Seymore v. Reader's Digest Ass'n, Inc.Seymore v. Reader's Digest Ass'n, Inc.
OPINION AND ORDER
Defendant Reader’s Digest Association, Inc. (“Reader’s Digest”) has moved for summary judgment against plaintiff Arthur L. Seymore (“Seymore”) in this employment discrimination and breach of contract action. Defendant has further moved to dismiss plaintiff’s claim under 42 U.S.C. § 1981 as untimely, and to strike plaintiff’s demands for a jury trial and for compensatory and punitive damages. For reasons set forth below, defendant’s motion for summary judgment is denied as to plaintiff’s claims of discrimination in starting salary, working conditions, rejection of his suggestions and ideas, merit review, bonuses, failure to transfer and termination; granted as to plaintiff’s claims of discrimination in training, subject to plaintiff’s submission of a further offer of proof on this issue; denied as to plaintiff’s claims in quantum meruit; and granted as to plaintiff’s implied contract claim. Defendant’s motions to dismiss plaintiff’s § 1981 claim on statute of limitations grounds and to strike plaintiff’s demand for a jury trial are denied. Background
The parties do not dispute the following basic facts underlying plaintiff’s action. On November 11, 1974 plaintiff, a Black 1974 graduate of the University of Maryland, began work at Reader’s Digest as a trainee in the Advertising Production subdivision of the Production Department at a starting salary of $10,000. In Advertising Production, Seymore worked on a series of printing projects, some of which involved use of a densitometer, a machine which measures the intensity of color. Seymore learned how to operate a densitometer, and used the machine to measure the faithfulness of Reader’s Digest printed pages to the color originals supplied by advertisers, and to measure the effects of several printing quality experiments with various inks, screens and papers.
Based on his work with the densitometer and with printers and ink suppliers, and while he was working in Advertising Production, Seymore made several suggestions for improving the Reader’s Digest printing process: (1) that the densitometer be used to measure the color to be printed by the various types of Reader’s Digest presses in advance of a press run, so that each press could be adjusted to reduce the number of instances of unfaithful reproduction of an advertiser’s color original (and thereby avoid the necessity of giving advertisers subsequent free advertising space)
1
; (2) that the ink feed systems used in the presses which print Reader’s Digest be changed
In February 1976, Seymore was transferred to the Book Production subdivision of the Production Department. During the period immediately following this transfer, Seymore continued to work on certain of the print experiments in which he had been engaged while still in the Advertising Production subdivision. In his new position, Seymore made a further suggestion, that Reader’s Digest use the same-sized film for the illustrations on the dust jackets of Reader’s Digest Condensed Books as is used for the pictures on the “box wrap” in which Condensed Books are packed. 3
In May 1976, Seymore sent a memorandum to the President of Reader’s Digest, Kent Rhodes, requesting transfer to another department of the corporation due to the “irrational behavior” of Seymore’s former supervisor in Advertising Production, Bert N. Caldwell. In the memo, Seymore further urged adoption of his suggestion on installation of an automatic ink feed system to improve the Reader’s Digest printing process. Rhodes had lunch with Seymore to discuss the issues raised in the memorandum. At certain points during the weeks immediately following that luncheon meeting, Seymore met with J. Edward Hall, Personnel Director of Reader’s Digest, to discuss Seymore’s transfer to another department. These discussions were not fruitful. During that time, Seymore composed a further memorandum concerning the Production Department’s failure to adopt an automatic ink-feed system. On June 16, Seymore’s employment with Reader’s Digest was terminated.
Following his termination, Seymore brought a complaint before the New York State Division of Human Rights charging employment discrimination. The Division determined that there was no probable cause to believe Reader’s Digest had discriminated against Seymore, and that determination was upheld by the State Human Rights Appeal Board.
Contentions of the Parties
In this lawsuit, plaintiff asserts that he was treated in a discriminatory manner by Reader’s Digest with respect to compensation, terms of employment, and discharge, in violation of § 703 of Title VII, 42 U.S.C. § 2000e-2, and of 42 U.S.C. § 1981. In particular, plaintiff contends that (1) he was hired at a discriminatorily low salary; (2) that while he worked in Advertising Production, he was denied the work space, access to office supplies, personalized note-cards and stationery and written job description which white employees in that subdivision received; (3) that he received discriminatorily minimal training; (4) that his suggested improvements were treated summarily or rejected for racially-motivated reasons; (5) that he was denied bonuses for his suggestions and general performance, while white employees received such bonuses; (6) that he failed to receive a merit review and raise following his transfer to Book Production, while white employees received such a review after a transfer; (7) that after his transfer he was required to work double time, in a manner not required of whites; and (8) that he was given inaccurate information as to openings in other departments to which he might be transferred and was terminated, contrary to the reasons given to him at the time, when such transfer opportunities could have been made available to him. Plaintiff supports his allegation of discriminatory treatment by citing instances of alleged ra
Plaintiff further contends that he is entitled to damages, first under a quantum meruit theory, in that he relied on Reader’s Digest’s implied promise to pay him bonuses or suggestion awards; second, on the theory that since Reader’s Digest wrongfully terminated plaintiff’s employment contract, plaintiff may elect to recover on a quantum meruit basis the difference between the value of services rendered and the salary already received; and third, on an implied or quasi-contract theory that, even if plaintiff and Reader’s Digest did not impliedly agree on payment of bonuses for plaintiffs suggestions, Reader’s Digest was unjustly enriched by receipt of plaintiff’s suggestions and ideas.
