# Petition for Writ of Certiorari — Holland v. First Virginia Banks, Inc.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 1992
- **Citation:** 502 U.S. 1086

## Text

Supreme Court, U.S,

6 FILED
91° 974 DEC 13 jg9)
DERGE OF THE CLERK
91- oa
In The :

SUPREME COURT OF THE UNITED STATES

October Term, 1991

ROBERT LEE HOLLAND,

Petitioner,
Vv.

FIRST VIRGINIA BANKS, INC.

and

DONALD BRENNAN,

Respondents.

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

FOR THE FOURTH CIRCUIT

PETITION FOR WRIT OF CERTIORARI

December 16,

1991

Victor M. Glasberg
Counsel of Record

Jeanne Goidberg

Victor M. Glasberg &
Associates

121 South Columbus Street

Alexandria, VA 22314

(703) 684-1100

Questions Presented

2. Should this Court remand this case
for reconsideration in light of the enactment
of the Civil Rights Act of 1991, which con-
firms petitioner's right to the jury verdict
he received for his claim under 42 U.S.C.
§1981 for discriminatory discharge from his
employment?

2 Have the courts of appeal system-
atically misapplied this Court's decision in

Patterson v. McLean Credit Union, 491 U.S. 164

(1989), to bar claims for racially discrimina-
tory discharge, thereby overruling settled law
on their own authority and injuring victims of
discriminatory discharges whose claims arose

between the time Patterson was decided and the

enactment of the Civil Rights Act of 1991?

Parties to the Proceeding

The names of all the parties appear in

the caption.

site

Table of Contents

Questions Presented ........... i
Parties to the Proceedings ....... ii
gg eg ES V
ee 1
ee 1
Statutory Provisions Involved ...... 2
Bememmens OF CTh@ Case . . 2. 2 6 6 tw ew et 3
Reasons for Granting the Writ ...... 9
Ze This Case Should Be Remanded

For Adjudication on the Basis

of the Governing Law........ 9

II. The Court Should Vindicate The
Rights of Victims of Racially
Discriminatory Discharges Injured
by the Systematic Misapplication
of this Court's Decision in
Patterson v. McLean Credit Union... 11

A. This Court Should Correct the
Misapplication of its Ruling
a 13

-1ii-

B. The Court Should Act to Preserve
the Integrity of Conventional
Rules of Statutory Construction
Nullified by the Proposition
that §1981 Did Not Prohibit
Discriminatory Discharge ...-.- 23

1. Rights Which Go To the
"Very Existence and Nature"
of a Right Expressly
Protected by Statute are
Also Protected .....-.+ + 24

2. Absent a Prohibition of
Discriminatory Breaches
of Contract, The Right to
"Enforce Contracts" is
Meaningless ....--+-+-+ + 27

Cc. Holding that §1981 Barred
Discriminatory Termination
of Employment Is Not Incon-

sistent with Patterson ..... 3l
Conclusion ...-+ +++ + e+ «© «© © © « 33
Appendix

Decision of the Court of Appeals .. .- Al
Opinion and Order of the District

Court .. +. « -«» a ee ee ee ee
Order Denying Reconsideration .....- Cl
Order Granting Extension of Time .. .- Dl

-~iv-

Table of Authorities

Cases:

Anderson v. Bessemer City,
S7w Use. BEG CAGROs « cs tw we wm te we we tel tl a

Blaauw v. Grand Trunk West. Ry. Co.,
eee Us. 20f Gapeer «© + wo ee te eh hhh Sl 11

Bradley v. Richmond School Bd.,
SiG U.8. GROG CeePel 2s st te tee et tt CU

Carroll v. Elliott Personnel Serv.,
52 Empl.Prac.Dec. (CCH) 939,508
at 60,288 (D.Md. 1989); ...... 15, 18

Courtney v. Canyon Television &
Appliance Rental, Inc.,
899 F.2d 845 (9th Cir. 1990) ..... 16

Gersman v. Group Health Ass'n, Inc.,
931 F.2d 1565 (D.C. Cir. 1991) se « « &6

Gonzalez v. Home Ins. Co.,
909 F.2G 716 (2@ Cir. 1990) ...+s..-s. i216

Hicks v. Brown Group, Inc.,
902 F.2d 630 (8th Cir. 1990),
vacated, 111 S. Ct. 1299 (1991) .. assim

Jett v. Dallas Indep. School Dist.,
Oa Ubi 708 Cee kc eee eke ee

LaCour v. Harris County,
No. 89-1532
(5.0. Text., Dec. 6, 1993) .« « « «+ «© we 0 « 8

Lavendar v. V & B Transmissions
& Auto Repair,
897 F.2d 805 (5th Cir. 1990) . bb) ee} 16

Lytle v. Household Mfg. Co.,
eee ©.8. S465 (1900) . 1 «6 © «© ww we we 692

McGinnis v. Ingram Equip. Corp.,
918 F.2d 1421 (11th Cir. 1990) 2 « is, is

McKnight v. General Motors Corp.,
908 F.2d 104 (7th Cir. 1990) s se & ss 16

Meritor Savings Bank v. Vinson,
See ee, OF TOROS 4 kl ks oles ss ee

Mojica v. Gannett Company, Inc.,
No. 90-C-3827
M.D. Ill. Nev. 27, 1992) . 2. 6 ss 3 9

New York v. Shore Realty Corp.,
759 F.2d 1032 (2d Cir. 1985) .* € ® «& 30

Padilla v. United Air Lines,
718 F.Supp. 485 (D. Colo. 1989) . . 15, 18

Patterson v. McLean Credit Union,
805 F.2d 1143 (4th Cir. 1986),
aff'd, 419 U.S. 164 (1989) . .« © + passim

Prather v. Dayton Power & Light Co.,
918 F.2d 1255 (6th Cir. 1990) ..... 16

Priaqgq v. Pennsylvania
41 U.S. (16 Pet.)
$39 (1642) . 2. we se we swe ves en s 28

ayia

Taggart v. Jefferson Co. Child Support
Enforcement Unit,
915 F.2d 396 (8th Cir. 1990), vacated,
935 F.2d 947 (8th Cir. 1991)
en fee a) be ek Se ey ae ee 16, 20

Thompkins v. DeKalb County Hosp. Auth.,
916 F.2d 600 (llth Cir. 1990) ..... 16

Trujillo v. Grand Junction Regional Center,
928 F.2d 973 (10th Cir. 1991) ..... 16

Van Meter v. Barr,
No. 91-0027-GAG

(D.D.C., argued Dec. 9, Beware es ee ete
Williams v. First Union Nat'l Bank,
920 F.2d 232 (4th Cir. 1990) » & @ 16, 18
Statutes:
428 U.S.C.
ae ae ae a ee a a ee ee ee ee
§1331 4
Opee & «+ & & & & &% KS > wow eee
4&2 U.S.C.
J ee ee ee a

-vVil-

Historical Studies:

N

Jordan, White Over Black (1968)

Davis, The Problem of Slavery in
Western Culture (1966) a a ae oe 32

N

Litwack, North of Slavery (1965) 7 oa 3

N

Foner, Reconstruction (1988) oy = ek 3

-vVill

Opinions Below

The opinion of the United States Court of
Appeals for the Fourth Circuit is unpublished.
It is reprinted as Appendix A. The memorandum
opinion of the United States District Court
for the Eastern District of Virginia on the
Title VII claims in the case is published as

Holland v. First Va. Banks, Inc., 744 F. Supp.

722 (E.D. Va. 1990). It is reprinted as

Appendix B.

