Suzanne HAAS v. LOCKHEED MARTIN CORPORATION.
No. 5, Sept. Term, 2006.
Court of Appeals of Maryland.
Jan. 9, 2007.
914 A.2d 735
Brief of amici curiae the Public Justice Center and the Maryland Employment Lawyers Association.
Roscoe Jones, Jr., Esquire, Francis D. Murnaghan, Jr., Appellate Advocacy Fellow, Suzanne Sangree, Esquire, Stephen Ruckman, Esquire, Public Justice Center, Baltimore, MD, for amicus curiae Public Justice Center.
Deborah Thompson Eisenberg, Esquire, Brown, Goldstein & Levy, Baltimore, MD, for amicus curiae Maryland Employment Lawyers Association.
Michael J. Murphy (John B. Flood of Ogletree, Deakins, Nash, Smoak & Stewart, P.C. of Washington, D.C.), on brief for Respondent.
Robin S. Conrad, Esquire, Shane Brennan, Esquire, National Chamber Litigation Center, Inc., Washington, D.C., for Respondent.
Maurice Baskin, Esquire, Venable L.L.P., Washinton, D.C., for Respondent.
Argued Before BELL, C.J., and RAKER, WILNER, CATHELL, HARRELL, BATTAGLIA and GREENE, JJ.
HARRELL, J.
We issued a writ of certiorari in this case, 393 Md. 160, 900 A.2d 206 (2006), to consider a matter of first impression in the reported opinions of the appellate courts of this State: what circumstances should be looked to in determining the point of
I. FACTS1
In October 1998, Petitioner Suzanne Haas was hired as a Program Administrator in the Lockheed Martin Corporation‘s Mission Systems division. At the time of her hiring, she possessed a Master‘s degree and was near completion of her Doctorate, lacking only a finished dissertation. From the date of hiring until October 1999, Haas worked under the supervision of Katie Sterrett, who gave Haas largely positive formal, as well as informal, performance reviews. By all accounts, Haas initially achieved the level of performance expected of new employees. In June 1999, however, Sterrett noted, and Haas acknowledged, a problem with Haas‘s attention to details. This difficulty persisted for several months and, in January 2000, Haas sought a psychiatric evaluation of the situation. Tests yielded a diagnosis of Attention Deficit Disorder (“ADD“) and learning disabilities, both of which were to be treated with medication. Several months later, Haas informed her new supervisor, Amy Lowenstein, of the diagnosis and assured her that the medication was alleviating the adverse symptoms of her condition. In June 2000, Lowenstein completed an annual personnel review, called a “Contribution
In May or April 2000, as part of a structural reorganization at Lockheed, Haas began dividing her work time between her Missions Systems position and a new post in the consolidated human resources unit called Corporate Shared Services. In this role, Haas reported to a supervisor in the Learning Services unit of Corporate Shared Services, Candice Phelan, who also was aware of Haas‘s medical condition. Haas and Phelan exchanged correspondence where Haas clarified that her medical condition would have no adverse effect on her work and Phelan expressed her confidence in their future working relationship. Nonetheless, a conflict arose shortly after Haas began assuming more responsibilities under the supervision of Phelan.
Petitioner, in her later filed complaint, alleged a number of instances where Phelan exhibited a general disapproval of Haas‘s work and assertedly made undue and frequent criticisms of her performance. Among these instances were claims that Phelan consistently suggested that Haas should not be assigned tasks involving writing, mathematical calculations, exercise of judgment, computers, or attention to detail. Petitioner also alleged that Phelan told Petitioner that she should consider a teaching career, as opposed to remaining at Lockheed Martin. Phelan purportedly went so far as to forward to Haas, unsolicited, a job posting from outside the company. Petitioner assigned a malevolent motive to the remarks and actions of Phelan, in contrast to the praise she apparently received from customers and others who encountered her work. Reprimands from Phelan continued for what
In April 2001, Phelan informed Haas that the functions Haas performed at Learning Services were to be transferred to the company‘s Institute for Leadership Excellence (“ILE“) at some time in the near future. On 10 April 2001, the Director of the ILE, Dorothea Mahan, posted on the company‘s Career Network website link a notice for an opening for a staff position dedicated, inter alia, to the logistical and planning functions previously performed by Haas for Learning Services. Haas applied for this position, but neither was selected for an interview nor offered the position. Mahan explained, in a deposition taken following the filing of Haas‘s complaint, that, in her view, Haas lacked the requisite experience in event planning to serve the needs of the position. It is uncertain exactly when Haas was informed that her application was unsuccessful,3 but it suffices to say that she was not aware that she had not been selected for the ILE position until shortly before she received a notification of layoff.
