Lead Opinion
Subhash Malhotra, an accountant of Indian birth and ancestry, brought this suit in 1986 against his former employer, Cotter & Company (a distributor of tools). The suit charged ethnic discrimination, in violation of both 42 U.S.C. § 2000e (Title VII of the Civil Rights Act of 1964) and 42 U.S.C. § 1981 (Civil Rights Act of 1866). The district judge granted Cotter’s motion for summary judgment and dismissed the suit.
Malhotra, a C.P.A., had first gone to work for Cotter in 1978 as an auditor. According to the administrative charge that he filed in 1985, kicking off this litigation, between 1979 and 1984 Cotter on ten separate occasions refused, because of Malhotra’s Indian ancestry, to promote him. Although the parties describe the charge as one of racial discrimination, it is more accurately described as a charge of discrimination based on color, ethnicity, or national origin, rather than on race, since Indians are Caucasians. But the precise characterization makes no difference in this case. Section 1981 protects persons colloquially described as “nonwhites” even when technically they are Caucasians, St. Francis College v. Al-Khazraji,
Malhotra was finally promoted in 1986. However, according to his complaint (rather than his administrative charge, which had been filed before his promotion), Malhotra’s new supervisor harassed Malhotra by dumping papers on his desk, by humiliating him in front of his secretary, and by forbidding the secretary to photocopy his work. Malhotra contends that the supervisor’s acts amounted to racial harassment. Such harassment can be actionable under Title VII, see, e.g., Nazaire v. Trans World Airlines, Inc.,
In 1987, after the filing of this suit, Cotter fired Malhotra — in retaliation, the complaint alleges, for the Title VII administrative charge that Malhotra had filed in 1985. The amended complaint that the district judge dismissed alleges retaliation in violation both of Title VII’s retaliation provision, 42 U.S.C. § 2000e-3(a), and of section 1981, as well as repeating the other charges.
The principal grounds on which Cotter had urged summary judgment were procedural: the 300-day (sometimes but not here 180-day) statute of limitations in Title VII for filing the administrative charge, see 42 U.S.C. § 2000e-5(e); the two-year borrowed statute of limitations applicable to section 1981, see Goodman v. Lukens Steel Co.,
The other issue that the substantive affidavit addressed was Cotter’s refusal in 1983 to appoint Malhotra to the position of Accounts Receivable Manager. This refusal took place more than 300 days before Malhotra filed his administrative charge and more than two but less than five years before he filed his suit. The affidavit attests that Malhotra was not promoted because he was not as well qualified as the person whom the affiant did appoint to the position. The statement is brief and conclusional, and we have remarked in another context that conclusional statements in affidavits “are entitled to little weight in deciding whether to grant” a motion for summary judgment. Products Liability Ins. Agency, Inc. v. Crum & Forster Ins. Cos.,
None of the denials of promotion except with regard to the Finance Manager’s job occurred within two years prior to the filing of Malhotra’s complaint; are they therefore time-barred by virtue of the Supreme Court’s decision in Goodman v. Lukens Steel Co., supra? We declined to apply the Supreme Court’s decision in Wilson v. Garcia,
The remaining six denials of promotion took place more than five years before the filing of the complaint. With respect to them the question of limitations is whether Malhotra may reach back that far on a theory of “continuing violation.” As an original matter we might have some doubts; such banking of grievances could turn an employment discrimination suit into an inquest on the employee’s entire employment history with the defendant. We know from Lorance v. AT & T Technologies, Inc., — U.S. -,
But what exactly does it mean to say that a violation “began” before the statutory period? Here as in most cases there are discrete violations — separate failures to promote. What justifies treating a series of separate violations as a single continuing violation? Only that it would have been unreasonable to require the plaintiff to sue separately on each one. In a setting of alleged discrimination, ordinarily this will be because the plaintiff had no reason to believe he was a victim of discrimination until a series of adverse actions established a visible pattern of discriminatory mistreatment. See Glass v. Petro-Tex Chemical Corp.,
Malhotra is therefore entitled to a remand on all but two of his failure-to-promote claims — provided that claims of racially motivated denial of promotion based on section 1981 survive Patterson v. McLean Credit Union. As Title VII claims, they are time-barred; so without the five-year statute of limitations for section 1981 claims, Malhotra is lost (so far as the denials of promotion are concerned). Some claims of racially discriminatory denials of promotion do survive Patterson', others do not. It is uncertain where Malhotra’s fit.
