# Appendix — Local Union No. 3, International Brotherhood of Electrical Workers v. Ingram

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Appendix
- **Published:** January 1, 1983
- **Citation:** 464 U.S. 937

## Text

SEP 2 {983

ALEXANO TS STEVAS,

7 *,

IN THE
SUPREME COURT OF THE UNITED STATES

October Term, i983

LOCAL UNION NO. 3, INTERNATIONAL
BROTHERHOOD OF ELECTRICAL WORKERS,
AFL-CIO,

Petitioner,

Vv.
HENRY INGRAM, JAMES BRITT, WILLIAM
MOODY, and ROY T. FLOYD, individually
and on behalf of all persons similarly
situated,

and
SHELLY L. ANDERSON, JAMES L. PERRY,
individually and on behalf of all others
Similarly situated,

Respondents.

APPENDIX TO PETITION FOR A WRIT OF
CERTIORARI TO THE UNITED STATES COURT
OF APPEALS FOR THE SECOND CIRCUIT

NORMAN ROTHFELD

Attorney for Petitioner
276 Fifth Avenue

New York, New York 10001
(212) 696-4010

i

CONTENTS OF APPENDIX

APPENDIX A
Page
Opinion and Judgment of Court
ge ee ee eee TeRerere Se la
District Court's Opinion of
October 3, 1979 Determining
EPRDLASEY ov s'cvesioss

HENRY INGRAM, JAMES BRITT, WILLIAM Moopy, and Roy
T. FLoyp, individually and on behalf of all persons

similarly situated, Plaintiffs-Appellees,

—and—

FRANCES WILLIAMS, EDWARD MILON, HORACE MITCHELL,
HERBERT BRUTON, JOVINO GARCIA,
Intervenors,

— a

MADISON SQUARE GARDEN CENTER, INC., MADISON
SQUARE GARDEN CORPORATION, ALLIED MAIN.
TENANCE CORPORATION and ALLIED PUBLIC EVENTS

SERVICE CORPORATION, Defendants
—and—
LocaL UNION No. 3, IBEW, AFL-CIO,
Defendant-Appellant.
th

4387

LP)
2

SHELLY L. ANDERSON, JAMES L. PERRY, individually and
on behalf of all others similarly situated,
Plainti*‘fs-Appellees,

—and—

MADISON SQUARE GARDEN CENTER, INC., MADISON
SQUARE GARDEN CORPORATION, ALLIED MAIN.
TENANCE CORPORATION, ALLIED PUBLIC EVENTS SER-
VICE CORPORATION, LOCAL 54, SERVICE EMPLOYEES
INTERNATIONAL UNION,

Defendants,

—and—

LocaL UNION No. 3, IBEW, AFL-CIO,
Defendant-Appellant.

Before:

VAN GRAAFEILAND, MESKILL and PRATT,
Circuit Judges.

i

Union appeals from a judgment of the United States
District Court for the Southern District of New York
(Sand, J.), awarding back pay, retroactive seniority
rights, and attorneys’ fees and costs to plaintiff classes in
an employment discrimination suit.

Affirmed as modified.

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a

3a

NORMAN ROTHFELD, New York, N.Y., for
Defendant-Appellant.

Lewis TESSER, New York, N.Y., for Plaintiffs-
Appellees.

—__—{j}>-——

VAN GRAAFEILAND, Circuit Judge:

Local 3 of the International Brotherhood of Electric
Workers appeals from a judgment of the United States
District Court for the Southern District of New York
(Sand, J.) which awarded plaintiffs in a class employment
discrimination suit retroactive seniority rights with back
pay, front pay, and attorneys’ fees, the total monetary
award, with interest, being substantially in excess of $1
million. Four opinions written by the district court are
reported at 482 F. Supp. 414, 482 F. Supp. 426, 482 F.
Supp. 918, and 535 F. Supp. 1082. Although we find the
evidence of discrimination somewhat less persuasive than
did the district court, we are not prepared to hold that the
district court’s findings on this issue were clearly erro-
neous. See Pullman-Standard v. Swint, 456 U.S. 273
(1982). Accordingly, we affirm the district court's adjudi-
cation of liability. However, for reasons hereafter dis-
cussed, we find it necessary to modify the relief which the
court below granted.

Since 1965, Local 3 of the International Brotherhood,
which has more than 4,300 black and Hispanic members,
has represented the “maintenance group of utility men”
(hereafter “laborers”) at Madison Square Garden. These
laborers prepare the Garden for its various featured
events. The several contracts between the Union and the

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Garden placed no restrictions on the employer’s method
of hiring, merely requiring that all laborers become mem-
bers of the Union within 31 days of their employment.
However, in practice, the hirelings, of which there was an
average of about 5 per year, were referred to the Garden
by the Union representative for the Garden laborers.
About | in 6 of the hirelings was either black or Hispanic.

Until 1969, the Garden also employed other groups of
people as cleaners or porters, bowling alley and lavatory
attendants, and elevator operators. In 1969, the Garden
subcontracted its cleaning work to Allied Maintenance
Corporation, retaining only the elevator operators as its
own employees. All of the cleaners are represented by
Local 54 of Service Employees International Union, and
most of them are either black or Hispanic.

On August 13, 1973, appellees Ingram, Britt, Moody,
and Floyd, all of whom were porters working at the
Garden, filed charges against the Garden and Allied with
the Equal Employment Opportunity Commission, pur-
suant to Title VII of the Civil Rights Act of 1964, 42
U.S.C. § 2000e ef seg., alleging that these employers had
discriminated against them and other black porters by
paying them less than the white laborers for doing similar
work and by maintaining segregated job classifications.
The EEOC concluded that the Garden and Allied were
violating Title VII, and, on October 4, 1976, following
unsuccessful conciliation efforts, issued right-to-sue let-
ters to the four complainants. On December 30, 1976, the
porters filed a proposed class action suit against the
Garden and Allied, alleging violations of 42 U.S.C.
§§ 1981 and 1985 as well as Title VII. On June 22, 1977,
Local 3 was added to the litigation by means of an
amended complaint, which charged that the Union was
discouraging competent minority cleaners from seeking

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and obtaining jobs as laborers and was conspiring with
the Garden and Allied towards this end by advising
cleaners that the Garden was solely responsible for hiring,
that no jobs were available, and that cleaners must do
apprenticeships before becoming members of Local 3.

On November 24, 1975, appellees Anderson and Perry,
black porters who worked at the Garden, also filed
discrimination charges with the EEOC, their charges
being directed against the Garden, Allied, and Local 3.
On January 16, 1978, a right-to-sue letter issued, and on
March 31, 1978, a proposed class action complaint on
behalf of the Anderson group was filed.

The district court certified a Title VII class and a
§§ 1981 and 1985 class in both actions. In the /ngram
action, the Title VII class, whose claims, of necessity,
were limited to the Garden and Allied, consisted of all
blacks who, after February 14, 1973, had been or would
be employed as cleaners at the Garden. The §§ 1981 and
1985 class consisted of all blacks and Hispanics who,
after December 30, 1973, had been or would be employed
as Cleaners at the Garden. Certification of both classes in
Ingram was conditioned on the intervention of lavatory
and bowling alley attendants and elevator operators as
named plaintiffs. Thereafter, Williams, a black lavatory
attendant, Milon, a black bowling alley attendant, Mitch-
ell, a black elevator operator, Bruton, a retired black
cleaner, and Garcia, an Hispanic cleaner, intervened. The
Anderson classes were defined in the same manner as
those of /ngram, except that the Title VII Anderson class
limitation was May 28, 1975, and the §§ 1981 and 1985
Anderson class limitation was March 31, 1975, and both
classes claimed against the Garden, Allied, and Local 3.

On July 13, 1978, the Jngram and Anderson actions
were consolidated. On July 16, 1979, the district court

439]

6a

denied the Union’s motion to decertify the classes. Subse-
quently, the plaintiffs entered into a proposed consent
decree with the Garden and Allied, in which the defen-
dants agreed, among other things, to pay $117,500 in
settlement of plaintiffs’ monetary claims plus $47,500 in
attorneys’ fees. On October 23, 1979, the settlement was
approved by the district court, subject only to the submis-
sion of an affidavit in support of counsel fees. See 482 F.
Supp. at 426. In the meantime, the case had proceeded to
trial against Local 3, the issue being limited to that of
liability.

On October 3, 1979, in an opinion reported at 482 F.
Supp. 414, the district court dismissed plaintiffs’ § 1985
claims, relying on Great American Federal Savings &
Loan Assoc. v. Novotny, 442 U.S. 366 (1979), but held
the Union liable under both Title VII and § 198).

Liability

Evidence introduced at trial showed that the percentage
of male, non-farm black and Hispanic workers in the
Standard Consolidated Area, which includes New York
City, Newark, Jersey City, Patterson-Clifton-Passaic, and
Middlesex and Somerset Counties in New Jersey, was
25.6%, and, in the Standard Metropolitan Statistical
Area, which includes the 5 counties of New York City,
Rockland and Westchester Counties in New York, and
Bergen County in New Jersey, was 27.4%. It appears
from the provisions of the consent decree that both the
district court and plaintiffs’ attorneys accepted 27% as an
appropriate figure. Other evidence before the district
court showed that, between 1965 and 1977, Local 3
referred 66 laborers to the Garden and that 10, or 15%,
of these were either black or Hispanic. Referrals by the
Union of only 7 additional blacks or Hispanics would

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have raised its minority referral percentage to approxi-
mately 26%. Between 1972 and 1975, the number of
laborers employed at the Garden varied between 59 and
71. During 1972 and 1973, 7 of these were black or
Hispanic; during 1974 and 1975, 8 were black or His-
panic. Again, an increase of only 7 blacks or Hispanics
would have altered the racial composition of Garden
laborers so that it approximated that of the general
Metropolitan area.

Statistical evidence of discrimination based on but a
few numbers is not, standing alone, compelling evidence
of wrongdoing. Mayor of Philadelphia v. Educational
Equality League, 415 U.S. 605, 621 (1974); Eubanks v.
Pickens-Bond Constr., 635 F.2d 1341, 1345-50 (8th Cir.
1980); Morita v. Southern California Permanente Medi-
cal Group, 541 F.2d 217, 220 (9th Cir. 1976), cert. denied,
429 U.S. 1050 (1977). In the instant case, for example, the
district court observed that one less minority referral by
the Union in 1978 would have dropped the percentage of
minority referrals from 16% to 14%. 482 F. Supp. at 424
n.24. Nevertheless, the district court drew an inference of
discrimination from the “statistical disparity” evidenced
by the figures, id. n.25, and found that Local 3 “hired
[sic] blacks or Hispanics . . . in numbers significantly
below their percentage in the labor market surrounding
the Garden.” 535 F. Supp. at 1094. We do not find as
much significance in these figures as did the district court.
See Coble v. Hot Springs School District, 682 F.2d 721,
734 (8th Cir. 1982); Williams v. Tallahassee Motors, Inc.,
607 F.2d 689, 693 (Sth Cir. 1979), cert. denied, 449 U.S.
858 (1980); Diedrich and Gaus, Defense of Equal Em-
ployment Claims 4 13.11 at 361 (1982). However, the
district court did not rely on this evidence alone. It found,
among other things, that the efforts of several class

4393

Ba

members to secure laborers’ positions “were deliberately
frustrated by union personnel who, on a number of
occasions, either ignored, gave evasive answers to or just
generally gave the run-around to class members who
sought information from them as to how to become a
laborer”, and that this “ ‘[got] the message across’ and
created an atmosphere which discouraged class members
from actively seeking a laborer’s position.” 482 F. Supp.
a: 421. Although, as the district court itself stated, “the
number of these incidents was not great,” 482 F. Supp. at
421, the court coupled them with the “statistical dispar-
ity” and the “standardless” method of referral to support
a finding of discriminatory intent, 535 F. Supp. at 1087.
Although we might have reached a different conclusion,
we cannot say that the district court clearly erred.

We find no merit in appellant’s other challenges to the
adjudication of liability. The test for error in class certifi-
cation is abuse of discretion, Brick v. CPC Int’l, Inc., 547
F.2d 185, 187 (2d Cir. 1976), and there was no abuse in
the instant case. The district court applied the correct
Statute of limitations. Keyse v. California Texas Oil
Corp., 590 F.2d 45, 47 (2d Cir. 1978). Appellant’s other
contentions require no discussion.

The Back Pay Award

In fashioning a remedy for employment discrimination,
“the court must, as nearly as possible, ‘recreate the
conditions and relationships that would have been had
there been no’ unlawful discrimination.” Jnt’/ Bhd. of
Teamsters v. United States, 431 U.S. 324, 372
(1977) (quoting Franks v. Bowman Transp. Co., 424 U.S.
747, 769 (1976)). We believe that the remedy in the instant
case went beyond that.

4394

9a

The district court referred the factual remedial issues to
a Magistrate and instructed the Magistrate to award
seniority to every class member who desired a laborer’s
job as of the date of the next laborer hire that followed
his application or “qualifying desire”, subject to a max-
imum date of July 2, 1965. 482 F. Supp. at 923-24. The
court instructed the Magistrate to make back pay awards
on the same basis, subject to the 2-year limitation period
of Title VII and the 3-year limitation period applicable in
New York to § 1981. Jd. at 925-26. The computations,
made as directed, produced some interesting results. Two
class members were awarded retroactive competitive sen-
iority dates to 1970, a year in which 5 laborers were hired,
one of whom was Hispanic. If the district court was
recreating the conditions that would have existed had
there been no discrimination, presumably he intended
that three of the five 1970 hirelings should have been
either black or Hispanic. In 1974, 6 laborers were hired,
one of whom was black. Nevertheless, 4 class members
were awarded retroactive competitive seniority to 1974. In
recreating the conditions for that year, the district court
must have intended that 5 out of the 6 hirelings should
have been either black or Hispanic. Although only one
laborer, a white man, was hired in 1976, seniority retro-
active to 1976 was awarded 4 class members.

