Pastran v. K-Mart Corporation

                                                                        F I L E D
                                                                United States Court of Appeals
                                                                        Tenth Circuit
                                    PUBLISH
                                                                        APR 28 2000
                     UNITED STATES COURT OF APPEALS
                                                                      PATRICK FISHER
                                                                            Clerk
                                 TENTH CIRCUIT


 MOSES PASTRAN,

          Plaintiff-Appellant,
 v.                                                     No. 99-2210
 K-MART CORPORATION,

          Defendant-Appellee.




             APPEAL FROM THE UNITED STATES DISTRICT COURT
                    FOR THE DISTRICT OF NEW MEXICO
                       (D.C. No. CIV-98-815-LCS/JHG)


Michael T. Milligan, El Paso, Texas, for Plaintiff-Appellant.

Deborah D. Wells, Kennedy, Moulton & Wells, Albuquerque, New Mexico, for
Defendant-Appellee.


Before SEYMOUR, Chief Judge, and ALARCÓN * and BALDOCK, Circuit
Judges.


BALDOCK, Circuit Judge.




      *
        The Honorable Arthur L. Alarcón, Senior Circuit Judge, United States
Court of Appeals for the Ninth Circuit, sitting by designation.
      Plaintiff Moses Pastran filed an action in federal district court against

Defendant K-Mart Corporation. Plaintiff’s complaint alleged, among other

things, that Defendant terminated him in retaliation for his complaints of

discrimination. The district court concluded that Plaintiff failed to raise any

factual issue regarding whether Defendant’s proffered reason for terminating

Plaintiff was pretextual, and granted summary judgment for Defendant. Plaintiff

appeals. We exercise jurisdiction pursuant to 28 U.S.C. § 1291. We reverse and

remand.

                                           I.

      Plaintiff worked at Defendant’s Deming, New Mexico store from 1977 to

1997. In 1990, a falling display shelf injured Plaintiff’s back while he was

working as receiving manager. Plaintiff filed a workman’s compensation claim.

For roughly the next three years, Plaintiff took time off to recover, working part

time in the mornings. Ultimately, Plaintiff remained 9% permanently disabled

and unable to lift more than 20 pounds. Defendant subsequently demoted

Plaintiff to the entry-level position of register operator. Plaintiff repeatedly

sought promotion to a management job, but to no avail.

      In 1992 or 1993, Defendant named Denzil D. Van Swearingen the new

manager of the Deming store. Plaintiff had several conflicts with Van

Swearingen, whom Plaintiff felt disliked him because he was Hispanic, male, and


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unable to lift heavy objects. On several occasions, Plaintiff asked Van

Swearingen for a promotion to a management job, and each time Van Swearingen

refused. Plaintiff felt that white females were more often promoted and were

subject to less rigorous discipline than him.

      On November 14, 1996, human resources director Maggie Busse and

assistant manager Jeannette Cowles offered Plaintiff a promotion to Do It

Yourself (DIY) manager. Plaintiff was on vacation, so Busse called him at home

and asked him to come to the store to discuss the promotion. Plaintiff asked for

an opportunity to discuss the schedule changes with his wife, Lisa Pastran. The

next day, Plaintiff’s wife called Busse to accept. On November 18, when Plaintiff

reported to work as DIY manager, Van Swearingen told Plaintiff that he had

given the promotion to someone else because Plaintiff had not accepted the offer

in time. Van Swearingen gave the position to Debbie Taylor, a white female.

      That afternoon, Plaintiff and his wife called Busse to complain that they

thought Plaintiff’s loss of the DIY promotion was discriminatory. The Pastrans

also complained to district manager Louise Shankles in Las Cruces, New Mexico.

Later that week, Shankles came to the Deming store and met with Van

Swearingen, Busse, Cowles, and Plaintiff and his wife for about three or four

hours. Plaintiff testified in his deposition that he watched Shankles “verbally

reprimand[] Mr. Van Swearingen, telling him that what they had done was very


                                         -3-
wrong.” 1 Shankles told Cowles the same thing, adding that filling the position

“could have waited until [Plaintiff’s] return off [his] vacation . . . .”

      Plaintiff also stated that Shankles apologized to him and “told Mr. Van

Swearingen that the next promotion would be [Plaintiff’s],” saying, “‘Isn’t that

right, Mr. Van Swearingen[?]’” Lisa Pastran testified that Shankles called the

management “very unprofessional,” adding, “[T]hey should never have called

[Plaintiff] in off his vacation [because] it wasn’t the office of the president that

they were trying to fill.”

