Dr. Pravin Sanghvi appeals the adverse grant of summary judgment on his 42 U.S.C. § 1981 claim against St. Catherine’s Hospital. 1 The plaintiff contends that he has produced sufficient direct and indirect evidence of discrimination to warrant a jury trial. For the reasons stated herein, we affirm the district court’s decision.
I. Background
Dr. Sanghvi, who is dark-skinned and of Asian Indian ethnicity, is an obstetrician/gynecologist licensed in Indiana. In 1994, he began covering the practice of Dr. A.P. Bonaventura located at St. Mary Medical Center, which is affiliated with St. Catherine’s Hospital, whenever Dr. Bona-ventura was unavailable. When he covered the practice, Dr. Sanghvi billed the patients under his own name and provider number.
In October, 1996, Dr. Bonaventura sold his practice to the defendant, which was then known as Lakeshore Health System. After this sale, Dr. Bonaventura received a salary from the defendant and no longer had the authority to bill patients directly; rather, the defendant charged his patients for his services. Dr. Sanghvi continued to fill in for Dr. Bonaventura. Dr. Sanghvi was aware that Dr. Bonaventura no longer charged patients himself, and the defen
Dr. Bonaventura’s declining health prevented him from continuing to perform his duties in May, 1997. On June 11, 1997, the chief executive officer of St. Mary Medical Center, Milton Triana, met with Dr. Sanghvi, who expressed an interest in purchasing Dr. Bonaventura’s practice if he were unable to return. Once Dr. Bona-ventura’s inability to resume treating patients became a certainty, which was apparently a few days later, Triana offered to sell the assets to either Dr. Sanghvi or another physician who regularly covered the practice.
On June 19, Triana met with Dr. Sangh-vi to discuss the sale of the practice. At this meeting, Triana asked Dr. Sanghvi: “Being an older, foreign-born physician, how comfortable do you feel dealing with young, white American women?” 2 Triana also told Dr. Sanghvi that the hospital did not want to finance the purchase of the practice.
The next day Triana wrote a letter offering to sell Dr. Sanghvi the practice for $360,000, payable in full at closing. This letter also indicated the defendant’s expectation that the plaintiff would recruit another obstetrician/gynecologist to provide greater depth of coverage, though this was not a requirement of the sale. The number of women treated by the practice was important to the defendant because it expected that these patients would be referred to it by whomever purchased the praetice. On June 24, Dr. Sanghvi responded with a counteroffer of twenty percent of the gross collection of the practice for the first year after he took over, to be paid monthly. This was rejected by the defendant. That same evening, Dr. Sanghvi and Triana had a discussion where the doctor offered to pay $250,000 for the practice in monthly installments over a one-year period. If Dr. Sanghvi failed to deliver the purchase price within the year, then any the payments he had madе would be refunded. Triana seemed favorably inclined towards this arrangement, but said that he had to run it by a committee. Dr. Sanghvi made the same offer in writing on June 25. The defendant eventually rejected this offer.
Around this same time, in mid-to-late June, the Women’s Wellness Center (“WWC”) entered the picture. WWC employed a group of physicians, who were all white men, and its president at the time was Jeffrey Yessenow. A representative of WWC contacted the defendant about buying thе practice. St. Catherine’s responded that it would sell the practice for $360,000, with no financing by the hospital. In early July, the agents of the defendant and WWC began negotiations. Triana and other officers of St, Catherine’s met with Dr. Sanghvi on July 1, informing him that they intended to sell to WWC since they were paying cash, but if that deal fell through they would accept Dr. Sanghvi’s June 25 offer. On July 3, a letter of intent expressing the broad terms of the sale agreement between the defendant and WWC was drawn and executed. They settled on a purchase price of $250,000, to be paid in full at closing. However, over the coming months WWC continued to ask St. Catherine’s to consider a lower price. On
Dr. Sanghvi sent a letter dated August 2 to some of Dr. Bonaventura’s former patients, purporting to explain why he did not take over the practice. The letter stated that Dr. Bonaventura’s practice was simply sold tо the higher bidder without regard for any other considerations. The letter went on to state that many of Dr. Bonaventura’s old patients were coming to Dr. Sanghvi’s office, and asked the recipients of the letter to share it with any of Dr. Bonaventura’s former patients. Around the same time, Triana discovered that Dr. Sanghvi had billed Dr. Bonaventu-ra’s patients directly after the defendant purchased the practice. This allegedly diverted $38,000 of receivables belonging to thе defendant to Dr. Sanghvi.