Noting the statutory language “the same right [as white people] ... to make ... contracts,” the Supreme Court held in Patterson that “the question whether a promotion claim is actionable under § 1981 depends upon whether the nature of the change in position was such that it involved the opportunity to enter into a new contract with the employer.... Only where the promotion rises to the level of an opportunity for a new and distinct relation between the employee and the employer is such a claim actionable under § 1981. Cf. Hishon v. King & Spalding,
Another interpretation of Patterson may be possible, however, and it would lead to a broader right of action. This interpretation emphasizes the anomaly created by a rule that a stranger to the firm could sue under section 1981 if his application for a position was turned down on racial grounds but a person already employed by the firm could not sue even though his application for the identical position was turned down on the identical grounds. Viewed in this light the “new and distinct relation” test would distinguish such a case from one where promotion was the sort of routine advancement that only existing employees qualify for. To get an in-grade promotion in federal employment, for example, you must already be a federal employee, and the “promotion” is a raise, rather than a transfer to a new job. Complaints about discrimination in routine “promotions” of this sort can no longer be litigated under section 1981. That much is clear whatever the exact meaning of Patterson; and it also is clear that some in-house promotions are actionable, for Hishon was such a case. But to decide whether, for example, the refusal to promote Malhotra to the position of Finance Manager was actionable would require choosing between the alternative interpretations of Patterson, for on the one hand the job applied for was one that could well have been filled by someone not already working for the firm, while on the other hand the promotion would not, so far as appears, have changed the terms of Malhotra’s express or implied contract with Cotter. And likewise with the denial of promotion to Accounts Receivable Manager. Therefore if “new and distinct relation” means “new and distinct contractual relation,” Malhotra would be out of luck with regard to these two promotions even if he had proved discrimination.
This appeal does not imperatively require us to decide whether the “new and distinct relation” test embraces promotions which, while nonroutine, involve no change in the terms of the express or implied contractual relationship between employee and employer. The record does not reveal whether any of the promotions that Malhotra sought would have created a new and distinct relation between him and his employer under any reading of Patterson. Indeed the record contains virtually no evidence regarding eight of the ten promotions sought — the eight that are still alive in this litigation. Whether the denial
We show no disrespect to the Supreme Court by suggesting that the scope of Patterson is uncertain. The glory of the Anglo-American system of adjudication is that general principles are tested in the crucible of concrete controversies. A court cannot be assumed to address and resolve in the case in which it first lays down a rule every controversy within the semantic reach of the rule.
With regard to the claim of racial harassment we agree with the district judge that Malhotra was barred from raising this claim under Title VII because he had not mentioned it in his administrative charge. The charge he filed in 1985 — the only charge he filed — pertained to an earlier time period, a different form of discrimination (failure to promote), and different employees of Cotter. The new claim was too remote. Hemmige v. Chicago Public Schools,
The last issue is retaliation. Again Malhotra failed to file a Title VII administrative charge, but this time the omission was not fatal. Hemmige v. Chicago Public Schools, supra,
It could be argued that, like harassment, retaliation is actionable only under Title VII and not under section 1981. In distinguishing between refusing to hire (or, in some cases, refusing to promote) a person on grounds of race, and mistreating him— even to the extent of breaking the employment contract — after he has been hired, Patterson might be thought to foreclose any suggestion that retaliation could be actionable under that statute. Moreover, retaliation and discrimination are separate wrongs. A white person who opposes discrimination against blacks and is fired in retaliation for doing so is not being discriminated against because of his race, see Eichman v. Indiana State University Board of Trustees,
Title YII does not treat retaliation as a form of discrimination; it contains a separate provision forbidding retaliation. Section 1981, with which we are concerned here, contains no such provision, and merely entitles nonwhites to the same treatment as whites. Had a white person filed a charge on behalf of Malhotra, presumably he would have been fired too, if Malhotra is right that Cotter is determined to punish those who bring down the wrath of the law on its head. It is not true that “a retaliatory response by an employer against [an employee] who genuinely believed in the merits of his or her complaint would inherently be in the nature of a racial situation.” Setser v. Novack Investment Co.,
Against all this it can be argued that someone who retaliates against a person who has a claim of employment discrimination that might be actionable under section 1981 (and Malhotra may have such a claim, based on the denial of promotions that he sought) is interfering with that person’s ability to make or enforce contracts on the same footing with white persons, cf. Patterson v. McLean Credit Union, supra,
As the plethora of opinions in this case attests, federal employment discrimination law has become exceedingly complex. In part this is because of the overlap between statutes — Title VII and section 1981— passed in different centuries. It may be questioned whether either statute in its present form comports in today’s conditions with the human needs that gave rise to them. The stakes in a single-plaintiff employment discrimination case are small relative to the cost of federal litigation, and the need therefore is for a quick and cheap administrative or arbitral remedy rather than the leisurely, complex, and expensive procedures of full-blown federal court litigation. How many plaintiffs can successfully negotiate the treacherous and shifting shoals of present-day federal employment discrimination law? Perhaps strengthened enforcement by the Equal Employment Opportunity Commission is the answer. Perhaps it is time for Congress to replace the present crazy quilt of federal discrimination remedies with a single, simple, swift administrative remedy. There is little the judiciary can do to speed reform, pending which we must decide these cases as best we can. To summarize our decision in this case, the judgment of the district court is affirmed insofar as it dismisses Malhotra’s
Affirmed in Part, Reversed in Part, and Remanded.
