White Glove Staffing Inc et al v. Methodist Hospitals of Dallas et al
Filing
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MEMORANDUM OPINION AND ORDER: Before the Court is Defendants' Motion for Partial Summary Judgment (Doc. No. 52 ) (the "Motion"). The Court GRANTS IN PART and DENIES IN PART the Motion. (Ordered by Judge Ed Kinkeade on 9/19/2018) (sss)
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION
WHITE GLOVE STAFFING, INC.,
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CAROLYN CLAY, LINDEY DANCEY, §
LEA REED, and KAMARIO SIMPSON, §
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Plaintiffs,
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v.
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METHODIST HOSPITALS OF
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DALLAS, and DALLAS METHODIST
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HOSPITALS FOUNDATION,
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Defendants.
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Civil Action No. 3:17-CV-1158-K
MEMORANDUM OPINION AND ORDER
Before the Court is Defendants’ Motion for Partial Summary Judgment (Doc.
No. 52) (the “Motion”). After carefully considering the Motion, response, reply,
relevant documents, record, and applicable law, the Court GRANTS IN PART and
DENIES IN PART the Motion.
The Court GRANTS summary judgment as to all claims brought by Plaintiffs
Lindey Dancey, Lea Reed, and Kamario Simpson (collectively, “Added Plaintiffs”). The
summary-judgment evidence establishes that (1) Added Plaintiffs did not exhaust their
administrative remedies and do not qualify under the single-filing exception for
purposes of their claims under Title VII of the Civil Rights Act of 1964 and the Texas
Commission on Human Rights Act and (2) Added Plaintiffs did not have the necessary
“contractual relationship” for purposes of their § 1981 discrimination claims.
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The Court additionally GRANTS summary judgment as to Plaintiff Carolyn
Clay’s (“Clay”) claims against Defendant Dallas Methodist Hospitals Foundation
(“Foundation”), as Clay does not oppose the dismissal of her claims against
Foundation. Defendant Methodist Hospitals of Dallas (“Hospitals”) does not move the
Court for summary judgment as to Clay’s claims except with regard to punitive
damages.
The Court DENIES summary judgment as to Clay’s claims against Hospitals for
punitive damages, as genuine issues of material fact still exist.
The Court does not rule on the Motion as to Plaintiff White Glove Staffing,
Inc.’s (“White Glove”) § 1981 retaliation claims against Defendants Methodist
Hospitals of Dallas and Dallas Methodist Hospitals Foundation (collectively,
“Methodist”). The Court reserves the opportunity to rule on these claims at a later
time.
I.
Factual Background
White Glove, a staffing agency, entered into contract negotiations to provide for
Methodist’s staffing needs. During the initial negotiations, Methodist’s Catering
Coordinator/Special Events, Jeff Jennings (“Jennings”), allegedly informed White Glove
that Methodist’s head chef preferred Hispanic employees. After this meeting, Jennings
called White Glove and set a meeting for a week later. The alleged purpose of this
scheduled meeting was for White Glove and Methodist to enter into a contract.
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After the initial negotiations, but before entering into any contract, Methodist
asked White Glove to provide Methodist with a prep cook. White Glove sent Clay.
Clay is African American. Clay worked for Methodist for only a few days before
Jennings called White Glove and explained that Clay was not working out. During this
phone call, Jennings allegedly informed White Glove that Methodist’s head chef was
not happy with Clay because the head chef wanted Hispanic employees. Jennings asked
White Glove to provide another prep cook.
The next day, White Glove sent Clay back to Methodist. Another chef at
Methodist allegedly asked Clay to leave. Jennings contacted White Glove and allegedly
stated that Clay was sent home because the head chef only wanted Hispanic employees.
This incident occurred the same day Methodist and White Glove were scheduled to
meet to allegedly sign a contract. After Methodist sent Clay home, Methodist cancelled
the scheduled meeting and informed White Glove that it would not enter into a staffing
contract with White Glove.
II.