According to appellees’ own computations, in 1969, the
laborer work force at the Garden consisted of 48 whites, 2
blacks and 2 Hispanics. Appellees’ Brief at 9. Between
1970 and 1978, the Garden hired 33 laborers referred to it
by the Union, of whom 6 were either black or Hispanic.
Id. at 8. The minority hiring rate during these years was
thus 18.2%. The district court held that, for purposes of
retroactive competitive seniority, 17 class members should
have been hired during this period, for purposes of

4395

10a

non-competitive seniority, 10 class members should have
been hired, and for purposes of back pay awards, 13 class
members should have been hired. Had 17 class members
been hired, the racial composition of labor hirings during
this period would have been 69% black or Hispanic. Had
13 class members been hired, the composition would have
57% black or Hispanic. Had 10 been hired, 48% of the
hirelings would have been black or Hispanic. This is
hardly a recreation of the conditions that would have
existed had there been no discrimination.

A court that finds unlawful discrimination is not re-
quired to grant retroactive relief. City of Los Angeles v.
Manhart, 435 U.S. 702, 718 (1978). “To the point of
redundancy, the statute stresses that retroactive relief
‘may’ be awarded if it is ‘appropriate.’” Jd. at 719.
Moreover, such remedy as is given should not constitute a
windfall at the expense of the employer, its union, or its
white employees. See United States v. United States Steel
Corp., 520 F.2d 1043, 1055 (Sth Cir. 1975), cert. denied,
429 U.S. 817 (1976), Guardians Ass’n of the New York
City Police Dept. v. Civil Service Commission, 539 F.
Supp. 627, 630 (S.D.N.Y. 1982); Patterson v. Youngstown
Sheet and Tube Co., 475 F. Supp. 344, 354 (N.D. Ind.
1979), aff'd, 659 F.2d 736 (7th Cir.), cert. denied, 454
U.S. 1100 (1981). Title VII imposes no duty to maximize
the hiring of minority employees. Furnco Construction
Corp. v. Waters, 438 U.S. 567, 577-78 (1978). Remedial
relief should be granted only to those class members who
would have filled vacancies had there been no discrimina-
tion. See Ass’n Against Discrimination in Employment,
Inc. v. City of Bridgeport, 647 F.2d 256, 284-87 (2d Cir.
1981), cert. denied, 455 U.S. 988 (1982). The district
court’s judgment, based on the concept that all class
members with unexpressed employment desires should

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have been hired regardless of the number of vacancies
and competing applicants, is based upon a hypothetical
hiring practice which the law did not require and which,
in actuality, never would have been followed absent any
trace of discrimination.

James O’Hara, the Union representative for the Gar-
den laborers and the person who made job referrals,
received over 300 requests for jobs during the period at
issue, not a single one of which came from a class
member. There is nothing in the record to indicate that,
discrimination aside, class members would have been
given preference over other applicants. Indeed, since the
Union counted 4,300 blacks and Hispanics among its own
members, it is unlikely that preferred treatment would
have been given to members of another union. In view of
the limited number of vacancies that occurred, we con-
clude that, to the extent that back pay was awarded to
more than 7 class members, it constituted an unwarranted
windfall and did not recreate the conditions that would
have existed in the absence of discrimination.

Because of the statistical limitations inherent in the
small samples available to plaintiffs’ expert witness, her
testimony concerning disproportionate hiring did not fo-
cus on any particular year. Faced with the same limita-
tions, neither this Court nor the district court can state
accurately when the 7 class members should have been
hired. Under such circumstances, we think it would be
inequitable to award back pay to only the first 7 class
members who indicated a “desire” to become laborers.
The fairer procedure, we believe, would be to compute a
gross award for all the injured class members and divide
it among them on a pro rata basis. See Stewart v. General
Motors Corp., 542 F.2d 445, 452-53 (7th Cir. 1976), cert.
denied, 433 U.S. 919 (1971); Pettway v. American Cast

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12a

Tron Pipe Co., 494 F.2d 211, 263 n.154 (Sth Cir. 1974). In
determining the amount of the gross award, however, we
think it fair to both the Union and the class members to
assume that the Union would have referred the 7 class
members who first desired employment, had they applied,
and to base the class award on the loss attributable to
these 7 men.

The first 7 “applicants”, determined by their seniority
dates, and the back pay awards made them by district
court, are:

Dy MURS vs th soc 0sd ee eeee $ $5,120
2. Wilfred Boudreaux............... 51,010
Dn) WOM I ois vc cct caw ccess 53,298
By ERG PUUEEEED cccccccccccuseecs 57,604
a I Ss ie d'n dics bv bo 08 oa ee 27,202
rere 61,494
» REL SO PEE 39,988

$345,716

The total award to these men, $345,716, is equal to
approximately 52.14% of the total award of $663,085
which the district court made to all 18 back pay recipi-
ents. Proration by 52.14% of the 18 individual awards
produces the following figures:

1. Shelly Anderson.............. $ 16,578.43
2. Wilfred Boudreaux ........... 26,596.61
RE Sa 20,849.74
OC) ee saad pes Veek na dees 9,630.78
5. Russell Footman ............. 11,123.03
Di Is 6 66k wane 50% wan 10,675.67
7. Graydon Griffith............. 18,963.84
8. Lawrence Hawkins ........... 24,746.17
9. Francisco Hernandez ......... 23,836.84

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10. Herbert Holmes.............. 30,034.73
Ve eer 14,183.12
Eee Ge PAI Cicc cbs cwcewee 28,739.57
ED, SE PEERY 5 6. 6 0 cv ceases es 27,789.58
Ss PIER s 4 0:0.8-s bus t.00040 19,611.94
Se I as. oc vs ccecce ds 8,775.16
8G. JOMNOS PORMITOW.. 0. ccccceees 11,628.78
17. George Sharpe, Sr. ........... 9,905.56
18. Kenneth Williams ............ 32,062.97

$345,732.52

The district court’s award of back pay is modified in
accordance with the foregoing figures.

Front Pay

Since this action was begun, at least 6 class members to
whom the district court made back pay awards have heen
hired by the Garden, 5 of them on November 5, 1979,
and one on December 20, 1980. The district court has
indicated that it intends to make front pay awards for
future losses to the twelve remaining back pay recipients.
For the reasons already expressed, we believe it is com-
pletely unrealistic to assume that all 18 back pay benefi-
ciaries would have been hired had there been no
discrimination practiced against them. Accordingly, we
deem it unfair to the members of the defendant Union,
black, Hispanic, and white, to impose a continuing liabil-
ity upon their association for the loss of future benefits.
This unfairness is exacerbated by the fact that the Union
has no control over future hirings, which are the sole
prerogative of the Garden, and is therefore in no position
to bring its liability for front pay to an end. Under these
circumstances, we believe that it would be an abuse of

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discretion for the district court to make front pay awards
against the Union to class members not already hired.

Retroactive Seniority

The same factors which dictate the limitation of back
pay and front pay awards also militate against the grant
of retroactive seniority to future hirelings. In addition, we
view pendent grants of retroactive seniority as self-defeat-
ing, in that they militate against the likelihood that the
beneficiaries of the grants will be employed. Under the
consent decree which terrainated plaintiffs’ action against
the Garden, the Garden agreed that every second job
opening would be offered to minorities until their repre-
sentation among the Garden’s laborers reached 27%. 482
F. Supp. at 417 n.4. Because at least 9 minority laborers
have been hired since the execution of the consent decree,
6 of whom were class members, it is not at all unlikely
that the 27% quota has been reached and the compulsory
hiring of class members has come to an end. Relations
between the Garden and its presently employed laborers
will not be improved by the voluntary hiring of additional
class members who will be granted automatic seniority
under the terms of the district court’s judgment. For all
the foregoing reasons, we think that the proper exercise
of discretion would limit the grant of retroactive seniority
to the 6 or more class members already hired.

Attorneys’ Fees

Like the steamfitters union in Rios v. Enterprise Ass’n
Steamfitters Local 638, 400 F. Supp. 993 (S.D.N.Y. 1975),
aff’d in relevant part, 542 F.2d 579 (2d Cir. 1976), cert.
denied, 430 U.S. 911 (1977), the Union is a non-profit
association comprised primarily of members who earn

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their living with their hands. It is upon these members
that the burden of the award against the Union for
attorneys’ fees eventually will fall. Instead of exploring
this matter before the Magistrate to whom the question of
fees was referred, defense counsel, in the Magistrate's
words, spent his time in a “vexatious, time-wasting attack
on plaintiffs’ counsel and in an unfruitful, nitpicking
excursion through innocuous details and markings in
plaintiffs’ counsels’ time logs and records.”

Despite the truth of this observation, we are aware that
the Union cannot pass on to customers the expense of
plaintiffs’ attorney’s fees, see Hail v. Cole, 412 U.S. 1, 1§
n.23 (1973), and this places special emphasis upon our
duty to see that the liability imposed upon the Union does
not include a windfall for plaintiffs’ attorney. Although
fee awards are generally within the discretion of the
district court, this Court may intervene where that discre-
tion has been abused. Faraci v. Hickey-Freeman Co., 607
F.2d 1025, 1028 (2d Cir. 1979); Mid-Hudson Legal Ser-
vices, Inc. v. G&U, Inc., 578 F.2d 34, 37-38 (2d Cir.
1978).

We have no problems with the allowance to plaintiffs’
attorney, Lewis Tesser, based upon 1,280 hours at $100
per hour. Both figures are reasonable and are supported
by the evidence. The allowance for the work performed
by Mr. Tesser’s assistant, Marjorie Altman, presents a
different situation. Miss Altman, who was admitted to
practice in March 1978, was employed by Mr. Tesser at a
salary of $200 per week. Mr. Tesser conceded, moreover,
that Miss Altman put in “significantly” more than 50
hours per week. The Magistrate allowed Mr. Tesser $50
per hour for the work done by Miss Altman in 1978 and
$65 per hour for the several ensuing years, stating that
these rates “were /ower than the going rates for attorneys

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of like skill and experience in the area” as testified to by
Mr. Tesser’s expert witness, Kathleen Peratis, Esq. (em-
phasis in original). This was not so. Miss Peratis testified
that, for an attorney with 0 to 4 years’ experience, a
reasonable rate would be “from $35 to $65 an hour.” We
conclude that, insofar as Miss Altman’s hourly rate for
1978 exceeded $35, the 1979 rate exceeded $45, and the
1980 rate exceeded $55, Mr. Tesser was the recipient of an
unwarranted windfall. The allowance for counsel fees,
including interest, is reduced by a total of $15,997.14.
The judgment of the district court is modified by:

(1) Reducing the individual back pay awards in accord-
ance with the figures above set forth;
(2) Deleting the provision for future front pay awards;

(3) Deleting the provisions for the grant of retroactive
seniority to class members hereafter hired;

(4) Reducing the award for attorneys’ fees by
$15,997.14.

As so modified, the judgment is affirmed without costs
to either party.

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700—6-16-83 © USCA—30208
RECORD PRESS, INC., 157 Chambers St., N.Y. 10007 (212) 243-5775

17a

UNITED STATES DISTRICT COURT

SOUTHERN _DISTRICT_OF_NEW_YORK_____. x

HENRY INGRAM, JAMES BRITT, WILLIAM

MOODY, and ROY T. FLOYD, in- 76 CIV
dividually and on behalf of all 5870
persons similarly situated, (LBs)
Plaintifés,
-and-

FRANCES WILLIAMS, EDWARD MILON,
HORACE MITCHELL, HERBERT BRUTON,

JOVINO GARCIA, OPINION

Intervenors, 349135
~against-

MADISON SQUARE GARDEN CENTER,
INC., MADISON SQUARE GARDEN
CORPORATION, ALLIED MAINTENANCE
CORPORATION, ALLIED PUBLIC
EVENTS SERVICE CORPORATION, and
LOCAL #3, I.B.E.W.,

Defendants.

SHELLY L. ANDERSON, JAMES L.
PERRY, individually and on behalf
of all others similarly situated,

Plaintiffs,
-against- 1453

MADISON SQUARE GARDEN CENTER,
INC., MADISON SQUARE GARDEN
CORPORATION, ALLIED MAINTENANCE
CORPORATION, ALLIED PUBLIC

EVENTS SERVICE CORPORATION, LOCAL
3 I.B.E.W., LOCAL 54, SERVICE
EMPLOYEES INTERNATIONAL UNION,

htt Defendants. _______,

18a

APPEARANCES: (See last page)
SAND, D.J.

