this position; the appellant’s claims would not pass muster even under the broader construction advanced by the Sixth Circuit. See id. at 872 (requiring a plaintiff to demonstrate that, while shopping, he "received services in a markedly hostile manner and in a manner which a reasonable person would find objectively discriminatory”).
. The appellant thereupon attempted to amend his complaint further by replacing "suspect” with a more substantive verb. The district court denied the motion as futile. Given our disposition of this aspect of the appeal, see text infra, we have no occasion to consider this ruling.
. Indeed, given the fact that the lower court dismissed the case before any pretrial discovery could be conducted, the appellant likely did not have knowledge of precisely what words Richard used to instigate the police investigation.
. This scenario includes, inter alia, both the store manager’s accusation and the further allegation that Radio Shack, in a flagrant display of racial profiling, turned over to the police only the appellant’s name, not the names of the white customers who were in the store at the same time.
. We note in passing that statements made in good faith for the purpose of bringing a criminal to justice are eligible for a conditional privilege as long as they are made on reasonable grounds after due inquiry. Packard v. Cent. Me. Power Co.,
Concurrence Opinion
concurring in part and dissenting in part.
Derived from the 1866 Civil Rights Act, section 1981 secures against racial discrim
The narrow view was rejected when Congress overruled Patterson v. McLean Credit Union,
Yet the circuit courts with only slight differences in emphasis have also rejected the broadest construction of section 1981 as encompassing all racial harassment by retail stores. E.g., Hampton v. Dillard Dep’t Stores, Inc.,
The search for an intermediate position has led, perhaps inescapably, to circuit court decisions that seem pettifogging, turning on how close the plaintiff was to making a purchase, Morris v. Dillard Dep’t Stores,
The precedents in other circuits, fairly described by the panel, say that for a section 1981 violation, there must be interference with a specific contract, actual or immediately contemplated; the abstract possibility of future purchases at some indefinite time is not enough. But Radio Shack’s action in sending policemen to Garrett’s home to investigate shoplifting after his purchase, if Garrett was singled out solely because he was black, could be deemed a sufficient interference to trigger liability. See Youngblood v. Hy-Vee Food Stores, Inc.,
What one describes as an “interference” with the right to “make” a contract and to “enjoy” its “benefits” depends on judicial construction. Section 1981 is now (post-Patterson) commonly used to remedy racial discrimination in the continuing employment relationship, see Danco, Inc. v. Wal-Mart Stores, Inc.,
Under the amendment, protection does not stop with the formation of the contract. Rivers,
Finally, even on the panel’s own reading of the statute, the section 1981 claim ought to be remanded. Garrett has alleged that he intended to return some of what he purchased. This claim was belated and could certainly be challenged, but it ought not be rejected out of hand on a motion to dismiss. See Hickerson v. Macy’s Dep’t Store,
Assuredly, problems exist in the use of section 1981 to superintend retail shopping: as in employment cases, lurid claims can be easily made, but less easily disproved, based on alleged oral remarks. Often (unlike employment cases), there is no economic damage. And section 1981 is not blunted by devices used in Title VII, such as agency exhaustion and a short statute of limitation for agency complaints. But courts can take some protective measures; in particular, not every minor slight or suspicion by a store has to be treated as interference.
On the other side of the scale, this case, if the allegations are assumed to be true, is not a trivial matter. A police investigation of someone for shoplifting and a consequent search of one’s home is a major indignity and not merely an imagined slight. And, if Garrett’s behavior was no different than that of other shoppers who visited Radio Shack at the same time (save as to his race), and if he alone was identified to the police, an inference of racial discrimination is more than speculation.
Despite great respect for the panel majority and for the very able district judge, my view is that the section 1981 claim as well as the defamation claim should be remanded for further proceedings.
. See Henderson v. Jewel Food Stores, Inc.,
