KAREN SHIELDS, Plaintiff-Appellant, v. CREDIT ONE BANK, N.A.; CREDIT ONE FINANCIAL; SHERMAN FINANCIAL GROUP, LLC, Defendants-Appellees.
No. 20-15647
United States Court of Appeals for the Ninth Circuit
May 6, 2022
Opinion by Judge Collins
FOR PUBLICATION; D.C. No. 2:19-cv-00934-JAD-NJK; Argued and Submitted August 17, 2021 Seattle, Washington
OPINION
Appeal from the United States District Court for the District of Nevada
Jennifer A. Dorsey, District Judge, Presiding
Before: William A. Fletcher, Paul J. Watford, and Daniel P. Collins, Circuit Judges.
Opinion by Judge Collins
SUMMARY*
Employment Discrimination
The panel reversed the district court’s dismissal of an employment discrimination action under Title I of the Americans with Disabilities Act and remanded.
Kate Shields alleged that her former employer violated the ADA by failing to accommodate her disability and instead terminating her from her human resources job after she underwent a bone biopsy surgery of her right shoulder and arm. The district court concluded that Shields failed to plead a “disability” because she did not adequately allege that she had “a physical or mental impairment that substantially limit[ed] one or more major life activities.”
Applying the ADA Amendments Act of 2008 and regulations issued in 2011, the panel held that in order to be substantially limiting, an impairment need not involve permanent or long-term effects. The panel concluded that Shields pleaded facts plausibly establishing that she had a physical impairment both during an immediate post-surgical period and during an extension period in which her surgeon concluded that her injuries had not sufficiently healed to permit her to return to work. The panel also concluded that the activities that Shields pleaded she was unable to perform qualified as “major life activities,” which include caring for oneself, performing manual tasks, lifting, and working. Finally, the complaint adequately alleged that Shields’s impairment substantially limited her ability to perform at least one major life activity.
COUNSEL
Michael P. Balaban (argued), Law Offices of Michael P. Balaban, Las Vegas, Nevada, for Plaintiff-Appellant.
David Lawrence Schenberg (argued), Ogletree Deakins Nash Smoak & Stewart P.C., St. Louis, Missouri; Anthony L. Martin, Amy L. Howard, and Dana B. Salmonson, Ogletree Deakins Nash Smoak & Stewart P.C., Los Angeles, California; for Defendants-Appellees.
OPINION
COLLINS, Circuit Judge:
Karen Shields alleges that her former employer violated Title I of the Americans with Disabilities Act (“ADA”) by failing to accommodate her disability and instead terminating her. Because the district court applied the wrong legal standards in holding that Shields had failed to plead a “disability,” we reverse its dismissal of Shields’s complaint.
I
Because the district court resolved this case on a motion to dismiss under
In November 2017, Shields began working in the Human Resources (“HR”) Department of Defendant Credit One Bank, N.A. (“Credit One”) in Las Vegas, Nevada. Her formal job title was “HR Generalist I,” and the official job description for that position listed a variety of basic “physical requirements” that “must be met by an employee to successfully perform the essential functions of this job.” These requirements included the ability to “use hands to finger, handle, [and] feel,” to “reach with hands and arms,” and, occasionally, to “lift and/or move up to 2 pounds.” The job description also stated, however, that “[r]easonable accommodations may be made to enable individuals with disabilities to perform the essential functions” of the job.
After a concern arose in January 2018 that Shields might have bone cancer, she was scheduled for a bone biopsy surgery, which took place on April 20, 2018. The biopsy surgery was a significant procedure that required a three-day hospitalization. In order to obtain the necessary tissue samples from Shields’s right shoulder and arm, the surgeon made what the complaint described as a “10 centimeter skin incision” and created a window “into the bone measuring one centimeter in width by two centimeters in length.” Subsequent testing of the samples revealed that “everything was benign” and that Shields did not have cancer after all.
Nonetheless, given the substantial physical impact of the biopsy surgery itself, Shields was unable to return to work for several months. Specifically, her postsurgical injuries prevented her from, inter alia, fully using her right arm, shoulder, and hand to lift, pull, push, type, write, tie her shoes, or use a hair dryer. In order to verify Shields’s inability to work, her surgeon, Dr. Hillock, completed a copy of Credit One’s standard “ADA Employee Accommodation Medical Certification Form.” In completing the form, Dr. Hillock stated that Shields would be unable to perform her essential job functions, with or without accommodation, for two months. In the portion of the form that asked him to identify the “major life activities” that “are substantially limited by the medical condition or accompanying treatment,” Dr. Hillock listed “sleeping, lifting, writing, pushing, pulling [and] manual tasks.” After submission of the form, Shields was approved for an unpaid, eight-week “medical leave of absence as an accommodation under the ADA.” The leave was unpaid rather than paid because Shields did not qualify
Dr. Hillock initially estimated that Shields would be able to return to work on June 20, 2018. However, as that date approached, Shields still lacked full use of her right shoulder, arm, and hand. Accordingly, on June 18, 2018, Dr. Hillock prepared a note indicating that Shields was still unable to return to work. The relevant portion of the note stated, in its entirety: “Patient has an appointment on 7/10 at which point a return to work date will be discussed. Unable to work until appointment.”
