Leary v. NAVY, Secretary

July 17, 1995     UNITED STATES COURT OF APPEALS
                    FOR THE FIRST CIRCUIT

                                     

No. 95-1027

                       ARTHUR J. LEARY,

                    Plaintiff, Appellant,

                              v.

            JOHN H. DALTON, SECRETARY OF THE NAVY,

                     Defendant, Appellee.

                                     

                         ERRATA SHEET

   The  opinion of  this  court issued  on  June 14,  1995,  is

amended as follows:

        On page  9 of the opinion delete  the last six lines of

the  carryover  paragraph  starting  with "See  also  Lussier  v.
                                                                       

Runyon,."
                


                UNITED STATES COURT OF APPEALS
                            UNITED STATES COURT OF APPEALS

                    FOR THE FIRST CIRCUIT
                                FOR THE FIRST CIRCUIT

                                         

No. 95-1027

                       ARTHUR J. LEARY,

                    Plaintiff, Appellant,

                              v.

            JOHN H. DALTON, SECRETARY OF THE NAVY

                     Defendant, Appellee.

                                         

         APPEAL FROM THE UNITED STATES DISTRICT COURT

                  FOR THE DISTRICT OF MAINE

           [Hon. Gene Carter, U.S. District Judge]
                                                             


                                         

                            Before

                    Torruella, Chief Judge,
                                                      

                Bownes, Senior Circuit Judge,
                                                        

                  and Stahl, Circuit Judge.
                                                      

                                         

J. Joseph McKittrick, with whom  McKittrick Law Offices  and Karen
                                                                              

B. Hoffman were on brief for appellant.
                  

Michael M.  DuBose, Assistant  United States  Attorney, with  whom
                              

Jay P.  McCloskey,  United  States  Attorney, and  David  R.  Collins,
                                                                             

Assistant United States Attorney, were on brief for appellee. 

                                         

                        June 14, 1995

                                         


          BOWNES, Senior Circuit Judge.   Plaintiff-appellant
                      BOWNES, Senior Circuit Judge.
                                                  

Arthur  J. Leary, a civilian employee of the Portsmouth Naval

Shipyard ("Shipyard") and the United States Navy, was removed

from  government service for "excessive unauthorized absence"

after  he was  denied requested  leave for  the time  that he

spent  in  jail  following   his  arrest  for  driving  while

intoxicated.  After exhausting administrative remedies, Leary

filed  suit  in  the  United States  District  Court  for the

District of Maine against defendant-appellee John  H. Dalton,

Secretary  of the Navy.  Leary's complaint alleged that he is

an  alcoholic   and,  therefore,   an   "individual  with   a

handicap"1 within  the meaning  of the Rehabilitation  Act of

1973,  29 U.S.C.      701-797b  ("Act"),  and that  the  Navy

discriminated  against  him  in   violation  of  the  Act  by

terminating his  employment on  the basis of  his disability.

Leary appeals  the  district court's  order granting  summary

judgment in favor of the Navy.  After carefully reviewing the

record and considering Leary's arguments, we affirm.      

                        I.  Background
                                    I.  Background
                                                  

          Beginning October  1, 1984,  Leary was  employed by

the Navy as a  WG-10 electrician in Shop 97  at the Shipyard.

Between  1985  and 1989,  Leary  received  numerous incentive

                    
                                

1.  In 1992, the Rehabilitation Act was amended to substitute
the  term  "disability"  for  "handicap."    The  regulations
promulgated under  the Act,  however, continue to  employ the
term "handicap."

                             -2-
                                          2


awards  and  was "Suggestor  of  the Month"  in  March, 1989.

Leary became  a Union Shop Steward in March, 1988 and rose to

the rank of Chief Steward for his shop area in January, 1989.

On his  last performance appraisal, covering  the period June

1, 1988 through May 31, 1989, he received a rating of "highly

satisfactory."  