Jurisdiction

The decision of the court of appeals ws
entered on July 12, 1991. On August 20, 1991,
the court of appeals handed down an order
denying petitioner's timely motion for recon-
Sideration in banc, construed as a motion for
reconsideration with suggestion for rehearing

in banc. The court's order is reprinted as

Appendix C. Petitioner filed a timely motion
for an extension of time within which to file
the instant petition, which was granted by
order of the Chief Justice dated October 29,
1991. This order appears herein as Appendix
D. Petitioner invokes this court's jurisdic-
tion under 28 U.S.C. §1254(1).'

Statutory Provisions Involved

As amended by the Civil Rights Act of
1991, 42 U.S.C. §1981 reads in its entirety as

follows:

‘On November 22, 1991, the day following
the enactment of the Civil Rights Act of 1991,
Mr. Holland filed a motion in the court of
appeals seeking recall of the mandate for the
purpose of obtaining the relief now sought
here. Thereafter, on November 27, 1991, Mr.
Holland filed an application with the Chief
Justice seeking an extension of time for the
filing of the instant petition pending the
Fourth Circuit's action on the motion to
recall mandate. This application was denied
on December 11, 1991. As of the time this
petition is being completed, the Fourth
Circuit has not acted on the petition to
recall mandate.

-2-

(a) All persons within the juris-
diction of the United States shall
have the same right in every State
and Territory to make and enforce
contracts, to sue, be parties, give
evidence, and to the full and equal
benefit of all laws and proceedings
for the security of persons and
property as is enjoyed by white
citizens, and shall be subject to
like punishment, pains, penalties,
taxes, licenses, and exactions of
every kind, and to no other.

(b) For purposes of this section,
the term "make and enforce con-
tracts" includes the making, per-
formance, modification and termina-
tion of contracts, and the enjoyment
of all benefits, privileges, terms
and conditions of the contractual
relationship.

(c) The rights protected by this
section are protected against im-
pairment by non-governmental dis-
crimination and impairment’ under
color of state law.

Statement of the Case

Petitioner Robert Lee Holland, an

African-American formerly employed by

respondent bank holding company as a main-

tenance man, was subjected by his supervisor
at work, respondent Donald Brennan, to long-
term racial harassment which the court of
appeals styled "reprehensible," A-6. Mr.
Holland went over Mr. Brennan's head to com-
plain and was fired as a result. He sought
his job back. Following consultation with the
corporation's chief executive officer, the
bank's senior vice president decided, for
racially discriminatory reasons, not to rehire
him.

Having exhausted his administrative reme-
dies, Mr. Holland sued the bank and Mr. Bren-
nan alleging racial harassment under Title VII
of the Civil Rights Act of 1964 and discrimi-
natory termination and refusal to rehire under
Title VII and 42 U.S.C. §1981. The court had
jurisdiction under 28 U.S.C. §§1331 and 1343.

The district court permitted only the

§1981 rehire claim to go to the jury, holding

-4-

the discharge claim not actionable under §1981

in light of Patterson v. McLean Credit Union,

419 U.S. 164 (1989). The court gave strict
instructions, upheld on appeal, expressly dis-
allowing an award of damages for harassment or
discriminatory discharge and permitting an
award of damages only for discriminatory fail-
ure to rehire.

The jury returned a verdict in favor of
Mr. Holland in the amount of $20,000 actual
damages, $1,000 punitive damages against Mr.
Brennan (who had played a minor role in the
rehire decision) and $500,000° punitive
damages against the bank, a $5.2 billion cor-
poration. One week later, the court entered
findings of fact and conclusions of law hold-

ing that the bank had violated Mr. Holland's

‘The reference to $50,000 in the appellate
opinion, A-3, is a typographical error.

aw & as
Y

rights under Title VII by the harassment, the

discharge, and the refusal to rehire.

As it happened, Mr. Holland had been
seriously injured at work at exactly the time
he was fired by Mr. Brennan. He remained
unable to work through trial, and remains dis-
abled and unemployable today. At trial, he
was thus unable to avail himself of reinstate-
ment or back pay as remedies under Title VII.
Accordingly, Mr. Holland confined his request
for Title VII relief to nominal damages and
declaratory relief, which the court awarded
him the week following trial.

The bank accepted the Title VII judgment
and appealed the §1981 decision only, seeking
expedited review which it obtained. The bank
argued that its refusal to rehire Mr. Holland
waS indistinguishable from his’ discharge,
which the district court had held did not give

rise to a claim under §1981. In opposition,

iii

Mr. Holland defended the integrity of the
jury's rehire verdict, and in the alternative
argued that the damage award could be upheld
as an award for the established (and unap-
pealed) discriminatory discharge, which the
bank asserted was indistinguishable from the
refusal to rehire.°

In its decision, the Fourth Circuit held
that Mr. Holland had not proved a failure to
rehire but only a termination, which the court

held was not actionable under §1981 in light

of Patterson. In so deciding, the court over-

ruled the decision of a jury which had been
expressly instructed to the effect that:

The Civil Rights Act, pursuant to
which the civil rights claim is
made, does not prohibit racial ha-
rassment on the job, or racially

“Since the bank had taken the position
that what Mr. Holland had proved at trial was
a discriminatory discharge, not a separate
refusal to rehire, granting a cause of action
for discharge would have sufficed to save Mr.
Holland's verdict on appeal.

oF=

motivated employment termination....
[I]t is only the alleged failure to
reinstate the plaintiff that can be
the subject of plaintiff's civil
rights claim.‘

Accordingly, in a decision violating the rule

of Anderson v. Bessemer City, 470 U.S. 564

(1985), the court reversed the jury's §1981
decision in Mr. Holland's favor.

On November 21, 1991, the President
Signed into law the Civil Rights Act of 1991,
returning §1981 jurisprudence to its pre-Pat-
terson status. Mr. Holland's case had been
adjudicated through an expedited appeal, how-
ever, shortly before this development. Mr.
Holland now seeks relief from this Court for

the reasons set forth below.

“The court of appeals expressly rejected
the bank's objections to the jury instruc-
tions.

-8-

|

Reasons for Granting the Writ

I. This Case Should be Remanded
for Adjudication on the Basis
of the Governing Law

This Court should grant certiorari for

the purpose of vacating the decision below and
remanding the case for reconsideration in
light of the Civil Rights Act of 1991, which
has already been held applicable to pending

cases. Mojica v. Gannett Company, Inc., No.

90-C-3827 (N.D. Ill. Nov. 27, 1991); LaCour v.

Harris County, No. 89-1532 (S.D. Tex., Dec. 6,

1991) .° Under the new law petitioner Holland
is absolutely entitled to the judgment he won
below.

Persons in Mr. Holland's position cur-

rently stand doubly victimized in a legal no-

*Another decision on the applicability
of §1981 to pending cases is anticipated
momentarily in the case of Van Meter v. Barr,
No. 91-0027-GAG (D.D.C., argued Dec. 9,
1991).

-9-

man's land, between an appe!’late jurisprudence

which denies them their judgments, and a new
statute whose application to their case they
cannot compel as a matter of right, but must
obtain by the grace of this Court. Barring
recall of the appellate mandate (which peti-
tioner has requested’) , only this Court's

decision to grant certiorari can vindicate

these rights.

The instant case, arising out of "repre-
hensible" discrimination, A-6, which = oc-
curred, legally, at the "wrong time" for
petitioner, is particularly appropriate for
reconsideration in light of the new law. In

Brown Group, Inc. v. Hicks, 111 S.Ct. 1299

(1991), this Court vacated and remanded an
Eighth Circuit panel decision regarding the

scope of §1981 for reconsideration in light of

°See supra n.i at 2.

-10-

nner

an anticipated in banc decision of the Eighth

Circuit addressing that subject. See also

Blaauw v. Grand Trunk West. Ry. Co., 380 U.S.

127 (1965) (vacating and remanding for recon-
sideration in light of an intervening state
court decision) The same result should obtain
here. As there is yet no "final decision" in

this case, Bradley v. Richmond School Bd., 416

U.S. 696, 71 n.14 (1974), this Court is free
to effectuate the purpose of the law and rec-
tify the damaging quirk of fate that has taken

away petitioner's judgment.