      The store management’s deposition testimony confirms that Shankles was

critical of their handling of the DIY promotion. Van Swearingen testified about

his meeting with Shankles: “[T]owards the end I probably had the feeling that



      1
         When reviewing an order granting summary judgment, we may only
consider admissible evidence. Fed. R. Civ. P. 56(e);        Wright-Simmons v. City of
Oklahoma City , 155 F.3d 1264, 1268 (10th Cir. 1998). Although the evidence
need not be in a form that would be admissible at trial, the content or substance of
the evidence must be admissible.     Wright-Simmons , 155 F.3d at 1268. Shankles’s
statements to Plaintiff, his wife, Van Swearingen, Cowles, and Busse would be
admissible at trial as nonhearsay for two reasons. First, if Plaintiff offers the
statements to show that Shankles reprimanded Van Swearingen—as evidence of
retaliatory motive —then they are not being offered for the truth of the matter
asserted. See Fed. R. Evid. 801(c); United States v. Norman T. , 129 F.3d 1099,
1107 (10th Cir. 1997), cert. denied , 523 U.S. 1031 (1998). Second, if Plaintiff
does offer the statements against Defendant for their truth (     i.e. , that the managers
were wrong and acted unprofessionally), then they are vicarious admissions by a
party-opponent because Shankles was an agent of Defendant acting within the
scope of employment during the time of employment.            See Fed. R. Evid.
801(d)(2)(D).

                                           -4-
this is an incident she didn’t want to be involved in, and she wished it hadn’t

happened.” Van Swearingen testified that Shankles said, “Well, looking back, we

could have waited, and we agreed that we probably could have, but we made a

mistake by not waiting.” Van Swearingen confirmed Plaintiff’s testimony that

Shankles apologized to Plaintiff and promised him that he would receive the next

available promotion. Cowles and Busse testified that they understood from the

meeting with Shankles that Plaintiff was to receive the next available promotion.

On January 2, 1997, about six weeks later, Plaintiff accepted a promotion to

Health and Beauty Aids manager.

      On January 23, 1997, Plaintiff had a confrontation with management about

whether he must open a cash register. The service desk manager, Sandra Palmer,

called Plaintiff over the public address system to open a register. Plaintiff told

her that he had a headache and needed to take some aspirin first. Next, Cowles

asked Plaintiff to open a register, and Plaintiff again asked for time to take an

aspirin for his headache. Finally, Van Swearingen asked Plaintiff to come to his

office, where he told him to either open a register or, if he was too sick, to clock

out and go home. When Plaintiff refused, Van Swearingen called the police to

escort Plaintiff away.

      Plaintiff called Van Swearingen the next day and asked whether he had lost

his job. Van Swearingen replied that he was not sure. Van Swearingen consulted


                                          -5-
with Shankles and Defendant’s legal department about preparing statements

regarding the lost DIY promotion and the insubordination and about deciding how

to handle Plaintiff’s termination. On January 27, the following Monday, Van

Swearingen read Plaintiff a written statement telling him that he was fired. At the

time Defendant fired him, Plaintiff was employee of the year at the Deming store.

Van Swearingen thought highly of Plaintiff’s ability to work with customers.

       Plaintiff filed a complaint in the district court alleging that Defendant

violated Title VII, 42 U.S.C. §§ 2000e to 2000e-17       , by failing to promote him and

terminating him in retaliation for his complaints of discrimination and on the

basis of his sex and national origin. Defendant filed a motion for summary

judgment arguing that Plaintiff had not established a prima facie case on any of

his claims. The district court granted summary judgment for Defendant on the

wrongful termination claims, concluding that Plaintiff had not shown that

Defendant’s proffered reason—Plaintiff’s insubordination—was pretextual. The

district court later dismissed Plaintiff’s failure to promote claims as time barred.   2




       2
          Because New Mexico’s Department of Labor is an “agency with authority
to grant or seek relief” from unlawful employment practices, Plaintiff had 300
days “after the alleged unlawful employment practice occurred” to file a charge.
42 U.S.C. § 2000e-5(e)(1). In addition, “a plaintiff may recover for incidents
which occurred outside the statutory time limit if at least one instance of the
alleged discriminatory practice occurred within the limitations period and the
earlier acts are part of a ‘continuing pattern of discrimination.’”   Bullington v.
United Air Lines, Inc. , 186 F.3d 1301, 1310 (10th Cir. 1999) (quoting     Martin v.
Nannie and the Newborns, Inc. , 3 F.3d 1410, 1415 (10th Cir. 1993)). Plaintiff

                                             -6-
On appeal, Plaintiff argues that the district court erred in granting summary

judgment for Defendant on the termination claims by not fully considering his

evidence of pretext.   3
                           We review the district court’s grant of summary judgment

de novo, applying the same legal standard used by the district court.     Jones v.