On 11 June 2001, Phelan placed Haas on a Performance Improvement Plan (“PIP“), a type of formal discipline apparently meant to direct the improvement of the disciplined employee‘s performance. Phelan dispatched a memorandum to Haas confirming the topics discussed at a meeting between the two to review the PIP, including Phelan‘s perceptions of Haas‘s shortcomings in judgment, planning, and attention to detail. Also part of the PIP discussion was a reference to the theft of a laptop under Haas‘s control while at a business meeting. The PIP memorandum indicated that a failure to correct the issues highlighted therein might subject Haas to
On 28 June 2001, Phelan completed an annual Contribution Assessment of Haas, in which she rated Haas as a “marginal contributor.” Although Phelan indicated that she was impressed with several of Petitioner‘s “very positive attributes“, she stated that Petitioner exhibited below-standard performances in judgment, compliance with company policy, attention to detail, and planning. Petitioner, at the time, disputed the reliability of her lower rating because she believed that Phelan had not taken into account positive feedback from two customers she serviced.
Phelan composed a memorandum to Haas, dated 9 October 2001, with the subject line “Notification of Layoff,” indicating that Haas‘s position was to be eliminated effective 23 October 2001. The text of the memorandum made reference to the layoff as a “Reduction in Force“. It also contained a description of the company‘s severance benefit plan, a contact with “outplacement services“, and a request to complete an exit interview prior to Haas‘s last day of work.
Haas, pointing to her supervisors’ alleged reactions to her diagnosed ADD, filed a Complaint in the Circuit Court for
Lockheed‘s posited in its summary judgment motion that Haas‘s claim was time-barred in the first instance because it accrued upon notice of her layoff, rather than upon her final day of work.
II. ANALYSIS
A. Standard of Review of the Grant of Summary Judgment
This case requires us to review the Circuit Court‘s grant of summary judgment in favor of Respondent Lockheed Martin. We consider, de novo, first, whether a material fact was placed in genuine dispute, thus requiring a trial, and, second, if trial by a fact-finder is not required, whether the Circuit Court was legally correct in granting summary judgment. Livesay v. Baltimore County, 384 Md. 1, 9, 862 A.2d 33, 38 (2004) (citing Walk v. Hartford Cas. Ins. Co., 382 Md. 1, 14, 852 A.2d 98, 105 (2004)).
The standard for reviewing the grant of summary judgment is well-settled in Maryland:
Maryland Rule 2-501 indicates that a motion for summary judgment is appropriate “on all or part of an action on the ground that there is no genuine dispute as to any material fact and that the party is entitled to judgment as a matter of law.” A motion for summary judgment may be supported by affidavit. When reviewing the grant or denial of a motion for summary judgment we must determine whether a material factual issue exists, and all inferences are resolved against the moving party. “[E]ven where the underlying facts are undisputed, if those facts are susceptible of more than one permissible inference, the choice between those inferences should not be made as a matter of law, but should be submitted to the trier of fact.” The function of a summary judgment proceeding is not to try the case or to attempt to resolve factual disputes but to determine whether there is a dispute as to material facts sufficient to provide an issue to be tried. A “material fact” is one which will somehow affect the outcome of the case.An appellate court reviewing a summary judgment examines the same information from the record and determines
the same issues of law as the trial court. We are often concerned with whether a dispute of material fact exists when reviewing the grant of a summary judgment motion. We recently reiterated the standard of review for a trial court‘s grant or denial of a motion for summary judgment in Myers v. Kayhoe, 391 Md. 188, 892 A.2d 520 (2006): “The question of whether a trial court‘s grant of summary judgment was proper is a question of law subject to de novo review on appeal. Livesay v. Baltimore, 384 Md. 1, 9, 862 A.2d 33, 38 (2004). In reviewing a grant of summary judgment under
Md. Rule 2-501 , we independently review the record to determine whether the parties properly generated a dispute of material fact and, if not, whether the moving party is entitled to judgment as a matter of law. Id. at 9-10, 862 A.2d at 38. We review the record in the light most favorable to the nonmoving party and construe any reasonable inferences that may be drawn from the facts against the moving party.” Id. at 10, 862 A.2d at 38.United Servs. Auto. Ass‘n v. Riley, 393 Md. 55, 65-67, 899 A.2d 819, 825-826 (2006) (some internal citations omitted).