In each of two separate cases
now consolidated for trial, suit was
brought by two classes which together
comprise all black and hispanic per-
sons who have been or will in the
future be employed as "cleaners"+/
by the defendants Madison Square
Garden Center, Inc. ("Center, Inc."),
Madison Square Garden Corporation
("Garden Corp."), Allied Maintenance
Corporation ("Allied"). Local #3,
International Brotherhood of Elec-
trical Workers ("Local 3"), is also
named as a defendant in these ac-

tions. 2/

Plaintiffs allege that
defendants violated Title VII of the
Civil Rights Act of 1964, 42 U.S.C.
§ 20003 (1970) and the Civil Rights

Acts of 1866 and 1871, 42 U.S.C. §§ 1981

19a

and 1985 (1970) respectively ,2/

by en-
gaging in a pattern of hiring and employ-
ment practices which made it impossible
for class members to secure the higher
paying and generally more desirable
position as "laborer" at Madison Square
Garden ("the Garden"). Prior to trial,
Center, Inc., Garden Corp., AMC and
Allied all entered into a proposed con-
sent decree ,4/ and the consolidated
trial of these two actions was limited
to the issue of Local 3's liability
under the employment discrimination
statutes involved. The question of
damages was left for separate con-
sideration should liability be found.
The plaintiffs in each suit
were arranged in a Title VII class and
a §§ 1981 and 1985 class. In the first
suit, the "Ingram" action, the Title

VII class is limited to black persons

20a
employed as "cleaners" since February 14,
1973, and the §§ 1981 and 1985 class to
those black and hispanic persons so
employed since December 30, 1973. In
the second suit, the "Anderson" action,
the two classes are identically described
except for the. limitation dates, which in
the Anderson action are May 28, 1975
and March 31, 1975, respectively. On
August 13, 1973, the Ingram plaintiffs
filed charges against "Madison Square
Garden" and AMC with the Equal Employ-
ment Opportunity Commission ("EEOC")
pursuant to 42 U.S.C. § 2000e-5.
Notices of "Conciliation Failure" and
"Right to Sue" were issued on
October 4, 1976 and on December 30,
1976, within the 90 day jurisdictional
period provided by 42 U.S.C. § 2000e-5
(£) (1), the Ingram plaintiffs filed

their initial complaint in this action

21a

against Center, Inc. and AMC. The
complaint was subsequently amended to
include Allied, Garden Corp. and
Local 3. Local 3, which was served
with a summons and complaint on
June 22, 1977, was not a party to the
Ingram EEOC action. On November 24,
1975, the Anderson plaintiffs filed
charges with the EEOC against "Madison
Square Garden", AMC and Local 3, and a
notice of right to sue was issued on
January 16, 1978. The Anderson com-
plaint was filed on March 31, 1978 and
served on Local 3 (which was a party
to the Anderson EEOC action) on
August 21, 1978.2/

The crux of plaintiffs' com-
plaint with respect to Local 3 is that
the union, which is the bargaining
agent for the "laborers" at the Garden

and which refers prospective employees

22a

to the Garden for employment as
laborers, employs a completely sub-
jective and standardless referral
policy, relying almost entirely on
word of mouth and favoritism, and

that the policy operates to dis-
Criminate against class members by
preventing them from becoming labor-
ers.2/ The defendant, in addition

to denying that the manner in which it
refers laborers to the Garden vio-
lates any of the employment discrim-
ination statutes involved, also inter-
poses several jurisdictional issues and
the statute of limitations as a
defense. The Court concludes that the
defendants' threshold objections with
respect to Title VII and § 1981 are
without merit ,/ and finds that Local

3's referral "policy" violates both

provisions. The plaintiffs' § 1985

23a
Claims, however, are dismissed in
accord with the Supreme Court's recent

ruling in Great American Federal Savings

& Loan Assoc. v. Novotny, 20 EPD 30,004

(1979). The following discussion con-
stitutes our findings of fact and con-
clusions of law pursuant to F.R.C.P. 52.

I. The Employment Structure at the
Garden

Center, Inc. currently employs
a staff under the direction of a super-
intendent at the Garden. The staff in-
cludes electricians, oilers and firemen,
engineers, carpenters, painters and
laborers. Prior to July 2, 1969, Center,
Inc. also employed personnel in the job
category referred to herein as
"cleaners". On that date, Center, Inc.
completed a process it had begun two

8/

years earlier— by entering into a

contract with Allied under which Allied

24a

agreed to provide all janitorial and
lavoratory services at the Garden.
Center, Inc. employees in the cleaner
category were offered the opportunity
to work for Allied at the Garden in
the same capacity in lieu of discharge,
and most accepted. 2/ Allied currently
provides all janitorial and lavatory
services at the Garden, and the work
of the cleaners is substantially the
same today as it was in the pre-Allied
period.

Laborers effect the change-
overs from one event to the next, a
task which requires them to erect and
remove various structures, operate
vehicles such as forklifts, ice
scrapers and vans, effect repairs
in the roof, floors, sidewalks and
athletic or other equipment, and move

around various heavy objects. The

25a

laborers also spend a portion of their
time cleaning, but the parties dis-
agree as to how much time is so spent .22/
Although the Court agrees with defen-
dant's contention that the question is
irrelevant to the issue of whether
Local 3 has violated the employment
discrimination statutes, the Court
finds that the job of laborer is, on
the whole, more strenuous than that

of cleaner, but that laborers spend
between one-third and one-half of
their day performing tasks similar or
identical to those performed by
Cleaners. The Garden imposes no
independent qualifications for the job
of laborer other than passing the
physical examination required of all

employees ,++/

and it generally hires
laborers through the union referral

process described below.

26a

Cleaners perform general
cleaning and janitorial functions at
the Garden such as mopping, washing,
dusting, trash removal, etc., and those
cleaners classified as lavatory atten-
dants perform similar functions in the
lavatory areas only. The hiring of
Cleaners is done solely by Allied,
which recruits its employees from
various sources and which imposes no
specific physical or education require-
ments for the position of cleaner at

the Garden.22/

Cleaners generally earn
between 65% and 70% of what laborers
earn, and the differential in other
employment benefits, e.g., pension

and annuity plans, appears to be sub-
stantial. All employees at the Garden
in the cleaner category are repre-

sented by Local 54.

The laborer force at the Garden

27a

has historically been all white. Prior
to January l, 1965, the effective date
of Title VII, and since at least 1948,
there had been no black or hispanic
person employed as a laborer. Between
1965 and 1969, one of the twenty-two
new laborers hired was black and one
was hispanic, the rest were white. By
July, 1977, around the time this law
suit was initially filed, thirty-eight
new laborers were hired, thirty-three
of whom were white, four black and one
hispanic. The 1978 Garden laborer work
force consisted of fifty-five employees,
forty-seven of whom were white, five
black and three hispanic. The compo-
sition of the laborer work force has
thus changed only slightly since blacks
or hispanics were first hired in 1969.

By contrast, the cleaners work
force, with the exception of those

Classified as six day cleaners, has

28a
historically been almost exclusively
black. The lavatory attendants were
all black in 1978, and have been all
black since at least 1948. The five
day cleaners were all black between
1948 and 1969, and in 1978, of the
thirty-four employees in that category,
twenty-four were black, seven were
hispanic and three were white. In
1978, the six day cleaner force, which
was at one time composed largely of
white women, totaled twenty-eight
workers, of whom twelve were white,
one black and fifteen hispanic. No
cleaner in either category has ever
transferred to a laborer position.

II. Laborer Hiring at the Garden
and Local 3 Referrals

The testimony of both Garden
and Local 3 officials at trial re-

vealed that since at least 1941, the

29a
hiring of laborers at the Garden has
proceeded in the following manner: +3/
when a vacancy in the laborer force
occurs, the Garden superintendent,
currently and for the past thirty-seven
years Mr. Richard Donopria, either
advises the Local 3 shop steward, current-
ly a Mr. Mel Mullins, or advises the
union directly, in the person of Mr.
James O'Hara. O'Hara is one of three
assistant business managers of Local 3
and, since 1969, has been the union's
representative for the laborers. O'Hara
alone makes referrals to the Garden for
the position of laborer, and when
Donopria is in contact with Mullins,
Mullins informs O'Hara. In either case,
once the union is advised that a vacancy
exists, it sends a person with a "slip"
indicating that he had been sent by the
union to see Donopria. Donopria testi-

fied that he always checks to see whether

30a

an applicant had been sent by the union,
and that he had hired laborers without
a union slip only on special occasions
for temporary spots. Thus, all of the
Garden's permanent laborer hiring

results from Local 3 referrals =/
Plaintiffs' request for prospective
injunctive relief is granted as modi-

fied herein.

I. Retroactive Seniority

When a court finds that an
employer or union has engaged in a

policy of unlawful employment dis-

76a
crimination, class action plaintiffs
are not required to introduce specific
evidence of individual acts of dis-
crimination at the remedial stage of
the proceeding. The proof supporting
the finding of liability in such a case
also "supports an inference that any
particular employment decision, during
the period in which the discriminatory
policy was in force, was made in

pursuit of that policy." International

Brotherhood of Teamsters v. United

States, 431 U.S. 324, 361-2 (1977).
Where such a policy is found to exist,
the Supreme Court has made clear that,
as a general matter, the District Court
must ordinarily grant seniority relief,
absent reasons for denying such relief
which, if applied generally, would not
frustrate the central statutory pur-
poses of eradicating discrimination

and making persons whole for injuries

77a

suffered. Teamsters v. United States,

431 U.S. at 365; Franks v. Bowman

Transport Co., 424 U.S. 747, 771 (1976).

Since defendant Local 3 has made no
argument that such reasons exist here
and since this Court has already found
that Local 3 engaged in a policy of un-
lawful employment discrimination, the
Court now concludes that an award of
retroactive seniority is appropriate.
This, however, does not necessarily mean
that each class member is entitled to
such relief. Only actual victims of
Local 3's discriminatory referral
practices are entitled to retroactive

seniority. Teamsters v. United States,

431 U.S. at 371-372.

There are two means by which
class members can demonstrate that they
are actual victims. The first is for
a class member to prove that he or she

actually applied to Local 3 for referral

78a
to the Garden as a laborer. Once such
an application is established, there is
a presumption that the class member
involved is entitled to retroactive
seniority, and the burden is on the
union to show that its failure to refer
was for non-discriminatory reasons.

Teamsters v. United States, 431 U.S.

at 362. In this case, however, Local
3's referral practices made a formal
application for reference to the
Garden impossible: there was simply
no established application procedure,
and union officials deliberately
frustrated informal attempts by class
members to secure a laborer's posi-
tion. See Op. at p. 7-9; 9-10. A
liberal construction of the term
"application" is thus called for if
class members are to be restored to
their "rightful place" in the seniority

scheme. See Acha v. Beame, 570 F.2d

79a

57 (2d Cir. 1978); James v. Stockham Valves

& Fittings Co., 559 F.2d 310 (5th Cir.

1977). Accordingly, any expression by a
class member to a Local 3 official evidenc-
ing a desire either to become a laborer or
to acquire information as to how to obtain
a referral will be treated as an "“applica-
tion" for purposes of determining whether
that class member was an "actual victim"
of Local 3's discriminatory employment
practices. To do less would penalize
plaintiffs for union referral procedures
and record-keeping practices which have
already been condemned by this Court as
violative of the employment discrimination

laws. See E.E.0.C. v. Local 38 of the

Sheet Metal Worker's International Assoc.,

532 F.2d 821, 832 (2d Cir. 1976); Carter

v. Shop-Rite Foods, Inc., 470 F.Supp. 1150

(N.D. Tex. 1979) (lack of formal applica-
tion procedure was itself a tool of dis-

crimination.

80a

Absent an application as defined
above, a second and more difficult way for
class members to demonstrate that they were
actual victims of Local 3's discriminatory
referral practices is to prove that they
were qualified for a laborer's position
and that they would have applied for a
referral had it not been for those prac-

tices. Teamsters v. United States, 431

U.S. at p. 368 (referring to the non-
applicants' "not always easy burden".)

In this case, the Court has already

found that the atmosphere at the Garden
was such that class members could reason-
ably have believed that seeking a re-
ferral from Local 3 would be futile.

See Op. at p. 10. Such a finding, while
essential to the nonapplicants' case, does
not mean that all nonapplicants who now
seek laborers' positions are entitled to

retroactive seniority. Teamsters v.

United States, 431 U.S. at p. 369-371.

8la

Each such nonapplicant must come forward
with evidence that he or she desired a
laborer's job, possessed the requisite
qualifications, and would have sought a
referral but for the Union's discrimina-
tory practices. Evidences of a class
member's desire to become a laborer may
consist of an informal inquiry or
expression of interest to someone other
than a Local 3 official ©! or even an

"unexpressed desire credible and con-

vincing." Teamsters v. United States,

431 U.S. at p. 371, n. 58. See, e.g.,

United States v. East Texas Motor Freight

System, Inc., 20 EPD 4 30, 103 (N.D.Tex.

1979) (making individual retroactive

seniority determinations for nonappli-

cants). The question is a factual one,

but if a change from cleaner to laborer

would have entailed a loss of seniority
7/

at the time— the class member involved

desired such a change, then whether that

82a

class member would have accepted a
laborer's position at that time despite
the loss of seniority is a relevant

if not determinative consideration.

See Teamsters v. United States, 431 U.S.

at p. 370-371.

Although plaintiffs seek full
seniority for the number of years that
qualifying class members who become
laborers worked at the Garden, no class
member may be given retroactive seniority
to a date earlier than the effective date
of Title VII or the date of his applica-
tion or proven "desire", whichever is

8/

later.— Teamsters v. United States, 431

U.S. at p. 356-357. Thus, an applicant

or nonapplicant who qualifies for seniority
relief under the standards set out above
will be granted retroactive seniority as

of the date of the next laborer hire
resulting from a Local 3 referral which

followed the class member's application

83a
or qualifying desire, subject to a maximum

date of July 2, 1965. See, e.g., Harper v.

General Grocers Co., 590 F.2d 713 (8th Cir.

1979); Sagers v. Yellow Freight System,

Inc., 529 F.2d 721 (Sth Cir. 1976);

Linebaugh v. Auto Leasing Co., 18 EPD

q 8, 904 (W.D.Ky. 1978) (retroactive
seniority awarded "as of date [plaintiff]
should have been employed by defendant",
i.e., as of date of next hire following
her application). The source and date of
laborer hires should be drawn from the
books and records of the employer and the
evidence adduced at trial, but there is a
strong presumption that most if not all
laborer hires were the result of a Local 3
referral. See Op. at p. 7-9. Evidence
of applications of the "desire" and
qualifications of nonapplicants may be
drawn from the testimony at trial, from
depositions, interrogatories and other

documents admitted into evidence, and,

84a

if necessary, from testimony at hearings

held before the magistrate.’