Procedural Background
White Glove and Clay filed suit against Methodist for employment
discrimination and retaliation. Added Plaintiffs joined the suit as African-American
individuals White Glove allegedly would have supplied to Methodist had Methodist
entered into the staffing contract.
Methodist moved to dismiss White Glove’s discrimination and retaliation claims
under Title VII of the Civil Rights Act of 1964 (“Title VII”), discrimination and
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retaliation claims under the Texas Commission on Human Rights Act (“TCHRA”), and
discrimination claim under 42 U.S.C. § 1981. The Court granted Methodist’s motion
and dismissed all of these claims. White Glove moved the Court to reconsider the
dismissal of White Glove’s § 1981 discrimination claim. The Court denied White
Glove’s motion to reconsider. White Glove’s only remaining claim is the retaliation
claim under § 1981.
III.
Legal Standard
Summary judgment is appropriate when the pleadings, affidavits, and other
summary-judgment evidence show that no genuine issue of material fact exists, and the
moving party is entitled to judgment as a matter of law. FED. R. CIV. P. 56(c); Celotex
Corp. v. Catrett, 477 U.S. 317, 322 (1986). A dispute of a material fact is “genuine” if
the evidence is such that a reasonable jury could return a verdict in favor of the
nonmoving party. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). All evidence
and reasonable inferences must be viewed in the light most favorable to the nonmovant,
and all disputed facts resolved in favor of the nonmovant. See United States v. Diebold,
Inc., 369 U.S. 654, 655 (1962); Boudreaux v. Swift Transp. Co., 402 F.3d 536, 540 (5th
Cir. 2005).
The moving party bears the burden of identifying those portions of the record it
believes demonstrates the absence of a genuine issue of material fact. Celotex, 477 U.S.
at 322–25. Once a movant makes a properly supported motion, the burden shifts to
the nonmovant to show the existence of a genuine fact issue for trial; however, the
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nonmovant may not rest upon allegations in the pleadings to make such a showing. Id.
at 321–25; Anderson, 477 U.S. at 255–57. Conclusory allegations, unsubstantiated
assertions, or a mere scintilla of evidence cannot defeat a motion for summary
judgment. See Anderson, 477 U.S. at 249–52; Boudreaux, 402 F.3d at 540. “Where
critical evidence is so weak or tenuous on an essential fact that it could not support a
judgment in favor of the nonmovant, or where it is so overwhelming that it mandates
judgment in favor of the movant, summary judgment is appropriate.” Alton v. Texas
A&M Univ., 168 F.3d 196 (5th Cir. 1999). If the nonmovant fails to make a sufficient
showing to prove the existence of an essential element to the case and on which the
nonmovant will bear the burden of proving at trial, summary judgment must be
granted. Celotex, 477 U.S. at 322.
IV.
Analysis
a. Added Plaintiffs’ Claims
Added Plaintiffs’ Title VII and TCHRA claims cannot survive summary
judgment because Added Plaintiffs failed to exhaust their administrative remedies and
do not satisfy the single-filing exception to the exhaustion requirement. Added
Plaintiffs’ § 1981 claims cannot survive summary judgment because there is no
evidence of the necessary “contractual relationship” between Added Plaintiffs and
Methodist.
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i. Added Plaintiffs’ Title VII Claims
A plaintiff with a Title VII claim must exhaust all administrative remedies before
bringing suit. Lavigne v. Cajun Deep Founds., L.L.C., 654 F. App’x 640, 643 (5th Cir.
2016). A plaintiff suing under Title VII “first must file a charge with the EEOC within
180 days of the alleged discriminatory act.” Price v. Choctaw Glove & Safety Co., Inc., 459
F.3d 595, 598 (5th Cir. 2006). The single-filing exception is an exception to the
exhaustion requirement. Id. The single-filing exception allows for a plaintiff who failed
to exhaust his or her own administrative remedies to “opt-in to a suit filed by any
similarly situated plaintiff under certain conditions.” Id. (quoting Bettcher v. The Brown
Schools, Inc., 262 F.3d 492, 494 (5th Cir. 2001)). This exception is “carefully limited.”
