LaPierre v. Benson Nissan, Inc.

• Decision Date: 27 June 1996
• Docket Number: No. 93-3802,93-3802
• Citation: 86 F.3d 444
• Parties: 71 Fair Empl.Prac.Cas. (BNA) 407, 68 Empl. Prac. Dec. P 44,155 Freamont A. LaPIERRE, Plaintiff-Appellant, Randy J. Ungar & Associates, Inc., Intervenor, v. BENSON NISSAN, INC., Defendant-Appellee.
• Court: U.S. Court of Appeals — Fifth Circuit

Page 444

86 F.3d 444

71 Fair Empl.Prac.Cas. (BNA) 407,

68 Empl. Prac. Dec. P 44,155

Freamont A. LaPIERRE, Plaintiff-Appellant Randy J. Ungar & Associates, Inc., Intervenor, v. BENSON NISSAN, INC., Defendant-Appellee.

No. 93-3802.

United States Court of Appeals Fifth Circuit.

June 27, 1996.

George M. Strickler, Sigrid K.J. Bonner, LeBlanc & Strickler, New Orleans, LA, for appellant.

Dori K. Bernstein, Washington, DC, Amicus Curiae U.S. E.E.O.C.

Jeffrey A. Schwartz, Audrey N. Browne, Schwartz & Browne, New Orleans, LA, for appellee.

Appeals from the United States District Court for the Eastern District of Louisiana.

Before KING, EMILIO M. GARZA and DeMOSS, Circuit Judges.

EMILIO M. GARZA, Circuit Judge:

Plaintiff Freamont LaPierre appeals the district court's order granting Defendant Benson Nissan's motion for summary judgment. We reverse and remand.

I

LaPierre, a black male, was a long-time employee of the Service Department of Benson Nissan, an automobile dealership. Starting as a mechanic, LaPierre was promoted to the position of Quality Control Shop Foreman and then to the newly-created Service Manager position. Both positions placed him second-in-command in the Service Department, supervised only by the Parts and Service Director. On two occasions while LaPierre was second-in-command in the Service Department, white males with less experience in the automobile dealership service industry were promoted to the Parts and Service Director position.

Nissan Motor Company routinely conducts audits of the warranty repair procedures of the Service Departments of its affiliated dealerships. During one such audit of Benson Nissan's Service Department, Nissan Motor Company discovered errors, primarily in bookkeeping and paperwork, that resulted in an $80,000 charge to Benson Nissan. ¹ Soon thereafter, Benson Nissan reorganized its Service Department. The acting Parts and Service Director was forced to resign. The Service Manager position was eliminated, and LaPierre was demoted to mechanic. A white male who had previously worked under LaPierre's supervision was promoted to Director. LaPierre filed suit against Benson Nissan, alleging that Benson Nissan discriminated against him by failing to promote him and by demoting him on the basis of race, in violation of Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e-2(a)(1) ("Title VII"), and in violation of the Civil Rights Act of 1991, 42 U.S.C. § 1981 (" § 1981"). Benson Nissan filed a motion for summary judgment, which the district court granted. LaPierre filed a motion for reconsideration, accompanied by the newly-acquired deposition testimony of Robert Speights, an auditor at Nissan Motor Company. The district court considered Speights's deposition, but nonetheless denied LaPierre's motion for reconsideration. LaPierre filed a timely notice of appeal.

II

LaPierre argues that the district court erred by granting Benson Nissan's motion for summary judgment. We review a district court's grant of summary judgment de novo. Armstrong v. City of Dallas, 997 F.2d 62, 65 (5th Cir.1993). Summary judgment is appropriate in cases in which there is no genuine issue as to any material fact and the movant is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c). In an employment discrimination case, we focus on whether a genuine issue exists as to whether the defendant intentionally discriminated against the plaintiff. Armstrong, 997 F.2d at 65-66.

A

The evidentiary framework for Title VII claims ² was established by the Supreme Court in McDonnell Douglas Corp. v. Green, 411 U.S. 792, 93 S.Ct. 1817, 36 L.Ed.2d 668 (1973). A Title VII plaintiff bears the initial burden to prove a prima facie case of discrimination by a preponderance of the evidence. Id. at 802, 93 S.Ct. at 1824. A plaintiff may prove a prima facie case of discrimination by showing (1) that he is a member of a protected class, (2) that he sought and was qualified for an available employment position, (3) that he was rejected for that position, and (4) that the employer continued to seek applicants with the plaintiff's qualifications. Id. ³ Once established, the plaintiff's prima facie case raises an inference of intentional discrimination. Id. The burden of production then shifts to the defendant to articulate a legitimate, nondiscriminatory reason for the challenged employment action. Id. If the defendant comes forward with a reason which, if believed, would support a finding that the challenged action was nondiscriminatory, the inference raised by the plaintiff's prima facie case drops from the case. Texas Dept. of Community Affairs v. Burdine, 450 U.S. 248, 255 & n. 10, 101 S.Ct. 1089, 1094-95 & n. 10, 67 L.Ed.2d 207 (1981). The focus then shifts to the ultimate question of whether the defendant intentionally discriminated against the plaintiff. St. Mary's Honor Ctr. v. Hicks, 509 U.S. 502, 510-11, 113 S.Ct. 2742, 2749, 125 L.Ed.2d 407 (1993).