Shortly after receiving Dr. Hillock’s note, the assistant vice president of Credit One’s HR Department called Shields and asked her to come into the office the next day. Shields asked “if she was being fired,” and the assistant vice president said that she was not and that they needed her to come in to discuss “her healthcare premium.” When Shields reported to the office, however, she was told that her position was being eliminated and that she was therefore being terminated. Her healthcare coverage was consequently terminated about a week later.
Shields filed a complaint with the Equal Employment Opportunity Commission (“EEOC”), and she received a “Notice of Right to Sue” on March 5, 2019. See
The district court granted Credit One’s motion to dismiss the complaint under Rule 12(b)(6). The court concluded that, for two reasons, Shields had failed adequately to plead a disability within the meaning of the ADA. First, citing the 2010 version of the EEOC regulations defining disability, the court held that Shields had failed to plead facts showing “any permanent or long-term effects for her impairment” (emphasis added). Second, the court concluded that Shields failed to allege sufficient factual detail to “state a plausible impairment” during the requested extension of her medical leave of absence. The court entered judgment, and Shields filed a timely notice of appeal.1
II
In dismissing this action, the district court relied solely on the ground that the operative complaint failed adequately to allege the threshold element that Shields had a “disability” within the meaning of the ADA. Section 3, paragraph (1), of the ADA defines the term “disability” as follows:
The term “disability means, with respect to an individual—
- a physical or mental impairment that substantially limits one or more major life activities of such individual;
- a record of such an impairment; or
- being regarded as having such an impairment (as described in paragraph (3)).
A
In holding that an impairment is not substantially limiting unless it involves “permanent or long-term effects,” the district court relied dispositively on Curley v. City of North Las Vegas, 2012 WL 1439060, at *3 (D. Nev. 2012) (emphasis added), aff’d on other grounds, 772 F.3d 629 (9th Cir. 2014). Curley purported to derive this temporal requirement from the definition of “substantially limits” that was contained in the EEOC’s 2010 regulations concerning the ADA. Specifically, Curley stated that the EEOC regulations provided that, in “determining whether an individual is substantially limited in a major life activity,” a court should consider: “(i) the nature and severity of the impairment[;] (ii) the duration or expected duration of the impairment; and (iii) the permanent or long-term impact, or the expected permanent or long-term impact resulting from the impairment.” Id. (quoting
Although the ADAAA expressly rejects the narrow definition of “substantially limits” in the then-existing EEOC regulations and in Toyota Motor, the ADAAA did not enact a new general definition of “disabled” or “substantially limits.”3 The ADAAA instead accomplishes its purpose to alter the then-existing state of the law through a series of more indirect measures. First, the ADAAA amended § 3 of the ADA by adding several “[r]ules of construction,” together with language directing that the “definition of ‘disability’ in paragraph (1) shall be construed in accordance with” them. See
The authority to issue regulations granted to the Equal Employment Opportunity Commission . . . under this [Act] includes the authority to issue regulations implementing the definitions of disability in section [3 of the ADA,
42 U.S.C. § 12102 ] (including rules of construction) . . . , consistent with the ADA Amendments Act of 2008.
The EEOC issued new regulations in 2011 that significantly amended the regulatory definition of “[s]ubstantially limits” in
In particular, the new regulations contain a specific provision, and accompanying guidance, that expressly address the question of whether a temporary impairment can count as a “disability” within the meaning of the ADA. As amended in 2011, the EEOC regulation that defines the phrase “substantially limits” now contains a subsection stating that “[t]he effects of an impairment lasting or expected to last fewer than six months can be substantially limiting.”
This same regulation contains additional language that confirms how the EEOC’s rejection of any such categorical “long-term effects” requirement follows from the post-ADAAA language of the ADA. As noted earlier, the ADA contains three alternative definitions of “disability”—i.e., (1) substantially limiting impairments, (2) a “record of such an impairment,” and (3) “being regarded as having such an impairment”—and the ADAAA amended only the third of those three alternatives, which is contained in § 3(1)(C) of the ADA. See supra at 7–8, 10–11 & n.3. Specifically, the ADAAA added, inter alia, the following limitation on this third “regarded as” alternative definition of disability: “Paragraph (1)(C) shall not apply to impairments that are transitory and minor. A transitory impairment is an impairment with an actual or expected duration of 6 months or less.”
