HECHT v NATIONAL HERITAGE ACADEMIES, INC
Docket No. 150616
Supreme Court of Michigan
Argued March 10, 2016. Decided July 26, 2016.
499 MICH 586
Crаig Hecht brought an action in the Genesee Circuit Court alleging that his employment was terminated by National Heritage Academies, Inc., in violation of the Michigan Civil Rights Act (CRA),
In an opinion by Chief Justice YOUNG, joined by Justices MARKMAN, ZAHRA, MCCORMACK (as to Parts I, II, and III), VIVIANO, BERNSTEIN (as to Parts I, II, and III), and LARSEN, the Supreme Court held:
In light of the circumstantial evidence presented and all the inferences that could have been reasonably drawn from that evidence in favor of the jury‘s liability verdict, a reasonable jury could have concluded that defendant violated the CRA. However, because
1. When reviewing a motion for JNOV, an appellate court must construe all the evidence and the inferences arising from the evidence in the nonmoving party‘s favor. If reasonable jurors could have honestly reached different conclusions, the jury verdict must stand. Under
2. Generally, all relevant evidence is admissible, except as otherwise provided by the Constitution of the United States, the Constitution of the state of Michigan, the rules of evidence, or other rules adopted by the Supreme Court. Evidence may also be prohibited by statute.
Court of Appeals judgment is affirmed to the extent it held that plaintiff presented sufficient circumstantial evidence to sustain the jury‘s verdict finding that defendant violated the CRA; Court of Appeals judgment is reversed to the extent it held that the trial court properly admitted evidence of defendant‘s mandatory disclosures of plaintiff‘s unprofessional conduct; jury award of future damages is vacated; case is remanded to the trial court for further proceedings.
Justice MCCORMACK, joined by Justice BERNSTEIN, concurring in part and dissenting in part, agreed with the majority that plaintiff presented sufficient evidence of discrimination such that the trial court did not err by denying defendant‘s motion for JNOV, but disagreed with the majority‘s decision to vacate the jury award for future damages.
- ACTIONS — VIOLATIONS OF THE CIVIL RIGHTS ACT — SUFFICIENCY OF THE EVIDENCE — CAUSATION.
UnderMCL 37.2202(1) of the Civil Rights Act, an employer may not discharge or otherwise discriminate against an individual with respect to employment because of race; a clаim under the act requires proof of “but for” causation; there are multiple ways to prove that a plaintiff was the victim of unlawful discrimination, including through proofs of either direct or circumstantial evidence of discrimination. - SCHOOLS — DISCLOSURES OF UNPROFESSIONAL CONDUCT — IMMUNITY FROM CIVIL LIABILITY FOR DISCLOSURES — INADMISSIBILITY OF EVIDENCE OF DISCLOSURES TO ASSESS DAMAGES IN A DISCRIMINATION CASE.
UnderMCL 380.1230b , before hiring an applicant for employment a school employer must request that the applicant‘s current or prior employer provide information concerning the applicant‘s unprofessional conduct, if any; after receiving such a request, a school employer must provide the information requested and make available to the requesting school employer copies of all documents in the employee‘s personnel record relating to the unprofessional conduct; a school employer that discloses information in good faith under the statute is immune from civil liability for the disclosure; evidence of such a disclosure is not admissible for the purpose of assessing the plaintiff‘s damages arising out of the disclosure in a case brought by a plaintiff alleging that he or she was fired in violation of the Michigan Civil Rights Act,MCL 37.2101 et seq.
Law Office of Glen N. Lenhoff (by Glen N. Lenhoff and Robert D. Kent-Bryant) and Rizik & Rizik, PC (by Michael B. Rizik, Jr.), for plaintiff.
Warner Norcross & Judd LLP (by John J. Bursch, Dean F. Pacific, and Matthew T. Nelson) for defendant.
Amici Curiae:
Bill Schuette, Attorney General, Aaron D. Lindstrom, Solicitor General, Matthew Schneider, Chief Legal Counsel, Kathryn M. Dalzell, Assistant Solicitor General, and Mark G. Sands, Assistant Attorney General, for the Attorney General.
Miller, Canfield, Paddock and Stone, PLC (by Clifford W. Taylor, Paul D. Hudson, and Brian M. Schwartz), for the Michigan Manufacturers Association.
YOUNG, C.J. In this race discrimination case, we must decide whether the trial court erred by denying defendant‘s motion for judgment notwithstanding the verdict (JNOV) and determine the propriety of the admission of evidence of defendant‘s mandatory reporting under
Finally, because
For these reasons, we reverse in part and affirm in part the judgment of the Court of Appeals, vacate the jury award for future damages, and remand to the trial court for further proceedings consistent with this opinion.
I. FACTS AND PROCEDURAL HISTORY
Defendant, National Heritage Academies, Inc., is a company that owns and operates a number of public, independently operated schools, including Linden Charter Academy (LCA) located in Flint, Michigan. The student body at LCA is predominantly black. Plaintiff, Craig Hecht, is a white teacher who had been employed by defendant at LCA for approximately eight years, most recently serving as a third-grade teacher.
We draw from the evidence adduced at trial the following narrative concerning the events that led to plaintiff‘s termination. On November 3, 2009, Lisa Code, a white library aide at LCA, entered plaintiff‘s classroom during class time to return a computer table she had borrowed. Upon her arrival, however, Code realized that
Later that same day, Code reported the incident to Corrine Weaver, the dean of LCA. Weaver, in turn, reported the incident to her supervisor, Linda Caine-Smith,2 the principal of LCA, who initiated an investigation. Caine-Smith and Weaver each separately interviewed plaintiff, Bell, and Code and took written statements from all three. Although Code‘s testimony at trial emphasized that plaintiff made the statements in front of a child, plaintiff‘s counsel also elicited testimony from Code that her November 4th written statement did not include that allegation.3
When questioned, plaintiff provided varying explanations regarding what had happened. At first, plaintiff confirmed to Weaver the general discussion about white and brown tables, but he denied that he meant anything racial by his statements. The following day, plaintiff told Caine-Smith that he never said “brown should burn.” However, later that day, plaintiff sent Caine-Smith a written statement in which he admitted to saying, “white tables are better than brown tables” and “all brown tables should burn.” He also admitted that he involved a third-grade student in the “jok[e]” after he made the comments. Plaintiff subsequently met with Bell, apologized to him, and shook his hand.