Defendant moves to dismiss plaintiff’s Title VII, § 1981 and
quantum meruit
claims on the ground that plaintiff has failed to set forth, either in affidavits or in supplemental discovery material, specific facts showing that there is a genuine issue for trial, as required by Rule 56(e); that as to certain of his employment discrimination allegations, plaintiff has failed to specify in supporting affidavits or discovery material any factual basis sufficient to state a
prima facie
case, while as to other allegations, plaintiff has failed to come forward with factual support for a claim that the nondiscriminatory business reasons specified by defendant for defendant’s actions were in fact pretexts for racial discrimination. Defendant supports this position as to plaintiff’s employment discrimination claims with affidavits stating that (1) Seymore received the highest starting salary of any of the white employees whose positions plaintiff has specified as being comparable to his own except for one man with twenty-two years’ printing experience, who received a starting salary of $15,000; (2) that Seymore was treated just as any trainee would have been treated with respect to working conditions and (3) training opportunities; (4) that Seymore's ideas were dismissed for various sound business reasons; (5) and (6) that Seymore received the same annual raises as all other Reader’s Digest employees, was considered for merit raises and bonuses under the same standards as all employees, and that in fact, in 1976, Seymore received the highest percentage merit raise of any Reader’s Digest employee in the Advertising or Book Production subdivisions of the Production Department; (7) that while Seymore was asked to work on certain Advertising Production matters after his transfer to Book Production, this was done for reasons of business efficiency to finish up old matters or to expedite handling of one related matter; that Seymore’s supervisors expressed to Seymore their concern that he was devoting too much time to his former projects and too little to his work in Book Production; but that Seymore remained overly engrossed with Advertising Production matters, to the detriment of his work in Book Production; and (8) that with respect to Seymore’s termination, when Seymore first applied for transfer to other departments of Reader’s Digest, no suitable position was available, while Seymore’s actions in issuing his memorandum critical of Dutton, the Production Department Director, were sufficient justification for denying further transfer opportunities to Seymore and for Seymore’s termination. Defendant’s affidavits further state that Dutton’s use of the term “black magic” was neither directed at plaintiff nor racially motivated, having occurred only in a memorandum to the personnel office describing the intricacies of the printing process; while Caldwell used the term “splitting a niggerhead” in the context of explaining
Discussion
In general, in order to prevail on a summary judgment motion, the party making the motion must show (1) that there is no genuine issue of material fact to be tried in the case and (2) that the moving party is entitled to a judgment as a matter of law. F.R.Civ.P. 56(c); see
Adickes v. Kress & Co.,
When summary judgment has been considered in Title VII/§ 1981 cases, it has been applied sparingly because, once a plaintiff has shown by factual support or permissible inference that a
prima facie
case of discrimination exists, the subordinate issues of defendant’s legitimate business reasons for discriminatory treatment or business need for a test or practice with discriminatory impact, and plaintiff’s further showing that such business need or reasons are mere pretext for discrimination, turn so significantly on the veracity of witnesses that in effect they can only be assessed properly after an evidentiary hearing. See
Robinson v. 12 Lofts Realty,
A. Application
Under this standard, it is clear that summary judgment is inappropriate as to the majority of plaintiff’s discrimination claims. Plaintiff’s affidavits and other supporting materials show that a genuine dispute exists as to many of the facts necessary to establish plaintiff’s
prima facie
case of discrimination in seven of the eight areas plaintiff cites, including (1) whether plaintiff’s particular job skills or qualifications were comparable to those of the white individual who received a higher starting salary; (2) the nature of plaintiff’s access to office supplies and working conditions when compared to those of white co-workers in advertising production; (3) the nature of plaintiff’s treatment when plaintiff raised suggestions at Production Department meetings when compared to treatment of whites who raised suggestions at such meetings; (4) whether a bonus was given to Bert N. Caldwell for a specific suggestion under the Reader’s Digest bonus plan; (5) whether the timing of the merit review given to plaintiff following his transfer to Book Production was comparable to that given to a white employee after a similar transfer; (6) whether or not, after plaintiff’s transfer to Book Production, he was being assigned more work than any white employee in Book Production; and (7) the availability of positions in other departments of Reader’s Digest after plaintiff requested a transfer and, as to the insubordination issue raised in defendant’s justification, the nature of the instruction from Kent Rhodes to plaintiff regarding the issuance of further memoranda. Furthermore, it is clear that the inferences which may be drawn from certain of the statements in plaintiff’s affidavit — most importantly, his version of the “splitting a niggerhead” conversation with Caldwell — support a “pretext” rebuttal of any of the legitimate business reasons or assertions of business necessity advanced by defendant for plaintiff’s treatment in Advertising Production, and that, as in
Long v. Ford Motor Co.,
B. Contract Law Claims
As noted above, plaintiff’s pleadings allege three possible contract law claims: a claim in quantum meruit based on an implied agreement to pay bonuses or suggestion awards; a quantum meruit claim for the excess of the value of plaintiff’s services to defendant over the amount of salary paid to plaintiff, based on plaintiff’s election of remedies following breach of his employment contract; and a quasi-contract claim for unjust enrichment to defendant Reader’s Digest based on receipt and/or use of plaintiff’s suggestions and ideas.
