# Opposition Brief — Dillard's Inc. v. Green (No. 07-260)

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Opposition Brief
- **Published:** January 1, 2007

## Text

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No. 07-260 oC 18 2107

IN THE b Ie Sabon tats Bose de

Supreme Court of the United States

DILLARD'S, INC.,
Petitioner,
v.
RODNEY GREEN and CHARLAN GREEN,
Respondents.

On PETITION FOR A WRIT OF CERTIORARI TO THE
UNITED STATES Court OF APPEALS
FOR THE EIGHTH CIRCUIT

ce
oA ne

BRIEF IN OPPOSITION

STEPHEN G. MIRAKIAN MELANIE S. MorGAN
Wyrscu, Hosss, & MIrAKIAN, PC. Counsel of Record

1000 Walnut, Suite 1600 CHERYL A. PILATE

Kansas City, MO 64106 Morean PILaTE LLC

(816) 221-0080 500 E. Santa Fe Drive, Suite A

Olathe, KS 66061

G. GORDON ATCHESON (913) 829-6336

THE ATCHESON Law OFFICE
4800 Rainbow Boulevard, Suite 6
Westwood, KS 66205

(913) 362-8650
Counsel for Respondents

213075 ce

COUNSEL PRESS
(800) 274-3321 » (800) 359-6859

i
QUESTIONS PRESENTED

1. Did the Eighth Circuit correctly hold that
Plaintiffs, an African American married couple, may
proceed to trial on their claims under 42 U.S.C. § 1981
against a department store for the intentionally
discriminatory actions of a store clerk where a jury could
find from the evidence that the store’s managers
negligently failed to take reasonable measures to curb
the clerk’s racially hostile propensities and continued to
place her on the sales floor, even though the managers
knew, or reasonably should have known, of the clerk’s
racial hostility?

2. Did the Eighth Circuit correctly hold, consistent
with other courts of appeal, that the protections of
42 U.S.C. § 1981 are triggered once a customer has made
a tangible attempt to contract by selecting a particular
item and taking specific steps to secure its purchase?

3. Did the Eighth Circuit correctly hold that
Plaintiffs may proceed to trial on their claims under
42 U.S.C. § 1981 where a jury could find that a store
clerk’s acts of “refusing service,” treating the customers
with “pronounced hostility,” interfering with another
clerk’s efforts to assist them and hurling an odious racial
epithet at them thwarted the customers’ efforts to
complete an ongoing transaction for the purchase of a
selected item?

il

TABLE OF CONTENTS

Page
QUESTIONS PRESENTED ................. i
py OR Ft ges ys re ii
TABLE OF CITED AUTHORITIES ......... iv
RESPONSE TO PETITIONER’S
STATEMENT OF THE CASE ............. 1
RESPONDENT’S STATEMENT OF THE
CE akuucuwcwdakoudessienvedvecdsacueeres 2
I. Introduction and Procedural History ... 2
II. Factual Background ................... 4

REASONS FOR DENYING THE PETITION .. 11
Ser TOES one dae hebcnccndecwounuteees 11

I. The Eighth Circuit Correctly Held that
Dillard’s May be Held Liable for the
Racist Verbal Assault of its Clerk When
the Store’s Managers Knew or Should
Have Known of the Clerk’s Hostile
Propensities Yet Failed to Take
Reasonable Measures to Curb the Clerk’s
Racially Offensive Conduct. ............ 13

iii

Contents
Page

II. The Eighth Circuit Correctly Held That
Plaintiffs May Proceed to Trial Where a
Jury Could Find that a Clerk’s Acts of
Refusing Service, Treating the Customers
with Hostility, and Hurling an Odious
Racial Epithet Thwarted the Customers’
Efforts to Complete an Ongoing Retail
0 er re rrr ry oer 28

NE. C0 Ab eveundineknccexaueep ans 33

iv

TABLE OF CITED AUTHORITIES

Page
Cases :
Aguirre v. Turner Const. Co., 501 F.8d 825

Ser NE dp us'dnuvsin cov sckrasecieeei 24
Arguello v. Conoco, Inc., 207 F.3d 803 (5" Cir.

ES PP PN eer PTR ee OR oe Sree 27
Arguello v. Conoco, Inc.,, 330 F.3d 355 (5" Cir.

Steet esky cinceroeeecbaseeakieeiane tes 28
Artuz v. Bennett, 531 U.S. 4(2000) ............ 22
Bagley v. Ameritech, 220 F.3d 518 (7" Cir. 2000)

Ucbcenaeauee cal ieee ss aua ese ce eee e eee 29, 31
Burlington Industries, Inc. v. Ellerth, 524 U.S.

Tc bigadde bevudauusnuareesiees 17, 18, 26
CIR. v. Lundy, 516 U.S. 235 (1996) ........... 22
Cox v. City of Dallas, Tex., 256 F.3d 281 (5" Cir.

ia a hci tathle rie a ek add aes ug 24
Daso v. The Grafton School, Inc., 181 F. Supp.2d

ED oi indo das neneves cane edur 30
Eddy v. Waffle House, Inc., 335 F. Supp.2d 693

See EE os vanes ocr chu denvenesens 19, 30-31

Garrett v. Tandy, 295 F.3d 94 (1* Cir. 2002) .... 28

Vv

Cited Authorities
Page
General Building Contractors Assn. v.
Pennsylvania, 458 U.S. 375 (1982) .......... 16, 17
Goodman v. Lukens Steel Co. , 482 U.S. 656 (1987)
mbshbdeussieh babene+edn ee taderes4sdnaeses 16
Green v. Dillard’s Inc., 483 F.3d 533 (8 Cir. 2007)
(eeu Wad Haden takers Gekdedevidenvereewes passim
Gregory v. Dillard’s, 494 F.3d 694 (8" Cir. 2007),
reh. granted (Sept. 20, 2007) ................ 29, 30
Hampton v. Dillard Dep’t Stores, 247 F.3d 1091
(10" Cir. 2001), cert. denied, 534 U.S. 1131
ey ee ar ie Co 8,9
Jones v. Alfred H. Mayer, Co.,392 U.S. 409(1968)
aa rs ee ole CI NR a eter 15
LaRoche v. Denny’s Inc., 62 F. Supp.2d 1375
(S.D. Fla. 1998) ......... peeawes ekteecuntes 19
McGinest v. GTE Service Corp., 360 F.3d 1103
Ee neces atakeckbauekn tues ea 30

Meyer v. Holley, 537 U.S. 280 (2003) ... 14, 15, 17, 23

Monell v. Dept. of Social Services of City of New
FOU, SHO UB. GEO (IGT) oo cccccscccvcciess 26

vi

Cited Authorities

Morris v. Office Max, Inc., 89 F.3d 411 (7 Cir.
PE cceckvdbudeculereebenbescunneiecassen

National Broiler Marketing Ass’n v. U.S.,
ee EU ach debedeascenvennecedes

New Castle County v. Halliburton NUS Corp.,
SED Fe BEI Ge BOO 6h decsdinrcevces

Runyon v. McCrary, 427 U.S. 160 (1976) .......