II. The Court Should Correct the
Systematic Misapplication
of its Decision in Patterson
v. McLean Credit Union

This Court should, alternatively, grant

certiorari in order to review systematic mis-

application of this Court's decision in Pat-

terson v. McLean Credit Union, 491 U.S. 164

-ll1l-

(1989), in the period prior to enactment of

the Civil Rights Act of 1991. Unlike all
Similar claimants for one quarter century
before that time and all such claimants there-
after, petitioner and those similarly situated
stand in the unique position of having had
important federal rights, long honored in this
Court, truncated at the appellate level with-
out mandate from this Court and against the
intent of Congress, all based on a misapplica-

tion of this Court's decision in Patterson.

This inappropriate result should be corrected
by this Court.

If this Court does not reach out to ad-
judicate whether discriminatory discharge
claims were actionable for two years prior to
the passage of the 1991 Civil Rights Act, the
dispositive word on the subject will have been

given, finally, unreviewably, and incorrectly,

-12-

EE

by an appellate judiciary visibly uncertain of

the propriety of its decisions.

A. This Court Should Correct the
Misapplication of its Ruling
in Patterson

In Patterson v. McLean Credit Union, 805

F.2d 1143, 1145 (4th Cir. 1986), aff'd, 491

U.S. 164 (1989), the Fourth Circuit held that

claims of racial harassment at work fell out-
Side the scope of §1981. In contrast, the
court observed:

Claims of racially discriminatory

hiring, firing, and promotion go to

the very existence and nature of the

employment contract and thus fall

easily within §1981's protection.

This Court affirmed. In so doing, this
Court did not have to address whether the
Fourth Circuit was correct in finding that
discriminatory discharges were actionable

under §1981 -- a settled proposition of law in

any regard. See generally, Hicks v. Brown

-13-

Group, Inc., 902 F.2d 630, 637-38 & n.18 (8th

Cir. 1990) (citing authority), vacated, 111 S.

Ct. 1299 (1991). While this Court used lan-
guage permitting an interpretation that no
conduct taking place after the initial forma-
tion of a contract was actionable under §1981,
it seems clear that what this Court had in
mind was precisely the distinction expressly
drawn by the Fourth Circuit in the case then
being affirmed: between actions like hiring
and termination, which "go to the very exis-
tence and nature of the employment contract,"
id., and actions regarding what comes in
between i.e., conditions of employment:
Such postformation conduct does not
involve the right to make a con-
tract, but rather implicates the
performance of established contract
obligations and the conditions of
continuing employment, matters more

naturally governed by state contract
law and Title VII.

Patterson, 491 U.S. at 177 (emphasis added).

—-14-

The broad "post contract formation" lan-

guage of this Court's Patterson opinion pro-
ceeded, however, to cause confusion within the
judiciary. A discharge is concededly "post-
formation conduct," although it does not inm-
plicate "the performance of established con-
tract obligations and the conditions of con-
tinuing employment," but rather addresses "the
very existence and nature" of the contractual
relationship. Accordingly, this Court's Pat-
terson decision could be, and was, interpreted
in one of two ways in discharge cases. Courts
focusing on the Fourth Circuit's opinion, af-
firmed by this Court, allowed discriminatory
discharge claims on the same basis as the

Fourth Circuit had done in its own Patterson

decision affirmed by this Court.’ Those

"See e.g., Hicks v. Brown Group, Inc., 902
F.2d 630 (8th Cir. 1990), remanded, 111 S. Ct.
1299 (1991); Carroll v. Elliott Personnel
Serv., 52 Empl.Prac.Dec. (CCH) 939,508 at
60,288 (D.Md. 1989); Padilla v. United Air

-15-

courts focussing on this Court's "postforma-
tion" terminology, on the other hand, rejected

. As of the time that the

such claims.
President signed the Civil Rights Act of 1991,
ending any prospective controversy on the

issue, every circuit to have reached the

Lines, 718 F.Supp. 485, 490 (D. Colo. 1989);
McGinnis v. Ingram Equip. Corp., 918 F.2d
1421, 1426 (11th Cir. 1990).

STaqgart v. Jefferson Co. Child Support

Enforcement Unit, 935 F.2d 947 (8th Cir.
1991); Gersman _v. Group Health Ass'n, Inc.,
931 F.2d 1565 (D.C. Cir. 1991); Trujillo v.
Grand Junction Regional Center, 928 F.2d 973,
976 (10th Cir. 1991); Williams v. First Union
Nat'l Bank, 920 F.2d 232, 233-34 (4th Cir.
1990), cert. denied, 111 S. Ct. 2259 (1991);
Prather v. Dayton Power & Light Co., 918 F.2d
1255, 1256-58 (6th Cir. 1990), cert. denied,
111 S. Ct. 2889 (1991); Thompkins v. DeKalb

County Hosp. Auth., 916 F.2d 600, 601 (11th
Cir. 1990); Gonzalez v. Home Ins. Co., 909

F.2d 716, 722 (2d Cir. 1990); McKnight v. Gen-
eral Motors Corp., 908 F.2d 104, 108-09 (7th
Cir. 1990), cert. denied, 111 S. Ct. 1306
(1991); Courtney v. Canyon Television & Appli-
ance Rental, Inc., 899 F.2d 845, 849 (9th Cir.
1990); Lavendar v. V & B Transmissions & Auto
Repair, 897 F.2d 805, 807-08 (5th Cir. 1990).

-16-

issue, finding itself bound by this Court's
language, had denied relief under §1981 for
claims of discriminatory termination.’

The circuit courts fell into line solely
on the basis of their unguided determination
that this Court's language elaborated in a
suit challenging conditions of employment must
be applied literally, including to conduct
terminating the contractual relationship it-
self. With no other analysis whatever, a
quarter century of settled law in each of the

circuits at issue was summarily reversed.

*For its part, this Court on at least two
occasions permitted post-Patterson discrim-
inatory discharge claims to proceed under
§1981, rather than remanding them for recon-
Sideration in light of that decision. Lytle
v. Household Mfg. Co., 494 U.S. 545 (1990);
Jett. v. Dallas Indep. School Dist., 491 U.S.
701 (1989). A third case, Brown Group, Inc.
v. Hicks, 111 S. Ct. 1299 (1991), was remanded
for reconsideration by the Eighth Circuit in
light of a pending decision regarding the
scope of §1981. See discussion supra at 10.

-l|7-

The Fourth Circuit, where Patterson ori-

ginated, is a case in point. Numerous courts
both within and outside the Fourth Circuit had

cited the Fourth Circuit's Patterson decision

as authority for the proposition that follow-
ing this Court's decision in that case, claims
of racially discriminatory termination re-

mained viable under §1981. See, e.q., McGin-

nis v. Ingram Equip. Corp., 918 F.2d 1421,

1426 (11th Cir. 1990); Hicks v. Brown Group,

Inc., 902 F.2d at 636; Padilla v. United Air

Lines, 718 F.Supp. 485, 490 (D. Colo. 1989);

Carroll _ v. Elliott Personnel Serv., 52

Empl.Prac.Dec. (CCH) §39,508 at 60,288 (D.Md.

1989). Nevertheless, in Williams v. First

Union Nat'l Bank, 920 F.2d. 232 (4th Cir.

1990), cert. denied, ill S. Ct. 2259 (1991),

a panel of the Fourth Circuit held, simply on
the basis of a head-count of reported post-

Patterson §1981 decisions, that discrimina-

-18-

tory discharge claims were not cognizable

under Patterson. So much for what shortly

before had been seen to "fall[{] easily within
§1981's protection."

The history of §1981 in the Eighth Cir-

cuit is equally instructive. In Hicks vy.