          On  August  26, 1989,  while  off  duty, Leary  was

arrested  by state police  in Concord,  New Hampshire,  for a

second  offense of driving  while intoxicated,  driving after

license revocation, possessing marijuana, possessing cocaine,

transporting   a  controlled  drug,   resisting  arrest,  and

assaulting a police  officer.  Leary was  incarcerated in New

Hampshire at the Merrimack County Jail, subject to a  $10,000

cash bail.  Unable to  make bail, Leary remained incarcerated

until September  13, 1989.  When he  failed to report to work

on August 28,  1989, without having either requested leave in

advance or notified his supervisor of his  absence, Leary was

placed on unauthorized leave  status ("Z leave").  As  of the

date  of  his arrest,  Leary had  accumulated 129.5  hours of

earned  annual leave.   On  August  29, 1989,  Leary's sister

called  Richard   Lavoie,  Temporary  Service   Shop  General

Foreman, to  request on  Leary's  behalf that  he be  granted

earned  annual leave to cover the  period of his absence.  On

August  30,  1989, Leary  himself  called  Lavoie to  request

emergency annual  leave during  his  incarceration.   Leary's

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                                          3


request  was  denied and  he was  informed  that he  would be

carried on Z leave status  until he returned to duty.   Leary

returned to  the Shipyard after twelve  consecutive work days

of unauthorized absence.   Upon his  return, he appealed  the

denial of his request for  emergency annual leave through the

union  grievance  process,  but   after  a  hearing  and  due

consideration  by  Shipyard  management,  the  grievance  was

denied.  

          By letter  dated  October 3,  1989, Leary  received

notice  of  the Navy's  proposed  action to  remove  him from

government service for the  following reasons: (i) his arrest

on  August 26, 1989 on the  charges set forth supra; (ii) his
                                                               

failure to report to work on August 28, 1989, and his failure

to  request leave in advance  or to notify  his supervisor or

shop  officials as to the  reason for his  absence; and (iii)

his unauthorized absence during  the period August 28 through

September  13,  1989.   On October  19,  1989, Leary  and his

representatives met with Gary Alamed, Administrative Officer,

to  make  an oral  reply to  the  proposed action.    At this

meeting, and  apparently for  the first time,  Leary made  it

known that he had problems with alcohol and drugs and that he

considered  himself  to be  protected by  the  Act.   He also

stated that he was  seeking help for these problems  from the

Shipyard's  Employee Assistance  Program.   By  letter  dated

December  4, 1989,  Leary received  notice of  the Shipyard's

                             -4-
                                          4


decision  to  remove him  from government  service, effective

December 11, 1989, for excessive unauthorized  absence during

the period August 28, 1989, through September 13, 1989.

          On December 21, 1989, Leary filed an appeal of  the

Navy's  decision with  the  Merit  Systems  Protection  Board

("MSPB"), in which he alleged discrimination on the  basis of

a  disability and reprisal for  his union activity.   He also

claimed  disparate  treatment,  alleging  that   other,  non-

disabled employees had been granted leave  for incarceration.

On  April   9,  1990,  after  an   evidentiary  hearing,  the

Administrative Law Judge ("ALJ") sustained the Navy's action.

With respect to Leary's claim  of discrimination on the basis

of  a   disability,  the  ALJ  found   that,  although  Leary

established  that he  was disabled  due to  alcohol and  drug

dependency, the unauthorized absence for which he was removed

was  neither caused by, nor  entirely a manifestation of, his

disability.  Accordingly, the ALJ concluded that Leary failed

to establish a prima  facie case of disability discrimination

under the  Act.   The ALJ  also concluded  that there was  no

support for  Leary's claim  of disparate  treatment, finding,

inter alia, that  the employees alleged to  have been granted
                      

leave for incarceration  were not similarly situated  because

they  were assigned  to different  shops and  supervisors, or

because they were absent for fewer than five consecutive days

and  therefore did  not run  afoul of  Navy leave  policy, or

                             -5-
                                          5


because  the supervisor  granting  leave was  not aware  that

leave was requested to cover jail time.

          By  final order  dated January  10, 1992,  the MSPB

denied  Leary's petition  for review  before the  full Board.

Leary  thereafter sought  review of  the final  MSPB decision

with  the Equal  Employment Opportunity  Commission ("EEOC").

On  August 19, 1993, the  EEOC affirmed, finding, inter alia,
                                                                        

that,  although  his problems  with  alcohol  and drug  abuse

constituted a disability covered by the Act, Leary had failed

to establish a sufficient causal nexus between his disability

and his  termination to  make out a  claim of  discrimination

based on disability.  