Concurrence Opinion
concurring:
I agree with the result reached by the majority as well as generally with its analysis. On at least one point, however, I believe the majority opinion is unnecessarily tentative.
On the question whether section 1981 may be applied to retaliation claims, there seems to me little parallel between harassment and retaliation. Hence, the refusal of Patterson to countenance harassment claims under section 1981 has only the most superficial application to claims for retaliation.
Several courts of appeals have recognized (of course, pr e-Patterson) a cause of action for employees discharged in retaliation for seeking redress for violations of their rights under section 1981. Judge Jerre Williams of the Fifth Circuit explained that, without a remedy for retaliatory conduct, the rights guaranteed by section 1981 would be nullified.
The ability to seek enforcement and protection of one's right to be free of discrimination is an integral part of the right itself. A person who believes he has been discriminated against because of his race should not be deterred from attempting to vindicate his rights because he fears his employer will punish him for doing so. Were we to protect retaliatory conduct, we would in effect be discouraging the filing of meritorious civil rights suits and sanctioning further discrimination against those persons willing to risk their employer's vengeance by filing suits. Section 1981 would become meaningless if an employer could fire an employee for attempting to enforce his rights under that statute.
Goff v. Continental Oil Co.,
[T]he legislature enacted the worker’s compensation law as a comprehensive scheme to provide for efficient and expeditious remedies for injured employees. This scheme would be seriously undermined if employers were permitted to abuse their power to terminate by threatening to discharge employees for seeking compensation under the Act. We cannot ignore the fact that when faced with such a dilemma many employees ... would choose to retain their jobs, and thus, in effect, would be left without a remedy_ This result, which effectively relieves the employer of the responsibility expressly placed upon him by the legislature, is untenable and contrary to the public policy [] expressed in the Worker’s Compensation Act. We cannot believe that the legislature, even in the absence of an explicit proscription against retaliatory discharge, intended such a result.
See also Hinthorn v. Roland’s of Bloomington,
The majority suggests that recognition of a cause of action for retaliation might not be appropriate because a white person would not have a viable section 1981 claim for retaliatory discharge based on her espousal of the contract rights of minorities. Thus, the majority reasons, retaliatory conduct is separable from the underlying right to be free from racial discrimination that a retaliating employer seeks to burden, and the act of retaliation does not necessarily imply any racial animus against the person discharged.
Initially, I would note that resolution of the majority’s interesting hypothetical concerning the discharge of a white employee is unnecessary in this case. The question presented here involves a member of a minority group who was allegedly fired in retaliation for presenting his own claims of racial discrimination in employment. Moreover, contrary to the majority, most courts that have addressed the retaliation issue have concluded that the motive for retaliatory conduct is necessarily the intent to discriminate, and thereby discourage minorities’ assertion of their statutory rights.