Solomon v. Waffle House, Inc., 365 F. Supp.2d
og ee ee re

Spriggs v. Diamond Auto Glass, 242 F.3d 179
Pre NES i Suse cucveuvaddewcekecuenus

Tcherepnin v. Knight, 389 U.S. 332 (1967) .....
United States v. Sisson, 399 U.S. 267 (1970) ...

United States v. One Parcel Of Land Located At
7326 Highway, Etc., 965 F.2d 311 (7" Cir. 1992)

oeseeeeeeveeneeeoe#eeeeeeeereeenereeeeeeeeeeeeeneeeeee

vil

Cited Authorities

Page
Statutes
Se Gs OE Nec ccncesaseeiecssunene passim
ge FoR 2. mE Dem na rpemter san 15, 25
Ue Vis Ge UA, BOO conn ceveernccees 25, 26, 27
Rule
Supreme Court Rule 10 ...................46. 13
Other Authorities
Cre Be GE OE BIE eva rascakateracccasec: 22
Merriam-Webster’s 11” Collegiate Dictionary

ED. sokevdvunweeesenaucesedeanaseeee 31:

Restatement (Second) of Agency § 219 . 17, 18,19, 24

W. Fletcher, 3 Corporations § 787 (1986) ....... 23

1

RESPONSE TO PETITIONER’S
STATEMENT OF THE CASE

Throughout its Petition, Dillard’s misrepresents the
factual record, repeatedly asserting as “facts” matters
that are in dispute and slanting the record improperly
in its own favor even though it was the party seeking
summary judgment below. Dillard’s misrepresentation
of the record is so pervasive that this Court could
ultimately dismiss the case, even after granting
certiorari, upon a careful review of the record. Facts
critical to this Court’s review of Dillard’s petition are
utterly absent in Dillard’s presentation. Moreover,
Dillard’s argues, in essence, that it cannot be held liable
under 42 U.S.C. § 1981 because Plaintiffs could have
continued shopping while being followed, harassed and
called “fucking niggers” by a sales clerk.

The problems with Dillard’s petition are evident
from the first page. Indeed, Dillard’s “Questions
Presented” rest on factual assumptions that are very
much in dispute. For instance, whether the hostile store
clerk’s actions were “unauthorized” or “unprecedented”
is a disputed issue (with the weight of the evidence
favoring the Greens), yet Dillard’s tosses in this assertion
as if it were an established “fact.”

Because this case has not yet reached the courtroom,
the factual record is not fully developed. The incomplete
and slanted facts presented by Dillard’s do not properly
represent the summary judgment record and do not
adhere to the principle of viewing the facts in the light
most favorable to the non-moving party. Simply put,
Dillard’s cannot rewrite the factual record in a self-

2

serving manner. Disputed factual questions must be
decided by the trier of fact.

Dillard’s also asserts, incorrectly, that the opinion
of the Eighth Circuit in Green is “contrary” to decisions
by the First, Fifth and Seventh Circuits. As discussed
below, all of those decisions are narrow and fact-bound,
and present very different scenarios from that presented
in Green. Further, the settled law applied in those cases
is no different from the law applied in the present case.
Thus, there is no circuit split and no reason to grant
certiorari.

RESPONDENT’S STATEMENT OF THE CASE
I. Introduction and Procedural History

This case addresses whether a federal civil rights
statute, 42 U.S.C. § 1981, protects the right of African
American citizens to make a retail contract on the same
terms and conditions as white citizens. Rodney and
Charlan Green suffered a direct racial attack in the midst
of an ongoing retail transaction. While attempting to buy
a watch that Mrs. Green-had selected, a sales clerk who
had been harassing the Greens called them “f*****g
n*****s” before stalking off. Mr. and Mrs. Green,
humiliated and stunned by the racist abuse, were unable
to continue shopping, and the watch purchase was never
completed.

In August 2004, the Greens filed their Complaint
against Dillard’s, alleging that Dillard’s had violated
their right as African Americans to make and enforce a
contract, as guaranteed by 42 U.S.C. § 1981. The case

3

proceeded through discovery, and on March 22, 2006, the
district court granted Dillard’s motion for summary
judgment, holding that Plaintiffs had not presented
evidence they had been denied an “actual contract”
because they could have continued shopping despite
being assaulted with a racial slur. (See Petitioner’s App.
A-17, A-81).

The Greens appealed to the Eighth Circuit, which
issued a unanimous opinion on April 5, 2007, reversing
the district court. Green v. Dillard’s Inc., 483 F.3d 533
(8" Cir. 2007) (Petitioner’s App. 1). The Eighth Circuit
held that because the Greens were in the midst of a
contractual transaction when the clerk’s racist abuse
culminated in the hurling of the epithet, that the Greens
had produced evidence from which a jury could find that
the clerk’s conduct had “thwarted their attempt to make
and close a contract with Dillard’s....” Green, 483 F.3d
at 539. c

Addressing next the issue of whether Dillard’s could
be held liable for the discriminatory actions of its
employee, the Eighth Circuit held, based on the record,
that Plaintiffs had presented sufficient evidence to allow
a jury to conclude that Dillard’s lacked procedures to
remedy discrimination toward customers and had failed
to address the racially hostile propensities of the clerk
who had harassed the Greens, even though store
managers knew, or should have known, of those
propensities. Green, 483 F.3d at 540-41.

Dillard’s subsequently filed a Petition for Rehearing
en banc, which was denied by the Court of Appeals.

II. Factual Background

Dillard’s factual statement omits many critical facts.
Rather than attempting a line-by-line critique, the
Greens instead provide a succinct factual summary,
largely drawn from the Eighth Circuit’s opinion.

On August 11, 2002, Rodney and Charlan Green went
to the Dillard’s store in the Metro North Mall in Kansas
City, Missouri, to buy a purse, watch and other
accessories for Mrs. Green. Green, 483 F.3d at 534. They
headed directly to the watch counter, where they looked
at fine watches displayed in a locked case. Jd. After
Mrs. Green selected the watch she wanted, she sought
assistance from a nearby sales clerk. The clerk, Linda
McCrary, stood leaning against a wall with her arms
folded. When Mrs. Green asked her for help McCrary
said “No,” and did not budge from her position. Jd.

The Greens, stunned by the clerk’s refusal, turned
to leave the store. Jd. As they were about to walk out,
another clerk, Veronica Aguero, told the Greens that she
would help them when she finished with another
customer. The Greens then walked over to the nearby
purse counter, as Charlan Green also was interested in
a purse. Although McCrary was still nearby, she made
no move to help the Greens.