In part because of these events, by late September or early October the defendant acquiesced in a price reduction for WWC to $125,000. WWC then gave St. Catherine’s a check for $50,000 with the remainder to be paid when the paperwork was formally completed, though the defendant claimed this check was accidentally destroyed. On November 1, WWC took over Dr. Bonaventura’s practice.
Dr. Sanghvi and Triana spoke by telephone on November 6. When Triana told Dr. Sanghvi that the price WWC was paying for the practice was less than $200,000 and a final agreement had not been signed, Dr. Sanghvi offered to purchase the practice outright for up to $200,000 in cash. Triana did not respond. On January 5, 1998, St. Catherine’s and WWC executed an asset transfer agreement and WWC paid the $125,000 purchase price in full.
Dr. Sanghvi brought suit in state court against the current defendant and others, alleging a violation оf 42 U.S.C. § 1981 and various state law claims. The defendant removed the case to federal court based upon federal question jurisdiction and brought a counterclaim seeking damages under state law for Dr. Sanghvi’s directly billing the practice’s patients. The defendant moved for partial summary judgment on all of Dr. Sanghvi’s claims. The district court granted the motion on the § 1981 cause of action and some of the state law claims. The court found that Dr. Sanghvi had not presentеd any direct evidence of discrimination and could not demonstrate that the defendant’s reasons for refusing to sell the practice to him were pretextual. Having disposed of the federal claim, the district court remanded the remaining state laws claims to state court.
II. Discussion
42 U.S.C. § 1981 prohibits intentional discrimination on the basis of race or ethnicity concerning an activity protected by the statute.
Saint Francis College v. Al-Khazraji,
A. Conventional Method
Dr. Sanghvi argues that Triana’s question during their June 19 conversation— “Being an older, foreign-born physician, how comfortable do you fell dealing with young, white American women?” — constitutes direct evidence of discriminatory intent. Dr. Sanghvi contends that when this interrogatory is combined with circumstan
Courts have noted the difficulty of defining direct evidence for discrimination claims.
See, e.g., Fernandes v. Costa Bros. Masonry, Inc.,
While we acknowledge the tensions in our case law on this issue, we will assume without deciding that the broader definition of direct evidence applies and that Triana’s question falls within this definition. Besides having a certain degree of content that reflects discriminatory animus, we have held that to qualify as direct еvidence a statement must also be made by a decisionmaker, as well as relate to the action at issue.
See Fyfe v. City of Fort Wayne,
However, the plaintiff is not out of the woods yet. Even in discrimination cases where the plaintiff has direct evidence, an adverse grant of summary judgment may be proper.
Davis v. Chevron U.S.A., Inc.,
Indeed, given the July 1 conversation, the only reason that the sale was not made to Dr. Sanghvi was because of the appearance of a purchaser with a better offer, WWC. In July, WWC was willing to meet the no-financing condition of the hospital, unlike Dr. Sanghvi. The plаintiff complains that in the end WWC did not actually satisfy this condition, since it took over the practice on November 1, 1997 and did not pay in full until January 5, 1998. However, the record provides no indication that the defendant would have refused to let Dr. Sanghvi assume running the practice before his potential deal with the defendant was final, so long as the full payment price was tendered at the closing. Also, while both WWC and Dr. Sanghvi were offering the same price, $250,000, WWC’s offer was сlearly preferable from the defendant’s perspective. Dr. Sanghvi’s June 25, 1997 offer provided that all of the payments toward the $250,000 price would be refunded if he did not complete the twelve monthly installments. Thus, Dr. Sanghvi potentially could form valuable relationships with Dr. Bonaventura’s former patients over an eleven month period, then claim he was unable to make the last payment, have all of his money returned, and be able to lure away a significant number of the patients to his own practice. This could have left the hospital with a greatly devalued asset, since other potential buyers would be unlikely to pay much for a practice with few regular patients, and no money to show for this depreciation. By contrast, WWC’s offer did not impose this risk on the defendant since it would be paying all of the money at once and the payments could not be refunded. Finally, the defendant’s June 20 letter demonstrated its concern about the limited resources Dr. Sanghvi could provide as a sole practitioner. By contrast, WWC, as a group of obstetrician/gynecologists, could provide much broader coverage and thus increase the revenues of the hospital through referrals.