Eichman v. State University Board of Trustees,
Of course, as has been noted, the rights of white employees under section 1981 are really irrelevant in this case, which presents the more fundamental issue whether a minority employee fired for asserting his own rights under section 1981 can state a claim based on his discharge. On this point, I would align myself with the results reached by the other circuits to have addressed this issue (and with the reasoning of state courts answering analogous questions) and hold that an individual in Malhotra’s position may state a claim for retaliation under section 1981. I think therefore that the retaliation point need not be left undecided.
Notes
. In fact, to the limited extent Patterson is relevant here, it would appear to support the recognition of a cause of action for retaliatory conduct. The Patterson court explained that section 1981's guarantee of the right "to enforce contracts"
covers wholly private efforts to impede access to the courts or obstruct nonjudicial methods of adjudicating disputes about the force of binding obligations.... The right to enforce contracts ... extend[s] [to] conduct by an employer which impairs an employee’s ability to enforce through the legal process his or her established contract rights.
Patterson v. McLean Credit Union, — U.S. -,
The decision in Goodman v. Lukens Steel Co.,
. The Second Circuit provided a similar rationale for recognizing a cause of action for retaliation:
[A]n employee who is punished for seeking administrative or judicial relief, regardless of the merits of his initial claim, has failed to secure that right to equal treatment which constitutes the fundamental promise of § 1981. When a complainant experiences retaliation for the assertion of a claim to evenhanded treatment, he remains under a handicap not faced by his colleagues. Such inequality, we believe, is proscribed by § 1981.
. Griess v. Consolidated Freightways Corp.,
Nevada’s workmen’s compensation system than to force employees to choose between a continuation of employment or the submission of an industrial claim.’’); Lally v. Copygraphics,
. As the Eighth Circuit has explained,
We do not accept appellees’ contention that a retaliatory action against a prospective employee for attempting to enforce rights under § 1981 might not be based on any racial discrimination.... [A] retaliatory response by an employer against [an individual] who genuinely believed in the merits of his or her complaint would inherently be in the nature of a racial situation. Judicial recognition of appellees' distinction could lead courts into the factual mire of determining whether a retaliatory act was based purely on non-racial criteria.
Setser v. Novack Investment Co.,
. See, e.g., Skinner v. Total Petroleum, Inc.,
. In addition to the retaliation question, it is also possible to take a less equivocal view on the promotion issue. The majority quite persuasively points out the anomaly created by allowing a stranger to the firm to sue under section 1981 for a failure to hire while denying the same right to an existing employee seeking the same job by promotion. Nothing in Patterson — certainly not the "new and distinct relation” criterion — comes close to justifying or requiring our acceptance of such an anomaly. Hence, promotion to a job for which there is actual or potential outside competition is not excluded from 1981 coverage by Patterson.
Further, while I agree with the majority’s identification of promotion claims that are actionable under section 1981, its formulation is not necessarily exhaustive. In Patterson the Court stated that promotions were actionable if they constituted “an opportunity for a new and distinct relation between the employee and the employer,” or “the opportunity to enter into a new contract.”
Concurrence Opinion
concurring.
I join the judgment of the court. I am also pleased to join much of the thoughtful opinion of the court. However, I respectfully must decline to join that part of the opinion that suggests that Patterson v. McClean Credit Union, — U.S. -,
As the majority suggests, there may be a lack of symmetry in a regulatory scheme that provides different remedies to those who are already employees of the defendant and those who have no preexisting contractual relationship with the defendant. I do not see how that condition, an accident of history or of political will, permits us to revise the scheme. If making
In my view, the majority's gratuitous suggestion undermines Patterson, and, I fear, will create a great deal of needless confusion in the bench and bar. As a lower federal court, we always should strive to avoid introducing such ambiguity into the holdings of the Supreme Court. Here, we ought to be particularly circumspect because the Supreme Court has warned us rather pointedly that we are to apply Patterson, not undermine it. When dealing with this very issue, the Supreme Court specifically warned us to give “a fair and natural reading to the statutory phrase ‘the same right ... to make ... contracts’ ” and admonished us that we “should not strain in an undue manner the language of § 1981.” Id.
With respect to the matter of retaliation, Judge Cudahy’s analysis, consonant with the approach of other circuits, certainly presents a strong case. Patterson recognizes that section 1981 forbids conduct that “impairs the employee’s ability to enforce ... contract rights.” Id. at 2373. As Judge Posner notes, however, the record does not permit us to reach the issue in this case.
With the exceptions noted, I am pleased to join the judgment and opinion of the court.