There are no material facts in genuine dispute here bearing on the legal ground upon which summary judgment was granted. The parties agree that, on 9 October 2001, Petitioner was issued a written notification of her layoff, which was to become effective on 23 October 2001. Petitioner‘s employment at Lockheed ceased on 23 October 2001. Therefore, we shall consider whether the grant of summary judgment by the Circuit Court in favor of Lockheed Martin based on the applicable statute of limitations, was correct as a matter of law. Livesay, 384 Md. at 9, 862 A.2d at 38.
B. The Date of Accrual for Wrongful Discharge and the Ricks/Chardon Rule
The Circuit Court granted, and the Court of Special Appeals affirmed, summary judgment for Lockheed on the ground that Petitioner‘s cause of action for discrimination was time-barred by the statute of limitations imposed by
While both of these cases, one of which construes the provisions of
Maryland courts sometimes prefer interpretations of state statutes varying from similar federal statutes, as exemplified by Carroll v. Housing Opportunities Commission, 306 Md. 515, 523, 510 A.2d 540, 544 (1986) (” ‘A large body of decisional law has been developed in the federal courts interpreting the federal standard [for determining a statutorily set amount in controversy], which, while not binding, is a logical reference.’ ” (quoting Pollokoff v. Md. Nat‘l Bank, 288 Md. 485, 491, 418 A.2d 1201, 1205 (1980))), Quality Discount Tires, Incorporated v. Firestone Tire and Rubber Company, 282 Md. 7, 12, 14-23, 382 A.2d 867, 870, 871-876 (1978) (holding that the a principle enunciated by the Supreme Court as to the Sherman Act did not preclude plaintiff‘s suit under the Maryland Antitrust Act), and State v. Bailey, 289 Md. 143, 151-52, 422 A.2d 1021, 1026 (1980) (addressing the possibility of differing standards for wiretaps under similar state and federal statutes).
For examples of divergent rule constructions, see Stoddard v. State, 389 Md. 681, 695-96, 887 A.2d 564, 572 (2005), Pinkney v. State, 350 Md. 201, 235, 711 A.2d 205, 222 (1998) (noting the Supreme Court‘s interpretation of a rule governing in absentia trials is not binding on Maryland courts for a similar rule), State v. Matusky, 343 Md. 467, 490, 682 A.2d 694, 705 (1996) (acknowledging that the Supreme Court‘s interpretation of the federal statement against penal interest hearsay exception, while persuasive, is not binding on the states), and Walker v. State, 338 Md. 253, 260, 658 A.2d 239, 242 (1995) (dealing with rules for in absentia trials).
For cases addressing the notion that state constitutional provisions, even when read in pari materia with federal dopplegangers, may be interpreted differently from those counterpart federal provisions, see Dua v. Comcast Cable of Maryland, Incorporated, 370 Md. 604, 621, 805 A.2d 1061, 1071 (2002) (cataloguing cases) and Aero Motors, Incorporated v. Motor Vehicle Administration, 274 Md. 567, 587, 337 A.2d 685, 699 (1975) (“Although Art. [24] of the Maryland Declaration of Rights has long ‘been equated’ with the ‘due process’ clause of the Fourteenth Amendment by judicial construction and application, the two provisions are not synonymous.“); see also Borchardt v. State, 367 Md. 91, 175, 786 A.2d 631, 681 (2001) (Raker, J., dissenting) (“Although this Court has generally interpreted Article 24 in pari materia with the Due Process Clause of the Fourteenth Amendment, we have interpreted it more broadly in instances where fundamental fairness demanded that we do so.“). Judge Raker‘s dissent in Borchardt cited some examples in the criminal context, such as placing stricter limits on prosecutorial discretion to enter nolle prosequi and the optional merger of criminal offenses. Id. We have also read Maryland‘s due process clause more broadly than the federal constitution in granting the right to counsel, see Rutherford v. Rutherford, 296 Md. 347, 358, 363, 464 A.2d 228, 234, 237 (1983), cited in Das v. Das, 133 Md.App. 1, 28, 754 A.2d 441, 456 (2000), and the protection from self-incrimination, Choi v. State, 316 Md. 529, 535 n. 3, 560 A.2d 1108, 1111 n. 3 (1989).