Brown Group, Inc., 902 F.2d 630 (8th Cir.

1990), an appellate panel upheld the viability

of a post-Patterson discriminatory discharge

claim under §1981. After the defendant peti-

tioned for a writ of certiorari, 59 U.S.L.W.

3167 (Aug. 21, 1990), this Court solicited the
views of the United States on the matter. 111
S. Ct. 578 (1990). In the meanwhile, the
question of whether §1981 barred discriminato-

ry discharge in light of Patterson had reached

a second panel of the Eighth Circuit. That
panel, properly considering itself bound by
the panel decision in Hicks, permitted the

claim even as it expressed its view that this

-1|19-

result was untenable in light of this Court's

language in Patterson. Taggart v. Jefferson

Co. Child Support Enforcement Unit, 915 F.2d
396 (8th Cir. 1990). The defendant in Taggart

sought in banc review of this decision, which
was granted. Following the Eighth Circuit's
grant of rehearing in banc, and before the de-
cision came down in that case, this Court
thereupon vacated the panel decision in Hicks
for reconsideration in light of the antici-
pated in banc decision in Taggart. 1115S. Ct.
1299 (1991). The Eighth Circuit finally de-
cided, in banc, that §1981 does not cover dis-
criminatory discharges. Taggart, 935 F.2d
947 (8th Cir. 1991).

The Eighth Circuit's opinion in this
matter is based expressly on a head-count of
other decisions so holding. In the court's
words following its string citation, 935 F.2d

at 948:

-2 O-

ee

Contrary to Judge McMillan's rea-
soned opinion in Brown Group, the
circuit courts of appeal have unani-
mously held Patterson forecloses
discriminatory discharge claims
under section 1981. If the Patter-
son precedent is to be revisited, it
is the prerogative of the Supreme
Court to do so, not the courts of
appeals.

On few if any other questions of federal
law has the appellate judiciary ever worked
such a rapid revolution in established legal
doctrine, without express mandate from this
Court, as it did during the months between

this Court's Patterson decision and the enact-

ment of the 1991 Civil Rights Act on the issue
of whether §1981 does or does not prohibit
racially discriminatory discharges. What is
remarkable about the debate, as memorialized
in the opinions antedating the eventual unani-
mity among the circuits, is the lack of parity
between the sources used by the debaters. De-

cisions finding a cause of action for dis-

-21-

charge appeal to historical analysis, records
of Congressional debates and hearings,”
ordinary rules of statutory construction, com-

mon sense, and decades of settled jurispru-

dence in this Court and below. See, e.g.,

Hicks, 902 F.2d 630. Decisions denying the
claim rest exclusively on broad language from

Patterson not addressing the point at issue,

and a head-count of decisions denying the
claim for the same reason and no other. See
cases cited supra at 16 n.8.

As an alternative to remanding this case
to the Fourtn Circuit for reconsideration in
light of the new act, this Court, as the final

arbiter of federal law, should grant certior-

ari for the purpose of retrieving from the

"These sources may be contrasted with
contemporary "legislative histories" created
after-the-fact by competing partisans for the
purpose of swaying the judiciary in subsequent
cases.

-22-

eee

circuit courts the last word on this important
subject, which as currently stated is both
wrong and unreviewable as a matter of right.
The court should correctly state the law and
thereby vindicate the rights of persons dis-
criminatorily discharged at the legally
"wrong" time, whose rights have been improp-
erly cut off, in derogation of the will of

Congress and without mandate from this Court.

B. The Court Should Act to Preserve
the Integrity of Conventional
Rules of Statutory Construction
Nullified by the Proposition
that §1981 Did Not Prohibit
Discriminatory Discharge

Pre-amendment §1981 provided, in perti-
nent part, that:

All persons within the jurisdiction
of the United States shall have the
same right in every State and Terri-
tory to make and enforce contracts,
to sue, be parties, give evidence,
and to the full and equal benefit of
all laws and proceedings for the
security of persons and property as
is enjoyed by white citizens....

-23-

The determination that this language did
not prohibit racially discriminatory breach of
contract and merely guaranteed equal access to
the courts for contract claims makes a trav-
esty of ordinary principles of statutory con-
struction. The literalist approach which
gives rise to it suggests the prospect of
judicial nullification of untold other statu-
tory protections which, while manifestly im-

plied, are not stated in so many words.

1. Rights Which Go To The "Very
Existence and Nature" of a Right
Expressly Protected by Statute
are Also Protected

A statute granting certain rights bars
not merely expressly proscribed interference
therewith, but also unspecified conduct that
necessarily nullifies exercise of the express-
ly protected right. Otherwise, one ends up

with the equivalent of Shylock's illusory

right to his pound of flesh on the condition
that he spill no blood getting it. In the
Fourth Circuit's words in a decision affirmed
by this Court, the law protects what goes "to
the very existence and nature" of the express-

ly protected right. Patterson, 805 F.2d at

1145.

Numerous forms of discriminatory behavior
were and remain plainly prohibited by §1981
although they are not specifically mentioned
in the law. Thus, the statute does not ex-
pressly protect against having suits, once
brought, dismissed if brought by non-whites
against white persons. Such conduct is never-
theless plainly prohibited as part of the pro-
tection of the right of non-whites "to sue"
-- a right that would be meaningless if con-
strued to protect merely the right to file a
lawsuit, and not the right to maintain a suit,

once brought. Likewise, §1981 does not ex-

-25-

a

pressly prohibit jury instructions that the
word of a white person must be accepted over
that of a non-white. Clearly, however, such
instructions would be impermissible given the
express grant of the right "to give evidence."
The latter includes the former by necessary
implication.

In these cases, it is of no moment that
prohibition of the discriminatory conduct at
issue is not expressly identified. The un-
named action goes "to the very existence and
nature" of the expressly protected right, Pat-
terson, 805 F.2d at 1145, and is necessarily
included as part of it.

There is no reason to view the pre-amend-
ment grant of the right "to make and enforce
contracts" differently, as the Fourth Circuit

held in its Patterson opinion, affirmed by

this Court. Nevertheless, the appellate judi-

ciary proceeded to abrogate the right under

-26-

§1981 not to suffer a discriminatory dis-
charge, in light of broad language in this

Court's Patterson opinion unnecessary to its

holding. The courts of appeals thereby evis-
cerated the right to maintain the very employ-
ment, the right to obtain which had been es-
tablished by the same statute.'' This makes
no sense.

One hundred fifty years ago, This Court
observed as follows, in upholding the right of
Slaveholders to regain their human property in
free states:

If by one mode of interpretation the

right must become shadowy and unsub-

stantial, and without any remedial
power adequate to the end, and by
another mode it will attain its just

end and secure its manifest purpose,

it would seem, upon principles of

reasoning, absolutely irresistible
that the latter ought to prevail.

“under the appellate construction of
§1981, an employer seeking to avoid liability
under the statute for discriminatory refusal
to hire could hire an employee on day one and
fire him on day two.

=~27=

No Court of justice can be author-
ized so as to construe any clause of
the Constitution as to defeat its
obvious ends, when another construc-
tion, equally accordant with the
words and sense thereof, will en-
force and protect them.

Prigg v. Pennsylvania, 41 U.S. (16 Pet.) 539,
612 (1842). This apt analysis, offered by the
Court in regard to an unjust law, should con-
trol its construction of the beneficent law
here at bar.
2. Absent a Prohibition of Discrimi-
natory Breaches of Contract, The

Right to "Enforce Contracts"
is Meaningless

In post-civil war America as now, most
employees, including the freed slaves, were
employed at will. Absent a term labor con-
tract, which was not the rule, termination of
employment of a freed slave or any other em-
ployee was not actionable by the employee. An
employee who was unfairly discharged had a

contract terminated but did not have it

-28-

breached. The employee had no legal claim
against the employer for such an event.