At this point in the investigation, Caine-Smith contacted Courtney Unwin, defendant‘s employee relations manager, to discuss plaintiff‘s conduct and Caine-Smith‘s
[Code]: I didn‘t, but then it must be—
[Plaintiff‘s Counsel]: Oh, you testified today that Mr. Hecht said to a child, the whites—brown should burn, white‘s better. That‘s what you said today. But on November 4th, you didn‘t say that, did you?
[Code]: No, I didn‘t include that.
[Plaintiff‘s Counsel]: You didn‘t refer to communication is with children at all, did ya?
[Code]: No, not in this.
[Plaintiff‘s Counsel]: You didn‘t even state in here that a child had heard what Mr. Hecht said, correct?
[Code]: Right. Correct.
students heard the exchange. Unwin also claimed that plaintiff called her later that day, stated that he could not even remember saying anything about brown tables burning, and then justified his conduct by reference to racial banter he suggested was regularly engaged in by black teachers at LCA. Plaintiff claimed that he told Unwin he was just kidding around, that similar joking happened all the time at the school, and that he would do anything to make it better.
Caine-Smith and Unwin met to discuss plaintiff‘s comments in the classroom and his versions of the incident. They discussed several disciplinary options, including a final written warning and termination. After that meeting, Caine-Smith called plaintiff to her office and told him he was being placed on immediate leave pending further investigation. Instead of leaving the building, plaintiff went into a room in which Bell was tutoring students. Plaintiff asked the students to leave the room so that he and Bell could speak privately. He then asked Bell to change the statement he gave defendant. Bell declined the request and explained that he would nоt lie for plaintiff.4
Plaintiff also tried to contact Code by calling both her home and cellular phones. Code did not answer either call, but plaintiff left a voicemail stating that he was “desperate” to speak to her. Code testified that
plaintiff had never before tried to contact her. Code further testified that plaintiff never asked her to change her statement.
The following day, Bell told Caine-Smith that plaintiff had asked him to lie. After receiving this information, Caine-Smith worried that plaintiff had similarly contacted Code. When asked, Code told Caine-Smith about the voicemail, causing Caine-Smith to consult with Unwin again. After their discussion, both Caine-Smith and Unwin determined that plaintiff was interfering with the investigation, and they decided to terminate plaintiff‘s employment. Notably, while Unwin testified that she believed plaintiff‘s intent was for Bell to lie, plaintiff‘s counsel called attention to Unwin‘s arguably contrary deposition testimony, in which she had previously testified that, to her knowledge, plaintiff did not ask anyone to lie.5 Plaintiff‘s employment was terminated that day. Subsequently, plaintiff was replaced by a white woman hired by defendant.
After being fired from LCA, plaintiff began taking substitute teaching jobs, while simultaneously applying for long-term, full-time employment as a teacher. Plaintiff testified that every time he got close to securing such employment, the prospective employer would request his employment record from defendant, as
dant disclosed the fact that plaintiff was fired for his racially insensitive comments and his conduct during the investigation. Plaintiff testified that, because of these disclosures, he was unable to obtain full-time employment as a teacher. Plaintiff eventually obtained a nonteaching job as a machine operator, making approximately $14 per hour—considerably less than his salary with defendant.8
In February 2010, рlaintiff filed a complaint in the Genesee Circuit Court, alleging that defendant terminated his employment based on his race in violation of the CRA. Defendant moved for summary disposition, arguing, among other things, that it had legitimate nondiscriminatory reasons for firing plaintiff and that his misconduct was not “similar” to that of any other employee. The motion was denied by the trial court. Defendant does not challenge the denial of summary disposition in this appeal.
Before trial, defendant moved, in limine, to preclude plaintiff from presenting evidence of its mandatory disclosure of plaintiff‘s unprofessional conduct to other schools. Defendant argued that the disclosures were
a request under subsection (2), an employer shall provide the information requested and make available to the requesting school district, local act school district, public school academy, intermediate school district, or nonpublic school copies of all documents in the employee‘s personnel record relating to the unprofessional conduct.“) (emphasis added).
required by law, pursuant to
Plaintiff countered, arguing that the statute only shielded defendant from liability stemming directly from the disclosure, such as when a plaintiff sues for defamation. Plaintiff claimed that he was seeking to use the disclosures for a different purpose: not to establish liability for defamation, but to establish his future damages resulting from the alleged employment discrimination because the disclosures to prospective school employers precluded him from obtaining another teaching position. The trial cоurt ruled that it would not limit the presentation of this disclosure evidence at trial, but it would consider jury instructions explaining the ways in which the evidence could be used.
One of these witnesses, Unwin, the LCA employee relations manager who was consulted on what course of action should be taken with plaintiff because of his racial comments and subsequent conduct during the investigation of those comments, testified that LCA had essentially a “zero tolerance” policy prohibiting any expression of negative racial “stereotyping” in the workplace. Under the LCA antidiscrimination policy, it was mandatory that any such racial remarks be reported and investigated.
The testimony of defendant‘s other managers involved in investigating and disciplining plaintiff permitted the jury to reach the conclusion that defendant‘s policy was applied differently depending on the race of the employee involved. Weaver testified that, a few days before plaintiff was fired, she reminded her supervisor, Caine-Smith, that racial banter happens among black employees without consequence. Weaver testified that Caine-Smith acknowledged that fact and acquiesced in the differential racial application of the policy. By contrast, Caine-Smith, on cross-examination, contradicted Weaver, testifying that she never had this conversation with Weaver.