Id. (quoting Bettcher, 262 F.3d at 493).
There are three requirements for a plaintiff to invoke the single-filing exception:
First, the plaintiff must be similarly situated to the person who actually
filed the EEOC charge. Second, the charge must have provided some
notice of the collective or class-wide nature of the charge. Finally, a
prerequisite—implicit to be sure—for piggybacking under the single filing
rule is the requirement that the individual who filed the EEOC charge
must actually file a suit that the piggybacking plaintiff may join.
Id. at 599 (internal citations omitted). A conclusory statement by a plaintiff that
he or she is “similarly situated” to another plaintiff is not enough to prove that
the plaintiff satisfies the first requirement of the single-filing exception. See
Arrieta v. Yellow Transp., Inc., Civ. Action No. 3:05-CV-2271-D, 2008 WL
5220569, at *25 (N.D. Tex. Dec. 12, 2008) (Fitzwater, C.J.).
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The Court first notes that Added Plaintiffs fail to cite any evidence in
their response in support of the first requirement of the single-filing exception.
The Added Plaintiffs’ argument concerning the similarly situated requirement is
only two sentences: “[Added Plaintiffs] are similarly situated to Clay. Each is
African American, works for White Glove, and would have been staffed to
Methodist had it not been for Methodist’s unlawful hiring policy.”
“Rule 56 does not impose upon the district court a duty to sift through
the record in search of evidence to support a party’s opposition to summary
judgment.” Adams v. Travelers Indem. Co. of Conn., 465 F.3d 156, 164 (5th Cir.
2006) (quoting Ragas v. Tenn. Gas Pipeline Co., 136 F.3d 455, 458 (5th Cir.
1998)). By failing to cite any evidence, Added Plaintiffs attempt to satisfy the
similarly situated requirement solely through the conclusory statements in their
response. Added Plaintiffs’ reliance upon conclusory statements would justify
summary judgment on their Title VII claims by itself. See Arrieta, 2008 WL
5220569, at *25.
The Court nevertheless reviewed the record for evidence in support of the
similarly situated requirement. Upon the Court’s own review, Added Plaintiffs’
summary-judgment evidence for the first requirement of the exception consists
of one statement in the declaration of Linda White, the President of White
Glove Staffing: “[Added Plaintiffs] are just a few of the employees White Glove
would have supplied to [Methodist] had [Methodist] not unlawfully refused to
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enter into a contract with White Glove because White Glove employs nonHispanic employees.”
This statement, by itself, does not present a genuine issue of material fact
concerning whether Added Plaintiffs are similarly situated to Clay. White Glove
provided Clay to Methodist until Methodist allegedly sent Clay away because of
her race. Michael White, the Vice President of Operations for White Glove,
stated in his deposition that the only other employees that White Glove
provided to Methodist were Maria Amaya and Andres Balam. Linda White’s
single statement regarding her alleged intent to provide Added Plaintiffs to
Methodist at some indefinite time in the future is not sufficient summaryjudgment evidence to create a genuine issue of material fact as to whether the
Added Plaintiffs were similarly situated to Clay. There is no evidence of actual
steps by White Glove to provide Added Plaintiffs to Methodist. White Glove
instead provided two other employees to Methodist when White Glove did not
provide Clay. Because Added Plaintiffs must rely upon the single-filing exception
to bring their Title VII claims and have failed to provide sufficient evidence that
there is a genuine issue of material fact about the “similarly situated”
requirement, the Court need not address the other two requirements of the
single-filing exception. Methodist is entitled to summary judgment on Added
Plaintiffs’ discrimination and retaliation claims under Title VII.