When Aguero came over to the purse counter to
assist the Greens, McCrary followed. She stood near the
register with her arms crossed and glared at the Greens
while they looked at the handbags. With Aguero’s help,
Mrs. Green selected a purse, matching wallet and key
chain. Jd. When McCrary saw what the Greens were

5

going to buy, she loudly complained: “Are they getting
all that? How are they paying for it?” Jd. Embarrassed
by McCrary’s outburst, Mr. Green nonetheless wrote a
check to Dillard’s for $555.62 to pay for the items. Jd.
Aguero asked for identification, then rang up the sale.

Throughout this entire time, McCrary continued to
stare at the Greens and mutter under her breath. /d.
Feeling increasingly uncomfortable, Mr. Green said to
McCrary: “Ma’am, there’s other people, can you help
somebody else?” McCrary, continuing her hostile glare,
said “I can, but I’m not.” Mr. Green then asked —
if she could call a store manager. /d.

After putting the Greens’ purchases in a bag, Aguero
asked the Greens if there was anything else they wanted
to buy. Mrs. Green said that yes, she wanted “to get the
watch” that she had selected. Jd. at 535, 539. While
Aguero and Mrs. Green walked back to the watch
counter, Mr. Green remained behind. McCrary continued
to stare with an “even more intent” hostile expression
on her face. Believing that he was being viewed as a thief,
Mr. Green pulled out his identification and credit cards
to persuade McCrary he was a bona fide customer. He
told her, “Ma’am, I don’t need to steal anything. I can
buy anything in the store I like. I have four platinum
cards here.” He also added that he was a police officer
and showed her his police I.D. card. Jd. at 535.

McCrary looked at the counter where Mr. Green had
laid out the cards and said, “Platinum, Huh.” Then she
stepped away and said, “f*****g n*****s!” before
stalking off. Id.

6

Although Aguero and Mrs. Green had earlier headed
toward the watch counter, they had returned to the purse
area when Aguero realized she had left behind the key
to the locked display case. They walked up just as
McCrary hurled the racist epithet, and both Mrs. Green
and Aguero heard McCrary’s words. /d. Mr. Green felt
as if he had been assaulted after “being called the most
heinous name in the world.” Mrs. Green felt stunned and
humiliated by McCrary’s words and conduct. Jd. Aguero
apologized and told the Greens that McCrary had been
disciplined “for this” before. Jd.

Just after McCrary stalked off, sales manager
Amanda Andreasen arrived. Mr. Green informed her
what had happened and reported what McCrary had
said. Andreasen apologized and told the Greens that
McCrary had had problems “with this before.” Jd. at 536.
While Andreasen and the Greens were talking,
Andreasen received a phone call. As she listened to the
caller, her face turned red and tears came to her eyes.
After hanging up, she told the Greens, “that was one of
the customers that overheard what was said.” Jd. at 536.

The Greens were so embarrassed and upset by the
incident that they could not complete their intended
purchase of the watch Mrs. Green had selected.
Mr. Green told Andreasen they wanted their check
returned as they did not want the purse and other items.
Andreasen returned their check, and the Greens left the
store. Id.

The next day, the assistant store manager, Anita
Harrold, fired McCrary. A report filled out by Andreasen
stated that McCrary had been “muttering comments

7

about the customer” and was “rolling her eyes and
making undertones of some prejudice [sic] remark.” Jd.

Two days later, store manager David Bousum spoke
to the Greens on the phone about the incident. He told
them that McCrary had been disciplined “for this before”
and that she had just been terminated. He offered the
Greens a 20% discount on their next purchase, which
they declined. He also sent a letter of apology.

When complaining about McCrary’s racial hostility,
the Greens were told a total of three times (by Aguero,
Andersen and Bousum) that McCrary had been
disciplined “for this” before. When Plaintiffs received
the discovery in this case, the documents from
McCrary’s personnel file confirmed that, in the five
months that she had worked at Dillard’s, she had been
disciplined on three or more occasions for rude or hostile
conduct. Jd. at 536. Dillard’s did not record in McCrary’s
file or anywhere else the race of the customers who had
compiained, however. Jd. Nothing in McCrary’s file
suggested she ever received any remedial training or
supervision after these incidents. (Appellant’s 8" Cir.
App. 905-06). McCrary’s employment application at
Dillard’s had listed two previous employers. After 11
years in a corporate position at AT&T that paid $40,000,
McCrary stated she lost her job due to “downsizing” and
then worked for two months at K-Mart as a shelf stocker
for $8.50/hour. McCrary’s unusual employment history
did not raise any questions at Dillard’s. Green, 483 F.3d
at 536. ,

During deposition testimony, store manager Bousum
was asked about an earlier lawsuit against a nearby

8

Dillard’s store in Oak Park Mall that had resulted in a
$1.1 million jury verdict ($1 million of which was for
punitive damages) in favor of an African American
customer who had been surveilled, searched and
deterred from redeeming a coupon for a fragrance
sample. Hampton v. Dillard Dep't Stores, 247 F.3d 1091
(10 Cir. 2001), cert. denied, 534 U.S. 1131 (2002) The
Hampton verdict was affirmed on appeal in 2001, and
this Court denied certiorari in February 2002 — just six
months before the Greens encountered McCrary at the
Metro North Dillard’s store (which, like the Oak Park
store, is in the Kansas City metropolitan area).

In Hampton, the Tenth Circuit noted that Plaintiff
had presented “ample evidence” of discrimination. The
evidence showed that African Americans were “tracked”
upon entering the store; that Dillard’s implemented race
“codes” that highlighted African American shoppers as
suspicious; and that African American shoppers were
singled out as “suspicious” for returning merchandise
without a receipt or for moving between departments
while carrying merchandise. Hampton, 247 F.3d at 1109.

Based on Hampton, it is clear that Dillard’s cannot
credibly assert that McCrary’s conduct was
“unprecedented,” as it claimed in its Questions
Presented. Indeed, the Hampton case caused a
substantial stir in the Kansas City area and even
spawned the creation of an ad hoc group, the Community
Redress Committee, which aimed to bring about positive
change in Dillard’s relations with minority customers,
both locally and nationally. (Appellant’s 8“ Cir. App. 1240-
48).

9

Although Dillard’s general counsel, Paul Schroeder,
traveled to Kansas City to meet with community leaders
regarding their concerns, he could not specify any steps
he had taken to prevent discrimination against minority
customers. Green, 483 F.3d at 537. Store manager David
Bousum apparently was not informed of Schroeder’s
efforts, as he testified that he only heard about the
Hampton case from media reports. /d.