After the Equal Employment Opportunity Commission (EEOC) issued a “right to sue” letter to Ricks, he filed suit in federal District Court alleging that he had been the subject of discrimination. Ricks, 449 U.S. at 254, 101 S.Ct. at 502. The District Court dismissed the action as untimely for the reason that the applicable statute of limitations of 180 days became engaged on the day the College offered Ricks the terminal one-year contract and therefore Ricks failed to file his EEOC complaint before the expiration of the relevant limitations period. Ricks, 449 U.S. at 254-55, 101 S.Ct. at 502. The U.S. Court of Appeals for the Third Circuit reversed, holding that Ricks‘s cause of action accrued upon the expiration of his terminal contract, rather than on its offer. Ricks, 449 U.S. at 255, 101 S.Ct. at 503. The Third Circuit relied heavily on public policy reasoning that to require litigation to commence contemporaneously with the employee‘s last days on the job would reduce productivity and confound conciliation attempts in light of the possibility that the initial decision to terminate may be reversed before it became effectuated. Ricks, 449 U.S.
Put in a more homespun idiom, and paraphrasing a frequent motherly admonition, “Just because [Georgia] ran off a cliff doesn‘t mean [Maryland] has to follow suit.”
The Supreme Court reversed the Third Circuit, holding that the limitations period commenced upon the College‘s notification to Ricks that he was denied tenure and offered a terminal contract. Ricks, 449 U.S. at 261-62, 101 S.Ct. at 506. The Court analyzed the timeliness issue by first identifying “precisely the ‘unlawful employment practice’ of which [Ricks] complains,” based on the allegations contained in Ricks‘s complaint. Ricks, 449 U.S. at 257, 101 S.Ct. at 503-04. Finding in Ricks‘s complaint that he had not alleged any discriminatory acts through the time of his actual discharge, the Court opined that he could not breathe new life into his complaint for denial of tenure by arguing later that his discharge was also discriminatory. Id. (citing United Air Lines, Inc. v. Evans, 431 U.S. 553, 558, 97 S.Ct. 1885, 1889, 52 L.Ed.2d 571 (1977)) (“Mere continuity of employment, without more, is insufficient to prolong the life of a cause of action for employment discrimination.“). The Court, in its analysis, hewed to the acts of discrimination alleged in the complaint, notwithstanding when the effects of those acts are manifested. Ricks, 449 U.S. at 258, 101 S.Ct. at 504 (“The proper focus is upon the time of the discriminatory acts, not upon the time at which the consequences of the acts become most painful.” (quoting Abramson v. Univ. of Hawaii, 594 F.2d 202, 209 (9th Cir.1979))). Because Ricks failed to allege that “the manner in which his employment was terminated differed discriminatorily from the manner in which the College terminated other professors who also had been denied tenure,” the only discriminatory act for the Court to consider was the denial of tenure. Id. The Court noted that the result reached in Ricks was dictated by the particular facts in that case and that the “widely varying circumstances” of other discriminatory discharge cases require that the principles discussed in Ricks be applied on a case-by-case basis. Id. at n. 9.
As Petitioner and Respondent in the present case demonstrated in their briefs and at oral argument, there exists a split across jurisdictions as to the acceptance of the eponymous “Ricks/Chardon rule“.11 It appears that the majority of
The letter proffered by Respondent neither is the type of source nor are its contents the type of facts we may recognize for judicial notice purposes under the Rule. The content of the letter composed by Mr. Dennis is not based on a statute, ordinance, or regulation. What is more, even if it could be viewed as some manner of policy statement by the Office of Human Rights, it does not convey a previously published policy, that is, one capable of reliably accurate and ready determination. We have refused to notice judicially the unwritten, unpublished policies of various divisions of government in this State. See, e.g., Cook v. Sherry, 268 Md. 26, 30-31, 299 A.2d 811, 813–14 (1973) (declining to take judicial notice of the City of Cumberland Police Department‘s ‘unwritten policy’ of having all promotions made on a probationary basis for one year following the date of appointment“); Anne Arundel County v. Cushman, 255 Md. 153, 161-62, 257 A.2d 150, 154–55 (1969) (holding that a county‘s release of proposal and specifications for waste collection contracts did not qualify as a published statute or ordinance for judicial notice purposes); accord Powell v. State Farm Mut. Auto. Ins. Co., 173 S.W.3d 685, 689-90 (Mo.Ct.App.2005); Dep‘t of Human Resources v. Haggard, 173 Ga.App. 676, 327 S.E.2d 798, 799-800 (1985).