Evidence of
the union's nondiscriminatory reasons for
its failure to refer individual class
members should also be presented to the
magistrate 22’

Although this procedure for
identifying actual victims of Local 3's
discriminatory practices and restoring
them to their "rightful place" will
"necessarily involve a degree of approxi-
mation and imprecision", the Court believes
that it is both well within its broad
equitable powers under Title VII to fashion
the most complete relief possible and
consistent with the Supreme Court's speci-
fic mandate to "recreate [as nearly as
possible) the conditions and relation-
ships that would have been had there been
no unlawful discrimination". Teamsters v.
United States, 431 U.S. at p. 372 (quoting
Franks v. Bowman Transport Co., 424 U.S.
at p. 769). See also, Acha v. Beame, supra;

85a

James v. Stockham Valves & Fittings Co.,

supra (under "rightful place" doctrine,
sufficient retroactive seniority is given
to permit the advancement and layoff pro-
tection the victim of the discrimination
would have enjoyed but for the discrimina-
tion).

Finally, while the Ingram plain-
tiffs are entitled to recover under § 1981
and not under Title VII, the Court notes
that the two statutes have generally been
similarly interpreted and applied, see,

e.g., Carrion v. Yeshiva University, 535

F.2d 722 (2d Cir. 1976), and sees no
reason why successful § 1981 plaintiffs
should not be eligible for a retroactive

seniority award. See Williams v. DeKalb

County, 577 F.2d 248 (Sth Cir. 1978) back-
pay award appropriate in a § 1981 suit).
Accordingly, the Ingram plaintiffs' individ-
ual entitlements to retroactive seniority

will be determined in accordance with the

86a

standards set forth above, including the
maximim seniority date of July 2, 1965.

See Johnson v. Goodyear Tire & Rubber Co.,

491 F.2d 1364, 1374-75, 1378-79 (5th Cir.
1974) (limiting the availability of back-
pay relief under § 1981 to the effective
date of Title VII). As the Fifth Circuit
stated in Johnson, the "balancing of the
equities" in the employment discrimination
area suggests that backpay relief under

§ 1981 should be limited to the effective
date of Title VII, and this Court believes
that the same rule should govern an award
of retroactive seniority. Any other con-
clusion would be particularly unfortunate
in this case since two essentially identical
plaintiff classes would then be eligible
for different measures of relief after
having suffered from the same discrimina-

tory practices.

87a

II. Backpay

Much of what has already been said
about retroactive seniority applies to
backpay as we11,22/ The standard for
general availability is identical in both
contexts; indeed, that standard was first

adopted by the Supreme Court in a backpay

decision. Albemarle Paper Co. v. Moody,

422 U.S. 405 (1974). The standard for
determining the eligibility for backpay
of individual "applicant" class members
is also the same as that employed in the
retroactive seniority context .=2/ See,

e.g., Hill v. Western Electric Co., 596 F.2d

(4th Cir. 1979); Mitchell v. Mid-Continent

Spring Co., 583 F.2d 275 (6th Cir. 1977);
Chewning v. Schlesinger, 471 F.Supp. 767
(D.C.D.C. 1979). The questions which
require extended separate discussion are
whether nonapplicants are eligible for
backpay relief, the effect of the statute

of limitations, the composition of a backpay

88a

award, and the availability of front pay.
The Court notes before addressing those
questions, however, that since defendant has
pointed to no reason for denying backpay
relief which, "if applied generally, would
not frustrate" the purposes of the employ-

13/

ment discrimination laws,—-'a backpay

award is, as a general matter, appropriate
here. +4/
Although the Supreme Court opinion

in Teamsters v. United States, supra, was

not concerned with backpay, courts con-

fronted with the question since Teamsters

have held that "nonapplicants" are poten-
tially eligible for a backpay award, and

have applied Teamsters eligibility stan-

dards to the backpay area. See, e.g., Hill

v. Western Electric Co., supra; Mitchell v.

Mid-Continent Springs Co., supra; Carter v.

Shop-Rite Foods, Inc., supra; Chewning v.
Schlesinger, supra. This approach seems

consistent with the parallel treatment

89a

generally accorded the two remedies by
both the Supreme Court and the lower

federal courts. Compare Teamsters v.

United States, supra, with Albemarle Paper

Co. v. Moody, supra. Moreover, the

Teamsters Court's concern that imposing

an absolute bar on relief to nonapplicants
would "put beyond the reach of equity the

most invidious effects of employment dis-

crimination" is equally applicable here.

Teamsters v. United States, 435 U.S. at

p. 365, 367. That language at least

suggests that limiting the type of relief
available to a victim of discrimination
because he is a nonapplicant would be in-
consistent with the duty of the courts to
secure "complete justice" and provide a

"make whole" remedy for such victims. Id.

at 364. The Court thus concludes that
backpay relief is available to nonapplicants,

and that the standards set out in Teamsters

v. United States, supra, and described above

90a
are to be used in making individual eligi-
bility determinations.22/

Unlike an award of retroactive
seniority which is subject only to the
maximum recovery date of July 2, 1965,
backpay awards are also subject to a statute
of limitations. Title VII specifically
provides that "[b)ackpay liability shall
not accrue from a date more than two years
prior to the filing of a charge with” the

E.E.0.C. 42 U.S.C. § 2000e-5(g) .25/

Thus,
the Anderson plaintiffs' backpay award is
actually subject to a maximum recovery date
of November 24, 1973, which is two years
before their charge naming Local 3 was

17/

filed with the Commission.—’ The Ingram

plaintiffs, whose backpay recovery is
based on § 1981 rather than Title viz ,28/
are subject to the applicable state limita-

tions period, Johnson v. Railway Express

Agency, 421 U.S. 454, 462 (1974), which in

New York is three years prior to the time

9la

the lawsuit was commenced. See Cates v.

Trans-World Airlines, Inc., 561 F.2d 1064,

1067 n. 4 (2d Cir. 1977). The maximum
recovery date for the Ingram plaintiffs is
thus May 20, 1974, three years before their
complaint in this action was amended to
include Local 3 as a defendant.

In calculating the amount appropri-
ate for individual backpay awards, the
magistrate should take into account, in
addition to wages, fringe benefits such as
insurance, pension benefits and vacation
and sick pay, as well as overtime pay and

shift differentials. See, e.g., Pettway

v. American Cast Iron Pipe Co., supra;

Farmer v. United Catering, 19 EPD q 9,075

(E.D.Mich. 1978) (including such items in
a backpay award against a union). From
this amount must be deducted the amount
earned as a cleaner between the time of
the individual class member's recovery

date and the backpay termination date.

92a

42 U.S.C. § 2000e-5(g). The backpay
termination date in this Circuit is the
date of the "actual remedying of the
discrimination", i.e., the date on which
the class member involved becomes a laborer.

E.E.O.C. v. Enterprise Association of

Steamfitters, 542 F.2d at 590 (mandating

such a cutoff date for a backpay award
against a union). This approach, which
has been referred to as a "front pay”

award in other circuits, see, e.g., United

States v. Leeway Motor Freight, supra;

White v. Carolina Paperboard Corp., 564 F.2d

1073, 1091 (4th Cir. 1977) (backpay to be
continued until class members attain right-
ful place), is particularly appropriate
here since the Garden's seasonal hiring
practices suggest that it may be some time
before all qualifying clas members actually

become laborers. See, e.g., Ivey v. Western

Electric Co., 16 EPD q 8, 299 (N.D.Ga.

1978). If, as is likely, front pay awards

93a

are to be made to some class members, the
magistrate may either recommend a procedure
by which the Court will retain jurisdic-
tion until all qualified class members

have attained their rightful place in

order to make periodic front pay adjust-

ments, see Ivey v. Western Electric, supra,
Or supplement the backpay award by an
amount equal to the estimated present value
of lost earnings that are reasonably likely
to occur between the final decree and the
time when the class member involved can
assume a laborer's position. White v.

Carolina Paperboard, 564 F.2d at p. 1,091.

See also, United States v. Leeway Motor

Freight, supra; James v. Stockham Valves

& Fittings Co., supra.

Once the above described calcula-
tions have been completed, the magistrate
May award interest to qualified class
members for past earnings lost as a result

of the discrimination. See, e.g., Pettway

94a

v. American Cast Iron Pipe Co., supra;

Kinsey v. Leg Mason Wood Walker, Inc., 16

EPD q 8,168 (D.C.D.C. 1978), affirmed,
21 EPD q 30,292 (D.C.Cir. 1979).

Finally, the Court notes that
since the consent decree entered into
between plaintiffs and the Garden and
Allied defendants provides for a monetary
award, Local 3 will not be held accountable
for the total backpay figure resulting from
the backpay calculations discussed above.
Whether the amount provided for in the
consent decree will be subtracted from the
total backpay figure, with the union liable

for the remainder, Farmer v. United Cater-

ing, supra, or whether the union will be

held liable for a portion of the total
figure, with the remainder attributed to

the consent decree, Myers v. Gilman Paper

Co., 544 F.2d 837 (5th Cir. 1977); Steven-

son v. International Paper Co., 14 EPD

q 7,615 (W.D.La. 1977), will be determined

95a
by the Court after the magistrate submits

his report. But see, United States v.

East Texas Motor Freight System, Inc., 564

F.2d 179 (Sth Cir. 1977) (upholding a
district court's denial of a backpay award
against a union on the ground that plain-
tiffs were "fully compensated" by the
monetary award contained in a consent

decree between plaintiffs and their
employer). The magistrate's report should
include a recommendation for the total back-
pay figure, as well as for the amounts

owing individual class members.

III. Prospective Relief

The prospective relief sought here
poses none of the complicated and sensitive
questions which confront a court asked to

19/

establish hiring goals or quotas.—’ See,

e.g., Rios v. Enterprise Association

Steamfitters Local #638, 501 F.2d 622 (2d

Cir. 1974). Once a violation of either

Title VII or § 1981 is established,

96a
regularizing of employment or referral
practices to remedy the vestigates of past
discrimination is well within the broad
equity power of the trial court. 42 U.S.C.

§ 2000e-5(g). See United States v. Wood,

Wire & Metal Lathers International Union,

71 F.2d 408 (2d Cir. 1973) ("the only
limitation on the broad powers of affirma-
tive relief is that restricting preferential

quota hiring"); Stamps v. Detroit Edison

Co., 17 EPD q 8,583 (E.D.Mich. 1978)
(ordering defendants to notify class members
of their rights under a remedial order by
mail). Accordingly, plaintiffs' request
that Local 3 be ordered to maintain a
referral "register" and to post notices

in the Garden of how to apply for a

referral is granted. Defendant is ordered
to submit to the magistrate for his approval
a plan for the establishment of referral
lists and copies of the proposed notices

to be posted in the Garden.

97a

Finally, plaintiffs' request that
class members be referred to the Garden in
order of their "current seniority" is
granted only until such time as retroactive
seniority dates have been established.
After that time, and after the five class
members named in the consent decree have
obtained laborers positions, Local 3 is
ordered to refer class members to the
Garden under the terms of the consent
decree in the following order: first, ap-
plicants or qualified nonapplicants who now
seek a laborer's position in order of their
retroactive seniority date, i.e., those
with the earliest retroactive seniority
date should be referred first; second,
once this first group of class members has
been placed, the remaining class members
should be referred in the order that they
seek a referral. Where more than one class
member in this second group applies for a

referral at the same time, they should then

98a

be referred in order of their current
seniority as cleaners. In the Court's
view, this approach recreates the condi-
tions that would have existed but for the
discrimination more accurately than would

the approach suggested by plaintiffs.

IV. Attorneys’ Fees & Costs

Reasonable attorney's fees and
costs may be allowed the prevailing party
in employment discrimination suits under
either Title VII or § 1981. See 42 U.S.C.
§ 2000e-5(k) and 42 U.S.C. § 1988. The
standard for determining the amount of such
fees is the same under both statutes, and
although a fee award is committed to the
discretion of the trial court, prevailing
plaintiffs in civil rights actions generally
recover fees and costs absent special cir-
cumstances which would make such an award

unjust. See Christianburg Garment Co. v.

E.E.0.C., 434 U.S. 412 (1978); Mid-Hudson

Legal Services, Inc. v. G & U, Inc., 578

99a

F.2d 34, 37 (2d Cir. 1978). In this case,
defendant's liability has been established
and a judgment will ultimately be entered
which will both change Local 3's referral
practices and provide individual relief for
members of the plaintiff classes. There is
thus no doubt that plaintiffs' claims were
meritorious and that plaintiffs are the
"prevailing party” entitled under the
appropriate statutes to recover reasonable
-attorneys' fees. 42 U.S.C. § 2000e-5(k)
and 42 U.S.C. § 1988.

Since Allied and the Garden were
initially parties to this litigation, it
will be necessary to determine what por-
tion of plaintiffs' fees and costs are
chargeable to Local 3. Currently pending
before this Court for its approval is an
application for a fee award, contained in
the consent decree, in connection with
legal services performed by plaintiffs'

attorney until the time of settlement with

100a

Allied and the Garden. In a forthcoming
opinion, the Court will determine a
reasonable fee award for all such ser-
vices. However, it is clear that since
the three defendants were, until settle-
ment, part of the same consolidated
action, these legal services were per-
formed in connection with plaintiffs'
Claims against all defendants. The Court
thus finds that Local 3 shall be liable
for one-third of plaintiffs' legal costs
incurred from the commencement of this
action until the time of settlement,
exclusive of any costs incurred by
plaintiffs in settlement negotiations to

which Local 3 was not a party. See Rogers

v. International Paper Co., 510 F.2d 1340,

modified on other grounds, 526 F.2d 722

(8th Cir. 1975); Sagers v. Yellow Freight

Systems, Inc., 529 F.2d 721 (Sth Cir. 1976);

Bush v. Lone Star Steel Co., 373 F.Supp.

526 (E.D.Tex. 1974). The additional fees

10la

incurred as a result of the trial in which
only Local 3 was involved, as well as all
fees incurred during the remedial phase of
this litigation, must necessarily be borne
by Local 3 alone.