Furthermore, absent a prohibition on
racially discriminatory contract termination,
the right to benefit from contracts, once
made, free from racial discrimination could
not be enforced merely by the new right "to
sue." For there would be no cause of action
on which to bring suit. Under the current
appellate construction of pre-amendment §1981,
the right of a victim of a discriminatory dis-
charge to “enforce" a contract thus emerges as
meaningless. So too does the new right "to
sue," as regards discriminatory discharge.
One could file a suit, but it would state no
claim upon which relief might be granted.

The limited construction of pre-amendment
§1981 also yields the anomalous result that
the extension of the right to "enforce con-

tracts" is surplusage which carries no legal

-29-

consequence. For if by "enforcement" is meant
simply enforcement in court, it amounts to
exactiy the same thing as "suing," which is
separately provided for in the law.

It is not to be presumed that any of the
various provisions of a statute are irrelevan-
cies or redundancies, safely ignored. See New

York v. Shore Realty Corp., 759 F.2d 1032,

1044 (2d Cir. 1985). Indeed, the 39th Con-
gress was struggling to make critical federal
policy in the midst of a national crisis and
in the face of overt presidential hostility.”
It is not to be lightly assumed that Congress
was not exquisitely mindful of the language it
chose to enact into law.

Lower court construction of pre-amendment

§1981 has created a substantial, albeit dis-

"the Civil Rights Bill of 1866 was
passed over the veto of President Andrew
Johnson.

-30-

crete, body of incorrect law with reference to
one of the most litigated federal statutes.
This body of law, nullifying settled jurispru-
dence and basic principles of statutory con-
struction, warrants review and correction by
this Court.
Ci Holding that §1981 Barred
Discriminatory Termination of

Employment Is Not Inconsistent
with Patterson

This Court's holding in Patterson is not

implicated here. Racial harassment, however
obnoxious, does not subvert the exercise of
the right to enter into and enforce contracts
conferred by Congress in 1866. This is, of
course, precisely what the Fourth Circuit held

in its Patterson opinion affirmed by this

Court.
Congress was not concerned in 1866 with
behavior that, over one hundred years later,

the law has held actionable workplace harass-

-31-

ment. Meritor Savings Bank v. Vinson, 477

7.8. 3? (1986)." Racist behavior was common-
place in the workplace (and society in gener-
al) well into the twentieth century. It is
inappropriate to project current American sen-
sibilities onto persons living one hundred
thirty years earlier, in the very era when the
slaves were being freed from their chains.
Nor would permitting discharge claims
under §1981 subvert the mediation and concil-

iation procedures of Title VII. Noting, in

Sit isa commonplace of historical
scholarship that white champions of African-
American rights shared prevailing negative
attitudes towards those whose rights’ they
sought to secure. This juxtaposition of high
principles with prejudiced attitudes and
actions, from a Jefferson or Lincoln to the
most modest citizen concerned with the fate of
the freed slaves, is a major theme of American
social and intellectual history. The
literature on this subject is vast. See, e.g.
Jordan, White Over Black (1968); Davis, The
Problem of Slavery in Western Culture (1966) ;
Litwack, North of Slavery (1965); Foner,
Reconstruction (1988).

-32-

Patterson, that racially-based refusal to con-

tract continued to be actionable under §1981
and Title VII, this Court was not troubled by
the overlap since Title VII's remedial proce-
dures lose significance where an employment

relationship does not exist. Patterson, 491

U.S. at 182. Unlike a claim of harassment, a
claim of discriminatory discharge arises, sim-
liarly, when an employment relationship no
longer exists, and as a practical matter is
probably less "salvageable," id., than an
employment relationship which never existed in

the first place.

Conclusion

The Court should issue a writ of certio-
rari for the purpose of remanding this case to
the court of appeals for reconsideration in
light of §1981 as it now reads. Alternative-

ly, this Court should grant certiorari in

-33-

ope ne ee

order to close the window of inequity regard-
ing discriminatory discharges which was tempo-
rarily opened, against the will of Congress
and without mandate from this Court, by the

lower federal judiciary.

Respectfully submitted,

Victor M. Glasberg
Counsel of Record

Jeanne Goldberg

Victor M. Glasberg &
Associates

121 S. Columbus Street

Alexandria, VA 22314

(703) 684-1100

Counsel for Petitioner

Dated: December 16, 1991

—-34-

es

A P PEN DIX

UNPUBLISHED

UNITED STATES COURT OF APPEALS

FOR THE FOURTH CIRCUIT

Rosert L. HOoL_anp,
Plaintiff-Appellee,

' > No. 90-2203

First VIRGINIA BANKS,
INCORPORATED: DoNALD D. BRENNAN,
Defendants-Appellants.

Appeal from the United States Distnct Court
for the Eastern District of Virginia, at Alexandria.
Albert V. Bryan, Jr., Chief District Judge.
(CA-90-64-A)

Argued: March 4, 1991
Decided: July 12, 1991
Before ERVIN, Chief Judge, NIEMEYER, Circuit Judge, and

RESTANI., Judge, United States Court of International Trade,
sitting by designation.

Reversed by unpublished per curiam opinion.

COUNSEL

ARGUED: Gerald S. Hartman, ANDERSON, KILL, OLICK &
OSHINSKY, Washington, D.C., for Appellants. Victor Michael Glas-
berg, VICTOR M. GLASBERG & ASSOCIATES, Alexandria, Vir-
ginia, for Appellee. ON BRIEF: Gregory W. Homer, ANDERSON,
KILL, OLICK & OSHINSKY, Washington, D.C.; Kathleen T. Bar-

A-1l

? HOLLAND V. First VIRGINIA BANKS

low, Falls Church. Virginia, for Appellants. Jeanne Goldberg, VIC-
TOR M. GLASBERG & ASSOCIATES, Alexandria, Virginia, for
Appellee.

Unpublished opinions are not binding precedent in this circuit. See
1.0.P. 36.5 and 36.6.

OPINION
PER CURIAM:

Robert L. Holland filed suit in the United States District Court for
the Eastern District of Virginia in January 1990 against his former
employer, First Virginia Banks, Inc. (the Bank), and his former super-
visor, Donald Brennan. The complaint alleged violations of Holland’s
rights under 42 U.S.C. § 1981; Title VII of the Civil Rights Act of
1964, 42 U.S.C. §§ 2000 ef seq.; and Virginia common law, predi-
cated on Holland’s having been the vicum of racial harassment at
work, discharged in retaliation for filing an EEOC claim on this
account, and subsequently denied re-employment for the same reason.

The Bank filed a motion to dismiss Holland's claim in its entirety,
arguing that the complaint failed to state a claim for relief under Sec-
ton 1981 in light of the Supreme Court's pronouncements in
Patterson v. McLean Credit Union, 491 U.S. 164 (1989). In that case
the Court held that employer conduct subsequent to the formation of
the employment contract is no longer actionable under Section 1981.
The district court denied the Bank’s motion.

Holland’s Secuon 1981 claims and state law claims then went to
jury mal, followed by a bench tal on the Title VII claims. Respond-
ing to the Bank’s motion for a directed verdict, the district court ruled
that under Patterson Holland’s claims of racial harassment and dis-
criminatory discharge should not go to the jury, but that there was
sufficient evidence to send the failure to rehire claim to the jury on
the ground that the claim alleged the Bank’s refusal to make a new
contract with Holland.

A-2

HOLLAND V. First VIRGINIA BANKS 3

The jury found for the Bank and Brennan on the state law emo-
tional distress claim and for Holland on the Section 1981 claim. The
jury awarded Holland $20,000 actual damages, $1,000 punitive dam-
ages against Brennan, and $504000 punitive damages against the
Bank. Subsequently, the district court entered findings of fact and
conclusions of law in favor of Holland on his Title VII claims, and
awarded Holland a total of $87,388.13 in costs and attorneys’ fees.
This figure included a 75 per cent multiplier of the lodestar amount
of attorneys’ fees as an enhancement for the "exceptional result’
obtained.