Denver Post Corp. , 203 F.3d 748, 751 (10th Cir. 2000)       .

                                            II.

       Title VII prohibits employers from retaliating against employees who claim

discrimination: “It shall be an unlawful employment practice for an employer to

discriminate against any of his employees . . . because he has opposed any

practice made an unlawful employment practice by [Title VII], or because he has

made a charge . . . under [Title VII].” 42 U.S.C. § 2000e-3(a). To establish a

prima facie case of retaliation under Title VII, a plaintiff must show that (1) he

engaged in protected opposition to discrimination, (2) his employer subjected him

to an adverse employment action subsequent to the protected activity, and (3) a

causal connection exists between the protected activity and the adverse


filed a charge with the New Mexico Department of Labor on October 6,
1997—252 days after his termination, but 322 days after his lost promotion. Once
the district court granted summary judgment on the termination claims, the failure
to promote claims were time barred because they were no longer part of a
continuing pattern that included incidents within the limitations period.
       3
          Plaintiff’s brief does not challenge the district court’s dismissal of the
failure to promote claims or the discrimination claims.     Accordingly, those
matters are not before us.    See Gaines-Tabb v. ICI Explosives, USA, Inc.     , 160
F.3d 613, 624 (10th Cir. 1998).

                                            -7-
employment action.     McGarry v. Board of County Comm’rs of the County of

Pitkin , 175 F.3d 1193, 1201 (10th Cir. 1999).

       We agree with the district court’s conclusion that Plaintiff made a prima

facie case of retaliation under Title VII by showing that he complained to

Shankles and that he was terminated shortly thereafter.   4
                                                              See Robbins v. Jefferson

County Sch. Dist. R-1 , 186 F.3d 1253, 1258 (10th Cir. 1999) (informal complaints

to superiors or the use of the employer’s internal grievance procedures constitutes

protected activity under Title VII);   Anderson v. Coors Brewing Co.    , 181 F.3d

1171, 1178 (10th Cir. 1999)     (termination is an adverse employment action under

the ADA); 5 Bullington , 186 F.3d at 1321 (protected conduct closely followed by

adverse action supports an inference of causal connection). Defendant claims,

however, that it terminated Plaintiff for his insubordination on January 23, 1997,

when he told the store’s management that he could not open a cash register. This




       4
          Plaintiff may still proceed on his retaliation claim despite the fact that the
district court dismissed his discrimination claims. “[A] plaintiff does not have to
prove the validity of the grievance [he] was allegedly punished for lodging;
‘opposition activity is protected when it is based on a mistaken good faith belief
that Title VII has been violated.’”   Robbins v. Jefferson County Sch. Dist. R-1    ,
186 F.3d 1253, 1258 (10th Cir. 1999)     (quoting Love v. RE/MAX of America,
Inc. , 738 F.2d 383, 385 (10th Cir. 1984)).
       5
         Cases interpreting the ADA retaliation provisions are persuasive
authority in Title VII retaliation cases because the statutory provisions are
substantially similar. See Sarno v. Douglas Elliman-Gibbons & Ives, Inc.     , 183
F.3d 155, 159 (2d Cir. 1999).

                                           -8-
reason is non-discriminatory; accordingly, Plaintiff must present evidence that

Defendant’s proffered reason is pretextual.

       Retaliation claims under Title VII are subject to the burden-shifting

analysis of McDonnell Douglas Corp. v. Green         , 411 U.S. 792, 802-04 (1973).

Jones , 203 F.3d at 752. The plaintiff bears the initial burden of establishing a

prima facie case of discrimination.       Jones , 203 F.3d at 752. If the plaintiff does

so, then the defendant must offer a legitimate, non-discriminatory reason for its

employment action.     Id. The plaintiff then bears the ultimate burden of

demonstrating that the defendant’s proffered reason is pretextual.        Id. A plaintiff

may demonstrate pretext by showing “such weaknesses, implausibilities,

inconsistencies, incoherencies, or contradictions in the employer’s proffered

legitimate reasons for its action that a reasonable factfinder could rationally find

them unworthy of credence.”      Bullington v. United Air Lines, Inc.    , 186 F.3d

1301, 1317 (10th Cir. 1999).

       “[T]he pertinent question in determining pretext is not whether the

employer was right to think the employee engaged in misconduct, but whether

that belief was genuine or pretextual.”      Hardy v. S.F. Phosphates L.C. , 185 F.3d

1076, 1080 (10th Cir. 1999) (internal quotations omitted). Close temporal

proximity between the employee’s complaint and the adverse employment action

is a factor in determining whether the employer’s proffered reason is a pretext for


                                              -9-
retaliation. Medlock v. Ortho Biotech, Inc.          , 164 F.3d 545, 551 (10th Cir.),   cert.

denied , 120 S. Ct. 48 (1999); see also Butler v. City of Prairie Village, Kan.          , 172

F.3d 736, 752 (10th Cir. 1999) (holding that close temporal proximity is a factor

in showing pretext for retaliation in violation of the ADA).