Additionally, Weaver testified about other instances of “racial banter” that had occurred at LCA in which she was the target of negative racial stereotyping comments from black employees. Weaver recalled that one time, Tim Jones, a black employee at LCA, made a negative racially stereotyping remark to her. This incident occurred when approximately 70 to 75 teachers and employees of defendant were on a bus ride back from a professional development meeting. Weaver stated that she was going to make fried pork chops for dinner, and Tim Jones responded by asking, ” ‘[W]hy would you be making pork chops; you‘re white?’ ” Weaver did not report the incident, but testified that she called a foul on Jones. He faced no formal discipline for his comment.
Weaver also testified about an incident involving Kevelin Jones, another black employee of defendant. Weaver testified, “Well there was one time we had the Black History month and did the soul food thing; and Mr. [Kevelin] Jones made a comment to me about not eating it because I was white[.]” Weaver testified that she called a foul on Kevelin Jones, but that he also received no other punishment for his racial comment. Additionally, Weaver noted that she heard the ” ‘n’ word” used by defendant‘s employees “[a] couple of times,” and racial banter occurred regularly among her coworkers. None of this behavior resulted in reporting, investigation, or discipline. Moreover, Weaver admitted during questioning by plaintiff‘s counsel, as well as in her written statement, that she did not think plaintiff meant his comment to be racist. In addition, Weaver testified that when she first heard of the comment reported by Code, she also thought that it must have been a joke.
Plaintiff also testified during his case in chief and noted two additional instances of inappropriate racial commentary by black employees in the workplace. The first instance involved a black secretary at LCA, who called a student to accompany her by yelling, ” ‘hey, come here light skinned.’ ” The other instance involved a
Plaintiff then testified regarding his posttermination difficulty in finding teaching employment. He noted that he had obtained long-term substitute teaching positions, but every time the school “caught wind” of the details of his firing because of the mandatory disclosure form defendant sent to each school, he was quickly let go.
At the conclusion of plaintiff‘s case in chief, defendant moved for a directed verdict, arguing that plaintiff had not shown that any other LCA teacher, or even any of defendant‘s employees, ever engaged in the same or similar conduct. In fact, defendant argued, plaintiff even admitted that he was aware of no other instance of a teacher making a racial or racist remark in a classroom in the presence of children. Plaintiff responded by noting the testimony showing black employees made racial jokes but faced no discipline whatsoever. Plaintiff also cited the statement attributed to Caine-Smith regarding the rules about racial banter being different for black employees. Defendant repeated that the only instances of racial conduct that plaintiff could point to did not occur in front of children, and, therefore, plaintiff was not similarly situated to those employees. The trial court agreed with plaintiff and held that there were “a whole bunch of similarly situated educators” and, taking the evidence in the light most favorable to the nonmoving party, denied defendant‘s motion.9
Plaintiff then argued as follows in closing:
This man and his little family have groaned with the anguish of what happened here. Every time he tries to get on his feet, they kick him back down again with these [mandatory disclosures]. Every time he gets on his feet, they kick him back down. He gets a substitute teaching job at Flushing; and, after a short time there, they knock on his door and tell him, you can‘t teach here any more because of the [mandatory disclosure], what it said about you; you can‘t teach here any more.10
After deliberating, the jury returned a verdict in favor of plaintiff. On the verdict form, the jury found
that plaintiff had proved that race was a factor in his termination and that plaintiff had shown $50,120 in past economic loss and $485,000 in future economic loss. The jury also found that plaintiff suffered emotional distress caused by his termination, but awarded nothing on that claim.
Shortly thereafter, defendant filed a motion for JNOV, a new trial, or remittitur. In its motion for JNOV, defendant asserted that plaintiff failed to present sufficient evidence to support his claim under the CRA. Defendant also argued that it was entitled to a new trial because the admission of evidence of the mandatory disclosures, despite the immunity granted by law, was inconsistent with substantial justice and that the jury‘s verdict for future damages was unsupported by the evidence presented at trial. The trial court denied defendant‘s motion.