Accordingly, we deny Respondent‘s request.
accrual); Hinman v. Yakima Sch. Dist. No. 7, 69 Wash.App. 445, 850 P.2d 536, 539 (1993); Turner v. IDS Financial Srvs., Inc., 471 N.W.2d 105, 107-08 (Minn.1991); St. Petersburg Motor Club v. Cook, 567 So.2d 488, 489 (Fla.Dist.Ct.App.1990); Naylor v. W.Va. Human Rights Comm‘n, 180 W.Va. 634, 378 S.E.2d 843, 845-46 (1989); Hilmes v. Dep‘t. of Indus., Labor & Human Relations, 147 Wis.2d 48, 433 N.W.2d 251, 253-54 (Ct.App.1988); Quicker v. Colo. Civil Rights Comm‘n, 747 P.2d 682, 683 (Colo.Ct.App.1987); Humphreys v. Riverside Mfg. Co., 169 Ga.App. 18, 311 S.E.2d 223, 224-25 (1983); Queensborough Cmty. College of City Univ. of N.Y. v. State Human Rights Appeal Bd., 41 N.Y.2d 926, 394 N.Y.S.2d 625, 363 N.E.2d 349, 349 (1977) (memorandum) (pre-dates Ricks). See also Clarke v. Living Scriptures, Inc., 114 P.3d 602, 604-05 (Utah Ct.App.2005) (adopting Ricks for purposes of breach of employment contract case); Cintron v. E.L.A., 127 D.P.R. 582 (P.R.1990) (statute provides for date of accrual); Smith v. City of Gardendale, 508 So.2d 250, 252 (Ala.1987) (citing to Ricks in affirming the dismissal of a discriminatory zoning case as time-barred because the homeowner‘s action accrued when he received notice of the set back ordinance violation); 86 Op. Att‘y Gen. 1014 (Del.1986) (citing to the Ricks/Chardon rule in stating that an individual claiming discrimination in employment should be allowed to file a charge as early as possible).
The divergent opinions from Hawaii, California, and New Jersey seem to us to epitomize best the arguments gainsaying adoption of the Ricks/Chardon rule. The Supreme Court of Hawaii, in Ross v. Stouffer Hotel Company, 76 Hawai‘i 454, 879 P.2d 1037 (1994), produced the first substantial opinion contrary to the Ricks/Chardon rule. The court there dealt with an employment discrimination regulatory scheme nearly identical to the one involved in the present case. Ross, 879 P.2d at 1038 n. 2. In fact, the Hawaii regulatory scheme, like the one in Maryland, involves one statute prohibiting a discriminatory discharge, compare
In rejecting the Ricks/Chardon rule, the Hawaiian court examined the plain language of the statutes involved. Id.
In the age discrimination case of Romano v. Rockwell
International Incorporated, the Supreme Court of California
echoed the same considerations noted by the high court of
Hawaii: the plain language and remedial purpose of the
wrongful discharge statute, limited burden on the employer,
and simplicity of a bright line. 14 Cal.4th 479, 59 Cal.Rptr.2d
20, 926 P.2d 1114, 1122-23 (1996). The Romano Court added
that were it to adopt the Ricks/Chardon rule such would
“promote premature and potentially destructive claims, in that
the employee would be required to institute a complaint ...
while he or she still was employed, thus seeking a remedy for
a harm that had not yet occurred.” 59 Cal.Rptr.2d 20, 926
P.2d at 1123. The chances of conciliation between the employ-
er and employee seriously would be jeopardized and judicial
economy could be hampered by the possibility that suits will
be filed based on a notice of termination that might later be
The New Jersey cases departing from the Ricks/Chardon
line of authority, Alderiso v. Medical Center of Ocean County,
Incorporated, 167 N.J. 191, 770 A.2d 275 (2001) and Holmin v.
TRW Incorporated, 330 N.J.Super. 30, 748 A.2d 1141 (2000),
also discussed many of the same points raised by the Hawaiian
and Californian high courts. The analysis in Alderiso started
with an evaluation of the plain meaning of the statutorily
undefined term “discharge.” 770 A.2d at 280, 279. After
settling on “discharge” as meaning the last day of paid salary,
the New Jersey court referred to the reasoning in Justice
Stevens‘s dissent in Ricks as more persuasive support for the
clearer and simpler rule for the commencement of limitations
on the actual termination date. Alderiso, 770 A.2d at 281.
The Holmin case, which dealt with a claim for fraudulent
inducement to retire, rather than a discriminatory discharge,
analyzed and discarded the Ricks/Chardon rule for many of
the same reasons already discussed supra. 748 A.2d at 1142.