In the late 1990s, when Bousum was working at
another Dillard’s store in the Kansas City area, he was
supervised by former district manager Richard Eagan.
Bousum admitted that he had heard Eagan refer to a
black employee as a “n****r” but could not recall his
reaction to Eagan’s use of that epithet. Nothing in
Dillard’s policies required Bousum to report or bring to
anyone’s attention Eagan’s use of the “N” word, and
Eagan’s use of the term “n****r” did not, in Bousum’s
estimation, suggest anything about Eagan’s racial
attitudes. (Appellant’s 8" Cir. App. 1384, 1413). When
asked whether Eagan’s use of the term “n****r” to refer
to an employee made him question whether Eagan
should have been in a management position, Bousum
testified, “sitting here right now, I don’t believe it would.”
Green, 483 F.3d at 537.

Bousum testified that Dillard’s did not have an anti-
discrimination policy directed specifically toward the
treatment of customers. (Appellant’s 8" Cir. A»p. 1448,
1444). The anti-harassment policy primarily concerns
relations among employees and defines harassment as
“any annoying persistent act or actions... .” (/d. at 997,
876-77) (emphasis added). Bousum could not state
whether the policy would apply to a one-time racial slur

10

against a customer. (/d. at 1414, 940-41, 954-55). General
counsel Schroeder also said he did not know the answer
to that question, and further, did not know what training
was available to store managers to assist them in
applying the policy or how an investigation under the
policy or discipline of an offender would or should be
conducted. Green, 483 F.3d at 537. When asked whether
Dillard’s had any policy for investigating customer
complaints of racial discrimination, Schroeder said, “I
don’t know the answer to that.” (Appellant’s 8 Cir. App.
950).

Schroeder also testified that he was not aware of any
policy requiring that customer complaints be
documented or maintained for any period of time.
Green, 483 F.3d at 537. Bousum testified that he had no
system for keeping track of customer complaints; he
stated that he puts complaints and his responses to them
in a file that he empties and discards every three to six
months. Jd. at 5387. Each Dillard’s store was supposed to
provide “customer comment” cards for customers to fill
out with their complaints or concerns. Although
Andersen testified that associates received training on
how to handle customer complaints, Aguero testified that
she received no training on how to handle customer
complaints and was never given comment cards to hand
out to customers. /d. Assistant manager Harrold could
not recall any meetings among managers about
responding to customer complaints. /d.

Dillard’s anti-discrimination training is limited to a
one-hour videotape shown during orientation. Jd. at 537.
The videotape addresses the topic of minority customers,
but pairs that topic with training on security and

11

shoplifting. 7d. Although a training checklist is supposed
to verify that each new hire views the film, the checklists
are often not properly filled out and check marks are
missing. (Appellant’s 8" Cir. App. 1031-1077).

Although Bousum supervises training at the store,
he could not recall any training on customer relations
he had ever received in his nearly 20 years at Dillard’s
other than reviewing the anti-harassment policy and
viewing the training videotape. (/d. at 1386-87). Bousum
stated he had received no training in race discrimination
issues and could not recall a single discussion with any
supervisor about any issues related to racial
discrimination or diversity. (/d. at 1388, 1436-48, 1458,
1490). 7

REASONS FOR DENYING THE PETITION

Introduction

Dillard’s, Inc. presents a collection of legal
misstatements, corporate hand-wringing, and
incorrectly claims a circuit split in an effort to convince
this Court to grant certiorari in a fact-intensive § 1981
case in which the Kighth Circuit reversed summary
judgment and remanded for trial on the Greens’ claims
that a sales clerk at the company’s Metro North Kansas
City store not only refused them service but also called
them “fucking niggers,” unleashing upon the African
American couple a singularly offensive racial epithet.

In posing the first question for review, Dillard’s
essentially asks this Court to abandon its settled
authority recognizing that traditional agency principles

12

govern liability under tort-like statutes, such as § 1981.
The second question incorrectly suggests a circuit split
in the guise of asking this Court to reevaluate the factual
record compiled below on summary judgment. Based on
that record, the decision to remand for trial comports
with settled law and other circuit opinions applying §
1981 to retail transactions. Neither question advances a
sound basis for granting the petition.

Trimmed to its core, Dillard’s first argument really
seeks an amendment of § 1981 to afford special
protections to merchants and demands that this Court
forsake traditional agency law in retail transactions
within the scope of that civil rights legislation. Dillard’s
advances no good reason for such dispensation.
Moreover, as detailed later, the company’s history
reflects a distinct insensitivity to racial fairness. Given
what Dillard’s ultimately wants, it should be lobbying in
a legislative forum, not arguing in a judicial one. It is
not this Court’s business to rewrite statutes, especially
to accommodate the interests of a corporation facing civil
liability. National Broiler Marketing Ass’n v. U.S., 436
U.S. 816, 822 (1978) (“[A] statute ‘is not an empty vessel
into which this Court is free to pour a vintage that we
think better suits present-day tastes.’”) (quoting U.S. v.
Sisson, 399 U.S. 267, 297 (1970)).

The second issue fabricates a division among the
circuits when none exists on the facts of this case. The
circuit decisions typically deny relief under § 1981 when
amerchant’s actions alleged to be wrongful occur either
before or after a sales transaction — as when the shopper
is simply browsing — or has fully completed a purchase
and is leaving the store. The facts here show that the

13

Greens had tendered a check for the purchase of a purse
and related items and were in the midst of making a
second purchase (of a fine watch at the accessories
counter) when the offending sales clerk taunted them
with the racial slur, thereby interrupting the transaction.
As such, the facts fit well within the realm of retail-
transaction cases.

This Court declines to entertain fact-specific
questions simply because one side or the other is
dissatisfied with a circuit ruling. See Sup. Ct. Rule 10.
The petition should be denied, and this case should be
allowed to proceed to trial. If, upon a factual record fully
developed at trial, this case presents a legal issue of such
gravity as to warrant review here, the Court could take
the case at that time and in that posture.

In short, Dillard’s petition presents neither a well-
founded legal basis for certiorari nor seeks an
appropriate judicial remedy. ,

I. The Eighth Circuit Correctly Held that Dillard’s
May be Held Liable for the Racist Verbal Assault
of its Clerk When the Store’s Managers Knew or
Should Have Known of the Clerk’s Hostile
Propensities Yet Failed to Take Reasonable
Measures to Curb the Clerk’s Racially Offensive
Conduct.

The company misconstrues settled law to avoid
facing a jury on facts showing that a Dillard’s sales clerk
— one of its agents, acting within the scope of that
agency — refused service to the Greens and then
harassed and verbally assaulted them. In addition to

14

calling them “f*****g n*****s,” the clerk also suggested
that a co-worker should not accept the check Rodney
Green presented to pay for a designer purse his wife
had chosen. Shocked and humiliated by the clerk’s
hostility and use of the most odious racial epithet, the
Greens felt unable to complete the purchase of the watch
that Mrs. Green had picked out to complement the
handbag. Mr. Green also requested the return of his
check, terminated his part of their transaction, and
lodged a complaint with a supervisor.