Defendant appealed in the Court of Appeals, which affirmed the trial court judgment
plaintiff had presented sufficient circumstantial evidence to prevail under the McDonnell Douglas framework.15 Finally, the majority held that the trial court did not err by allowing the presentation of evidence of defendant‘s mandatory disclosures to the jury.16
In dissent, Judge WILDER would have held that plaintiff failed to present any direct evidence of discrimination.17 The majority and dissent differed in their understanding of a critical portion of Weaver‘s testimony. In that testimony, Weaver stated that Caine-Smith conveyed a message with the ” ‘point... that [racial banter] happens amongst African Americans and it‘s not the other way around[.]’ ” The dissent rejected the majority position that this statement was direct evidence of discrimination because it required an inference to prove the existence of Caine-Smith‘s discriminatory intent, and it could plausibly be interpreted as either discriminatory or benign.18 The dissent also would have concluded that plaintiff could not prove a circumstantial case of discrimination because, even assuming plaintiff could establish a prima facie case as required by McDonnell Douglas, defendant clearly rebutted the inference of discrimination with legitimate reasons for plaintiff‘s discharge from employment.19
Defendant filed an application for leave to appeal the Court of Appeals decision. This Court granted leave to appeal, asking the parties to address
whether the Court of Appeals erred: (1) when it found sufficient direct evidence of racial discrimination on the basis of a witness‘s interpretation or understanding of what the defendant‘s representative said to her; (2) when it concluded that the burden-shifting analysis of McDonnell Douglas Corp v Green, 411 US 792; 93 S Ct 1817; 36 L Ed 2d 668 (1973), was not applicable and that there was sufficient сircumstantial evidence that the plaintiff was similarly situated to African-American employees who had made race-based remarks in the past; and (3) when it held that the trial court did not abuse its discretion in admitting evidence of the defendant employer‘s disclosures, which
II. STANDARD OF REVIEW
This Court reviews de novo a trial court‘s decisions regarding motions for JNOV.21 “The appellate court is to review the evidence and all legitimate inferences in the light most favorable to the nonmoving party. Only if the evidence so viewed fails to establish a claim as a matter of law, should the motion be granted.”22 Issues relating to the admission of evidence are reviewed for an abuse of discretion.23 An abuse of discretion generally occurs only when the trial court‘s decision is outside the range of reasonable and principled outcomes,24 but a court also necessarily abuses its discretion by admitting evidence that is inadmissible as a matter of law.25 Statutory
interpretation is a question of law that we review de novo.26
III. CIVIL RIGHTS ACT
This Court must determine whether the trial court erred by denying defendant‘s motion for JNOV;27 that is, we must determine whether plaintiff presented sufficient evidence to support a jury verdict finding employment discrimination. Again, in reviewing a motion for JNOV we must construe all evidence and inferences from the evidence in the nonmoving party‘s favor,28 and, “[i]f reasonable jurors could have honestly
reached different conclusions, the jury verdict must
An employer shall not do any of the following:
(a) Fail or refuse to hire or recruit, discharge, or otherwise discriminate against an individual with respect to employment, compensation, or a term, condition, or privilege of employment, because of . . . race . . . .30
The ultimate question in an employment discrimination case is whether the plaintiff was the victim of intentional discrimination.31 In our caselaw, we have interpreted the CRA to require ” ‘but for causation’ оr ‘causation in fact.’ ”32 We reaffirm that construction here.
There are multiple ways to prove that a plaintiff was the victim of unlawful discrimination. Direct evidence of intentional discrimination is a sure but rare method of challenging an employer‘s decision.33 In this case, plaintiff did not have direct evidence of discrimination.34
Whether Weaver‘s testimony about Caine-Smith‘s acknowledgement of the unequal application of defendant‘s antidiscrimination workplace policies constituted direct evidence of discrimination was a point of major dispute between the Court of Appeals majority and dissent. The majority erred by relying on the wrong section of Weaver‘s testimony, wherein Weaver seemed to be speculating about Caine-Smith‘s view that it was acceptable to give black employees engaging in prohibited racial banter a pass under defendant‘s antidiscrimination policies. Weaver testified that she thought Caine-Smith‘s ” ‘point was that it happens amongst African Americans and it‘s not the other way around; and that this one was reported. Someone was offended and we had an obligation to follow up on it.’ ” That kind of speculative testimony about motivation may be circumstantial evidence, but it is never direct evidence of motivation because, as Judge WILDER explained in his dissent, Weaver‘s testimony about what she believed Caine-Smith meant “is not direct evidence of discrimination because it did not recount an actual statement by Caine-Smith.” Hecht (WILDER, J., dissenting), unpub op at 3. In other words, Weaver was merely making an inference about what Caine-Smith intended to convey to Weaver, but Caine-Smith‘s actual words were not provided to the jury in this exchange. To our knowledge, no court has accepted such speculative testimony as direct evidence of discrimination.
We conсlude that even the Weaver testimony quoted later in this opinion (in which Weaver testified that Caine-Smith said, ” ‘It [the prohibited racial banter] happens among African-Americans and it‘s not the other way around’ “) does not constitute direct evidence of racial bias. The Weaver testimony is, however, potent circumstantial evidence of the employer‘s potential racially biased decision-making, and ultimately, we conclude that there is sufficient circumstantial evidence to sustain this verdict.
ultimate question of discrimination in a circumstantial evidence case.35 A plaintiff can attempt to prove discrimination by showing that the plaintiff was treated unequally to a similarly situated employee who did not have the protected characteristic.36 An employer‘s differing treatment of employees who were similar to the plaintiff in all relevant respects, except for their race, can give rise to an inference of unlawful discrimination.37 In order for this type of “similarly situated” evidence alone to give rise to such an inference, however, our cases have held that the “comparable” employees must be “nearly identical” to the plaintiff in all relevant respects.38
Plaintiff argues that he was treated differently than similarly situated black employees at the school. He argues that the black employees routinely engaged in racial banter, but were not disciplined. Yet he was fired for what he claims is nearly identical conduct—telling a racially charged joke. If this were the entirety of plaintiff‘s case, we question whether it would be sufficient to sustain the verdict. Defendant points out several factors that arguably distinguish plaintiff‘s conduct from that of other employees, notably that plaintiff‘s joke was told in a classroom full of students, whiсh certainly raised the prospect that they might hear it, regardless of whether they actually did.