ii. Added Plaintiffs’ TCHRA Claims
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The recent discussion of the exhaustion requirement by the Fifth Circuit and
Texas Supreme Court makes clear that the exhaustion requirement is still a prerequisite
for a plaintiff to commence a suit under TCHRA. See Gorman v. Verizon Wireless Texas,
L.L.C., 753 F.3d 165, 168–70 (5th Cir. 2014); In re United Servs. Auto. Ass’n (“USAA”),
307 S.W.3d 299 (Tex. 2010). The Fifth Circuit and Texas Supreme Court only
clarified that a plaintiff’s failure to exhaust his or her administrative remedies does not
divest a court of jurisdiction. See Gorman 753 F.3d at 169–70. A plaintiff still must
comply with the mandatory requirement that he or she exhaust administrative
remedies before bringing suit. See id.; USAA, 307 S.W.3d at 307–10. The courts in
effect harmonized TCHRA and Title VII, especially since “[t]he substantive law
governing Title VII and TCHRA retaliation claims is identical.” Gorman 753 F.3d at
169–70; see also Shackelford v. Deloitte & Touche, LLP, 190 F.3d 398, 403 n.2 (5th Cir.
1999) (explaining that the law governing all Title VII and TCHRA claims is the same).
Added Plaintiffs did not satisfy the “mandatory” requirement that they exhaust
their administrative remedies. Added Plaintiffs never assert that they obtained a rightto-sue letter for their TCHRA claims and thus exhausted their administrative remedies.
See Gorman, 753 F.3d at 170 (holding that the court had jurisdiction to hear the merits
of the case because the plaintiff eventually obtained a right-to-sue letter). Added
Plaintiffs instead assume that the single-filing exception, which applies to Title VII
claims, applies to their TCHRA claims. Added Plaintiffs’ assumption may have merit
in light of the Fifth Circuit’s harmonization of Title VII and TCHRA in Gorman;
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however, as discussed above, Added Plaintiffs do not satisfy the single-filing exception
for Title VII purposes. Because Added Plaintiffs are not “similarly situated” to either
Clay or White Glove for purposes of the single-filing exception under Title VII, they
do not qualify for any analogous exception under TCHRA. See id. Methodist is entitled
to summary judgment on Added Plaintiffs’ discrimination and retaliation claims under
the TCHRA.
iii. Added Plaintiffs’ § 1981 Discrimination Claim
Plaintiffs alleging discrimination under § 1981 must establish three elements:
“(1) they are members of a racial minority; (2) [d]efendants intended to discriminate
on the basis of race; and (3) the discrimination concern[s] one or more of the activities
enumerated in [§ 1981].” Body by Cook, Inc. v. State Farm Mut. Auto. Ins., 869 F.3d 381,
386 (5th Cir. 2017). “Mak[ing] and enforc[ing] contracts” is an enumerated activity
under § 1981. 42 U.S.C. § 1981(a) (2012). This activity “includes the making,
performance, modification, and termination of contracts, and the enjoyment of all
benefits, privileges, terms, and conditions of the contractual relationship.” § 1981(b).
Added Plaintiffs allege that Methodist violated this protected activity.
A plaintiff need not have a contractual relationship prior to the alleged
discrimination. Domino’s Pizza, Inc. v. McDonald, 546 U.S. 470, 476 (2006). “[Section]
1981 protects the would-be contractor along with those who already have made
contracts.” Id. Although a plaintiff does not need a contractual relationship prior to the
alleged discrimination, a plaintiff must have his or her “own contractual relationship”
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to establish a § 1981 discrimination claim. Id. at 480. The Supreme Court refused to
interpret § 1981 as allowing “actual targets” of discrimination to bring suit when their
injuries stem from a defendant’s contractual relationship with another party. Id. at 478.
For example, even the sole shareholder of a corporation is not a proper plaintiff under
§ 1981 when the defendant’s alleged discrimination was the refusal to contract with
the corporation. Body by Cook, Inc., 869 F.3d at 388. The sole shareholder, in other
words, was a third party to the contractual relationship that would allow a contracting
party to sue under § 1981. See Domino’s Pizza, Inc., 546 U.S. at 476; Body By Cook, Inc.,
869 F.3d at 388.
Added Plaintiffs are “third parties” to the alleged contractual relationship
between White Glove and Methodist. The only contractual relationship that Added
Plaintiffs can claim they have with Methodist is one that is derivative of White Glove.