For purposes of review here, there is no real question
that the clerk’s behavior displayed intentional racial
animus and interfered with the Greens’ ability to enter
into a contract. The clerk’s refusal to assist the Greens
in making a purchase coupled with her continuing
harassment and use of an extraordinarily vicious racial
slur illustrates precisely the sort of conduct at which
§ 1981 is aimed. The Court of Appeals so held.
See Petitioner’s App. A-1. The issue Dillard’s presents
here is one of agency: Can the clerk’s conduct be imputed
or otherwise attributed to the company as her employer?
The answer is well settled and presents neither a circuit-
split nor an important, wnresolved issue. The general
law of agency, which fully informs the federal common
law, furnishes ample basis for imposing liability on
Dillard’s.

This Court recently recognized that “when Congress
creates a tort action, it legislates against a legal
background of ordinary tort-related vicarious liability
rules and consequently intends its legislation to
incorporate those rules.” Meyer v. Holley, 537 U.S. 280,
285 (2003) (construing liability principles under the Fair

15

Housing Act, 42 U.S.C. § 3601, et seq.). The Holley
decision further noted that under those agency rules,
an employer may be liable for the negligent or intentional
acts of its employee committed within the scope of that
employment. 7d. This Court characterized the
proposition as an established aspect of “traditional
vicarious liability rules.” /d.

Either to avert the application of those principles or
because of inadequate analysis, Dillard’s repeatedly
mischaracterizes § 1981 as being based on contract law.
See, e.g.,Petition at 17 (“this case should be strictly
decided on contract principles”); id. at 19 (“Section 1981
is based on principles of contract.”). That, of course, is
wholly inaccurate. Section 1981 codified a series of civil
rights intended to require the equal treatment of freed
slaves and their descendants. As such, the statute
protects personal rights, and a violation is in the nature
of a traditional tort.

In the aftermath of the Civil War, Congress passed
§ 1981, along with 42 U.S.C. §§ 1982 and 1983, to |
implement the Thirteenth Amendment’s ban on slavery
and the Fourteenth Amendment’s guarantee of equal
protection and due process in the application of state
law. Runyon v. McCrary, 427 U.S. 160, 170 (1976); Jones
v. Alfred H. Mayer, Co., 392 U.S. 409, 423-37 (1968)
(tracing enactment of civil rights legislation following
ratification of the Thirteenth Amendment and re-
enactment after later ratification of the Fourteenth
Amendment). Those statutes were intended to eradicate
the “badges and the incidents of slavery,” thereby
“translat[ing] that determination [of the Thirteenth
Amendment] into effective legislation.” Runyon, 427
U.S. at 170.

16

Section 1981 prohibits race-based distinctions in the
~ application of a broad array of rights including the
making and enforcement of contracts. The other rights
include: (1) To sue or be a party to litigation; (2) to give
evidence or testify; (3) to the benefit of laws and
proceedings securing persons or property equal to that
enjoyed by “white citizens;” and (3) to equal taxes,
licenses, penalties and punishments imposed under law. _
Those provisions were intended, in part, to negate the
so-called Black Codes prevalent in the Reconstruction
Era South. The race codes typically divested freed slaves
and others of African ancestry of basic access to the
courts in civil disputes and imposed disproportionately
harsh criminal sanctions, taxes or licensing requirements
on them. See generally General Building Contractors
Assn. v. Pennsylvania, 458 U.S. 375, 386 (1982)
(discussing the civil rights legislation as an antidote to
the codes).'

While § 1981 protects the right to contract, the
statute constitutes a civil rights enactment that this
Court has declared to be tort-like insofar as it preserves
personal freedoms. In Goodman v. Lukens Steel Co., 482
U.S. 656, 661-62 (1987), this Court held that the
limitations period for § 1981 claims should be drawn from
a state’s statute governing personal injury actions
precisely because § 1981 redresses “a fundamental injury
to the individual rights of a person” and, thus, protects
much more than contractual rights. Dillard’s incorrectly
portrays § 1981 as if it protects rights created by contract

1. With the end to de jure segregation and racial
discrimination, those provisions of § 1981 have relatively slight
application today.

17

rather than a civil right to make and enforce contracts
without any limitation because of race.

There is nothing unusual in applying general agency
principles to liability issues under civil rights legislation.
This Court recognizes that very proposition in Meyer.
And this case fits very comfortably within the holding
of Meyer. Cf General Building Contractors Assn. v.
Pennsylvania, 458 U.S. 375, 404 (1982) (O’Connor, J.,
concurring) (on remand plaintiffs may attempt to
establish liability in their § 1981 action by “prov[ing] the
traditional elements of respondeat superior.”). In Meyer,
537 U.S. at 285-86, this Court catalogued various sources
which outline the applicable agency principles in tort-
like civil rights actions. Those sources include the
discussion in Burlington Industries, Inc. v. Ellerth, 524
U.S. 742, 756-59 (1998), and in Restatement (Second) of
Agency § 219 (1957). Those doctrines clearly would
permit the imposition of liability on Dillard’s for the sales
clerk’s conduct in this case.

Agency law imputes the conduct of an agent to a
corporate principal if the agent believes her actions
advance the corporation’s interests even if the actions
had been prohibited. Hllerth, 524 U.S. at 756. In that
instance, the agent would be deemed to act within the
scope of her duties, zd., and liability would attach to the
principal. Here, the facts suggest the sales clerk was
concerned about the Greens’ ability to pay. Thus, her
interference in their purchases could be viewed as
advancing Dillard’s interests in preventing the sale of
merchandise to deadbeat customers tendering worthless
checks in payment. The sales clerk, of course, chose to
exercise her oversight with extreme racial hostility.

18

Moreover, traditional agency rules also hold a
principal liable for actions of an agent falling outside the
scope of employment in some limited circumstances.
Id. at 758. The Ellerth Court quotes the “much-cited”
§ 219(2) of the Restatement as d measured explication
of the doctrine. /d. In § 219, the Restatement outlines
the grounds for imposing liability on a principal when
the agent acts outside the scope of her employment:

(2) A master is not subject to liability for the
torts of his servants acting outside the scope
of their employment, unless: (a) the master
intended the conduct or the consequences, or
(b) the master was negligent or reckless, or
(c) the conduct violated a non-delegable duty
of the master, or (d) the servant purported to
act or to speak on behalf of the principal and
there was reliance upon apparent authority,
or he was aided in accomplishing the tort by
the existence of the agency relation.