We need not decide this question, however, because the jury was not left with only this evidence from which to draw the inference that race was the “but for” cause of plaintiff‘s discharge. Defendant errs when it suggests that there are only two ways in which a plaintiff may meet its ultimate burden of demonstrating circumstances from which the fact-finder could conclude that race discrimination occurred: by proving that the plaintiff was replaced by a person of another race or by using
As stated earlier, during trial, the jury was presented with testimony from both Unwin and Caine-Smith about defendant‘s employee conduct practices. Caine-Smith testified that defendant‘s employee handbook precluded “inappropriate business conduct, which includes gambling, abusive profanity or threatening language, insubordination, or violation of discrimination or harassment policy, misuse of confidential information, conducting personal business during work time, excessive absenteeism or tardiness, showing disrespect for co-workers, improper use of [defendant‘s] technology or [defendant‘s other] resources.”39 Unwin noted that defendant also had a workplace harassment policy, which stated that defendant was “committed to providing a work environment that‘s free from dis-crimination and unlawful harassment.” Prohibited forms of harassment included any “verbal or physical conduct that insults or shows hostility or aversion toward an individual because of his or her race or color or any other legally protected characteristic.” She highlighted that examples of harassing conduct include, but are not limited to, “epithets, slurs, [and] negative stereotyping.” Further, Unwin stated that the school‘s zero-tolerance policy required anyone who sees any such misconduсt to “immediately notify [his or her] manager” and that “[a]nyone engaging in . . . unlawful harassment will be subject to . . . disciplinary action up to and including termination from employment.”40
Thus, defendant provided a nondiscriminatory rationale for disciplining plaintiff: violation of the school‘s employment policies. Despite these exacting rules dictating how harassing speech and negative racial stereotyping comments must be handled under defendant‘s policies, the jury was also presented with evidence that the rules were not strictly applied to black employees engaged in such prohibited conduct. Weaver, herself, testified that she was the subject of racial banter that could easily be described as “negative stereotyping” from black employees on multiple occasions and that she heard black employees use the ” ‘n’ word” during her tenure at LCA. However, if there really were a zero-tolerance policy, the jury might well have thought it suspicious that none of those incidents involving black employees led her to follow the mandatory reporting requirement of defendant‘s policy, and none resulted in any escalation of punishment as occurred with plaintiff‘s violation.
The inference that black employees were excepted from enforcement of defendant‘s harassment policies could reasonably have been bolstered by plaintiff‘s testimony. Plaintiff testified that he heard one employee make a racially charged joke about a children‘s cartoon character41 and another employee call a student to her side by saying ” ‘hey, come here light skinned.’ ” None of these instances of harassing conduct was ever met with reporting, investigation, or punishment by defendant.42 And yet, when plaintiff engaged in
Particularly significant in this case, the jury was provided with evidence from which it could reasonably conclude that defendant‘s own management decision-makers knew about and tolerated unequal enforcement of their policies. This trial provided the interesting situation wherein a defendant‘s management employees explained that they were aware of conduct among black employees that violated the defendant‘s zero-tolerance policy. This testimony could have allowed a reasonable jury to conclude that defendant applied a different standard based on race.
The critical testimony on this issue was offered by Weaver. On direct examination, plaintiff‘s counsel questioned Weaver as follows:
[Plaintiff‘s Counsel]: . . . Under oath [during your deposition], I asked you this: “Did you tell Ms. Caine-Smith that a lot of people made racial jokes?”
[Weaver]: I did not say a lot. I said it happened, and that‘s what‘s in my deposition.
[Plaintiff‘s Counsel]: You said what happens?
[Weaver]: That there were racial comments made, yes.
[Plaintiff‘s Counsel]: Okay. So you told Linda Caine-Smith that when you talked to her November 3rd; right?
[Weaver]: Yes.
[Plaintiff‘s Counsel]: Okay. This is November 3rd, a few days before [plaintiff] was fired?
[Weaver]: Um hmm. Yes.
[Plaintiff‘s Counsel]: Now isn‘t it a fact that, when you said that, Caine-Smith responded by saying, ”It happens among African-Americans and it‘s not the other way around“; right?
[Weaver]: Yes.44
Thus, the jury was shown an exchange between two of defendant‘s higher-level employees in which the dean, Weaver, reported to her supervisor, principal Caine-Smith, that conduct, which was at least in some respects similar to that for which plaintiff was being investigated, routinely occurred at the school. Caine-Smith responded by not only acknowledging the racial inconsistency, but, the jury might have concluded, by condoning it as well.45
This point was further emphasized as Weaver‘s testimony continued:
[Plaintiff‘s Counsel]: Okay. So there, a few days before [plaintiff] was fired,
when you said to Caine-Smith racial jokes happen here, how Caine-Smith distinguished [plaintiff‘s] situation was that the racial jokes happened amongst African-Americans; right? [Weaver]: And that someone was offended, yes.
* * *
[Plaintiff‘s Counsel]: Okay. So there was a distinction between Craig—there was a distinction Caine-Smith—Ms. Caine-Smith made between Craig and the other jokesters; and that distinction was racial; correct?
[Weaver]: No
[Plaintiff‘s Counsel]: Well didn‘t Caine-Smith—
[Weaver]: Oh, you‘re saying because it—okay, I guess I could see where you would say that, yes.
[Plaintiff‘s Counsel]: Okay. So you would agree that the fact that Craig is white and the fact that the other jokesters were African-American, that was a factor that Caine-Smith seemed to be considering, right?
[Weaver]: That‘s what my statement says, yes.
[Plaintiff‘s Counsel]: And that‘s the truth; isn‘t it?
[Weaver]: That‘s not—no, I believe it was more about the offensiveness.
[Plaintiff‘s Counsel]: But race was still a factor?
[Weaver]: Race is a factor when it‘s a racial comment.46
On this testimony the jury could reasonably find that race was a “but for” cause in the decision to investigate plaintiff and escalate the punishment for his racial comments.47 This is true despite the arguable differences between plaintiff‘s racial comments and those of his black colleagues. Defendant argues that no reasonable inference of discrimination can be drawn here because plaintiff‘s jokes were told in a classroom and, in this case, someone was offended. These are certainly distinctions which, if credited by the jury, might reasonably have allowed it to find for defendant. But we note that when Weaver brought to Caine-Smith‘s attention the fact that “racial jokes happen here,” Caine-Smith did not respond only by noting that in plaintiff‘s case someone was offended, or at all by saying that plaintiff‘s jokes were made in the presence of children. Instead, she responded by invoking race as a distinction. Taken together with the other evidence presеnted, a reasonable jury could infer that defendant violated the CRA, as evidenced by Weaver‘s apparent concession that race was involved in the decision.
Nevertheless, defendant presented to the jury numerous nondiscriminatory reasons for its decision to terminate plaintiff‘s employment—evidence of plaintiff‘s multiple and inconsistent explanations for his in-classroom statement about his preference for white rather than brown tables, along with evidence that plaintiff had attempted to impede the investigations and had lied or been dishonest with Caine-Smith. These reasons, not race, defendant asserted, were the reasons why it decided to terminate plaintiff.