The standards for computing a
reasonable fee award have been set out in

this Circuit in City of Detroit v. Grinnell

Corp., 495 F.2d 448 (2d Cir. 1974). After
a "lodestar" figure has been calculated,

the Magistrate may consider additional sub-
jective factors in increasing or decreasing

the amount of the fee. City of Detroit,

495 F.2d at 471. Moreover, in an appropri-
ate case, the not-for-profit character of
the defendant against whom an award is |
granted may be considered in adjusting

the fee. See Rios v. Enterprise Associa-

tion Steamfitters Local 638, 400 F.Supp.

993, (S.D.N.Y¥. 1975), aff'd sub nom.

E.E.0O.C. v. Enterprise Association Steam-

fitters Local 638, 542 F.2d 579 (2nd Cir.

1976), cert. denied, 430 U.S. 911 (1977).

102a

The Court notes, however, that any devia-
tion in amount from the "lodestar" fee

award figure in recognition of such factors
must be supported by specific factual
findings indicating the basis for the devia-

tion. City of Detroit, 495 F.2d at 471.

To arrive at a fee award which is
reasonable under all the circumstances, the
magistrate must be presented with time logs
or affidavits detailing the number of hours
spent and identifying the attorneys and
activities involved. Distinctions between
time spent in court and time attributed to
research, administrative and related ser-
vices may be appropriate in fixing a

reasonable hourly rate. See Firebird

Society v. Members of the Board of Fire Com-

missioners, 556 F.2d 642 (2d Cir. 1977).
Care should be taken to avoid award-

ing fees for duplicated services and
unnecessary expenditures of time.

See Gagne v. Maher, 594 F.2d 336

103a

(2d Cir. 1979); Reynolds v. Coomey, 567
F.2d 1166 (lst Cir. 1978). If the time
logs and other supporting documents are
sufficiently detailed, they may provide an
appropriate basis for determination of a
reasonable fee. Rios, 400 F.Supp. at 996.
If there are disputes of fact over the
elements that comprise the fee award,
however, or if there are "factual voids"
in the information presented, an eviden-
tiary hearing is "imperative" before an
adequate fee can be fairly determined.

City of Detroit, 495 F.2d at 473.

V. Conclusion

The case is now referred to the
magistrate for further proceedings
consistent with the guidelines set forth
herein. During the course of those pro-
ceedings, issues not dealt with in this
opinion will undoubtedly arise. The Court

does not in any way intend to preclude

104a
consideration of such issues by the magis-
trate who, of course, will have full
authority to make recommendations with
respect to those issues in light of this
opinion.
Settle order on notice.

Dated: New York, New York
December 13, 1979

U.S.D.J.

105a

FOOTNOTES

The other defendants in these actions
entered into a consent decree with plaintiffs .
which was approved by this Court in an opinion
dated October 23, 1979. The factual and
procedural background of this litigation is
described in the Court's October 3, 1979
opinion (hereafter "Op.").

The four plaintiff classes involved here
together compromise all black and hispanic
persons who have been or will in the future
be employed as "cleaners" at the Garden. See

Op. at p. 2

The Ingram plaintiffs’ Title VII claims
against Local 3 were dismissed after the
plaintiffs' counsel conceded that they were
barred by the failure of the Ingram plain-
tiffs to name Local 3 in the original E.E.0O.C.
proceeding. Op. at n.3. Claims by both the
Ingram and Anderson plaintiffs under the Civil
Rights Act of 1871, 42 U.S.C. § 1985 (1970),
were dismissed in accord with the Supreme
Court's recent decision in Great American

Federal Savings & Loan Assoc. v. Novotny,
20 EPD 4 30,004 (1979). See Op. at p. 10-11.

Specifically, plaintiffs seek an injunc-
tion ordering Local 3 to allow class members
to register with Local 3 for referral to the
Garden as laborers, and to maintain a list of
those class members seeking a referral. The
union would also be required to post con-
spicuously within the Garden notice of how to
register on said referral list.

Reference to a master or magistrate for
such purposes during the remedial stage of
employment discrimination litigation is
common. See, e.g., United States v. Lee Way

(1)

Footnotes continued...

106a

Motor Freight, 21 EPD 4 30,286 (10th Cir.
1979) (backpay award, special master);
E.E.0.C. v. Enterprise Association Steam-
fitters Local #638, 542 F.2d 579 (2d Cir.
1976) recommending reference of individual
backpay claims to a special master); Meadows
v. Ford Motor Co., 510 F.2d 939 (6th Cir.
1975) (retroactive seniority award, special
master); United States v. Masonry Contractors
Association, 497 F.2d 871 (6th Cir. 1974)
(backpay award, magistrate as special master);
Pettway v. American Cast Iron Pipe Co., 494
F.2d 211 (5th Cir. 1974) (backpay award,
special master). As it has done throughout
the course of these proceedings, the Court
encourages resolution of this controversy

by means more efficient, economical and
expeditious than a continuation of this
litigation. Our reference to a magistrate

as a special master is not intended to pre-
clude any suggestions the parties might care
to make promptly to the Court, on consent, of
any alternative procedure or master.

An inquiry or expression of interest to
a Local 3 official should be treated as an
"application". See discussion of applicants,

supra.

Whether this was the case, and whether
the situation was the same or different when
cleaners were employed by the Garden as opposed
to being employed by defendant "Allied", see
Op. at p. 4, is not clear from the record now
before the Court. These are matters which
should be considered by the magistrate.

The same limitation date applies
regardless of whether an individual class
member is recovering under Title VII or
§ 1981 or both. See discussion infra.

(ii)

Footnotes continued...

107a

The Court finds credible the trial testi-
mony of class members who described their
efforts to obtain a laborer's position by
speaking to the Local 3 shop steward or other
union personnel, and the magistrate is instructed
to find, subject to rebuttal evidence by the
defendant, that those class members are eligible
for retroactive seniority. As to the remaining
class members seeking similar relief, the Court
has been informed by plaintiffs' counsel that
much of the information needed to make individual
eligibility determinations is contained in
depositions or interrogatory responses, some of
which have not been admitted into evidence.
While the magistrate may certainly rely on
everything which has been admitted, informa-
tion not admitted should be considered by the
magistrate only if properly admitted in the
further remedial stage of this litigation.

Oral testimony before the magistrate may be
desireable in any event since credibility
determinations may play a critical role in
individual eligibility decisions, particularly
in the case of nonapplicants.

In dealing with the seniority remedy, the
magistrate should consider and report to the
Court as to whether a "competitive" (layoff
protection) v. "noncompetitive" (vacation
time) seniority distinction is possible here
and whether, in light of the history of the
employment structure at the Garden, see Op. at
at p. 4-6, cleaners who become laborers should
maintain full seniority for noncompetitive
purposes for the number of years they worked
at the Garden as cleaners.

This is true for the backpay claims under
both Title VII and § 1981, which will be
treated together here except for the statute of
limitations discussion. The backpay remedy is
available under § 1981. Williams v. DeKalb
County, supra.

(iii)
Footnotes continued...

12/

Ic:
™

108a

The discussion in the retroactive
seniority section of this opinion of the
union's evidentiary burden, the construction
of the term "application", the maximum cate
and the evidence to be considered by the
magistrate, is all equally applicable here.

The Court notes too that the kind of
factors which led the Supreme Court to reject
a backpay award in City of Los Angeles Dept.
of Water and Power v. Manhart, 435 U.S. 702

(1978) are simply not present here.

This conclusion is not foreclosed by the
fact that the defendant is a union, and that
a backpay award may have serious financial
consequences. E.E.0.C. v. Enterprise As-
sociation Steamfitters Local #638, 542 F.2d
579, 585-586 (2d Cir. 1976). The Court
defers until after the Magistrate submits
his report, however, the question of the weight
to be given to those considerations. Id. at
586 & 592.

In E.E.0.C. v. Enterprise Association
Steamfitters Local #638, 542 F.2d 579 (2d

Cir. 1976), a pre-Teamsters decision, the
Second Circuit held that backpay relief is not
available to nonapplicants. Explicitly dis-
tinguishing between an award of retroactive
seniority to nonapplicants and an award of
backpay, the Court focused on the economic
burden to the defendant and the far greater
number of potential claimants since backpay
relief is not limited to those who are still
employed by the parties involved. Id. at 588.
See also, E.E.0.C. v. Local 28 of the Sheet
Metal Workers’ International Association,

532 F.2d 821, 832 (2d Cir. 1976). Although
such factors may be relevant when determin-
ing whether a court, in its discretion,

should award backpay relief, they cannot in
light of Teamsters support a per se prohibi-
tion of such relief to nonapplicants. In

(iv)
Footnotes continued...

109a

any case, the number of class members
claiming backpay in the case now before the
Court (43) is only slightly greater than
the number who seek retroactive seniority (37).

This two year limitation period,
adopted as part of the 1972 amendments to
Title VII, applies to all charges pending
before the E.E.0.C. on March 24, 1972 and all
charges filed thereafter.

The Anderson plaintiffs' backpay relief
is granted under Title VII, which, under these
circumstances, provides them with an earlier
maximum recovery date than § 1981. See
discussion, infra.

See note 3, supra.
Minority hiring goals are included in
the consent decree entered into between

plaintiffs and the Garden and Allied defen-
dants.

(v)

110a

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

Pai et ET Pt Oh ee ee eS, x
HENRY INGRAM, JAMES BRITT, WILLIAM
MOODY, and ROY T. FLOYD, in-
dividually and on behalf of all
persons similarly situated, 76 CIV
5870
Plaintiffs, (LBS)

~against-

FRANCES WILLIAMS, EDWARD MILON,
HORACE MITCHELL, HERBERT BRUTON,
JOVINO GARCIA,

Intervenors,
-against-

MADISON SQUARE GARDEN CENTER,

INC., MADISON SQUARE GARDEN OPINION
CORPORATION, ALLIED MAINTENANCE

CORPORATION, ALLIED PUBLIC

EVENTS SERVICE CORPORATION, and

LOCAL # 3 I.B.E.W.,

Defendants.

SHELLY L. ANDERSON, JAMES L.
PERRY, individually and on behalf
of all others similarly situated,

Plaintiffs,
-against- 78 CIV
MADISON SQUARE GARDEN CENTER, paved

INC., MADISON SQUARE GARDEN
CORPORATION, ALLIED MAINTENANCE
CORPORATION, ALLIED PUBLIC

EVENTS SERVICE CORPORATION, LOCAL
3, I.B.E.W., Local 54, SERVICE
EMPLOYEES INTERNATIONAL UNION,

Defendants.

llla

APPEARANCES: (See last page)
SAND, J.,

This is the latest Opinion in a
case which has spawned numerous Opinions.
Although the background of this litigation
has been summarized in these prior Opinions
of the Court, a general restatement of the
factual context of this case is appropriate
at this concluding stage of the proceedings.
For a more detailed discussion of the facts

of this case, see Ingram v. Madison Square

Garden Ctr., Inc., 482 F.Supp. 414 (S.D.N.Y.

1979) .+/

Two separate cases were brought by
two classes, which together comprise all
black and Hispanic persons who have been
Or will in the future be employed as
"cleaners" by the defendants Madison Square
Garden Center, Inc. ("Center, Inc."),
Madison Square Garden Corporation ("Garden
Corp."), Allied Maintenance Corporation

("AMC"), and Allied Public Events Service

ll2a

Corporation ("Allied"). Local #3, Inter-
national Brotherhood of Electrical Workers
("Local 3", "the union,” "the defendant”)
was also named as a defendant in these
actions.

Plaintiffs allege that the defen-
dant violated Title VII of the Civil Rights
Act of 1964, 42 U.S.C. § 20003 et seg., and
the Civil Rights Acts of 1866 and 1871,

42 U.S.C. §§ 1981 and 1985 respectively, by
engaging in a pattern of hiring and employ-
ment practices which made it impossible for
class members to secure the higher paying
and generally more desirable position of
"laborer" at Madison Square Garden ("the
Garden"). Prior to the trial, Center,
Inc., Garden Corp., AMC and Allied all
entered into a proposed Consent Decree
which was subsequently approved by the

Court. See Ingram, 482 F.Supp. 426

(S.D.N.Y. 1979). The consolidated trial

of the two actions was limited to the

ll3a

issue of Local 3's liability under the
employment discrimination statutes in-
volved.

In its Opinion of October 3, 1979,
the Court dismissed the plaintiffs'
§ 1985 claims and dealt with the various
jurisdictional and statute of limitations
issues which the defendant interposed as

defenses. See Ingram, 482 F.Supp. 414

(S.D.N.Y. 1979). The Court held that the
manner in which Local 3 referred workers
to the Garden for employment as laborers
violated both Title VII and § 1981. The
Court agreed with the plaintiffs' con-
tention that the union, which is the
bargaining agent for the laborers at the
Garden, and which referred prospective
employees to the Garden for employment
as laborers, employed a completely sub-
jective and standardless referral policy,
relying almost entirely on word of mouth

favoritism, that operated to discriminate

ll4a

against class members by preventing them
from becoming laborers. The Court found
that the plaintiffs in the first of the

two consolidated class actions, the "Ingram"
plaintiffs, were entitled to recover under

§ 1981 only, while the plaintiffs in the
second action, the "Anderson" plaintiffs,
were entitled to recover under both

Title VII and § 1981.

On December 13,-1979, the Court
filed an Opinion establishing guidelines
with respect to damages, and found that,
as a general matter, awards of backpay,
retroactive seniority, and attorneys'
fees are appropriate in this action. See
Ingram, 482 F.Supp. 918 (S.D.N.Y. 1979).
Plaintiffs' request for prospective
injunctive relief was granted, subject to
certain modifications. The Court explained
that class members could demonstrate that
they are actual victims by proving a

desire for referral as a laborer which was

115a

expressed to Local 3 or, alternatively,

by proving that they were qualified for

a laborer's position and that they would
have applied for a referral had it not been
for the discriminatory practices. See id.
at 922-23. The case was referred to Magi-
strate Kent Sinclair, Jr. who, in accord-
ance with the general standards outlined
in the Opinion, was requested to make
recommendations to the Court as to both
the entitlement of individual class
members to relief and the amount appropri-
ately chargeable to the defendant for
attorneys' fees and costs.