Holmin rejected the Ricks/Chardon rule as “arbitrary” and
criticized those cases adopting it as lacking “any persuasive
discussion of a sound policy basis” for doing so. 748 A.2d at
1151. Rather, the court praised the more compelling points
made in the cases antedating the U.S. Supreme Court‘s deci-
sions in Ricks and Chardon:15 the termination decision may be
C. We Reject the Ricks/Chardon Rule as Applied to the Present Case 16
We find the collective rationales of the Hawaii,
California, and New Jersey cases persuasive in interpreting
our statutory scheme. Like the statutes involved in those
cases, the pertinent language in
Consultation with several popular dictionaries reveals that
the commonly understood, plain meaning of “discharge” con-
curs with the view that a discharge occurs at the time the
employee is terminated actually from employment.17 In this
We hold that, for the purpose of claims filed pursuant
to
First, we consider the remedial nature and purpose of
As a remedial statute,
The Ricks/Chardon rule frustrates this conciliation process
whenever the actual discharge occurs after the expiration of
the 45 day waiting period required by
In the same vein as the conciliation consideration is the contention that the Ricks/Chardon rule propagates the filing of claims not yet ripe for adjudication. Under the rule, it is possible theoretically that employees who challenge their puta- tive discharge could arrive for their day in court before they actually are discharged from employment. Further, Ricks and Chardon create a paradoxical situation where an employ- ee, at the time he or she is notified of the termination yet to come, must possess the prescience to know of the future “discriminatory acts that continue[] until, or occur[] at the time of, the actual termination of his [of her] employment.” Ricks, 449 U.S. at 257, 101 S.Ct. at 504; see also Chardon, 454 U.S. at 8, 102 S.Ct. at 29. If employees desire to challenge their terminations specifically, as opposed to other discrimina- tory acts preceding it, they probably ought not be expected to file a claim disputing events that have not yet come to pass.
A significant consideration supporting our conclusion today
is the relative simplicity in application of a bright line rule in
this context. For courts, the determination of a statute of
limitations question is made simpler thereby, obviating the
need for the sometime tortured analysis under the “discovery
rule” for when notice is adequate. For employees, the rule we
Our holding should not deter employers from offering their employees advance notice of terminations. Indeed, there should be no great burden or adverse effect on employers because notice periods typically would not be of great duration in advance of the actual discharge. Our rule prevents the possibility of employers using exceptionally long notice periods for the purpose of deterring an employee from filing a dis- charge claim out of apprehension that they will be terminated earlier than scheduled.
The specter of employers having to defend against
stale claims is not a persuasive argument. We have noted
that “[o]ne principal purpose of statutes of limitations is to
provide defendants with notice of a claim within a sufficient
period of time to permit the defendant to take necessary steps
to gather and preserve the evidence needed to defend against
the suit.” Philip Morris USA, Inc. v. Christensen, 394 Md.
227, 256, 905 A.2d 340, 357-58 (2006); see also Hecht v.
Resolution Trust Corp., 333 Md. 324, 338, 635 A.2d 394, 401
(1994). From the defendant‘s perspective, the statute of
The concerns animating the statute of limitations
defense in most cases simply are not present here. As we
have noted, employers ordinarily are in control of the termi-
nation process, so they may not maintain credibly an argu-
ment that they would be without adequate notice of a wrongful
discharge action. The decision and execution of a discharge,
along with records thereof, easily may be orchestrated in
harmony with our holding today to ensure that an employer-
defendant is not caught unaware of an unlawful discriminatory
discharge claim. In the majority of instances, the time
elapsed between the rendition of notice and effectuation of a
termination is not so long as to foster relevant evidence falling
victim to fading memories, missing documentation, or other
spoliation concerns. The voluminous record of thorough depo-
sitions, internal e-mails, and other materials created in the
present case is testament to this prediction. We also observe,
merely in passing, that “[t]he statute of limitations, as a
Finally, we resolve the contention that a statement regard- ing the Ricks/Chardon rule in Towson University v. Conte, 384 Md. 68, 96-97, 862 A.2d 941, 957 (2004), signaled our adoption of the rule. The brief discussion of the rule in the majority opinion in Conte was merely in response to an argument made by the dissent in that case, id., and represent- ed nothing more than a disputation that the rule, which dealt with an allegation of a civil rights deprivation, was inapposite to a breach of contract action. Id. In the present case, where Ricks/Chardon is arguably the most apposite, we hold that it should not be followed.
JUDGMENT OF THE COURT OF SPECIAL APPEALS REVERSED; CASE REMANDED TO THAT COURT WITH DIRECTIONS TO REVERSE THE JUDGMENT OF THE CIRCUIT COURT FOR MONTGOMERY COUNTY AND REMAND THE CASE TO THE CIRCUIT COURT FOR FURTHER PROCEEDINGS; COSTS IN THIS COURT AND IN THE COURT OF SPECIAL APPEALS TO BE PAID BY RESPONDENT.