LaPierre alleges two separate grounds for his claims of racial discrimination. First, he alleges that Benson Nissan unlawfully discriminated against him by failing to promote him to the position of Parts and Service Director. ⁴ Second, he alleges that Benson Nissan unlawfully discriminated against him by demoting him to the position of mechanic. We must first consider whether LaPierre has established a prima facie case of unlawful discrimination with regard to each of these grounds. LaPierre is a black male. The summary judgment evidence shows that LaPierre approached the management of Benson Nissan on multiple occasions to request that he be considered for the position of Parts and Service Director. LaPierre had twenty years' experience in the automobile dealership service industry and had held every position in Benson Nissan's Service Department except that of Director. Current members of Benson Nissan's management testified that LaPierre was qualified for the Director position and that he was as qualified as the persons selected for that position. Lastly, Tommy Discon, a white male, was chosen for the position of Parts and Service Director. Therefore, for purposes of summary judgment, LaPierre has established a prima facie case with regard to his claim that Benson Nissan unlawfully discriminated against him by failing to promote him.

Turning to the elements of LaPierre's prima facie case for wrongful demotion, the summary judgment evidence shows that LaPierre was originally employed by Benson Nissan as a mechanic and was promoted first to the position of Quality Control Shop Foreman and then to Service Manager. Prior to his demotion, LaPierre had never been the subject of disciplinary action. Following reorganization of the Service Department, LaPierre was demoted to mechanic, resulting in a substantial loss of responsibility and compensation. When the position of Service Manager was eliminated, LaPierre's responsibilities as second-in-command were assumed by the Quality Control Shop Foreman, Mark Olivier, a white male. Therefore, for purposes of summary judgment, LaPierre has established a prima facie case with regard to his claim that Benson Nissan unlawfully discriminated against him by demoting him to the position of mechanic.

The burden of production thus shifts to Benson Nissan to articulate a legitimate, nondiscriminatory reason for failing to promote LaPierre to Director of Sales and Service and for demoting LaPierre to mechanic. Benson Nissan offers the same explanation with regard to both challenged employment decisions. The Nissan Motor Company audit of Benson Nissan's warranty repair procedures revealed significant errors. Benson Nissan claims that, following the audit, Nissan Motor Company recommended, and Benson Nissan management agreed, that the Service Department be reorganized. Benson Nissan further claims that Nissan Motor Company specifically recommended that LaPierre and others be removed from managerial positions. We find that this explanation, if believed, would support a finding that the decision not to promote LaPierre and the decision to demote LaPierre were nondiscriminatory. Accordingly, McDonnell Douglas's burden-shifting structure becomes irrelevant to LaPierre's claims, and the inference of unlawful discrimination created by LaPierre's prima facie evidence disappears.

B

Our focus now shifts to whether a genuine issue exists as to whether Benson Nissan intentionally discriminated against LaPierre on the basis of race. A plaintiff alleging employment discrimination need not come forward with direct evidence of discriminatory intent in order to avoid judgment as a matter of law. Rhodes v. Guiberson Oil Tools, 75 F.3d 989, 993 (5th Cir.1996) (en banc). ⁵ Direct evidence of an employer's discriminatory intent is rare; therefore, Title VII plaintiffs must ordinarily prove their claims through circumstantial evidence. A plaintiff may establish circumstantial evidence of intentional discrimination by demonstrating that a defendant's articulated nondiscriminatory rationale was pretextual. McDonnell Douglas, 411 U.S. at 804, 93 S.Ct. at 1825; Burdine, 450 U.S. at 253, 101 S.Ct. at 1093. In fact, "[t]he factfinder's disbelief of the reasons put forward by the defendant (particularly if disbelief is accompanied by a suspicion of mendacity) may, together with the elements of the prima facie case, suffice to show intentional discrimination." St. Mary's, 509 U.S. at 511, 113 S.Ct. at 2749.

In Rhodes v. Guiberson Oil Tools, we considered en banc whether a plaintiff necessarily presents a jury issue on the ultimate question of intentional discrimination by proving the elements of a prima facie case and presenting a fact issue as to the truth of the defendant's proffered rationale. We held that "the answer lies in our traditional sufficiency-of-the-evidence analysis." Rhodes, 75 F.3d at 993. Our traditional sufficiency-of-the-evidence standard provides, "There must be a conflict in substantial evidence to create a jury...