The Bank filed post-trial motions, all denied by the district court,
to obtain a judgment notwithstanding the verdict or a new trial, and
to vacate the award of punitive damages or grant remittitur. This
appeal followed.

I.

Holland went to work for the Bank as a maintenance employee in
September 1988 after having served in the United States Army from
July 1967 to January 1988. Holland’s immediate supervisor at the
Bank was Donald Brennan, who was responsible for the maintenance
of the Bank’s facilities in the Northern Virginia area and was given
the power to hire and fire maintenance employees. During his ten-
month employment with the Bank, Holland received good perfor-
mance evaluations and a seven per cent raise.

Holland worked out of the same office as did Brennan, who super-
vised Holland’s daily work. Holland was the first black employee in
that particular facility, and early in his employment he was warned by
a fellow-employee that he should be careful on that account. Within
two months after Holland began work at the Bank, Brennan began to
refer to Holland by racially derogatory terms such as "Chicken Little,"
"Watermelon Man," and "Boy." Other employees also used such
terms to refer to Holland in Brennan’s presence without reprimand.
A sign entitled "Chicken Little" or "Love that Chicken" was placed
on Holland’s in-box in the office. The sign was not removed until

A-3

4 HOLLAND V. First VIRGINIA BANKS

some three weeks atter Holland complained to one Ambrosi, a Bank
vice-president.’

Holland and fellow employees interpreted this name-calling
as evidencing stereotyped concepts of the eating habits of black peo-
ple. Although Holland felt demeaned and humiliated by this conduct,
he did not immediately complain because he thought that this might
be a form of new employee hazing which would soon cease. The
offensive conduct continued, however, and was expanded to include
the use of the word "nigger" in reference to Holland out of his pres-
ence. In March 1989 Holland finally complained to Brennan about the
name-calling. Brennan responded that Holland was ''too sensitive"
and laughed off his complaint. The name-calling persisted until June
1989, when Holland complained to Shirley Beavers, a senior Bank
vice-president. Beavers then questioned Brennan, who claimed he
was only "kidding." Beavers instructed Brennan that the conduct Hol-
land complained of should cease.

On June 28 a meeting was held which was attended by, among oth-
ers, Holland, Brennan, and Beavers. As a result of this meeting, all
parties indicated that the problems had been resolved, and Holland
expressed his satisfaction with the resolution of the matter.

Shortly thereafter, the co-worker who had wamed Holland to be
careful on account of his race was fired. Another fellow-employee
told Holland that his days were numbered at the Bank and that Bren-
nan would not forgive him for having gone over his head to Beavers.
Holland, frightened by these events, submitted an application to the
Marriott Corporation for part-time work. Holland advised Brennan of
his application to Marriott, as was required by the Bank's personnel
policy. Holland never obtained this employment because funding
problems prevented Marriott from hiring part-time employees for sev-
eral months during that period.

On July 20, 1989, Holland was injured on the job. The extent of
his injury’s effects was not immediately apparent.’ On July 25, Bren-

‘Ambrosi testified that he would not have removed the sign even if it had
said, Bob Holland is a no good black son-of-a-bitch."
7Eventually it became clear that the injury was more serious than first

appeared. As a result Holland was unable to return to the type of work he
had done at the Bank.

HOLLAND V. FIRST VIRGINIA BANKS 5

nan called Holland at home and told him that the Bank had "accepted
his resignation.’ Holland replied to Brennan that he had never
resigned. Brennan then sent Holland a letter conveying the same mes-
sage he had communicated in the phone call. Holland responded in
a letter dated August 1, 1989, denying that he had resigned and
requesting a thorough explanation of Brennan’s intentons regarding
Holland’s employment with the Bank. This letter was copied to the
Bank’s CEO Robert Zalokar, to Beavers, and to the Virginia Equal
Employment Opportunity Commission (EEOC). Beavers, whom
Zalokar designated to respond to Holland's letter, intormed Holland
by letter of August 7 that the Bank considered that Holland had
resigned.

I].

The Bank does not challenge the district court's judgment in favor
of Holland's claims of racial harassment and discriminatory discharge
under Title VII of the Civil Rights Act of 1964. This appeal primarily
focusses on the district court’s allegedly erroneous interpretation of
Parrerson v. McLean Credit Union, 491 U.S. 164 (1989), as allowing.
Holland's claim of retaliatory refusal to rehire to go to the jury under
42 U.S.C. § 1981. We review the district court’s conclusions of law
concerning the scope of Section 1981 de novo.

Secuon 1981, enacted as part of the Civil Rights Act of 1866, pro-
vides as follows:

All persons within the jurisdiction of the United States shall
have the same right in every State and Ternitory to make and
enforce contracts, to sue, be parties, give evidence, and to
the full and equal benefit of all laws and proceedings for the
security of persons and property as is enjoyed by white citi-
zens, and shall be subject to like punishment, pains, penal-
ties, taxes, licenses, and exactions of every kind, and to no
other.

42 U.S.C.A. § 1981 (1981). In Patterson the Supreme Court reaf-
firmed its holding in Runyon v. McCrary, 427 U.S. 160 (1976), that
Section 1981 prohibits racial discrimination in the making and
enforcement of private contracts. Patterson, supra, 491 U.S. at 170.

A=-5

6 HOLLAND V. First VIRGINIA BANKS

On the facts presented in Patterson, however, the Court narrowed the
coverage of Section 1981, holding that Section 1981 does not apply
to conduct, such as the racial harassment alleged by Patterson, which
occurs after the formation of a contract and which does not interfere
with the right to enforce established contract obligations. /d., 491 U.S.
at 179. The Court found that Patterson's racial harassment claim con-
cerned the terms and conditions of her employment and did not impli-
cate the making or enforcing of an employment contract. /d., 491 U.S.
at 171.

As to Holland’s refusal to rehire claim, the district coun reasoned
that two separate contracts were involved: the contract terminated by
Brennan’s letter to Holland, and the subsequent contract the Bank
refused to make with Holland for his rehire. The court thus found that
this claim remained within the coverage of Section 1981, as long as
there was evidence from which the jury could find (1) a refusal to
make a new employment contract (2) that was motivated by racially
discriminatory retaliation.

Our understanding of Patterson as seen in the light of the circum-
stances surrounding Holland’s termination leads us to a different
result. While we do not assert that Patterson bars all refusal to rehire
claims from the reach of Section 1981, we conclude that on the facts
of this case, the district court’s decision to submit Holland's refusal
to rehire claim to the jury under Section 1981 was reversible error.*
Moreover, reprehensible as the Bank's conduct here may be, the

°Of the several federal courts which have considered the discriminatory
refusal to rehire issue in light of Patterson, several have held that the dis-
criminatory refusal to rehire an employee is precisely the sort of refusal to
make a contract that the Supreme Court found to be actionable under Section
1981 in Patterson. Williams v. Avco Lycoming, 755 F. Supp. 47, 51 (D.
Conn. 1991); Tillman v. Beaver Express Service, Inc., 1991 WL 26936 at 2
(D. Kan. 1991); Padilla v. United Air Lines, 716 F. Supp. 485, 490 (D. Colo.
1989). Others, analogizing from the language in Patterson concerning pro-
motions, have found that rehiring an employee into the same position from
which he was discharged was not what the Court contemplated as a "new
and distinct relation."" Smith v. Continental Ins. Corp., 747 F. Supp. 275, 282
(D.NJ. 1990); Carter v. O'Hare Hotel Investors, 736 F. Supp. 158, 160
(N.D. Ill. 1989); Eklof v. Bramalea Ltd., 733 F. Supp. 935, 937 (E.D. Pa.
1989).

i a |

HOLLAND V. FiRST VIRGINIA BANKS 7

jury's verdict tor Holland on this claim must be reversed, for the evi-
dence is insufficient to permit a reasonable jury to find that the Bank
refused to enter into a new employment contract with Holland. Fed.
R. Civ. P. 52(a): Anderson v. Bessemer City, 470 U.S. 564, 573-74
(1985).