Plaintiff, however, presented sufficient evidence for a reasonable juror to reject as unbelievable these race-neutral reasons. The testimony of defendant‘s witnesses contained numerous inconsistencies. First, in contradiction of Weaver‘s testimony, Caine-Smith testified that Weaver never told her about the other
This conclusion is buttressed by plaintiff‘s positive teaching record at the school and the fact that defendant chose the highest form of punishment, termination, for a first offense, without even speaking with plaintiff to obtain his version of his postsuspension discussion with Bell.48 While the employee handbook allows for termination for a first offense, Unwin testified that the decision to terminate is normally dependent “on certain factors, including, but not limited to, the seriousness of the violation and whether it is a first time violation or a recurrence.” She also testified that such a termination would “follow[] a thorough investigation . . . .” Unwin also acknowledged plaintiff‘s “good record” concerning race relations while working for defendant and that plaintiff had never before committed misconduct. In closing arguments, plaintiff‘s counsel highlighted these facts, arguing that “it just wasn‘t
reasonable to fire a person for this offense after such a perfect record, after such a record of good faith and fairness and respect in racial matters.” Given this, plaintiff‘s counsel further argued, defendant “fails on the reasonableness test; and, if [defendant] did not act reasonably, something else was afoot, something else was going on . . . .” While a jury may not second-guess an employer‘s business decisions, and was in no way required to draw the inferences suggested by plaintiff‘s counsel, a reasonable jury could have used these facts to support a finding of discrimination.
With respect to the claim that plaintiff interfered with defendant‘s investigation, Unwin admitted that plaintiff never explicitly asked Bell to lie, though she still believed he was asking Bell to lie. And the jury heard evidence that defendant did not even speak with plaintiff regarding his postsuspension discussion with Bell. Defendant only spoke with plaintiff about the initial incident, not about the subsequent allegations of interference, and terminated him after his first offense, despite his otherwise “good” record.
Of its varying rationales for terminating plaintiff, only one—the fact that plaintiff‘s racial banter occurred around students—was based on information that defendant received before deciding to investigatе plaintiff‘s wrongdoing and escalate to warnings that suspension and termination could occur as a result.49 Like each of the other nondiscriminatory reasons provided by defendant, plaintiff disputed, albeit inconsistently, the accuracy of this allegation, claiming that none of the students was within earshot when he made his statement.
When considering this evidence as a whole, and by making all reasonable inferences in favor of plaintiff, a reasonable juror could have disbelieved defendant‘s race-neutral reasons for plaintiff‘s termination
The jury, as the trier of fact and deliberative body charged to make credibility determinations, could have determined that the statements of Weaver and Caine-Smith established that race was a “but for” cause of their decision-making concerning plaintiff. That testimony, along with the evidence that defendant had a zero-tolerance policy, which required reporting, investigation, and punishment of all forms of negative racial stereotyping, that it failed to apply when black employees violated the policy, in addition to the speed with which defendant terminated plaintiff, was sufficient to allow a reasonable jury to conclude that race was the real reason defendant fired plaintiff.
Because when assessing a motion for JNOV we are required “to review the evidence and all legitimate inferences in the light most favorable to the nonmoving party,”50 we conclude that there was sufficient evidence of discriminatory intent before the jury. The jury‘s verdict, finding a violation of the CRA, was supported by the totality of the evidence presented.51
IV. MCL 380.1230b
Because we conclude that plaintiff did present sufficient evidence tо support the jury‘s ultimate finding
of discrimination, we must next decide whether the trial court acted contrary to
Generally, “[a]ll relevant evidence is admissible, except as otherwise provided by the Constitution of the United States, the Constitution of the State of Michigan, the[] rules [of evidence], or other rules adopted by the Supreme Court. Evidence which is not relevant is not admissible.”52 Evidence may also be precluded by statute.53
(1) Before hiring an applicant for employment, a school district, local act school district, public school academy, intermediate school district, or nonpublic school shall request the applicant for employment to sign a statement that does both of the following:
(a) Authorizes the applicant‘s current or former employer or employers to disclose to the school district . . . any unprofessional conduct by the applicant54 and to make available to the school district, local act school district, public school academy, intermediate school district, or nonpublic school copies of all documents in the employee‘s personnel record maintained by the current or former employer relating to that unprofessional conduct.
(b) Releases the current or former employer, and employees acting on behalf
of the current or former employer, from any liability for providing information described in subdi-
vision (a), as provided in subsection (3), and waives any written notice required under section 6 of the Bullard-Plawecki employee right to know act . . . .55
(2) Before hiring an applicant for employment, a school district, local act school district, public school academy, intermediate school distriсt, or nonpublic school shall request at least the applicant‘s current employer or, if the applicant is not currently employed, the applicant‘s immediately previous employer to provide the information described in subsection (1)(a), if any. The request shall include a copy of the statement signed by the applicant under subsection (1).
(3) Not later than 20 business days after receiving a request under subsection (2), an employer shall provide the information requested and make available to the requesting school district, local act school district, public school academy, intermediate school district, or nonpublic school copies of all documents in the employee‘s personnel record relating to the unprofessional conduct. An employer, or an employee acting on behalf of the employer, that discloses information under this section in good faith is immune from civil liability for the disclosure. An employer, or an employee acting on behalf of the employer, is presumed to be acting in good faith at the time of a disclosure under this section unless a preponderance of the evidence establishes 1 or more of the following:
(a) That the employer, or employee, knew the information disclosed was false or misleading.
(b) That the employer, or employee, disclosed the information with a reckless disregard for the truth.