          On September  24, 1993, Leary filed  a complaint in

the district court alleging  discrimination under the Act and

disparate treatment.  On  April 28, 1994, the Navy  moved for

summary judgment.   The motion was  referred to a  magistrate

judge,  who,  on September  19,  1994,  recommended that  the

motion  be  granted  on  the  ground  that  Leary  failed  to

establish a prima facie case of discrimination under the Act.

On  October  3,  1994,  Leary  filed  his  objection  to  the

magistrate  judge's Recommended  Decision.    On October  26,

1994, the district court, having made a de novo determination
                                                           

of all matters adjudicated  by the magistrate judge, affirmed

the Recommended Decision and granted summary judgment for the

Navy.

                             -6-
                                          6


                   II.  Standard of Review
                               II.  Standard of Review
                                                      

          We  review a  grant  of summary  judgment de  novo,
                                                                        

evaluating the  facts and  inferences that may  reasonably be

drawn therefrom in the light most favorable to the  nonmoving

party.  Morrissey v. Boston Five Cents Sav. Bank, F.S.B., No.
                                                                    

94-2220, slip op.  at 7  (1st Cir.  May 15,  1995).   Summary

judgment is appropriate only  if "the pleadings, depositions,

answers to interrogatories, and admissions  on file, together

with  the affidavits, if any,  show that there  is no genuine

issue  as to any material  fact and that  the moving party is

entitled to a judgment as a matter  of law."  Fed. R. Civ. P.

56(c).   A  material  fact is  one  "'that might  affect  the

outcome of the  suit under the  governing law.'"   Morrissey,
                                                                        

No.  94-2220, slip  op.  at 8  (quoting  Anderson v.  Liberty
                                                                         

Lobby, Inc., 477 U.S. 242, 248 (1986)).  An issue of material
                       

fact  is genuine "if the  evidence is such  that a reasonable

jury could return a verdict for the nonmoving party."  Id.
                                                                      

          The  nonmoving party  "may not  rest upon  the mere

allegations or denials of  [its] pleading, but . . . must set

forth  specific facts showing  that there is  a genuine issue

for trial."   Fed. R.  Civ. P. 56(e);  Coll v. PB  Diagnostic
                                                                         

Systems, Inc., 50 F.3d 1115, 1121 (1st Cir. 1995).      
                         

                       III.  Discussion
                                   III.  Discussion
                                                   

          Leary  makes two  arguments on  appeal.   First, he

contends that  the  district  court  overlooked  two  genuine

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                                          7


issues  of   material  fact:    whether   his  disability  --

alcoholism  -- "manifested  itself  as, or  resulted in,  the

actions which led to his consequent incarceration and absence

from  work," and  therefore  constituted the  reason for  his

termination; and  whether, with  regard to his  allegation of

disparate treatment,  other non-disabled Navy  employees were

granted  leave for  their periods  of incarceration,  or were

merely   reprimanded  (rather  than   terminated)  for  their

conduct.  Leary argues  in the alternative that the  district

court  should  have applied  a  "but for"  test  to determine

whether he was terminated because of his alcoholism.

          We  begin by  ironing  out  a  procedural  wrinkle.

Although  the district court decided this case under   504 of

the  Rehabilitation   Act,  29  U.S.C.      794  (prohibiting

disability  discrimination  by   non-federal  recipients   of

federal funds), Leary actually  invoked   501 of the  Act, 29

U.S.C.    791, in his  complaint.  Section  501(b) imposes an

affirmative   duty   on   every  "department,   agency,   and

instrumentality . . . in the executive branch" of the federal

government   to  provide  adequate   hiring,  placement,  and

advancement opportunities for individuals  with disabilities.