There is no question that Holland’s employment contract with the
Bank was terminated—whether by the Bank or by Holland himself, if
the Bank's resignation theory is accepted. The letters exchanged
between Holland and the Bank regarding that termination, however,
do not support a finding that a new contract to rehire Holland was
proposed and rejected. Rather, both the phrasing of Holland’s August
1 letter and its timing close on the heels of the Bank’s notification of
Holland's termination indicate that its purpose was not to request re-
employment but to clarify Holland’s understanding of the Bank’s
actions. In the letter, Holland asked only for "a thorough explanation
of your [the Bank's] intentions regarding my employment with First
Virginia Banks."

Even if Holland's letter could reasonably be construed as a request
for re-employment which the Bank then refused, we think that the
close timing of the letters to the termination prevents us from constru-
ing the letters as initiating a contract whose formation would be con-
templated by Patterson. To find otherwise would permit discharged
employees, whose discharge is rendered not actionable under Section
1981 by Patterson, to sidestep Patterson and obtain Section 1981
coverage by immediately requesting re-employment.

Ill.

The Bank also alleges on appeal that the district court erroneously
instructed the jury on the proper causation standard to be applied in
Section 1981 cases, in that the court failed to tell the jury that a plain-
tuff under Section 1981 is required to demonstrate that discrimination
was a "but for'' cause of the adverse employment action at issue.
McDonald v. Santa Fe Trail Transportation Co., 427 U.S. 273, 282
n.10 (1976). The Bank claims that this omission constitutes prejudi-
cial error. citing Ross v. Communications Satellite Corp., 759 F.2d
355 (4th Cir. 1985).

—_—

* HOLLAND V. First VirGINIA BANKS

We find that the Bank did not adequately articulate to the district
court its objection to the causation instruction, and that therefore the
right to raise this issue on appeal was waived. Were we to rule on the
matter, however, we would find dispositive the Supreme Court's
recent statement in Price Waterhouse v. Hopkins, 490 U.S. 228
(1989). There the Court. in considering a Title VII gender discrimina-
tion claim, stated that the "but for" language of McDonald does not
indicate that the plaintiff must show "but for'' causation in order to
prevail. Rather, the Court construed this language to mean only that,
if the plaintiff does meet that standard, he will prevail. 490 U.S. at
240 n.6. Thus, any eiror the district court committed in failing to
instruct the jury concerning "but for’ causation was harmless.

The Bank further appeals the district court's award of punitive
damages and its enhancement of the attorneys’ fees awarded. Because
we reverse the jury's verdict the punitive damage award is vacated
and we need not discuss the matter here. We vacate the award of
attorneys’ fees and remand to the district court for further consideration.“

The district court's submission of Holland's Section 1981 claim to
the jury, and the subsequent jury verdict, are hereby

REVERSED.

“We call to the district court’s attention that the "exceptional result
obtained" generaliy should not be used to provide an independent basis for
increasing the attorneys’ fee award. Blum vy. Stenson, 465 U.S. 886, 897
(1984); see also Barber v. Kimbrell’s, Inc., 577 F.2d 216, 226 n.28 (4th Cir.
191) ("result obtained" factor is included among factors which comprise
the lodestar figure). An enhancement of this type is proper only if supported
by both specific evidence on the record and detailed findings. Pennsylvania
v. Delaware Valley Citizens’ Council for Clean Air (Delaware Valley I), 478
U.S. 546, 565 (1986).

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF VIRGINIA

Alexandria Division

ROBERT L. HOLLAND,
Plaintiff,

C.A. #90-64-A

Vv.

FIRST VIRGINIA BANKS,
InG., O& Ai,

Defendants.

MEMORANDUM OPINION

This action is brought pursuant to Title
VII of the Civil Rights Act of 1964, U.S.C.
§§2000e et seq.’ Testimony in the case was

adduced on July 10 and 11, 1990.

‘The complaint also sought recovery pur-
suant to 42 U.S.C. §1981 and a state law
claim for intentional infliction of emotional
distress. These claims were tried to a jury
at the same time the court heard the Title
VII aspect of the complaint. The jury found
in favor of the defendant on the intentional
infliction of emotional distress claim and in
favor of the plaintiff on the §1981 claim.
The jury awarded the plaintiff on that claim
$20,000 in compensatory damages against both
defendants, $1,000 in punitive damages
against the defendant Brennan, and $500,000
in punitive damages against the defendant
First Virginia Banks, Inc.

pd

Findings of Fact

1. The plaintiff is a 46 year old black
male who went to work for the defendant, First
Virginia Banks, Inc., on September 18, 1988.
He had previously served in the United States
Army from July, 1967 until January, 1988. He
worked for First Virginia as a maintenance
employee and his immediate supervisor was the
defendant, Donald Brennan, who is responsible
for the maintenance of all the bank's approxi-
mately twenty-one facilities in this area.
Although he is not an officer of the bank,
Brennan had the power to hire and fire mainte-
nance employees, including the plaintiff.

2. The plaintiff performed his duties in

a satisfactory manner for the bank. He re-

ceived good performance evaluations and a 7%
raise during his period of employment.
3 The plaintiff was the first black

employee in the particular maintenance section

B-2

where he worked, although there were other
black employees in other facilities supervised
by Brennan. The plaintiff was in the same
office with Brennan and Brennan supervised his
day-to-day operation. When the plaintiff
first went to work in Brennan's office, he was
told by a fellow-employee he should be careful
Since he was the first black employee in the
office.

4. Within approximately forty-five days
after the plaintiff began his employment,
Brennan began to refer to the plaintiff as
"Chicken Little," "Chicken George," "Sparerib

Kid," “Watermelon Man," or “Watermelon Kid."

He referred to the plaintiff as "Boy," or "his
Boy." In some instances the plaintiff was
referred to in these terms by other employees
in the presence of Brennan. Brennan also told
the plaintiff in the presence of some of his

fellow-employees that he had seen a dead coon

a

in the road and suggested that the plaintiff

take it home and make stew for his family. In
another instance, when there were donuts in
the office, Brennan told the plaintiff that he
couldn't have them because they had not been
fried in chicken fat or chicken grease. A
sign entitled "Chicken Little," or "Love that
Chicken," was placed on the plaintiff's "IN"
box in the office. The plaintiff complained
to Ambrosie, a vice-president of the company,
that this was offensive to him, but nothing
was done by Ambrosie to see to its removal.
The sign stayed up approximately three weeks.

5. The plaintiff's fellow-employees, as
well as the plaintiff, interpreted this name-
calling as evidencing stereotyped concepts of
the eating habits of black people.

6. This conduct on behalf of Brennan was
demeaning and humiliating to the plaintiff.

He felt he was being put down as an individual

B-4

and as a black man. He deferred, however,

making an immediate complaint concerning the
conduct because he had been counselled while
still in the military that as a recent convert
from military to civilian life, there were
changes he would have to accept and he felt
perhaps this was a "hazing" of a new employee
which would cease. It did not.

T+ In March of 1989, the plaintiff
decided to do something about the situation
and he told Brennan that he was "fed up."
Brennan replied that the plaintiff was too
sensitive; he laughed it off; and he stated
that "sticks and stones will breal my bones,
but words will never hurt me," or words to
that effect. The name calling continued after
the piaintiff's complaint to Brennan, and
continued until June of 1989 when the plain-
tiff went to see Beavers, a senior vice-presi-

dent of the defendant. To Beavers he com-

aca

plained of the racially oriented name calling
and various other matters concerning his work
assignment and sick leave. This frst meeting
occurred while Brennan had already left ona
there or four day trip, and Beavers promised
to fully investigate the plaintiff's com-
plaints when he, Beavers, returned from a trip

he also was planning.