Subsections (b) and (d) are of particular significance
here. Under subsection (d), an employer may be held
liable for intentional conduct of an agent when the agency
relationship itself facilitated that conduct. That
subsection applies here. The sales clerk was placed in a
position to verbally abuse African American customers
of Dillard’s precisely because of her duties with the
company. This was not a case in which a shipping clerk
or custodian — employees who typically would not have
had direct contact with customers — departed from their
usual duties to accost a shopper. Rather, Dillard’s sales
representatives are on the store floor for the specific
purpose of engaging and assisting customers. The lower

19

courts have consistently applied those principles to hold
commercial enterprises liable for the racial epithets or
other racially discriminatory conduct their agents may
direct at customers. See, e.g., Solomon v. Waffle House,
Inc., 365 F. Supp.2d 1312, 1328-29 (N.D. Ga. 2004)
(conduct of waiter in providing little or no service to
African American custome. 3 imputed to employer under
general agency principles); Eddy v. Waffle House, Inc.,
335 F. Supp.2d 693, 697, 701 (D. S.C. 2004) (waitress’s
actions in telling African American entering restaurant
that “we don’t serve niggers here” properly imputed to
employer, since she worked in a “service capacity” at
the time the remarks were made; summary judgment
denied on § 1981 claim); LaRoche v. Denny’s Inc.,
62 F. Supp.2d 1375, 1383 n.14 (S.D. Fla. 1999) (conduct
imputed to employer under aided-by-the-agency-
relationship subsection of Restatement).

Similarly, under subsection (b), the agent’s conduct
can be attributed to the employer if that employer has
been negligently or recklessly indifferent regarding the
occurrence giving rise to the injury. Here, again,
Dillard’s can and should be held accountable for the sales
representative’s deplorable treatment of the Greens on
that basis.

The record evidence would support a finding that
Dillard’s offered ineffective or inadequate training on
racial issues, had few or no policies applicable to racial
discrimination, and failed to track or document customer
complaints. In the company’s standard training, the topic
of discrimination against customers was addressed only
briefly, and in conjunction with loss prevention, i.e.,
shoplifting, thus tying “fair” treatment of minority

20

shoppers directly to information on deterring theft.
Moreover, Dillard’s kept no records on complaints and
had no system for spotting employees who repeatedly
demeaned minority customers. The complaint records
routinely contained no notations of the specific nature
of the purportedly offensive conduct — a methodology
that prevented Dillard’s from identifying racially
intolerant employees. Moreover, complaints were “kept”
in a file that the store manager emptied every three to
six months. During his more than 20 years with Dillard’s,
store manager Bousum could not recall a single
discussion with any supervisor about any issues related
to racial discrimination or diversity. When asked about
his supervisor’s use of the “N” word, Bousum said his
boss’s use of the term did not suggest anything about
his boss’s racial attitudes and did not suggest unfitness
for a management position.

Dillard’s general counsel, Schroeder, stated that he
did not know whether Dillard’s anti-harassment policy
would apply to a racial slur against a customer, and
further, did not know what training was available to store
managers to assist them in applying the policy or how
an investigation under the policy would or should be
conducted. When asked whether Dillard’s had any policy
for investigating customer complaints of racial
discrimination, Schroeder said, “I don’t know the answer
to that.”

Dillard’s failure to adequately document and police
the conduct of its employees for racially offensive
remarks or behavior is enough to impose liability under
§ 1981. The inevitable consequence of that kind of refusal
to track racial incidents involving the company’s

21

workforce is precisely what happened here. Sales clerk
McCrary had been cautioned before about offensive
remarks toward customers. But the company managers °
deliberately refused to note the nature and context of
those remarks and, therefore, could not track any
pattern of racial incidents. Their repeated statements
that McCrary had been disciplined in the past “for this”
indicates that the prior incidents were racial in nature.
Consequently, the type of incident that occurred with
the Greens was entirely predictable. The scant evidence
that was documented in McCrary’s personnel file
certainly supports this conclusion — the other incidents
involved a customer challenged about writing a check
and another customer attempting to purchase-an
expensive item.

The Court of Appeals relied largely on the latter
approach in its opinion. Petitioner’s App. at A-1. The
Eighth Circuit’s decision rested on sound agency
principles applied to the evidence taken in the light most
favorable to the Greens, as required on review of the
summary judgment entered against them. Having so
considered the law and the record, the Court of Appeals
reversed and remanded for trial. There is nothing
untoward or even especially remarkable in that analysis
or result. The Court of Appeals followed settled
precedent in finding sufficient grounds to hold that a
jury could ascribe liability to Dillard’s for the conduct
of its agent. Nothing in that determination suggests or
warrants review here.

Dillard’s wants this Court to recast § 1981 to curtail
the application of traditional agency principles to retail
transactions coming within that remedial statute. Such
a function, however, rests with Congress not the

22

judiciary. Artuz v. Bennett, 531 U.S. 4, 10 (2000) (“{I]t is
not the province of this Court to rewrite the statute to
accommodate” even meritorious policy arguments.);
CIR. v. Lundy, 516 U.S. 235, 353 (1996) (The Court is
“not at liberty” to rewrite a statute simply because it
might be “susceptible of improvement.”). The Court
should be especially reticent to limit the reach of
remedial legislation. Tcherepnin v. Knight, 389 U.S. 332,
‘336 (1967). That is all the more true with § 1981, since
Congress obviously intended the statute to be broadly
applied, as reflected in the amendments adopted as part
of the Civil Rights Act of 1991.

Dillard’s sets up a series of misguided arguments in
an effort to gull this Court into granting the petition on
the agency issue. Those arguments may be readily
dispatched:

¢ Dillard’s repeatedly notes that § 1981 requires
proof of purposeful or intentional conduct to create
liability. (Petition at 8-9). In turn, the company argues
that the record fails to demonstrate some corporate
“intent” to engage in prohibited racial discrimination.
But that argument misconstrues the law. Here, there is
no question that the sale clerk’s conduct was both
intentional and laced with venomous racial animus. And
the evidence shows that her conduct impaired the
Greens’ ability to contract with Dillard’s. The Court of
Appeals gleaned those facts from the summary judgment
record. In turn, those facts would be sufficient to support
a violation of § 1981.

23

But Dillard’s argues that it cannot be held liable or
accountable for that violation committed by its employee
because it harbored no corporate intent to discriminate.
Vicarious liability, however, does not require a finding
of “corporate intent.” Indeed, a corporation is a legal
fiction that cannot form an intent; rather, it acts through
and reflects the intent of its agents. The Seventh Circuit
succinctly stated this basic principal in U.S. v. One Parcel
Of Land Located At 7326 Highway, Etc., 965 F.2d 311,
316 (7 Cir. 1992) (citing W. Fletcher, 3 Corporations »
§ 787 (1986)):

As a legal fiction, a corporation cannot “know”
like an individual “knows.” We treat -
corporations as separate legal entities and
enable them to own property and enter
contracts by relying on agency precepts. A
corporation and its agents relate to one
another like a principal to its agents. A
corporation acts through its agents. Similarly,

a corporation “knows” through its agents.