(c) That the disclosure was specifically prohibited by a state or federal statute.56
Review of the plain language of this statute shows that it does three important things pertinent to this
appeal: (1) it requires the applicant‘s current or former employer or employers to disclose to another school district any unprofessional conduct by the applicant;57 (2) it requires an apрlicant for a teaching job to “[r]elease[] the current or former employer, and employees acting on behalf of the current or former employer, from any liability for providing [the] information“;58 and (3) it provides that an employer who discloses information in good faith “is immune from civil liability for the disclosure.”59 The statute, however, does not define the term “liability.”
Plaintiff did not argue that defendant‘s disclosures were false or misleading, recklessly disregarded the truth, or otherwise violated state or federal statutes.60 Plaintiff
Dictionary definitions of the term “liability” support defendant‘s conclusion.62 Black‘s Law Dictionary (10th
ed) defines “liability” as “1. The quality, state, or condition of being legally obligated or accountable; legal responsibility to another or to society, enforceable by civil remedy or criminal punishment . . . . 2. A financial or pecuniary obligation in a specified amount . . . .”63 More relevant, it further defines “civil liability” as “1. Liability imposed under the civil, as opposed to the criminal, law. 2. The quality, state, or condition of being legally obligated for civil damages.”64 Applying these definitions of
Additionally, this Court has previously interpreted the term “liability” and other liability-limiting statutes in a manner generally consistent with defendant‘s position. In Hannay v Transp Dep‘t, this Court held that the phrase “liable for bodily injury” contained in the vehicle exception to governmental immunity66 means being “legally responsible for damages flowing from a physical or corporeal injury to the body.”67 This Court thus interpreted the statutory phrase to permit recovery of economic and noneconomic damages arising from “bodily injury.”68 In
Contrary to the dissent, we do not believe that Henry v Dow Chem Co, 473 Mich 63; 701 NW2d 684 (2005), requires the opposite conclusion. In that case, the Court merely held that a plaintiff is required to prove an actual injury to person or property in order to prevail on a negligence claim, despite the fact that the elements of a negligence action are routinely noted as “(1) duty, (2) breach, (3) causation, and (4) damages.” Id. at 74. In other words, the damages sought in a negligence action must necessarily flow from an actual injury. But this distinction between “injury” and “damages” has no bearing on whether one can have damages without liability. As discussed, the plain language of
“liable” used in Hannay, defendant is not “legally responsible for damages flowing from”71 the mandatory disclosure.
Another decision of this Court, In re Bradley Estate,72 is also helpful in deciding the instant case. In Bradley Estate, the petitioner became concerned about her brother‘s mental health and successfully petitioned the probate court for his hospitalization, averring that her brother was a
The petitioner, acting as personal representative for her brother‘s estate, filed a lawsuit in circuit court against the sheriff‘s department for wrongful death, alleging gross negligence. The petitioner‘s claim was dismissed on governmental immunity grounds.76 The petitioner did not appeal this dismissal, instead filing a petition for civil contempt in the original probate court, arguing that the sheriff‘s office violated the court‘s
order and that the sheriff‘s misconduct constituted contempt for which she was entitled to indemnification damages.77 The sheriff‘s department again argued that governmental immunity barred the suit, but the probate court denied the motion for summary disposition, holding that ” ‘[g]overnmental immunity does not insulate a contemnor from the contemnor‘s refusal or negligence to obey a court order.’ ”78 The sheriff‘s department appealed in the circuit court, which reversed and remanded to the probate court for entry of an order granting summary disposition in favor of the sheriff‘s department because the circuit court concluded that the petitioner‘s claim was based in tort and barred by governmental immunity.79 The Court of Appeals reversed the circuit court and held that the governmental tort liability act (GTLA) does not immunize governmental agencies from ” ‘tort-like’ ” damages in a contempt suit, even though the underlying facts ” ‘could have also established a tort cause of action . . . .’ ”80
On appeal, this Court reversed the Court of Appeals. We held that the language in
Bradley Estate supports our construction of
We are left with one view of the statute—plaintiff was not allowed to present evidence concerning the effect of the disclosures to the jury, because, contrary to the Legislature‘s prohibition, that admission permitted the jury to attribute liability to defendant flowing from the disclosure.88 The fact that the liability here is expressed in terms of damages plaintiff suffered as a result of the disclosures does not negate the fact that defendant is being held civilly liable for the statutorily mandated disclosures. The trial court erred by allowing plaintiff to present this evidence to the jury in light of the language of
V. CONCLUSION
While the Court of Appeals erred by holding that plaintiff had presented sufficient direct evidence of discrimination to sustain the jury verdict, the Court of Appeals correctly held that plaintiff presented sufficient circumstantial evidence of discrimination to sustain the jury‘s verdict. The trial court erred, however, by admitting evidence of defendant‘s mandatory disclosures of plaintiff‘s unprofessional conduct because
MARKMAN, ZAHRA, MCCORMACK (as to Parts I, II, and III), VIVIANO, BERNSTEIN (as to Parts I, II, and III), and LARSEN, JJ., concurred with YOUNG, C.J.
MCCORMACK, J. (concurring in part and dissenting in part). I agree with the majority that the plaintiff presented sufficient evidence of discrimination such that the trial court did not err by denying the defendant‘s motion for judgment notwithstanding the verdict. But I respectfully dissent from the majority‘s decision to vacate the jury award for future damages. I do not agree that the defendant‘s disclosures of the plaintiff‘s unprofessional conduct subjected the defendant to any “civil liability for the disclosure,” which I agree
I. MCL 380.1230b
As the majority observes,
First, the employer could show that the employee is suing it for an actual injury caused by the disclosure and resultant damages—in a cause of action for defamation, for example. No one suggests that is the case here, given that the plaintiff sued for a completely different injury—a discriminatory discharge under the CRA.