BATTAGLIA, J., dissenting, in which RAKER, J. joins in Part A:
I respectfully dissent.
A.
In this case, the Petitioner, Suzanne Haas, alleged in her complaint that “[t]he actions of Lockheed [Martin] in termi- nating [her]” from her position as Program Administrator constituted “handicap discrimination” because “Lockheed clearly regarded Haas as being disabled” on account of her Attention Deficit Hyperactivity Disorder. Although she phys- ically left her employment on October 23, 2001, because of her employer‘s sufferance, the statute of limitations began to run on October 9, 2001, when Lockheed Martin notified Ms. Haas by letter of the termination of her position.
Our jurisprudence, as well as that of the Supreme Court, federal circuit courts of appeals, and the majority of our sister states supports this result. The majority, however, rejects not only our precedent, but the plethora of cases that reach the opposite result in order to accommodate negotiation and conciliation between employers and employees, efforts which the majority concedes were not the basis for Ms. Haas‘s delay in filing suit.
In Delaware State College v. Ricks, 449 U.S. 250, 101 S.Ct.
498, 66 L.Ed.2d 431 (1980), the Supreme Court addressed the
instant issue. In Ricks, a professor alleged that the Delaware
State College discriminated against him in its decision to deny
him tenure. The trial judge dismissed the professor‘s claim on
the ground that it was untimely filed because the discriminato-
ry act occurred when the college made its decision not to
grant the professor tenure; therefore, the statute of limita-
tions had begun to run on the date that the professor was
officially notified of the college‘s decision, rather than when he
left his employment. The Supreme Court affirmed the Dis-
trict Court‘s ruling and held that “the only alleged discrimina-
tion occurred and the filing limitations periods therefore
commenced—at the time the tenure decision was made and
communicated to [the professor].” Id. at 258, 101 S.Ct. at 504,
The Supreme Court revisited this issue in Chardon v. Fernandez, 454 U.S. 6, 102 S.Ct. 28, 70 L.Ed.2d 6 (1981), in which the plaintiffs alleged discrimination in the decision of the Puerto Rico Department of Education to terminate their employment. The trial court dismissed the claim as untimely, and the Court of Appeals for the First Circuit reversed, holding that the claims began to accrue not upon the plaintiffs’ notification of the employer‘s decision to terminate them, but when their employment was actually terminated. The Su- preme Court, in reversing, concluded that the Chardon and Ricks cases were indistinguishable; “in each case, the opera- tive decision was made—and notice given—in advance of a designated date on which employment terminated.” Id. at 8, 102 S.Ct. at 29, 70 L.Ed.2d at 8. Emphasizing that “reasonable notice cannot extend the period within which suit must be filed,” the Supreme Court therefore held that the statute of limitations began to run when the plaintiffs were notified of their employer‘s final decision, not when their employment actually terminated. Id.1
The General Assembly passed the Maryland Fair Employ-
ment Practices Law, codified at
The Majority concludes incorrectly that the “plain meaning
of ‘discharge’ concurs with the view that a discharge occurs at
the time the employee is terminated actually from employ-
ment.” As used in
The Majority relies on judicial decisions in Hawaii, Califor- nia, and New Jersey that have declined to follow the Ricks/Chardon rule, but fails to consider that the reasoning of those courts was influenced by the underlying statutes and facts of those cases, all of which are significantly different than the statutes and facts in the case sub judice. In Ross v. Stouffer Hotel Company, 76 Hawaiʻi 454, 879 P.2d 1037 (1994), the statute of limitations at issue was 90 days long, as opposed to Maryland‘s generous two years. The Ross court based its decision on an analysis of the plain language, but then pro- ceeded to further justify its departure from the Ricks/Char- don rule by emphasizing that less savvy employees would fail to pursue the filing of an administrative complaint within ninety days if the statute of limitations started upon notice. Id. at 1045. Maryland‘s two year statute of limitations guaran- tees the protection against discrimination by employers—even for less savvy employees—while also protecting employers from the burden of defending employment decisions that are long past.2
The employee in Romano v. Rockwell International, Inc.,
14 Cal.4th 479, 59 Cal.Rptr.2d 20, 926 P.2d 1114 (1996), was
given notice in December 1988 that he would be terminated
when he reached 85 service points under the company retire-
ment plan, which would occur May 31, 1991. Thus, Romano
had approximately one and a half years notice of his unequivo-
cal termination. In construing the state‘s one year statute of
limitations, the Supreme Court of California relied on Ross
The New Jersey cases also are not persuasive. In Alderiso v. Medical Center of Ocean County, Inc., 167 N.J. 191, 770 A.2d 275 (2001), a one year statute of limitations was at issue and the employee was given oral notice of termination. Mary- land‘s statute is two years and Haas was given unequivocal notice in writing. Holmin v. TRW, Inc., 330 N.J.Super. 30, 748 A.2d 1141 (2000), considered a claim for fraudulent induce- ment to retire, a claim subject to a six year statute of limitations.