Dillard’s argument on this point rests on an utterly
mistaken characterization of corporate liability.

¢ Dillard’s argues that the decision of the Court of
Appeals imposes strict liability for § 1981 violations.
(Petition at 10). But Dillard’s argument confuses strict
liability and vicarious liability under traditional agency
and tort principles. They are different concepts. This
Court noted the distinction in Holley, 537 U.S. at 286.
The Court rejected the Ninth Circuit’s view that the Fair
Housing Act would impose personal liability on corporate
officers merely because they had the authority to control

24

the conduct of the corporation’s employees. Rather, the
Court applied traditional agency principles to find the
corporation could be held responsible in those
circumstances in which the agent acted within the scope
of her duties or the limited circumstances outlined in
Restatement (Second) of Agency § 219 if she acted
outside those duties.

Here, the Court of Appeals hewed to traditional
agency principles in finding sufficient evidence from
which a jury could impose liability on Dillard’s for the
conduct of the offending sales clerk. (Petitioner’s App.
at A-12 - A-16). Clearly, this is a matter of vicarious
liability imposing responsibility on Dillard’s as the
master for the wrongful conduct of its servant. Direct
liability, of course, imposes responsibility on a party for
its own acts, as opposed to the acts of others imputed
through agency principles. Aguirre v. Turner Const. Co.,
501 F.3d 825 (7" Cir. 2007).

Strict liability, in contrast, creates direct liability or
responsibility (as opposed to vicarious liability) without
a finding of negligence, intentionally wrongful conduct,
or any other fault. Cox v. City of Dallas, Tex., 256 F.3d
281, 289-90 & n.16 (5 Cir. 2001) (discussing strict
liability); New Castle County v. Halliburton NUS Corp.,
111 F.3d 1116, 1120-21 (3™ Cir. 1997) (same).That is, the
party is held accountable under the law for an occurrence
without a finding of any form of wrongful conduct. Strict
liability is not a rule of agency law, but of tort law.

In addition to finding evidence to support the
vicarious liability of Dillard’s, the Court of Appeals also
concluded a jury could hold Dillard’s directly liable based

25

on reckless conduct in failing to monitor adequately the
sales clerk’s work, which included at least two previous
customer complaints. (Petitioner’s App. A-14 - A-15). As
a matter of practice, Dillard’s managers declined to
record the race of the complaining customers or whether
the clerk’s objectionable conduct had racial overtones.

Either finding of Court of Appeals — that the record
would support vicarious liability under agency principles
or would support direct liability — more than adequately
warrants the reversal of summary judgment and remand
for trial. The Eighth Circuit’s decision, however, neither
relies upon nor implicates a form of strict liability or
legal responsibility without fault. At trial, the jury
presumably will be instructed on vicarious liability and
direct liability and could return a verdict for Dillard’s if
the clerk acted outside her duties and was not aided in
the manner outlined in the Restatement or if Dillard’s
employee training and monitoring were found to be
adequate. Further, the jury should not be instructed to
find corporate liability merely upon a finding that the
Greens were racially insulted by a Dillard’s employee
while trying to make a purchase. That would be strict
liability. In sum, the appellate decision does not create a
rule of strict liability under § 1981.

¢ Dillard’s incorrectly cites to Title VII, 42 U.S.C.,
2000e, and 42 U.S.C. § 1983 as providing apt sources for
agency law to be applied to retail transactions under
§ 1981. (Petition at 12-15). The premise is erroneous.

The analogy to liability under § 1983 is faulty because
that statute creates direct liability for government
entities that, as a matter of policy or custom, “cause” a

26

person to be deprived of a federally protected right.
Thus, the statutory language itself precludes vicarious
or respondeat superior liability. See Monell v. Dept. of
Social Services of City of New York, 436 U.S. 658, 691-
92, 694 (1978). There is no comparable language in § 1981
and no reason to suppose Congress intended to curtail
or eliminate vicarious liability for private actors.

In Ellerth, 524 U.S. at 764-65, the Court recognized
that traditional agency principles imposing liability on
employers should be modified to effect several well-
defined public policies furthering the goals of Title VII.
For example, limiting liability for unlawful workplace
harassment when an employer adopts and enforces a
strong anti-discrimination policy encourages that sort
of preventative action. Jd. Title VII, however, addresses
employer-employee relationships and the promotion
discrimination-free workplaces.’ In employment cases,
this Court has recognized that § 1981 should dovetail
with Title VII to promote those goals.

Section 1981, however, addresses a different
constellation of policies and goals in the context of retail
transactions. The statute is aimed at eliminating the
“badges of slavery” by requiring merchants to deal
evenhandedly with customers regardless of their race.
Unlike employment relationships, however, retail

2. One of the overarching policies behind Title VII is
preservation of the work relationship because uninterrupted
employment is vitally important to most people. To that end,
Title VII requires prompt filing of charges of discrimination and
encourages the Equal Employment Opportunity Commission to
actively intercede to resolve charges when possible. Similar
considerations do not come into play in retail transactions.

27

transactions tend to be fairy transitory, and § 1981 does
not aim to preserve buyer-seller relationships at the
expense of imposing liability for otherwise wrongful
conduct. As the Fifth Circuit noted in Arguello v. Conoco,
Inc., 207 F.8d 803 (5“ Cir. 2000) (Argwello J), the
supervisory status of the discriminating employee is
“much less relevant than it is in an employment
discrimination case.” Jd. at 810. Indeed, in a public
accommodation case under § 1981, a rule that only actions
by supervisors may be imputed to the company would
result, in most cases, in a “no liability” rule because,
unlike in an employment context, “it is rare that in a
public accommodation setting a consumer willbe
mistreated by a manager or supervisor. Most consumer
encounters are between consumers and clerks who are
non-supervisory employees.” Jd.

As Arguello I states, there is no reason to conclude
the more limited rules of vicarious liability applicable
under Title VII should be imported to § 1981 or would
appreciably further the goals of § 1981 in retail
transaction cases. Moreover, the prerogative for such a
radical change in statutory purpose or operation
ultimately rests with Congress.

28

II. The Eighth Circuit Correctly Held That Plaintiffs
May Proceed to Trial Where a Jury Could Find
that a Clerk’s Acts of Refusing Service, Treating
the Customers with Hostility, and Hurling an
Odious Racial Epithet Thwarted the Customers’
Efforts to Complete an Ongoing Retail
Transaction.

Dillard’s incorrectly posits that the Court of Appeals’
decision here.conflicts with § 1981 cases in other circuits
finding no liability in various retail settings. But the
company’s argument disregards legally significant
factual differences between this case, on the one hand,
and those cases, on the other. All of these cases are fact-
intensive, and the broad principles discussed within them
are all consistent with well-settled law.