       Defendant’s failure to promote Plaintiff to DIY manager, Plaintiff’s

complaints to the store management and to district manager Shankles, Shankles’s

visit, and Plaintiff’s termination all occurred between November 14, 1996 and

January 27, 1997. This close temporal proximity suggests pretext, but is not

sufficient by itself to raise an issue of fact.          Cf. Conner v. Schnuck Mkts., Inc. ,

121 F.3d 1390, 1397 (10th Cir. 1997) (noting that temporal proximity alone does

not constitute pretext for retaliatory discharge under the Fair Labor Standards

Act); see also Anderson , 181 F.3d at 1180 (holding that absent other evidence,

temporal proximity alone did not establish pretext for retaliation under the ADA).

       Plaintiff, however, offers two additional items of evidence that demonstrate

pretext. First is the district manager’s reprimand. Shankles traveled to Deming

for a three to four hour meeting with Plaintiff, his wife, Van Swearingen, Cowles,

and Busse. During the meeting, Shankles apologized to Plaintiff and his wife.

Shankles told Van Swearingen and Cowles that they had made a mistake and

should not have filled the DIY manager position so quickly. Also, Shankles told

Van Swearingen, Cowles, and Busse that Plaintiff was to receive the next


                                                  -10-
promotion available. A reasonable jury could conclude that the reprimand given

to Van Swearingen could have motivated Van Swearingen’s decision to terminate

Plaintiff.

       Second, Van Swearingen’s deposition reveals that he and Shankles

considered the events surrounding the lost promotion while deliberating about

whether to terminate Plaintiff. Van Swearingen believed that the lost promotion

increased the chances that Plaintiff would sue. In addition, Shankles told Van

Swearingen to prepare statements in anticipation of litigation. A reasonable jury

might also consider this circumstantial evidence of retaliatory motive.       See

Medlock , 164 F.3d at 550-51 (finding direct evidence of retaliatory motive in an

employer’s letter stating that it was firing the plaintiff because he gave a

deposition complaining about unequal pay).

       In combination with the evidence of temporal proximity, this

evidence—although far from conclusive—raises an issue of material fact as to

whether Defendant offered a pretextual reason for terminating Plaintiff.        See

Medlock , 164 F.3d at 551 (affirming the district court’s denial of the defendant’s

motion for a judgment as a matter of law based on evidence of temporal proximity

plus direct evidence of retaliatory motive);      Butler , 172 F.3d at 752 (holding that

temporal proximity, plus evidence that the defendant resurrected the plaintiff’s

job duties under another title, burdened the plaintiff with additional duties before


                                               -11-
firing him, and fired no one else at that time, raised a fact issue regarding whether

the alleged reorganization was a pretext for retaliatory discharge under the

ADA). 6 This is a close case because Plaintiff may have engaged in misconduct by

telling the store managers that he could not open a cash register. Nevertheless,

the evidence of pretext indicates that the issue of retaliation should go to a jury.

Accordingly, we find that the district court erred in granting summary judgment

for Defendant on Plaintiff’s Title VII retaliatory termination claim.   7



       REVERS ED and REMANDED for further proceedings.




       6
          Our sister circuits provide more examples of evidence that shows
retaliatory motive. See Strother v. Southern Cal. Permanente Med. Group      , 79
F.3d 859, 870 (9th Cir. 1996) (determining that letters praising the plaintiff’s
interpersonal skills, combined with temporal proximity, were sufficient reason to
question employer’s claim that it fired plaintiff for poor interpersonal skills);
O’Bryan v. KTIV Television , 64 F.3d 1188, 1194 (8th Cir. 1995) (finding that
temporal proximity, increased job duties, and the employer’s statements indicating
retaliatory motive were sufficient to raise a fact issue regarding pretext); San
Filippo v. Bongiovanni , 30 F.3d 424, 434, 444 (3d Cir. 1994) (treating
supervisors’ statements calling the plaintiff a “[w]arrior” and referring to “a long
history of animus” as evidence of pretext that augmented the evidence of temporal
proximity).
       7
         Plaintiff has not argued, and the district court did not address, whether
his termination may have been in retaliation for his complaints of disability
discrimination in violation of the ADA, 42 U.S.C. § 12203(a). Generally, an
appellate court will not consider issues that were not raised in the district court.
Tele-Communications, Inc. v. Commissioner of Internal Revenue       , 104 F.3d 1229,
1232 (10th Cir. 1997).

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