On April 18, 1980, the Magistrate
issued "Preliminary Findings” as to retro-
active seniority dates for class members
who had obtained laborers' positions.
These findings were affirmed by this Court
on May 5, 1980 without prejudice to such
review as the Court should choose to make

at the end of the remedial process.

ll6a

See Ingram, Nos. 76-5870, 78-1453 (S.D.N.Y.

May 5, 1980).

On November 21, 1980, the Magi-
strate issued "Findings of Fact" concern-
ing the desire dates and other eligibility
determinations respecting seniority for
those class members who had come forward
to request affirmative relief.

On December 8, 1980, Magistrate
Sinclair issued an "Interim Order on
Monetary Relief" containing a discussion
of the backpay formula adopted therein
and a summary of the status and expected
treatment of open items in connection
with the relief aspects of the litigation.
The method of computing wage loss which
the Magistrate adopted involved comparing
each victim's actual compensation with
the average compensation of an appropriate
group of comparison laborers during the
period of discrimination.

The Magistrate issued "Findings,

117a

Conclusions and Recommendations on Back
Pay" on July 27, 1981, which contained
his final recommendations with respect
to relief other than attorney's fees.
This report offered resolutions to the
remaining remedy issues and proposed
specific monetary awards for those class
members who were found to be victims of
Local 3's discriminatory referral policy.

On October 23, 1981, the Magi-
strate issued a "Report Containing Find-
ings and Recommendations Re Plaintiffs’
Fee Application." On November 10, 1981,
the Magistrate filed two final Orders,
one recommending a specific amount for
attorneys' fees, and the other denying
the defendant's motion to reopen the
record.

All objections to Magistrate
Sinclair's findings and recommendations
have been deferred until the conclusion
of the proceedings before the Magistrate.

Both the plaintiffs and the defendant

118a

have now submitted such objections pur-
suant to 28 U.S.C. § 636(b) and the
United States District Court for the
Southern District of New York Rules for
Proceeding Before Magistrates, Rule 7.
Before discussing these excep-
tions to the Magistrate's reports, we
address the question whether the legal
standard for a finding of § 1981 liability
has changed since the Court found Local 3
liable under that statute in 1979. The
Court will next consider defendant's
motion to reopen the record in this action.
Legal developments since the time
this Court issued its Opinion of October 3,
1979 require a further elaboration of the
finding of liability under § 1981.
Currently pending before the Supreme
Court of the United States is a case which
squarely poses the heretofore unsettled
question of whether the establishment of

a prima facie case of a § 1981 violation

119a

requires a showing of the defendant's

intent to discriminate. See Guardians

Ass'n of New York City v. Civil Service

Commission of the City of New York, cert.

granted 50 U.S.L.W. 3547 (January ll,
1982). Most of the courts which have
recently addressed this issue, including
the Court of Appeals for the Second
Circuit, have concluded that a § 1981
plaintiff must prove purposeful dis-

criminatory intent. See, e.g., Guardians

Ass'n of New York City v. Civil Service

Commission of the City of New York, 633

F.2d 232 (2d Cir. 1980), cert. granted

50 U.S.L.W. 3547 (January 11, 1982);

Crawford v. Western Electric Co., Inc.,

614 F.2d 1300, 1309 (5th Cir. 1980);
Mescall v. Burrus, 603 F.2d 1266 (7th

Cir. 1979); Des Vergnes v. Seekonk Water

District, 601 F.2d 9, 15-16 (lst Cir.

1979). The Court of Appeals for the

Second Circuit concluded that "[o]bjectively

120a

viewed, the language, structure and
history of § 1981 all point to the con-
clusion that the statute was simply

intended to prohibit purposeful racial

discrimination in a wide variety of
circumstances, including but not limited

to employment discrimination.” Guardians

Ass'n, supra, at 267 (emphasis added).

As was indicated in this Court's
original liability Opinion, plaintiffs have
met their burden of proof even under the
heightened standard requiring a showing of
discriminatory motive. Ingram, 482 F.Supp.
414, 425 (S.D.N.Y. 1979). The statistical
disparity between the percentage of black
and Hispanic referrals and the percentage
of these groups in the labor market sur-
rounding the Garden, the standardless
referral "system" employed by Local 3,
the dependence on word of mouth recruit-
ment, and the statements and demeanor of

those who testified at trial, all convince

l2la

the Court that the evidence is sufficient
to establish a § 1981 violation based on
a standard of discriminatory intent. For
these reasons and because of the already
protracted nature of these proceedings,
we do not defer this decision because of

the pendency of the Guardians appeal.

We consider next the defendant's
motion to reopen the record in this ac-
tion in order to put into evidence an affi-
davit concerning Local 3 referrals, a
document labelled "Hiring List plaintiff
Class as of February 18, 1981, positive
responses," and a letter from Garden
counsel dated August 13, 1981. The Court,
after hearing oral argument on the matter,
is entirely in accord with Magistrate
Sinclair's statements in his Order of
November 10, 1981. No acceptable reason
has been advanced by the defendant as to
why these documents, which have either

themselves been long available br which

122a

contain information which has long been
available, could not have been the sub-
ject of a timely offer of proof. The
defendant claims that some of the proferred
evidence relates to its argument that the
plaintiffs' § 1981 case is time barred
since the Court of Appeals for the Second
Circuit may, in light of developing case
law, reconsider its holdings as to the
statute of limitations applicable to civil
rights actions, and find that it is one
year instead of three years. Aside from
the purely speculative nature of defen-
dant's assertion, such evidence is irrel-
evant in the context of this action. The
Giscriminatory referral policy, which is
the basis of defendant's liability, was
continuously adhered to during all times
relevant to the defendant's argument and
was not a single, isolated act as to which
even a one year statute of limitations
might be a bar. See Ingram, 482 F.Supp.
414, 423 (S.D.N.Y¥. 1979).

l23a

In light of the foregoing dis-
cussion, the Court sees no reason to
reopen the record in this already pro-
tracted litigation. The defendant's
motion is therefore denied.

EXCEPTIONS TO THE MAGISTRATE'S REPORTS

The plaintiffs have made seven
specific objections to Magistrate Sinclair's
recommendations. Defendant has objected
to virtually every one of the Magistrate's
numerous adverse findings and has imposed
upon the Court the burden of considering
many misleading characterizations of the
record as well as numerous patently ab-
surd and frivolous arguments.

The Court, after de novo review
of the evidence as to all matters as to
which objections were made, approves all
of the Magistrate's findings and recommen-
dations except in the two instances speci-
fically discussed below. This Court is

of the opinion that the Magistrate's

l24a

findings and recommendations have been
based on an extremely thoughtful analysis
of the issues presented, and a thorough
and painstaking consideration of the
evidence in the case. We discuss herein
only those objections with respect to
which further comment by the Court is
deemed appropriate.

Defendant's first objection is
that the proceedings before the Magistrate
established the spuriousness of plaintiffs'
class action. See Defendant Union's
Exceptions to Magistrate Sinclair's Find-
ings and Supporting Brief at 5-9 (here-
inafter "Defendant's Objections"). With-
out reciting each of Local 3's character-
izations of the evidence, suffice it to
say that the Court adheres to its prior
findings as to the validity of plain-
tiffs' proceeding in the form of class
actions, as to Local 3's liability, and

as to the reasonableness of a cleaner's

125a

belief that it would be futile for a class
member to seek a laborer referral from
Local 3. The Court merely notes that a
particular plaintiff's post-trial decision
as to whether or not to become a laborer
is in no way dispositive of that indivi-
dual’s desires at an earlier time.

The Court rejects the defendant's
contention that it "should not be burdened
with a rebuttable presumption of dis-
crimination with respect to each claimant."
Defendant's Objections at 15. Local 3's
attempts to draw a distinction between the
burdens that should be imposed upon a
discriminatory employer and a discrimina-
tory union are unconvincing. Once Local 3's
liability has been found, it is in the posi-
tion of a proved wrongdoer. The same fac-
tors which would militate in favor of a
rebuttable presumption against such an
employer -- e.g., probability that decisions

were made pursuant to the overall dis-

126a

criminatory pattern and superior access
to proof -- are equally applicable where
it is found that a union has discriminated.

Se€e Teamsters v. United States, 431 U.S.

324, 359 n. 45 (1977) (hereinafter

"Teamsters").

The defendant argues that "the
Claimants being nonapplicants were not
entitled to Retroactive Seniority."
Defendant's Objections at 19. The defen-
dant relies primarily on language from

Teamsters, supra, regarding the burdens

On a nonapplicant seeking relief, and
partially on cases construing § 703(h)
of Title VII.

The defendant's resort to § 703(h)
is misplaced, since that provision only
immunizes certain seniority systems from
the category of "unlawful employment
practice(s)," and does not prevent the
award of retroactive seniority as a

remedial measure for other discriminatory

127a

practices. As the Supreme Court has
stated: "There is no indication in the
legislative materials that § 703(h) was
intended to modify or restrict otherwise
appropriate relief once an illegal dis-
criminatory practice occurring after the
effective date of the Act is proved."

Franks v. Bowman Transportation Co., 424

U.S. 747, 757-62 (1976). In the case at
bar, plaintiffs did not assert that the
laborer seniority system in and of itself
violated Title VII, but rather, plain-
tiffs seek retroactive seniority as a
means of making persons whole for in-
juries they suffered.

As the defendant acknowledges, the
Supreme Court explicitly stated in

Teamsters:

"We now decide that an incumbent
employee's failure to apply for a
job is not an inexorable bar to an
award of retroactive seniority.
Individual nonapplicants must be
given an opportunity to undertake
their difficult task of proving

128a

that they should be treated as
applicants and therefore are
presumptively entitled to relief
accordingly.”

Teamsters, supra, at 365-66. Local 3

asserts that the nonapplicants have not

met the difficult standard of showing that
they were actual victims of the discrimina-
tory referral practices, and that the award
of retroactive seniority for the plaintiffs
was "lightly recommended” by the Magistrate.
Defendant's Objections at 25. The Court
strongly disagrees with defendant's con-
tentions. The extensive record fully
supports the Magistrate's fact findings
that, with one exception, each of the non-
applicants, for whom an award is recom-
mended, desired a laborer's job, possessed
the requisite qualifications, and would
have sought a referral but for the union's
discriminatory practices. These nonappli-
cants are therefore entitled to an award

of retroactive seniority.

129a

The defendant asserts that Local 3
may only be liable in damages if its member-
ship participated in, authorized, or
ratified the actions giving rise to lia-
bility. In support of this argument, defen-
dant cites cases involving either New York
law or federal law regarding the award of
punitive damages. See Defendant's Ob-
jections at 9-ll, and cases cited therein.
The irrelevance of these situations to the
issues presently before the Court need
not be belabored here. The Court sees no
reason to change its view that, as a gen-
eral matter, unions may be subject to

backpay awards. See Ingram, 482 F.Supp.

918, 925 (S.D.N.¥. 1979).

Without directly responding to
each of the defendant's objections to
the Magistrate's general procedure for
determining damages, this Court notes

that it wholly endorses the Magistrate's

130a

methodology. As the plaintiff correctly
contends: "The Magistrate's method was
fair and was designed to reconstruct, as
nearly as possible, the probable work
history of each claimant absent discrimina-
tion." Plaintiffs' Memorandum in Reply

to Defendant's Exceptions and in Opposi-
tion to Defendant's Motion at 17 (here-
inafer "Plaintiffs' Reply"). Magistrate
Sinclair's choice of laborers with whom

to compare the plaintiffs for backpay
purposes, his creation of Groups I through
V, according to seniority, his assignment
of particular plaintiffs into particular
Groups, and the manner in which he reduced
the award for those plaintiffs who did

not use reasonable diligence in mitigating
damages, were carried out in a just, sen-
sible, and entirely correct manner.

Local 3's exceptions amount to no more
than an assertion that if the Magistrate
had been pursuing different goals, had

l3la

been presented with different facts, or
had made less rational classifications
or decisions, the union might have been
assessed a lesser amount for backpay
awards.

Local 3 posits several argu-
ments in support of its contention that
no backpay should be awarded against the
union. First, the union asserts that
this Court's pretrial approval of a back-
pay settlement made by plaintiffs and the
other defendants indicates that plain-
tiffs have received total fair recompense
for their injuries and should not be
permitted to recover additional sums
from Local 3. The Court is still of the
Opinion that the settlement provided the
plaintiffs with a fair recovery from the

settling defendants at a time before any

determination as to liability. The evi-
dence adduced at trial and during the
damages phase of the case firmly established

132a

Local 3's liability, and further demon-
strated that the plaintiffs' total actual
damages were far in excess of the amount
which they recovered from the other
defendants in the Consent Decree settle-
ment. It is obvious that plaintiffs
have not been fully recompensed, and the
Court therefore finds this argument
without merit. 2/
The union further argues that
it should not be responsible for any
backpay awards becausie Local 3 had no
duty to represent the plaintiffs. This
contention may be rejected summarily.
Even though Local 3 did not have a duty
as the exclusive representative of the
plaintiffs, it is quite clear that, having
assumed the role of the employment re-
ferral agency for the Garden, it had a
duty to refer individuals for the posi-
tion of laborer in a fair manner which

aid not discriminate on the basis of race

133a

Or national origin. It is this duty
which the union breached and which caused
substantial harm to the plaintiffs.
Local 3 argues that "[iJf a
backpay assessment were paid by the
Garden's sixty laborers...they would
patently be bankrupt. If an assessment
were levied against the Union membership
at large, responsibility would thereby
be imposed upon people who had no know-
lege of the discriminatory acts, in-
cluding Blacks and Hispanics....”"
Defendant's Objections at 37. If the
defendant is contending that the amount
of damages assessable against the union
should be limited by the amount that the
sixty individual laborers could themselves
afford to pay, it cites no authority for
that suggestion. Lf the defendant is
arguing that only a local may be held
liable for union offenses with purely

local effects, it likewise cites no legal

l134a

authority for that proposition. The
Court rejects both of these arguments.
Plaintiffs' rights to damages sustained
by virtue of defendant's discrimination
is not limited to any amount by which the
defendant or its members may be said to
have benefitted. It is not because it
has unjustly enriched, but because of
the extent of the damage it has inflicted,
that the award has been recommended.
Defendant's objection that members of
other locals of the union will suffer
because of the misdeeds of a single
local is an objection which relates to
the internal management and.leadership
of the defendant, but plaintiffs' right
of recovery should not be diminished
because of such concerns.