In this case, the Greens were in the midst of the
actual purchase of items when they were subjected to
the most hostile and disruptive conduct of clerk McCrary.
In the other cases, the plaintiffs had already concluded
their purchases or were merely browsing rather than
actively buying. (See Petition at 21-22). See Arguello v.
Conoco, Inc.,, 330 F.3d 355, 356-57 (5 Cir. 2003) (Arguello
IT) (Hispanic customer racially insulted after completing
her purchase of beer); Garrett v. Tandy, 295 F.3d 94, 96-
97 (1* Cir. 2002) (African American customer watched
closely while in store and after completing purchase and
leaving premises was incorrectly reported to police as a
potential shoplifter); Morris v. Office Max, Inc., 89 F.3d
411 (7" Cir. 1996) (African Americans completed their
purchase and continued to browse when police officers
called by store managers accosted them as potential

29

shoplifters). The courts in those cases found no
interference with contractual rights to support the § 1981
claims. In the Green case, in contrast, the Eighth Circuit
properly found evidence showing that the transaction
had been thwarted while the Greens were in the midst
of conducting it. The courts in the other cases found no
interference with contractual rights sufficient to support
the § 1981 claims. Here, the Court of Appeals properly
found such evidence in the record. (Petitioner’s App.
A-9 - A-12).

Dillard’s also relies on the Seventh Circuit’s opinion
in Bagley v. Ameritech, 220 F.3d 518 (7 Cir. 2000), but,
as the Eighth Circuit recognized in Green, the Bagley
decision is distinguishable. (Petitioner’s App. A-12). In
Bagley, the offending clerk was hostile to the customer
but facilitated service from another employee. Bagley,
220 F.3d at 521. In Green, in contrast, “McCrary did not
merely refuse to serve the Greens personally; she
actively hindered Aguero’s service as well,” and no
employee attempted to stop McCrary’s behavior.
(Petitioner’s App. at A -12).

Dillard’s also complains that the Green decision
“spawned substantial mischief” and was cited as
precedent in another Eighth Circuit case, Gregory v.
Dillard’s, 494 F.3d 694 (8" Cir. 2007), reh. granted,
(Sept. 20, 2007). Since Dillard’s petition was filed,
however, the Eighth Circuit has granted rehearing in
the Gregory case. Further, the dissent in that case
explicitly states that the Green decision is sharply
distinguishable from the Gregory decision because the
shoppers in Green, in contrast to Gregory, had selected

30

a specific item in a display case and were in the midst of
a transaction. See Gregory, 494 F.3d at 715 (Colloton, J.,
concurring in part and dissenting in part).

The record in this case shows that the Greens were
first denied service by clerk McCrary and then subjected
to a racial slur without parallel when they were called
“fF n*****S ” The other cases are factually
distinguishable on that basis, as well, since none entailed
the same epithet.

The word “nigger” entails a uniquely offensive racial
epithet. It encapsulates perhaps the most sordid chapter
in American history drawing together the expatriation
and enslavement of Africans and their descendants, Jim
Crow segregation following the Civil War, lynchings and
a reign of terror perpetrated by Klansmen and their ilk,
and the all-too-obvious indifference of governmental and
societal institutions to that degradation of an entire race.
There is no comparable insult to be hurled at Caucasians
or other ethnic groups, for none has suffered the same
depth and duration of depredation in this country.
See McGinest v. GTE Service Corp., 360 F.3d 1103, 1116
(9" Cir. 2004) (“It is beyond question that the use of the
word ‘nigger’ is highly offensive and demeaning, evoking
a history of racial violence, brutality, and subordination.
The word is perhaps the most offensive and
inflammatory racial slur in English[{.]”) (internal
quotation omitted); id. (“The word “nigger” is more than
[a] mere offensive utterance. ... No word in the English
language is as odious or loaded with as terrible a
history.””) (quoting Daso v. The Grafton School, Inc., 181
F. Supp.2d 485, 493 (D. Md. 2002)) (brackets and edits
by quoting court). See also Eddy v. Waffle House, Inc.,

31

335 F. Supp.2d 693 (D. S.C. 2004) (“T]he word “nigger”
is pure anathema to African Americans’”” and, as such,
“is sufficient as direct evidence of racial discrimination.”)
(quoting Spriggs v. Diamond Auto Glass, 242 F.3d 179
(4" Cir. 2001)).
Ay

None of the other cases involved the use of that slur.®
Although the Greens do not intend to suggest that some
formal hierarchy of demeaning racial or ethnic terms
should animate § 1981, this case is especially striking
precisely because this specific slur remains one of the
most indelible badges of slavery. Dillard’s, however,
dismisses the sales clerk’s actions as “antics,” (Petition
at 10), and “boorishness,” (Petition at 20). Dillard’s may
consider calling African American customers “niggers”
an “attention-drawing often wildly playful or funny act,”
see Merriam-Webster’s 11” Collegiate Dictionary (2003)
(defining “antic”), but the authors of § 1981, particularly
as amended by Congress 15 years ago, would not.

Because liability here is inextricably bound to the
facts — the sales clerk’s initial refusal to assist the
Greens, the timing of the slur amidst the purchase of

3. For example, in Bagley v. Ameritech Corp., 220 F.3d 518
(7* Cir. 2000), upon which Dillard’s relies heavily, there was no
racial invective of any kind directed at the African American
plaintiff. Rather, a female sales representative, who the plaintiff
already disliked, flipped him off-— held up her hand, palm inward,
with the middle finger extended — in well recognized gesture
commonly understood to convey the race-neutral message of
“fuck you.” She then stated she would not assist the plaintiff
and left that task to another employee who had already engaged
him. Rather than continue with the other employee, the plaintiff
left the store.

32

items, and the slur itself — those facts set this case apart
from the cases Dillard’s cites. As a result, there is no
circuit split. And because the result here is tied directly
to the factual record on summary judgment, review on
certiorari would neither settle any conflict among the
circuits (although there really is none) nor elucidate any
governing principles of § 1981 for the run of retail
transaction cases.

Dillard’s presents no issue establishing a conflict
among the circuits on controlling legal doctrine under
§ 1981 warranting review here.

33
CONCLUSION

This Court should deny Dillard’s Petition for Writ
of Certiorari.

Respectfully submitted,

MELANIE S. MorGAN

Counsel of Record

CHERYL A. PILATE

MorGANn PiLate LLC

500 E. Santa Fe Drive, Suite A
Olathe, KS 66061

(913) 829-6336

STEPHEN G. MIRAKIAN

Wyrscu, Hosss, & MrrakiAn, PC.
1000 Walnut, Suite 1600

Kansas City, MO 64106

(816) 221-0080

G. GorDON ATCHESON

THE ATCHESON LAW OFFICE

4800 Rainbow Boulevard, Suite 6
Westwood, KS 66205

(913) 362-8650

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386009_1379%3A2. Public record. Not legal advice.