The defendant‘s argument is flawed because it rests on the fundamentally faulty premise that the introduction of evidence of its disclosures increased the defendant‘s liability because it increased the plaintiff‘s damages. The majority relies on dictionary definitions of the word “liability” and our decisions in Hannay v Transp Dep‘t, 497 Mich 45; 860 NW2d 67 (2014), and In re Bradley Estate, 494 Mich 367; 835 NW2d 545 (2013), to support its conclusion that the statute precludes the plaintiff from introducing the disclosures into evidence to prove his future damages. I respectfully disagree. Liability and damages are related, of course, but they are not the same thing. One illustration of this fact is our courts’ common practice of bifurcating proceedings on these two issues, conducting a liability phase followed by a damages phase. See, e.g., Adama v Doehler-Jarvis, Div of N L Indus, Inc (On Remand), 144 Mich App 764, 767; 376 NW2d 406 (1985).
Disclosing the plaintiff‘s unprofessional conduct did not create additional legal responsibility for which the defendant was on the hook; rather, it was the alleged illegal act of discharging the plaintiff based on his race that gave rise to all the defendant‘s liability, i.e., its legal responsibility arising from a wrongful action. The injury from which the liability arose was the discriminatory discharge, not the disclosures. Introducing evidence of the defendant‘s disclosures of the plaintiff‘s conduct merely аssisted the jury in determining the appropriate remedy for the discriminatory discharge. Put differently, evidence of the disclosures helped the jury determine the appropriate amount of damages for which the defendant was legally responsible because of its discriminatory conduct. See, e.g., Bradley Estate, 494 Mich at 397 (holding that “tort liability” includes “all legal responsibility arising from noncontractual civil wrongs for which a remedy may be obtained in the form of compensatory damages“) (emphasis added).
This conclusion is entirely consistent with the dictionary definitions of the word “liability” cited by the majority and with dictionary definitions of the word “damages.” The defendant‘s liability, i.e., the defendant‘s “quality, state, or condition of being legally obligated” for damages was triggered by the allegedly discriminatory decision to terminate the plaintiff‘s employment. Black‘s Law Dictionary (10th ed). “Damages” are defined as “[m]oney claimed by, or ordered to be paid to, a person as compensation for loss or injury[.]” Black‘s Law Dictionary (7th ed).
This Court‘s decision in Hannay further supports my analysis. In Hannay, 497 Mich at 64, we observed that “‘damages’ and ‘injury’ are not one and the same—damages flow from the injury.” Because the damages flow from the injury, and the injury in this case is the discriminatory discharge, evidence of the disclosures did not impose any additional liability on the defendant.
Bradley Estate, 494 Mich 367, is largely inapposite here. That case involved a determination whether the plaintiff was seeking to impose “tort liability” on the defendant by bringing an aсtion for civil contempt. This Court answered the question in the affirmative. But the central question in that case was whether the plaintiff‘s action for civil contempt constituted a “tort” suit; there was no dispute that if the answer to that question was yes, the governmental tort liability act,
This Court‘s decision in Henry v Dow Chem Co, 473 Mich 63; 701 NW2d 684 (2005), is far more helpful than Bradley Estate or Hannay. Henry instructs that a plaintiff must establish an actual injury before damages can be established, that the two are distinct, and that damages flow from the injury. Henry, 473 Mich at 75. As explained, disclosure of a school employee‘s unprofessional conduct is not an injury giving rise to damages unless the plaintiff seeks to hold the defendant liable “for the disclosure” itself.
The defendant‘s argument, while containing some surface appeal in its simplicity, amounts to this fallacy: the admission into evidence of the disclosures increased the plaintiff‘s damages, and liability is defined to include damages, so the disclosure exposed the
defendant to greater liability from which it is immune. But this is
Had the Legislature intended the result reached by the majority, it could have expressed that intent much more plainly by stating that an employer that discloses information in good faith under the statute is immune from any damages established by the disclosure. Alternatively, it could have simply said that evidence of an employer‘s good faith disclosure under the statute is not admissible in a civil proceeding to establish a plaintiff‘s damages. But it did not do so; instead, it said that a defendant is immune from civil liability “for the disclosure.” Given the absence of compelling textual support for the defendant‘s argument, I conclude that the Legislature did not intend to foreclose a plaintiff, who has established liability for an illegal discharge, from introducing evidence of an employer‘s disclosures in order to establish future damages and prove that he or she attempted to mitigate those damages.
Accordingly, because the plaintiff‘s injury was the discriminatory discharge rather than the defendant‘s disclosures, and it was the discriminatory discharge for which the defendant was held liable, the future damages award did not constitute “civil liability for the disclosure.”
II. CONCLUSION
I concur with the majority‘s decision to uphold the jury‘s verdict finding that the defendant unlawfully discriminated against the plaintiff on the basis of race. But I dissent from the majority‘s conclusion that
BERNSTEIN, J., concurred with MCCORMACK, J.
Notes
In fact, the plaintiff had to introduce such evidence. See Morris v Clawson Tank Co, 459 Mich 256, 264; 587 NW2d 253 (1998) (stating that the victim of a discriminatory discharge must mitigate his or her damages by making reasonable efforts to find new employment).LCA employees created a “social contract” with each other, such that if an individual stated something that someone else found offensive or inappropriate, the person offended was to “call a foul” on the speaker. In response, the speaker was to give two “ups” to the person who called the foul, which are positive statements about the person. In this instance, Plaintiff testified that he did not give any “ups” to either Bell or Code because he did not hear any foul called. [Hecht v Nat‘l Heritage Academies, Inc, unpublished opinion per curiam of the Court of Appeals, issued October 28, 2014 (Docket No. 306870), p 1 n 1.]
(a) That the employer, or employee, knew the information disclosed was false or misleading.
(b) That the employer, or employee, disclosed the information with a reckless disregard for the truth.
(c) That the disclosure was specifically prohibited by a state or federal statute.
An employee can challenge the employer‘s disclosures by presenting evidence to satisfy