See Bellows v. Amoco Oil Co., 118 F.3d 268, 276–77 (5th Cir. 1997) (holding that an
individual plaintiff did not have a § 1981 claim when its claim was “merely derivative”
of the corporation in which the plaintiff had an ownership interest). As discussed above,
White Glove had not provided Added Plaintiffs to Methodist and merely planned to
supply Added Plaintiffs as employees at some point in the future. Whereas Clay did
work for Methodist before Methodist allegedly dismissed her because of her race,
Added Plaintiffs had no such relationship with Methodist. If the sole shareholder of a
corporation is not a proper plaintiff when the corporation itself is the party to the
contractual relationship, then Added Plaintiffs are not proper plaintiffs when White
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Glove only planned to provide them to Methodist at some point in the future. See Body
by Cook, Inc., 869 F.3d at 388. Because Added Plaintiffs do not have their own
contractual relationship with Methodist, they cannot establish their § 1981
discrimination claims. Methodist is entitled to summary judgment on Added Plaintiffs’
§ 1981 discrimination claims.
b. Clay’s Claims Against Foundation
In the Motion, Foundation, alone, moved for summary judgment as to all of
Clay’s claims against it. “Clay alone does not oppose [the] request to dismiss her claims
against [Foundation.]” Because Clay does not oppose the grant of summary judgment
as to her claims against Foundation, the Court grants summary judgment to
Foundation as to all of Clay’s claims.
c. Clay’s Claims for Punitive Damages
A court may award punitive damages to a plaintiff with Title VII or § 1981
claims when a defendant violates a plaintiff’s rights (1) intentionally and (2) with
malice or reckless indifference regarding the plaintiff’s rights. Kolstad v. Am. Dental
Ass’n, 527 U.S. 526, 534–535 (1999); Spiller v. Wal-Mart Stores, Inc., No. 00-20707,
2001 WL 1692428, at *2 (5th Circ. Nov. 21, 2001) (“To recover punitive damages
under Title VII or § 1981, a plaintiff must prove that the adverse party acted with
malice or reckless indifference.” (emphasis added)).
“The terms ‘malice’ or ‘reckless indifference’ pertain to the [defendant’s]
knowledge that it may be acting in violation of federal law, not its awareness that it is
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engaging in discrimination.” Kolstad, 527 U.S. at 535. The TCHRA allows for punitive
damages when the defendant acts with malice or reckless indifference as well. Miller v.
Raytheon Co., 716 F.3d 138, 147 (5th Cir. 2013).
The Court concludes that based upon the summary-judgment evidence before
it, genuine issues of material fact exist on Clay’s claims for punitive damages; therefore,
summary judgment as a matter of law is not appropriate on Clay’s claims for punitive
damages.
d. White Glove’s § 1981 Retaliation Claim
At this time, the Court does not rule on Methodist’s motion for summary
judgment regarding White Glove’s retaliation claim under § 1981. The Court reserves
the opportunity to rule on this issue at a later time.
V.
Conclusion
Because Added Plaintiffs failed to exhaust their administrative remedies and
cannot rely upon the single-filing exception with regard to their Title VII and TCHRA
claims, Methodist is entitled to summary judgment as to these claims. Because Added
Plaintiffs did not have their own contractual relationship with Methodist with regard
to their § 1981 discrimination claims, Methodist is entitled to summary judgment as
to these claims. The Court GRANTS the Motion as to all of Added Plaintiffs’ claims.
Because Clay does not oppose the Motion with regard to her claims against
Foundation, Foundation, alone, is entitled to summary judgment as to all of Clay’s
claims. The Court GRANTS the Motion as to all of Clay’s claims against Foundation.
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Because genuine issues of material fact exist on Clay’s claims for punitive
damages, Hospitals is not entitled to summary judgment as to Clay’s claims for punitive
damages. The Court DENIES the Motion as to Clay’s claims for punitive damages
against Hospitals.
The Court does not rule on White Glove’s § 1981 retaliation claim against
Methodist at this time.
SO ORDERED.
Signed September 19th, 2018.
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ED KINKEADE
UNITED STATES DISTRICT JUDGE
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