Some circuits view   501, accordingly, as the exclusive right

of  action  for  federal  employees  who   suffer  disability

discrimination in the course of their direct employment.  See
                                                                         

Johnston  v. Horne, 875 F.2d 1415 (9th Cir. 1989); Johnson v.
                                                                      

                             -8-
                                          8


United States Postal  Serv., 861 F.2d  1475, 1478 (10th  Cir.
                                       

1988),  cert.  denied, 493  U.S.  811  (1989); McGuinness  v.
                                                                     

United States  Postal Serv.,  744 F.2d  1318, 1321  (7th Cir.
                                       

1984).   Other circuits,  ours included, have  permitted such

claims to be brought under both   501 and   504.   See, e.g.,
                                                                        

Taub v. Frank,  957 F.2d 8, 10 (1st Cir.  1992) (deciding a  
                         

504 suit by a  federal postal employee and setting  forth the

elements of a prima facie case under that section); Little v.
                                                                      

FBI, 1 F.3d 255 (4th Cir. 1993) (noting that federal employee
               

sued employing agency under  both   501 and    504); Smith v.
                                                                      

United States  Postal  Serv., 742  F.2d  257, 260  (6th  Cir.
                                        

1984); Prewitt v.  United States Postal Serv.,  662 F.2d 292,
                                                         

304 (5th Cir. 1981).

          The  differences between  the two  sections may  be

significant in some cases  (though not this one, as  we shall

explain).  Not only is it unclear whether the right of action

under    504 overlaps with that in   501, it is also unclear,

in  light of  recent  amendments to  the Rehabilitation  Act,

whether  the  two  sections   require  the  same  showing  of

causation.  As amended in 1992, both sections now incorporate

the  liability standards  of Title  I of  the Americans  with

Disabilities Act  of 1990 ("ADA"), 42  U.S.C.    12111-12117.

See 29 U.S.C.    791(g), 794(d).  Section 504 alone, however,
               

continues  to   require  a  showing   that  the   plaintiff's

disability was  the sole  reason for the  defendant's adverse
                                    

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                                          9


action.    See 29  U.S.C.    794(a) ("No  otherwise qualified
                          

individual with a disability . . . shall, solely by reason of
                                                                         

her or his disability, be excluded from the participation in,
                                 

be denied the benefits of, or be subjected to  discrimination

under  any program  or activity  receiving  Federal financial

assistance or under any program or activity conducted  by any

Executive agency  or by  the United States  Postal Service.")

(emphasis added).  The precise relationship between the ADA's

liability standards and the  sole causation test is not  well

settled.    And, to  compound these  difficulties, it  is not

obvious whether  the 1992  amendments apply to  Leary's suit,

which  accrued and  was administratively  pending  before the

amendments took effect.

          We therefore regard the  applicability of   504 and

its sole causation test in this federal employment suit as an

open question; but  one that we need  not reach here.   Leary

agrees on appeal that his claim arises  under   504, and that

he bears the burden  of demonstrating that he was  terminated

"solely by reason of"  his disability.  More  importantly, we

think that the judgment for the Navy should be affirmed, even

assuming in Leary's favor that disability discrimination need

only be  a reason,  as opposed  to the  sole reason,  for his

termination.

          In  any claim  under  the Rehabilitation  Act,  the

plaintiff  must first  establish that  s/he has  a disability

                             -10-
                                          10


covered  by  the Act.   The  governing regulations  define an

"individual  with  a [disability]"  as  one  who  "(i) Has  a

physical or mental impairment which substantially limits  one

or  more of such person's  major life activities;  (ii) Has a

record  of such an impairment; or (iii) Is regarded as having

such  an  impairment."   29 C.F.R.    1614.203.   It  is well

settled that alcoholism is a disability within the meaning of

the  Act.2  See, e.g.,  Cook v. Department  of Mental Health,
                                                                         

Retardation & Hosps., 10 F.3d 17, 24 (1st Cir. 1993); Little,
                                                                        

1  F.3d at 257; Fuller v. Frank,  916 F.2d 558, 561 (9th Cir.
                                           

1990).   For the purposes  of this appeal,  the Navy concedes

that Leary  is an  alcoholic and  is therefore  an individual

with a disability.

          Leary  must  also show  that  with  respect to  his

employment, he is a "qualified individual with a [disability]

who,  with or without  reasonable accommodation,  can perform

the essential functions of the position in  question . . . ."