The defendant further cites

several pre-Teamsters cases for the

proposition that the applicable law of

this Circuit does not permit the award

135a

of backpay to nonapplicants. Defen-
dant's Objections at 31-33. This argu-
ment was explicitly discussed and re-
jected in this Court's remedy Opinion
and need not be recounted here. Ingram,
482 F.Supp. 918, 925-26 & n. 15 (S.D.N.Y.
1979). In fact, since the time of that
Qpinion, the Court of Appeals for the
Second Circuit has clearly stated that
it does not view the precedent in this
Circuit as a bar to an award of backpay
damages to nonapplicants who have proved

that they are actual victims. See Grant

v. Bethlehem Steel Corp., 635 F.2d 1007,

1020 n.3 (2d Cir. 1980) cert. denied,

101 S.Ct. 3083 (1981). Local 3 completely

ignores this post-Teamsters statement.

The Court, taking into account
such considerations as the economic burden
to the defendant and the number of class
members as to whom a backpay award is now

relevant, exercises its discretion in

l36a

favor of awarding backpay to nonapplicant
victims in this case. Suffice it to say
that the Court adheres to its previously
stated view that "limiting the type of
relief available to a victim of discrim-
ination because he is a nonapplicant
would be inconsistent with the duty of
the courts to ‘secure justice' and pro-
vide a ‘make whole' remedy for such
victims." Ingram, 482 F.Supp. 918, 925

(S.D.N.¥. 1979), quoting Teamsters, supra,

at 364.

The defendant contends that there
was no clear proof of the futility of
applying for a laborer's job such as to
justify an award of backpay to non-
applicants. It further asserts that no
Class member proved a credible and con-
vincing unexpressed desire to work as a
laborer.

The Court sees no reason to

change its prior post-trial finding that

137a 7 ai

the atmosphere at the Garden was such
that class members could reasonably
have believed in the futility of seeking

referral from Local 3. See Ingram, 482

F.Supp. 918, 923 (S.D.N.¥. 1979); Ingram,
482 F.Supp. 414, 421 (S.D.N.Y. 1979).
It should be noted that this finding was
specifically endorsed by Magistrate
Sinclair who stated that "defenda:s
offered no proof displacing the ines-
capable’ finding which underlies Judge
Sand's decisions and which I find to be
sustained in all the testimony before me,
that the futility of taking steps to seek
a laborer's position was real, apparent
and well known to the claimants."
Magistrate's Findings of Fact at 3-4
(November 21, 1980).

The Court likewise rejects
Local 3's second argument which is based
solely on its general assertion that the

Claimaint's testimony was incredible.

138a

Magistrate Sinclair's painstaking
analysis of the evidence applicable

to each Pperyer yey claimant was exemplary.
It is apparent from the Magistrate's
findings and the record that he used an
exacting standard before finding that a
particular nonapplicant had a desire to
be a laborer which remained unexpressed
because of futility. The care with which
the Magistrate considered all matters
before him, including issues of individual
credibility, is supported by the fact
that he ultimately recommended a backpay
award for only nineteen members of the
plaintiff classes. The Court finds that
there is ample evidence to support the
conclusion that all but one of these
class members did indeed hold a desire

to become a laborer which remained un-
expressed because of the futility of
seeking a Local 3 referral.

The defendant argues that since

139a

the laborer's job is more strenuous

than the cleaner's job, backpay awards
should not be based on a laborer's
salary. In support of this argument,

the union points to sex discrimination
cases which have attempted to harmonize
Title VII with the Equal Pay Act, 29
U.S.C. § 206(d), a statute specifically
designed to guarantee equal pay for equal
work regardless of sex. See Defendant's
Objections at 47-52. The defendant
contends that since Equal Pay Act con-
cepts have found their way into the equal
pay sex discrimination cases brought
under Title VII, such concepts should be
incorporated into other types of Title
VII actions. The Court rejects this
argument. Defendant acknowledges that
the cases on which it relies have been
concerned specifically with the policy
that Title VII doctrine not conflict with
Equal Pay Act doctrine, thereby pre-
venting a unified body of law from

140a

emerging in sex discrimination cases
alleging unequal pay for equal work.
This rationale is inapplicable to the
present case, since neither the Equal
Pay Act in particular, nor sex dis-
crimination in general, is implicated.
Local 3 has failed to provide the Court
with any convincing reason for trans-
planting concepts which developed in the
context of a particular type of employ-
ment discrimination and a particular
sex discrimination statute to a case
involving discriminatory referral
practices based on race or national
origin.

Local 3 states that early in
1977, the union had done all it legally
could do to abate damages, and that it
should therefore not be required to
make any backpay award for post-1976

earnings. Even accepting arguendo

defendant's representation as to its

l4la

abatement of damages, this argument is
insufficient in the context of this case.
The plaintiffs seek backpay awards to
compensate them for the injury they
suffered as a result of the defendant's
discriminatory referral practices, and
the defendant is liable for the effects
of such practices through the time
that the discrimination is actually
remedied. In this case, the date of
remedy would occur when the class member
under consideration becomes a laborer.
Local 3's abatement of damages is
relevant only to the extent that there
was an actual reduction in plaintiffs'
compensable injuries. Local 3 hag not
contended that any action resulted in
such a reduction.

The union asserts that all of
the cleaners failed to mitigate damages
by seeking a laborer's position inside

or outside the Garden. Since feelings

142a

of futility justified the victims’
failure to apply for Garden laborer
jobs, it is obviously absurd for the
defendant to argue, as it does, that
these claimants should nevertheless be
required to make this futile application
for mitigation purposes.

As to the duty of plaintiffs to
seek laborer's jobs outside the Garden,
this Court fully endorses Magistrate's
Sinclair's reasoning. See Magistrate's
Findings, Conclusions and Recommenda-
tions on Back Pay at 11-12 (July 27, 1981).
The defendant has itself acknowledged
that "[aJll the court decisions...held
that persons holding full time jobs were
not required to do anything more to
mitigate damages." Magistrate's Find-
ings, Conclusions, and Recommendations
on Back Pay at ll (July 27, 1981),
guoting Memorandum in Support of
Defendant's Contention that the Porters

Had a Duty to Mitigate Damages at l.

143a

And, as the Magistrate has explained:
"The course urged by defendants
would permit effective subversion
of statutory purposes: employers
could deny an individual a higher
paying job and offer that individual
the Hobson's choice of retaining his
present job and forswearing back pay
relief or leaving his present job
for a job which, although perhaps
nominally better paying, might
require the sacrifice of convenience,
security or seniority."

Magistrate's Findings, Conclusions and

Recommendations on Back Pay at 12 (July 27,

1981). In any event, case law in this

Circuit has held that "[t]Jo sustain its

burden of establishing such deductions

[from a backpay award], the defendant

must show not only that the plaintiff

failed to exercise due diligence in
seeking employment, but also that had
she been diligent, she might have found
employment and had some earnings."

EEOC v. Kallir, Phillips, Ross, Inc.,

420 F.Supp. 919, 926 (S.D.N.Y. 1976) ’
aff'd 559 F.2d 1203 (2d Cir.) ,cert.
denied, 434 U.S. 920 (1977). Local 3

144a

has failed to meet this burden.

Defendant further argues that many
claimants worked less than they should have,
reflecting a lack of reasonable diligence.
Local 3 has wholly failed to prove this
assertion, and apparently has foregone
its opportunity during the development
of the record to inquire into such
matters as voluntary absences from work.
Thus, the Court finds no merit in any of
the defendant's objections relating to a
failure to mitigate damages.

According to the defendant, the
disciplinary records of some of the
claimants would have prevented them
from being hired as laborers even absent
any discriminatory practices. This
Court agrees with Magistrate Sinclair's
conclusion that such records are irrelevant
since, during the time period in question,
the Garden never reviewed the prior work

records of any laborer referrals. See

145a

Hearings Before the Magistrate at 869
(April 16, 1980) (Testimony of

Mr. Donopria). Such records would
therefore not have been the basis for
a decision not to hire particular
claimants, all of whom were continued
in their employment at the Garden sub-
sequent to the alleged infractions.

In addition to its many other
exceptions, the defendant objects to the
recommended award for each and every
plaintiff for whom the Magistrate pro-
posed relief. For the most part, the
defendant attempts to show that the
Magistrate's findings as to the credi-
bility of these plaintiffs should be
reversed.

The Court will not engage in a
protracted recounting of the case in
favor of an award for each of those
plaintiffs for whom the Magistrate made

a favorable recommendation. Instead, the

146a

Court notes its support for the careful
and conscientious manner in which the
Magistrate made individual findings based
on the record before him, the memoranda
submitted by the parties, and most
importantly, his judicious evaluations

of credibility. As the plaintiffs have
correctly noted, the Magistrate generally
resolved instances of ambiguity or doubt
against the claimant and, with the one
exceptic noted below, he only recommended
awards when the record fully supported such
recommendations. See Plaintiffs’ Reply

at 25-26 and citations therein. It should
particularly be observed that the Magis-
trate was in no way reluctant to discredit
the evidence presented by a claimant when
the circumstances so warranted. See
Magistrate's Findings of Fact, at

qq 5, 18, 21, 24, 79, 81, 95, 107, 137,
139 (November 21, 1980). The Court

therefore expresses its approval of the

147a

Magistrate's individual award recommenda-
tions and enters into a discussion only of
the findings with respect to the claimant
Herbert Bruton. The Magistrate reviewed
Bruton's claim solely on the basis of

his pretrial deposition. See Magistrate's
Findings of Fact at ¥ 152 (November 21,
1980). The Magistrate's finding was not,
therefore, based upon a finding of credi-
bility affected by the demeanor of a live
witness. The Magistrate found that Bruton
is an actual victim because he “showed
that he would have applied for a referral
to the Garden for work as a laborer had it
not been for Local 3's discriminatory
practices by testifying that he wanted

the job but didn't apply because Shelly
Anderson and J. Perry had tried to get

the job and had been unsuccessful."
Magistrate's Findings of Fact at q¥ 154
(November 21, 1980). The Magistrate

further found that "Bruton's desire date

148a

is 1946 because he testified that he wanted
the laborer job when he started at the
Garden." Id. at 4 155. On the basis of
these conclusions, Bruton was assigned

a seniority date of October 24, 1965.

The Court cannot agree with this
assessment of the record, and determines
that Herbert Bruton is not an actual
victim of the defendant's discriminatory
policies. Despite Bruton's single state-
ment that he wanted the laborer job when he
started at the Garden, he never applied
for a laborer's job or told anybody that
he was interested in it, allegedly be-
cause of his conversation with Anderson.
After questioning as to Bruton's inter-
est in various positions at the Garden,
Bruton virtually admitted that he was not
a victim:

"Q: The fact is that for many

years before you spoke with
Anderson and in fact from
the time you started work-
ing at the Garden, you
really had no interest in

becoming a laborer, isn't
that true?

149a

A. No, I didn't."

Danoeition of Herbert Bruton at 20-21
(January 17,1979).

The Court agrees with the
Magistrate's finding that "[a] ‘couple
of years' before he retired (i.e., as
of 1973), Bruton was no longer inter-
ested in getting the job because he was
on his way out.” Magistrate's Findings
of Fact at ¥ 153 (November 21, 1980),
citing Deposition of Herbert Bruton at
15-16 (January 17, 1979). But this
alleged loss of interest occurred at
virtually the same time that Bruton had
the conversation with Anderson which pro-
vided the basis for the Magistrate's
finding that Bruton was a victim. Thus,
even assuming arguendo that Bruton did
at some point desire employment as a
laborer, he renounced such interest at
the very time that he would have become
justified in failing to apply for the

position because of futility.

150a

The Court therefore is not
persuaded that Bruton would have applied
for a referral for work as a laborer had
it not been for Local 3's discriminatory
practices, and is further not satisfied
that Bruton ever harbored a desire for
that work. The Court finds that Bruton
is not a victim and that he is therefore
not entitled to any award.

We turn now to a discussion of
some of the plaintiffs' objections to
Magistrate Sinclair's reports and
recommendations.

This Court has previously ordered
Local 3 to submit a plan for the establish-
ment of referral lists and copies of pro-
posed notices to be posted in the Garden,
as well as to set forth procedures for the
referral of class members by Local 3. See
Ingram 482 F.Supp. 918, 927-28 (S.D.N.Y.
1979). It is undisputed that, since that
time, Local 3 has ceased to play any role

in the hiring of laborers at the Garden.

15la

Consequently, the Court agrees with the
Magistrate's conclusion that these ele-
ments of prospective relief should be
deemed mooted. See Magistrate's Interim
Order on Monetary Relief at 18
(December 8, 1980). The plaintiffs'
request that an Order issue limiting any
future role of Local 3 in laborer hiring
and referral is therefore rejected. 2/

Plaintiffs except to the Magis-
trate's determination that claimants
Mahadeo, an Indian, and Ibrahim, an
Egyptian, are not class members. The
Court completely endorses the Magis-
trate's conclusion and reasoning on this
issue as they are persuasively and compre-
hensively set forth in Magistrate's
Findings of Fact at 4-10 (November 21,
1980).