Many of our sister courts, which also have espoused the date of notification approach, have done so on the grounds that it promotes and protects many important public policies. The Utah Court of Appeals in Clarke v. Living Scriptures, Inc., 114 P.3d 602 (Utah Ct.App.2005), stated that a contrary approach
would discourage employers from providing post-termi- nation benefits. See, e.g., Naton v. Bank of Cal., 649 F.2d 691, 695 (9th Cir.1981) (“[A] rule focusing on the date of termination of economic benefits might dissuade an employ-
er from extending benefits to a discharged employee after the employee has ceased working.“); Bonham v. Dresser Indus., 569 F.2d 187, 191–92 (3d Cir.1977) (“[W]e would ... view with disfavor a rule that penalizes a company for giving an employee periodic severance pay or other extend- ed benefits after the relationship has terminated rather than severing all ties when the employee is let go.“).
Id. at 606. The Court of Appeals of Wisconsin in Hilmes v. Department of Industry, Labor and Human Relations, 147 Wis.2d 48, 433 N.W.2d 251 (Ct.App.1988), emphasized that “[k]eying an ‘occurrence’ of discrimination to a time prior to termination can afford the employee an opportunity to pre- vent—rather than rectify—wage loss and other harmful ef- fects of the discriminatory practice.” Id. at 254. The Su- preme Court of Minnesota determined in Turner v. IDS Financial Services, Inc., 471 N.W.2d 105 (Minn.1991), that the date of notification was the correct measure because at that time the plaintiff “immediately attains a lame duck status and, prior to actual discharge, may well incur employment agency fees and sustain damages for ‘mental anguish and suffering’ “. Id. at 108.
The last-day-of-employment approach, embraced by the ma- jority for reasons not implicated in the present case, discour- ages employers from extending employment and other bene- fits beyond the date of notification, which provides employees a much needed grace period to locate alternative employment; conversely, the date-of-notification approach motivates both the employer and employee to begin conciliation as soon as possible, possibly avoiding wage loss and other harmful effects of the alleged discriminatory decision. The date-of-notifica- tion approach also recognizes and compensates for the fact that employees begin to accrue damages, both emotional and financial, from the time that the employer communicates what could be a discriminatory decision.
B.
More importantly, however, I believe that the majority is
wrong in rejecting the Supreme Court‘s Ricks/Chardon Rule
The discovery rule has been applied to determine the time
of accrual of a plethora of various civil actions. See, e.g.,
Callahan v. Clemens, 184 Md. 520, 41 A.2d 473 (1945) (involv-
ing an action for negligent construction); Mattingly v. Hop-
kins, 254 Md. 88, 253 A.2d 904 (1969) (applying rule to action
In Arroyo v. Board of Education of Howard County, 381
Md. 646, 851 A.2d 576 (2004), we were called upon to deter-
mine when a school guidance counselor‘s claim against the
Howard County Board of Education for wrongful termination
began to run—upon notification of his termination, or upon the
date of his actual termination. We concluded that, pursuant
to
[t]he dispositive issue ... is ascertaining when the plaintiff was put on notice that he may have been injured. It is manifest to this Court, after viewing Hahn and its progeny, that the statute of limitations on petitioner‘s civil claim of
wrongful termination began to run when he knew or reason- ably should have known of the claimed wrong done to him, i.e., his dismissal as an employee of the HCPSS.
Id. at 669, 851 A.2d at 590. Thus,
[i]t was the act of the State Board, in its affirmance of the County Board‘s decision to terminate petitioner from his employment, that was the final decision of the administra- tive agency and signified an exhaustion of petitioner‘s ad- ministrative remedies. It was no later than this point that petitioner‘s injury “accrued.” And it was no later than this point that he knew, or should have known of the “injury.”
Id. at 671, 851 A.2d at 591 (second emphasis added).
Although Arroyo involved an action under the
For these reasons I would affirm the judgment of the Court of Special Appeals and hold that Ms. Haas filed her action in an untimely fashion.
Judge RAKER has authorized me to state that she joins in Part A of this dissenting opinion.