In short, even if Triana’s question might possibly be understood as suggesting some concern over the plaintiffs race, the surrounding facts demonstrate that St. Catherine’s refusal to sell to Dr. Sanghvi was
Dr. Sanghvi also contends that the rejection of his November 6 offer, which he claims was more favorable than WWC’s because he was willing to pay a higher price, sufficiently supports his claim of discrimination to send the case to a jury. However, we have determined that Tria-na’s negotiations with Dr. Sanghvi in June allay any supposition that Triana’s actions were motivated by an impermissible animus, and that conclusion carries over to the rejection of the November 6 offer. Furthermore, by November the defendant had additional reasons not related to race or ethnicity for rejecting Dr. Sanghvi’s offer. First, thе defendant feared litigation with WWC for breach of contract if it suddenly ejected WWC from Dr. Bonaven-tura’s practice after agreeing to an outline of the terms on which the practice would be sold in July. Second, Dr. Sanghvi’s August 2 letter showed antagonism toward the defendant, creating questions as to whether he would be as willing to refer patients to the defendant as WWC. Third, Dr. Sanghvi’s allegedly impermissible direct billing when he filled in for Dr. Bona-ventura had been discovered. Since St. Catherine’s was later to file a counterclaim against Dr. Sanghvi for the amount of this direct billing, the defendant understandably did not want to depend for referrals on a 'doctor with whom it would soon be in litigation. Given all of these additional reasons for rejecting the November offer, we conclude that no reasonable jury could find that the defendant acted with discriminatory intent at that time.
B. Burden Shifting Method
Under the frequently applied burden-shifting method established by
McDonnell Douglas Corp. v. Green,
The defendant argues that it did not sell to Dr. Sanghvi because a better deal was presented by WWC. This is a legitimate reason for refusing to sell the practice assets to the plaintiff and Dr. Sanghvi cannot show that this reason is pretextual. The explanation for this conclusion tracks part of our discussion of why Dr. Sanghvi’s direct evidence does not present a genuine issue of material fact, and so we will only briefly list the reasons suрporting the defendant’s sale to WWC rather than the plaintiff. In July, WWC offered to pay the defendant in a lump sum, something that the hospital had insisted upon and that Dr. Sanghvi could not do. Selling to WWC also increased the number of referrals that the hospital was
Nor can Dr. Sanghvi show that the dеfendant’s reasons for refusing to accept his offer on November 6 are pretextual. The defendant legitimately was concerned about being sued for breach of contract if it reclaimed the assets from WWC. The hospital could have still preferred WWC, even though it was offering less money, because its greater number of doctors would lead to more referrals and thus greater revenue for the hospital in the long run. Also, the discovery of Dr. Sanghvi’s billing prаctices when he was filling in for Dr. Bonaventura and his August 2 letter, which was hostile to the defendant and seemingly an attempt to lure away Dr. Bonaventura’s former patients to his practice, indicated that the defendant was unlikely to receive many referrals from the plaintiff if it sold him the practice.
III. Conclusion
We assume for purposes of this case that Triana’s question falls within the outer ambit of direct evidence of racial discrimination. However, the other undisputed еvidence prevents any reasonable jury from concluding that the defendant’s decision to sell Dr. Bonaventura’s practice to WWC rather than Dr. Sanghvi was motivated by racial or ethnic discrimination. Likewise, under the burden-shifting method Dr. Sanghvi cannot cast sufficient doubt on the reasons for the defendant’s refusal to sell the practice to him to raise a triable issue as to pretext. Therefore, the district court’s decision is AffiRmed.
Notes
. St. Mary Medical Center, though named as a defendant in the original suit and included in the notice of appeal, was dismissed from this action by order of the district court on June 10, 1999 as per the parties' stipulations.
. Triana denies asking this question, but since the district court granted summary judgment to the defendant, we resolve all factual disputes in favor of Dr. Sanghvi.
Ghosh v. Indiana Dep't of Envtl. Management,
. Contrary statements appear in some cases. For example,
Cardona Jimenez v. Bancomerico de P.R.,
. Of course, if the non-moving party has presented sufficient evidence to permit a reasonable jury to find for him or her, then a court cannot weigh the evidence on summary judgment and the motion must be denied.
See Anderson,
. We hold that no reasonable jury could find that racial animus was a motivating factor of the defendant’s decision. However, even if this were not so, another barrier possibly exists to Dr. Sanghvi's recovery. Before the Civil Rights Act of 1991 ("CRA”) was passed, an employer could escape all liability under Title VII or other federal anti-discrimination laws where the plaintiff presented sufficient evidence for a jury to conclude that impermissible animus was a motivating factor in the decision if the employer could demonstrate that it would have taken the same action for legitimatе reasons alone.
Price Waterhouse v. Hopkins,