On July 27, 1981, Magistrate
Sinclair withdrew his earlier findings

that Group V claimants -- those who

152a

applied for or desired a laborer's posi-
tion during 1978-1980 -- were victims

of the defendant's discriminatory
practices. See Magistrate's Findings,
Conclusions and Recommendations on

Back Pay at 4-9 (July 27, 1981). The
Magistrate reasoned that the actual
referral of laborers that was done during
this period was not necessarily the result
of the discriminatory policy found at
trial.

The plaintiffs object to this
reasoning with respect to two of the
claimants, Luis Jaiman and Eloise Moore,
and the Court finds these objections to
be valid ones. These two claimants were
assigned recommended seniority dates of
October ll, 1978, based on the hire date
of Group IV laborer Benigno Rivera. See
Magistrate's Findings of Fact at qq 73,
93 (November 21, 1980). The evidence
presented at the trial, on August 27-30,

contained up-to-date information 4s to

153a

statistics and referral policy, and
Rivera's hire was included in the data
upon which the finding of liability was

largely premised. See Ingram,482 F.Supp.

414, 424 and n. 24 (S.D.N.Y. 1979). The
Court found that the defendant's dis-
criminatory policy was in effect and
continuously adhered to up through the
time of the trial -- a date subsequent
to the time of Rivera's hire and Jaiman's
and Moore's desire dates. See id. at 423.
The fact that Rivera is Hispanic
means neither that Jaiman and Moore were
not really victims, nor that the union had
ended its discriminatory policies. Rather,
as this Court found at trial, the defen-

dant, as part of its discriminatory

policy, occasionally hired blacks or
Hispanics, ‘albeit in numbers significantly
below their percentage in the labor market
surrounding the Garden. The Magistrate has
stated that, in any event, the 1978 referral

154a

"would have been the rightful place of
one of the four victims who sought or
desired the laborer's position in late
1976, and not the rightful place of a
claimant who desired a laborer's job
in 1978." Magistrate's Findings, Con-
clusions and Recommendations on Back
Pay at 7 n. 2 (July 27, 1981). See also
Magistrate's Interim Order on Monetary
Relief, at 13 n. 12 (December 8, 1980).
However, if Jaiman and Moore are added
to the list of Group IV victims, the total
of such claimants is raised to six, a
number exactly equal to the number of
Group IV comparison laborer referrals
made during the period 1976-1978. The
Court is not persuaded that Jaiman and
Moore could not, as a matter or rightful
place relief, have filled the position
for which Rivera was referred.

The plaintiffs concede that the
recovery for these two claimants may

155a

appropriately be set at zero, for they
state: "In view of the fact that no
Group IV claimant's recommended awarded
[sic] included any backpay, no new
computation need be done if Moore and
Jaiman are included in the victim
group." Plaintiffs' Objections Pur-
suant to 28 U.S.C. § 636(b) and Southern
District of New York Rules for Proceed-
ings Before the Magistrates, Rule 7

at 15 (hereinafter "Plaintiffs Objec-
tions").

For the reasons stated above,
the Court finds that Jaiman and Moore
were actual victims of defendant's
discriminatory policies, that their
seniority date is October ll, 1978,
and that they are entitled to no backpay.

Plaintiffs also object to the
Magistrate's recommendation regarding
the computation of claimants’ lost
annuity benefits. Plaintiffs seek
annuity payments for certain claimants

156a

in amounts equal to the average annuity
entitlement of the corresponding laborers'
control group -- a proposal which would
make the union liable for amounts the
Garden should have paid prior to the
statute of limitations dates and seniority
dates. They argue that annuity entitle-
ment should be calculated according to
when cash sums under the plan are payable
to annuitants, rather than when the
contributions are made to the fund.
Plaintiffs' Objections at 20-24.

The Magistrate has discussed
this issue thoroughly and persuasively,
see Magistrate's Findings, Conclusions
and Recommendations on Back Pay at 19-22
(July 27, 1981), and the Court completely
adopts the reasoning which led him to
conclude that "(t]he weight of logic
and authority clearly favors defendant's
position.” Id. at 2l.

157a

The measuring period for
plaintiffs' recpvery in this case
runs until the date when a particular
victim is hired as a laborer. Many of
the claimants who have been adjudicated
victims of discrimination in this ac-
tion have not yet attained their right-
ful place as laborers at the Garden.
Since these plaintiffs' future lost
earnings are speculative and their lost
pension benefits are ascertainable only
at retirement, the Court will assume
continuing jurisdiction over this case
in order to evaluate these damages. Such
"front pay,” as recommended by Magistrate
Sinclair, will be computed according to
the same method that has been applied in
calculating backpay. See Magistrate's
Interim Order on Monetary Relief at 17
(December 8, 1980). ;

The Magistrate recommended a
total backpay award of $749,317. Sub-
tracting Herbert Bruton's suggested

158a

recovery from this amount, this Court
finds that the victim claimants were
monetarily damaged to the extent of
$729,912. These class members have
already been compensated $117,500 by

a+ virtue of the Consent Decree entered
into between the plaintiffs and the
defendants other than the union, and
Local 3 will not be held accountable
for that sum. The union has not argued
that it is unable to pay the remaining
amount of monetary damages, nor has it
presented any persuasive reasons for which
it should not be liable for that total.4/
The Court finds, therefore, that Local 3
is liable to the plaintiffs for a back-
pay award of $610,412.

COUNSEL FEES

By order dated November 10,
1981, Magistrate Sinclair recommended
that counsel for plaintiffs be awarded
” $233,445.06, of which $175,665.21 consists

159a

of fees based on a lodestar figure
(reasonable hours expended multiplied
by the reasonable hourly rate) ;2/
$14,690.80 reimbursement for expenses;
$27,973.04 as a multiplier augmentation,
and $15,116.01 representing interest

at 6%.

In calculating this award, the
Magistrate recommended that the fee be
based on one-third of the time spent prior
to August ll, 1979 (when settlement was
reached with the co-defendants) and all
of the attorneys' time spent between
August 11, 1979 and December 13, 1979,
augmented by a multiplier of 25%. On this
latter date, liability of the defendant
was fixed and therefore, the Magistrate
reasoned, the time expended was not sub-
ject to the risks and contingencies for
which a multiplier compensates. Plain-
tiffs' counsel makes no objection to the

fee award.

160a

We believe that the Magistrate's
recommendation reflects a sound and
thorough consideration of the issues
presented and we have little to add to
his perceptive analysis. For the reasons
he has stated, neither the not-for-profit
character of the defendant, nor an ability
to pay factor, warrants an adjustment of
the fee award on the basis of the record
here. See Magistrate's Fee Report at 21
(October 23, 1981).

We find fully justified the Magistrate's
observation that "instead of raising
these issues at the hearing, defendant
spent its time in a vexatious, time-
wasting attack on plaintiffs' counsel
and in an unfruitful, nitpicking
excursion through innocuous details and
markings in plaintiffs' counsel's time
logs and records.” Magistrate's Fee

Report at 21-22 (October 23, 1981).

l6la

Defendant's objections to the
fee recommended by the Magistrate are
equally meritless.

Except as modified herein, the
Magistrate's reports are adopted.

SO ORDERED.

Dated: New York, New York
March 23, 1982

162a

FOOTNOTES

The many Opinions filed in this case will
be cited simply as "Ingram," followed by
reference to reporter volume and page number.
Where appropriate, Opinions will be referred to
simply by date of filing.

It is a frequent occurrence, especially
in class action litigation, that settling
defendants pay less in damages than those who
pursue to the bitter end cases such as this one,
in which liability is clearly established. The
very concept of compromise and settlement
embodies the notion of a reduction from the
amount plaintiffs otherwise hope to recover.
The relationship between the award recommended
by the Magistrate and the amount of the settle-
ment in this case is not surprising.

This Court will, in any event, be
retaining jurisdiction over this proceeding
(e.g., with respect to front pay damages). Our
ruling is without prejudice to a renewed applica-
tion to this Court in the event that Local 3
should resume exercising a role in the hiring
of Garden laborers.

See, p. 13,supra. This question was
specifically reserved by the Court in its
remedy Opinion. See Ingram, 482 F.Supp. 918,
927 (S.D.N.¥. 1979).

This is computed at $100 per hour for
Mr. Tesser and $60 per hour for his assistant,
Ms. Altman, except that time spent in preparing
exhibits is to be compensated at the rate of $50
per hour. See Magistrate's Report Containing
Findings and Recommendations Re Plaintiffs'
Fee Application at 10, 18 (October 23, 1961)
(hereinafter "Fee Report").

163a

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

HENRY INGRAM, JAMES BRITT,
WILLIAM MOODY and ROY T. FLOYD,
individually and on behalf of
all persons similarly

situated,

Plaintiffs, , 76 Civ.
* 5870
-against- , (RIW)
MADISON SQUARE GARDEN CENTER,
INC., MADISON SQUARE GARDEN
CORPORATION, ALLIED
MAINTENANCE CORPORATION,
ALLIED PUBLIC EVENTS SERVICE

CORPORATION, and LOCAL #3,
I.B.E.W. ,

Defendants.

Plaintiffs Henry Ingram, James
Britt, William Moody and Roy T. Floyd move
for class action certification pursuant
to Rule 23, Fed. R. Civ. P. For the
reasons set forth below, the motion is
granted and, subject to the condition
stated in nee ‘I(A) (3), infra, the follow-
ing classes are certified:

(1) a Title VII class consisting
of:

(2)

164a

all black persons who, since
November 21, 1972, have been
employed, or who will in the
future be employed, as clean-
ers, bathroom or bowling alley
attendants, or elevator opera-
tors for Madison Square Garden
Center, Inc., Allied Main-
tenance Corporation or Allied
Public Events Service Corpora-
tion at Madison Square Garden,
or who receive pensions based
on their employment as cleaners,
bathroom or bowling alley
attendants or elevator opera-
tors for Madison Square Garden
Center, Inc., Allied Main-
tenance Corporation or Allied
Public Events Service Corpora-
tion at Madison Square Garden
or who have unsuccessfully
applied for positions or will
in the future apply for posi-
tions as laborer-utilitymen at
Madison Square Garden.

A §§ 1981 and 1985 class con-
sisting of:

all black and Hispanic per-
sons who, since December 30,
1973, have been employed, or
will in the future be em-
ployed as cleaners, bathroom
or bowling alley attendants,
or elevator operators for
Madison Square Garden Center,
Inc., Allied Maintenance
Corporation or Allied Public
Events Service Corporation at

165a

Madison Square Garden, or

who receive pensions based on
their employment as cleaners,
bathroom or bowling alley
attendants or elevator opera-
tors for Madison Square Garden
Center, Inc., Allied Mainten-
ance Corporation or Allied
Public Events Service Corpora-
tion at Madison Square Garden
or who have unsuccessfully
applied for positions or will
in the future apply for posi-
tions as laborer-utilitymen

at Madison Square Garden.

The named plaintiffs in this ac-
tion are persons presently or formerly2/
employed as cleaners at Madison Square
Garden ("the Garden"). They allege that
defendants Madison Square Garden Center,
Inc. ("Center"), Madison Square Garden
Corporation ("the Garden Corporation"),
Allied Maintenance Corporation ("Allied
Maintenance"), Allied Public Events
Service Corporation ("Allied Public
Events"), and Local #3, I.B.E.W. ("Local
3") have engaged and continue to engage
in a pattern or practice of discrimina-

tion against them in hiring, work assign-

166a

ments, wages and other benefits because

of their race or national origin in viola-
tion of Title VII of the Civil Rights Act
of 1964, 42 U.S.C. §2000 et seq., and the
Civil Rights Acts of 1861 and 1866, 42
U.S.C. §§ 1981 and 1985(2)(3). They seek
injunctive and declaratory relief and
damages.

Plaintiffs originally sought
certification of a class consisting of
"all non-white laborers and employees of
comparable designation who work, have
worked, or have sought to work directly
or indirectly for Madison Square Garden
Center, Inc." Local 3 objected to the
maintenance of this suit as a class ac-
tion, claiming that none of the require-
ments of Rule 23 were satisfied. 2/ Center
and Allied Maintenance did not object to
the certification of an appropriate class,

but believed that plaintiffs' proposed class

167a

definition was too broad because all named
plaintiffs were employed as "porters," a
type of cleaner, and thus plaintiffs could
not adequately represent the interests of
bathroom and bowling alley attendants,
elevator operators or any other groups.
They also argued that plaintiffs' defini-
tion was deficient because it recognized
no statute of limitations.

The Court concurred in defen-
dants' belief that the proposed definition
was inadequate, and scheduled a conference
for May 18, 1978. After hearing argument,
the Court granted plaintiffs' oral motion
to amend the complaint so as (1) to limit
the groups of current, past and future
employees included in the proposed class
to cleaners, bathroom and bowling alley
attendants and elevator operators who
work at Madison Square Garden for Madison
Square Garden Center, Inc., Allied Main-

tenance Corporation or Allied Public Events

168a

Service Corporation; and (2) to allege
discrimination on the basis of national
origin, as well as race, and (3) to in-
Clude Hispanics in the class for pur-
poses of the non-Title VII claims. Plain-
tiffs' attorney also indicated his inten-
tion to move to add further named plain-
tiffs to the action who were or had been
employed as bathroom and bowling alley
attendants and elevator operators.
On June 2, 1978, plaintiffs
filed a fourth amended complaint charging
discrimination on the basis of national
Origin as well as race, and seeking to
represent a class consisting of
“past, present and future black
and Hispanic cleaners, bathroom
and bowling alley attendants and
elevator operators at Madison
Square Garden employed by Madison
Square Garden Center, Inc.,
Madison Square Garden Corpora-
tion, Allied Maintenance Corpora-
tion and/or Allied Public Events
Service Corporation and blacks
and Hispanics who have soug

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385011_0354%3A2. Public record. Not legal advice.