1. Legal standard
Under New York law, where there is an express employment contract setting terms of compensation, an action will not lie in
quantum meruit. Jontow v. Jontow,
2. Application
Since plaintiff has not offered or attempted to offer any proof that his alleged entitlement to bonuses or suggestion awards was the result of an agreement separate from his employment agreement with Reader’s Digest, his quantum meruit claim must rest on the second possible theory of quantum meruit recovery, i. e., that plaintiff’s employment contract was breached, and that plaintiff was accordingly entitled to recover in quantum meruit for the value of his services over and above the amount of salary he was paid. It is clear that a disputed issue of material fact exists as to whether plaintiff’s employment contract was breached, either by failure to give plaintiff the status and working conditions (i. e., an office with a desk) that plaintiff states he was promised, or by treating plaintiff discriminatorily. It is also clear that a disputed issue of material fact exists as to the benefit plaintiff conferred on defendant with his suggestions and ideas, in comparison to the benefit conferred by such suggestions as Caldwell’s suggestion to switch to uncoated paper (which plaintiff asserts entitled Caldwell to a $15,000 bonus).
With respect to plaintiff’s quasi-contract claim, however, defendant has made a showing sufficient for granting summary judgment, since plaintiff has not provided any support on the issue of whether his suggestions and ideas were novel or unique and thus could form a basis for a finding of unjust enrichment under Educational Sales, supra 6
Defendant further contends that plaintiff’s claims under 42 U.S.C. § 1981 are time-barred, since defendant asserts that a one-year statute of limitations applies and that the complaint in this case was filed fifteen months after plaintiff was discharged from Reader’s Digest.
Under
Johnson v. Railway Express,
D. Right to Jury Trial
1. Legal Standard
Under the principles of
Curtis v. Loether,
“ . . . apply to actions enforcing statutory rights, and require[ ] a jury trial on demand, if the statute creates legal rights and remedies, enforceable in an action for damages in the ordinary courts of law.” Id. at 194,94 S.Ct. at 1008 .
Since the remedy provided under Title VII — reinstatement and award of back
Section 1981, on the other hand, provides for remedies essentially independent of those provided under Title VII,
Johnson v. Railway Express, supra.
A plaintiff under § 1981 may demand compensatory and punitive damages under the
Curtis
rationale, since § 1981 is more analogous to a claim sounding in tort, an action at law, see
Curtis, supra,
Moreover, the right to sue for compensatory and punitive damages and to demand a jury trial extends to cases in which a plaintiff has joined a § 1981 suit to a claim for equitable relief under Title VII,
McCray, supra.
In such cases, the jury will consider and decide both the legal claim and all issues common to both the legal and the equitable claims.
Curtis, supra,
2. Application
Under this standard, defendant’s motion to strike plaintiff’s demand for a jury trial must be denied. Plaintiff has properly demanded such a trial based on plaintiff’s claim for compensatory and punitive damages under § 1981, see McCray, supra; plaintiff’s claim for compensatory and punitive damages is not “unsupported,” as was the claim in Lynch, but is rather based upon plaintiff’s allegations that he suffered humiliation as a result of defendant’s conduct (a proper basis for compensatory damages under Seaton, supra) and that defendant engaged in a willful course of discriminatory conduct (a proper basis for punitive damages under Allen, supra).
Conclusion
Defendant’s motion for summary judgment with respect to plaintiff’s employment discrimination claims is granted as to plaintiff’s claims of discrimination in training, subject to plaintiff’s submission of further supporting affidavits or documents within
SO ORDERED.
Notes
. Defendant’s affidavits further discuss a suggestion by Seymore to use the densitometer to measure quality of advertisers’ submitted originals (Dutton affidavit).
. Although defendant contends these suggestions were neither innovative nor original with Seymore, see discussion infra.
. Defendant contends that this suggestion, while practical, was also not original with Seymore, but in fact had been done once in the 1950’s and in the two years immediately prior to 1976.
. For a discussion of burden of proof in Title VII cases, see
Furnco Construction Corp. v. Waters,
. Even if it is assumed that plaintiff could make out a
prima facie
case of individual discrimination under
Griggs
by statistical comparisons alone, see
Robinson v. 12 Lofts Realty,
. Seymore states in his affidavit that “I have never claimed to have invented my ideas and suggestions.” Seymore Affidavit at 15. Furthermore, plaintiff provides no factual statements or arguments to rebut defendant’s Rule 9(g) statement that plaintiff’s suggestions con
. While certain allegations in plaintiffs complaint might trigger other more specific statutes of limitation, such as the six-year contract statute of limitations of CPLR § 213(2) for actions based on services rendered, see
Rappaport v. Blank,