29 C.F.R.    1614.203(a)(6)  (implementing 29 U.S.C.    791).

See  also  29 U.S.C.    794  (protecting only  the "otherwise
                     

qualified  individual with a disability").  In this case, the

                    
                                

2.  We note that the  statute was amended in 1990  to exclude
(for purposes of    793  and 794 as these sections  relate to
employment) from the term "individual with a disability" "any
individual who is  an alcoholic whose current  use of alcohol
prevents such  individual from  performing the duties  of the
job in  question  or  whose  employment, by  reason  of  such
current alcohol  abuse, would  constitute a direct  threat to
property or the safety of others."  29 U.S.C.   706(8)(C)(v).

                             -11-
                                          11


"essential function[]"  is showing up for  work as scheduled,

unless  leave is  authorized.   Finally, regardless  of which

section of the Act applies, Leary must show at a minimum that

his disability was a reason -- if not the sole  reason -- for

his discharge.

          Leary fails  to establish either the  second or the

third  element of his  claim.  It  is the Navy's  policy that

leave  will  be granted  only for  bona  fide reasons  -- for

example,  a  serious  accident or  illness  or  death  in the

employee's  immediate family,  or  other  circumstances  over

which  the  employee  has no  control.    The  Navy does  not

consider incarceration to be a  bona fide reason for granting

leave of  any kind.  To grant leave to employees serving time

in jail, says the Navy, is to violate the public's confidence

in  the Navy and its  personnel, the maintenance  of which is

one of the  "Bedrock Standards of  Conduct for Department  of

the  Navy  Personnel."    Accordingly,  the  Human  Resources

Department  of the Shipyard uniformly advises supervisors and

employees that it  is never appropriate  to approve leave  of

any kind to cover the period of an employee's incarceration.

          The Navy defines  excessive unauthorized absence as

unauthorized  absence  for more  than  five  consecutive work

days.   According  to  the Navy's  "Schedule of  Disciplinary

Offenses and Recommended Remedies for Civilian Employees," an

employee's   excessive   unauthorized   absence   --   twelve

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                                          12


consecutive  work  days, in  Leary's  case --  may  result in

disciplinary  action ranging from  reprimand to removal, even

for a first offense.  It appears, then, that Leary was placed

on unauthorized leave status, denied leave for incarceration,

and  discharged for  excessive unauthorized  absence,  all in

accordance with established Navy policies.

          Even  assuming that  Leary's  incarceration  was  a

"manifestation" of his alcoholism, cf.  Teahan v. Metro-North
                                                                         

Commuter R. Co., 951 F.2d 511, 515 (2d Cir. 1991) (assuming a
                           

causal  relationship  between employee's  alcoholism  and his

absenteeism), cert. denied,  113 S. Ct. 54 (1992),  we reject
                                      

the argument that Leary should have been allowed to draw upon

his accrued annual leave  as a "reasonable accommodation" for

his disability.   First,  Leary does  not dispute  the Navy's

contention that he neither advised the Navy of his alcoholism

nor sought accommodation  of any kind until after he returned

to  duty following his incarceration.   So far  as the record

shows,  the Navy  denied Leary's  initial requests  for leave

without knowing the nature  of the incident that  resulted in

his incarceration.  We have  said, in the context of a    504

suit, that an institution "can be expected to respond only to

what it knows  (or is  chargeable with knowing)."   Wynne  v.
                                                                     

Tufts Univ. Sch.  of Medicine,  976 F.2d 791,  795 (1st  Cir.
                                         

1992), cert. denied, 113 S. Ct. 1845 (1993).
                               

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                                          13


          Second, even if Leary had given the Navy sufficient

notice  of  his  need  for  accommodation,  the  Act  neither

prevents  employers  from  holding  "persons  suffering  from

alcoholism  .  . . [to]  reasonable  rules  of conduct,"  nor

protects  alcoholics  from  the  consequences  of  their  own

misconduct.  Little, 1 F.3d at 258 (quoting 43 Op. Att'y Gen.
                               