The explanatory guidance that accompanies
[A]n impairment does not have to last for more than six months in order to be considered substantially limiting under the first or the second prong of the definition of disability. For example, as noted above, if an individual has a back impairment that results in a 20-pound lifting restriction that lasts for several months, he is substantially limited in the major life activity of lifting, and therefore covered under the first prong of the definition of disability.
Because the ADA and its implementing EEOC regulations make clear that the actual-impairment prong of the definition of “disability” in § 3(1)(A) of the ADA is not subject to any categorical temporal limitation, the district court committed legal error in holding, based on the pre-ADAAA regulations, that a claim of such an actual “impairment” requires a showing of long-term effects. Cf. Summers v. Altarum Inst., Corp., 740 F.3d 325, 331–32 (4th Cir. 2014) (upholding as reasonable under Chevron U.S.A. Inc. v. Natural Res. Def. Council, Inc., 467 U.S. 837 (1984), the EEOC regulation’s inclusion of “severe temporary impairments” within § 3(1)(A)’s definition of actual “disability”).5
B
The only remaining question is whether Shields adequately pleaded that she had a “disability” under the correct legal standards. To establish a “disability” under the first alternative definition in § 3(1)(A), Shields had to plead facts plausibly establishing that she had “[1] a physical or mental impairment [2] that substantially limits [3] one or more major life activities.”
First, the operative complaint pleads sufficient facts to establish an “impairment.” The complaint alleges that Shields’s bone biopsy surgery involved a 10-centimeter incision that “created a wi[n]dow into the bone measuring one centimeter in
Although it was anticipated that Shields would recover from these surgery-related injuries by June 20, 2018, the complaint alleges that Dr. Hillock concluded on June 18, 2018 that Shields was still unable to work. These allegations adequately allege that, due to her biopsy surgery, Shields had a physical “impairment,” both in the ordinary sense of that term and in the sense described in the EEOC’s regulations. See Impairment, WEBSTER’S THIRD NEW INTERNATIONAL DICTIONARY (1981 ed.) (“the state of being impaired: INJURY”); Impair, id. (“to make worse: diminish in quantity, value, excellence, or strength: do harm to: DAMAGE, LESSEN”); see also
In reaching a contrary conclusion, the district court drew a distinction between Shields’s initial condition in the first eight weeks after her surgery and her condition “during the extension period.” As to the latter, the court held, Shields needed to plead additional facts “explaining the cause for the extension” and setting forth more specifically “her limitations during the extension period.” We disagree. As the district court implicitly recognized, the allegations concerning Shields’s condition during the initial eight weeks are sufficiently “well-pleaded” to “give rise to a plausible inference” that she had an impairment, Ashcroft v. Iqbal, 556 U.S. 662, 682 (2009), and we think the same is true when the complaint adds the further factual allegation that Shields’s surgeon had concluded that her condition had not improved sufficiently by the end of those eight weeks to permit her to return to work. While it perhaps would have been a wise legal strategy for Shields to have supplied, in her amended complaint, the additional detail that the district court had requested, Iqbal did not require Shields to include more granular details about the exact nature of her then-existing limitations that caused the surgeon to conclude that her injuries had not sufficiently healed. See id. at 678 (although the “pleading standard Rule 8 announces” requires more than “unadorned” conclusory assertions, it “does not require ‘detailed factual allegations’”) (citation omitted).
Second, the activities that Shields pleaded she was unable to perform qualify as “major life activities” under the ADA.
Finally, the complaint adequately alleges that Shields’s impairment “substantially limit[ed]” her ability to perform these major life activities. As amended by the ADAAA, the ADA expressly provides that the “determination of whether an impairment substantially limits a major life activity shall be made without regard to the ameliorative effects of mitigating measures,” such as medication, medical supplies, or other aids.
As we have explained, see supra at 14, the formal guidance accompanying the amended EEOC regulations specifically states that a temporary impairment that impedes the performance of a major life activity and that “lasts for several months” is “sufficiently severe” to qualify as “substantially limiting” within the meaning of the ADA and the EEOC regulations. 29 C.F.R., Pt. 1630, App. (portion addressing § 1630.2 (j)(1)(ix)). Thus, while Credit One is correct in noting that the guidelines confirm that the “duration of an impairment” remains “one factor that is relevant in determining whether the impairment substantially limits a major life activity,” Shields’s alleged impairment—which involved a substantial inability to perform certain major life tasks for more than two months—is clearly of sufficient duration and impact to qualify.
* * *
Because Shields adequately alleged that, during the period of her requested extension, she suffered from a “disability” within the meaning of the ADA, we reverse the district court’s dismissal of her operative complaint.
REVERSED and REMANDED.