8. Upon Beavers' return, he discussed
the matter with Brennan. Brennan admitted
calling the plaintiff Chicken Little and
Watermelon Man; however, he contended that it
was only kidding. Beavers instructed Brennan
that the name calling and kidding should
cease. Brennan was upset when told that the
plaintiff had complained to Beavers.

9. At a meeting on June 28, 1989, at-
tended by the sigaieiee. Beavers, Cook, Bren-
nan and Wilson, all parties felt the matter

had been resolved and the plaintiff proffered

B-6

——

his satisfaction with the resolution of the
matter. At or about this time the plaintiff's
fellow-employee, Tolly, who had suggested to
the plaintiff that the plaintiff complain to
Beavers, was fired. Another fellow-employee,
Ceeba, told the plaintiff his days were num-
bered at the bank and that Brennan would not
forgive him for going over his head to
Beavers. The plaintiff became "scared" and
submitted an application to Marriott for part-
time work. He advised Brennan of this on July
10. He never obtained employment for full or
part-time work since there was no job avail-
able with Marriott for 8-10 months because of
lack of funding.

10. On July 20, 1989, the plaintiff was
injured on the job and on July 25, 1989,
Brennan called the plaintiff at home and told
him they had accepted his resignation. The

plaintiff denied that he had ever resigned and

B-7/

a

Brennan said he would send the plaintiff a
letter concerning this. That letter (PX-17)
‘ @ueckes and surprised the plaintiff, and he
responded in a letter (PX-18) expressing this
shock and surprise, denying that he had re-
signed, and, in effect, asked for his job
back.

ii. The court rejects the defendant's
assertion that the plaintiff resigned on July
10, 1989. Both Cook, who was also one of the

plaintiff's supervisors, and Beavers were told

by Brennan that the plaintiff had resigned.

Beavers was surprised.

12. The court also rejects the asser-
tions that the name calling was only meant in
fun, and that no intimidation or references to
chicken were motivated by the plaintiff's
obsessive appetite for chicken. The very
making of the argument that such remarks can

be considered "fun" or "joking" is the same

mind-set that finds it acceptable, as Brennan

testified, to call his fellow-employee Schlan-
densky a Pollack, and to argue that because
the plaintiff allegedly referred to himself on
several occasions as a "nigger," this somehow
makes benign the application of names to him
which are racial stereotypes. The insensitiv-
ity that prompts such assertions has helped
proved the plaintiff's case.

The defendants are not entirely guile-
less, moreover. Their first reaction was to
deny that the name-calling occurred (See Ans.
to Interrogatories Nos. 5 and 10). When it
became apparent that such a denial was spuri-
ous, they resorted to a belittlement of the
claim by characterizing the conduct as the
type of kidding and joking that normally goes
on in the workplace; not to be taken serious-
ly; and a suggestion that the brunt of the

name-calling was being overly sensitive. The

B-9

defendants have still, to this day, not ac-
knowledged or apparently even recognized, the
humiliation that such conduct inflicts.

13. The court finds that the name-call-
ing constituted racial harassment; that the
plaintiff's termination and the defendant's
refusal to re-hire him were in retaliation for
the plaintiff's complaints to Beavers concern-
ing the racial harassment by Brennan; and that
this conduct constitutes discrimination on
account of race in violation of Title VII of
the Civil Rights Act of 1964, 42 U.S.C.

§§2000e et seq.

Liability of Brennan

The defendants assert because Brennan was
not a named respondent in the plaintiff's
E.E.0.C. complaint he must be dismissed from
the plaintiff's Title VII claim. Defendant

relies on Dickey v. Greene, 710 F.2d 1003 (4th

Cir. 1983). The decision in that case was

_

vacated and is not binding precedent. Dickey

v. Greene, 729 F.2d 957 (4th Cir. 19840.
Moreover, the court finds that the E.E.0O.C.
complaint, as amended, clearly put both de-
fendants on notice of the plaintiff's claim
against Brennan.

Statute of Limitations

Defendants claim that the failure of the
plaintiff to file his claim with the E.E.0.C.
within 180 days of the alleged unlawful en-
ployment practice as required by 42 U.S.C.
§2000e-5(e) bars his claim. Virginia, how-
ever, is a so-called "deferral state," and
consequently the plaintiff had a 300 day

filing period. E.E.0O.C. v. Hansa Products,

Inc., 844 F2d 191 (4th Cir. 1988). Plain-
tiff's Title VII claim is accordingly not time

barred.

|

Relief
During trial the plaintiff withdrew any
claim for back wages or reinstatement, re-

questing only declaratory relief and nominal

damages insofar as his Title VII claim was
concerned. The court finds that such declara-
tory relief is appropriate, as are nominal
damages. The declaration should act as a
deterrent. The court will, therefore, enter
an order declaring that the plaintiff's rights
under Title VII have been violated by the
racial harassment on the job and by a termina-
tion and failure to re-hire in retaliation for
his complaints of racial harassment on the
job. Nominal damages in the amount of $100.00
will be awarded together with costs, including
attorney's fees.
LS/

United States
District Judge

Alexandria, Virginia
July 20th, 1990

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF VIRGINIA

Alexandria Division

ROBERT L. HOLLAND,
Plaintiff,
Vv. C.A. #90-64-A

FIRST VIRGINIA BANKS,
INC., et al.,

Defendants.

ee ee eee ee ee

O R DER

For the reasons set forth in the Memoran-
dum Opinion this day filed, it is hereby
ORDERED and DECLARED that:

. The conduct of the defendants vio-
lates Title VII of the Civil Rights Act of
1964, 42 U.S.C. §2000e, et seg.,

2. Damages in the amount of $100.00 are
awarded against the defendants First Virginia

Banks, Inc., and Donald G. Brennan, jointly

i es.

and severally.

3. Attorney's fees and costs are awarded
to the plaintiff, and the court will consider
the amount thereof after submission by counsel

for the plaintiff his request therefor within

thirty days from July 12, 1990, and after a
twenty day response period for the defendants,
as directed with regard to the claim pursuant

to 42 U.S.C. §1981.

LS/
United States
District Judge

Alexandria, Virginia
July 20th, 1990

——

EEE

UNITED STATES COURT OF APPEALS
FOR THE FOURTH CIRCUIT

FILED
August 20, 1991

No. 90-2203

ROBERT L. HOLLAND,
Plaintiff-Appellee,

Vv.

FIRST VIRGINIA BANKS, INC.,
et al.,

Defendants~-Appellants.

On Petition for Rehearing with
Suggestion for Rehearing in Banc

The appellee filed a petition for rehear-
ing with suggestion for rehearing in banc. No
member of the Court requested a poll on the
suggestion for rehearing in banc, and the
Original judicial panel voted to deny the

petition for rehearing.

The Court denies the petition for rehear-
ing with suggestion for rehearing in banc.

Entered at the direction of Judge Ervin,
with the concurrence of Judge Niemeyer and

Judge Restani.

For the Court,

LS/
Clerk

———EE7*~

SUPREME COURT OF THE UNITED STATES

No. A-295
Robert L. Holland,
Petitioner
Vv.

First Virginia Banks, Inc. and Donald Brennan

ORDER

UPON CONSIDERATION of the application of
counsel for the petitioner,

IT IS ORDERED, that the time for filing
a petition for a writ of certiorari in the

above-entitled case, be and the same is here-

by, extended to and including December 16,

1991.

/S/ William H. Rehnquist
Chief Justice of the
United States

| Dated this 29th
day of October, 1991.

D-1

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385017_1061%3A1. Public record. Not legal advice.