No.  12,  1977  WL  17999  at  *1).    See  also  Copeland v.
                                                                      

Philadelphia Police Dep't, 840 F.2d 1139, 1149 (3d Cir. 1988)
                                     

("a  police department  is  justified in  concluding that  it

cannot properly  accommodate a  user of illegal  drugs within

its ranks  . .  . ."),  cert. denied,  490 U.S.  1004 (1989);
                                                

Wilber v.  Brady, 780 F.  Supp. 837, 840 (D.  D.C. 1992) (the
                            

Rehabilitation Act is not  designed to "insulate [individuals

with disabilities]  from disciplinary actions which  would be

taken against any employee regardless of his status").  As we

have  observed,  government entities  have  the discretionary

authority  to determine  what policies  are necessary  to the

execution  of their  assigned  missions.    "It  is  not  the

function   of    the   federal   courts   to   evaluate   the

appropriateness of  agency employment  standards but  only to

safeguard   against   'arbitrary,  capricious   or  otherwise

unlawful'  standards."    Taub,  957  F.2d  at  10  (citation
                                          

omitted).   The  Navy's no-leave-for-incarceration  policy is

none  of  these,  given  the importance  of  maintaining  the

public's confidence in the integrity of the armed forces.

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                                          14


          We hold that the Navy may  reasonably apply its no-

leave-for-incarceration  policy  to  all  of  its  employees,

disabled and non-disabled alike.  Because the  Rehabilitation

Act  does not  require otherwise, Leary  is not  a "qualified

individual  with   a   [disability]"  who   with   reasonable

accommodation could have fulfilled the "essential function[]"

of attending work as scheduled.  29 C.F.R.   1614.203(a)(6).

          From our discussion above, it  follows that Leary's

disability  was not a reason  for his termination.   The Navy

placed  Leary on  unauthorized  leave status  before he  ever

sought to connect  his incarceration to his alcoholism.   The

record leaves us with no doubt that the Navy  applied its no-

leave policy  to Leary without regard to  his disability, and

ultimately discharged  Leary because and only  because of his

excessive unauthorized absence.  

          Leary, however, argues that  there is a question of

material fact  as  to whether  there  is a  sufficient  nexus

between his  disability and the behavior that resulted in his

removal to establish  that he was  discharged because of  his

disability.     Disregarding  arguendo   Leary's  failure  to
                                                  

establish  that   he  is   a  qualified  individual   with  a

disability,  and  his  failure   to  rebut  the  Navy's  non-

discriminatory justification for his discharge,  and focusing

our inquiry solely on  the chain of events that  preceded his

removal, we find any causal nexus insufficient as a matter of

                             -15-
                                          15


law to establish  a reasonable  inference of  discrimination.

We would reach the same  conclusion even if we were  to apply

the "but for" test of  causation that Leary appropriates from

our  "mixed  motive" labor  relation  cases.   See  Coletti's
                                                                         

Furniture, Inc. v.  NLRB, 550 F.2d 1292 (1st Cir. 1977).  The
                                    

fact  is that,  notwithstanding his  alcoholism and  alcohol-

related conduct,  Leary would not have  been incarcerated and

placed in need of  emergency leave had he  been able to  make

bail.  Leary's own brief states that "[h]e was incarcerated .

. . because  he was unable to  post a . .  . cash bail."   It

cannot be argued that  the circumstances of incarceration and

inability  to  make  bail  are  uniquely  or  even  specially

associated  with Leary's  disability.   Whatever relationship

may exist between  his alcoholism and the  events giving rise

to  this case, Leary has not shown facts sufficient to defeat

summary judgment  with  respect  to his  claim  that  he  was

removed  from   government  service  on  the   basis  of  his

disability.

          Leary also argues that there is  a genuine issue of

material fact as to whether other non-disabled Navy employees

were  granted   leave  for   incarceration  or   were  simply

reprimanded rather than removed for unauthorized absence.  He

refers to two  employees who requested leave  periods of five

days  or less, and a third  employee whose eighteen-day leave

request was denied,  although he was  not discharged.   These

                             -16-
                                          16


cursory submissions do not  set forth "specific facts showing

that there  is a genuine issue  for trial."  Fed.  R. Civ. P.

56(e).  

                       IV.  Conclusion
                                   IV.  Conclusion
                                                  

          For the foregoing reasons, we affirm the district 

                             -17-
                                          17


court's order granting  summary judgment  for the  defendant-

appellee.

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                                          18