Baker v. Stuart Broadcasting Co.
| Citation | 560 F.2d 389 |
| Decision Date | 11 August 1977 |
| Docket Number | No. 76-1860,76-1860 |
| Court | United States Courts of Appeals. United States Court of Appeals (8th Circuit) |
| Parties | 15 Fair Empl.Prac.Cas. 394, 49 A.L.R.Fed. 894, 14 Empl. Prac. Dec. P 7775 Susan Rae BAKER, Appellant, v. STUART BROADCASTING COMPANY et al., Appellees. |
Benjamin M. Wall, Omaha, Neb., for appellant.
Kenneth C. Stephan, Lincoln, Neb., for appellees.
Marilyn S. Urwitz, E. E. O. C., Washington, D. C., argued, and Abner W. Sibal, Gen. Counsel, Joseph T. Eddins, Jr., Associate Gen. Counsel, Lutz Alexander Prager, Attys., on brief, for amicus curiae, EEOC.
Before LAY and HENLEY, Circuit Judges, and NANGLE, District Judge. *
Plaintiff Susan Rae Baker (now Casner) appeals from the dismissal of her suit, upon defendants' motion at the close of plaintiff's evidence, for lack of subject matter jurisdiction. Plaintiff filed this suit alleging discrimination on the basis of sex. 42 U.S.C. § 2000e et seq. Named as defendants were Stuart Broadcasting Company, Grand Island Broadcasting Company, Ltd., James Stuart, Helen C. Stuart, and Richard Chapin.
Plaintiff alleged that she had been denied employment at Radio Station KRGI whose broadcast license is held by Grand Island Broadcasting Company. Plaintiff further alleged that Stuart Broadcasting Company provided management services for Grand Island Broadcasting and that James Stuart and Helen Stuart were the principal stockholders of both Stuart Broadcasting and Grand Island Broadcasting. Defendants James Stuart and Helen Stuart were dismissed upon plaintiff's motion.
At the close of plaintiff's evidence, the district court ruled that it had no jurisdiction because plaintiff had failed to establish that any of the three remaining defendants were employers within the meaning of 42 U.S.C. § 2000e(b). The court held that defendant Grand Island Broadcasting Company, Ltd. did affect commerce, as required by the statute, but that:
(Title 42 U.S.C. § 2000e(b) also provides)
. . . that the employer must have 15 or more employees for each working day on each of 20 or more calendar weeks for the current or preceding calendar year. The evidence here makes it clear that the only way it can be said that anyone involved in this case constitutes an employer is to combine the persons employed by Stuart Broadcasting Company and Grand Island Broadcasting Company, Limited. Stuart Broadcasting Company, according to the evidence employed 8 or thereabout employees, and the Grand Island Broadcasting Company, Limited employed approximately 11.
The issue then is whether the two may be joined together for the purposes of this action. That depends upon whether they in fact are separate entities operating separately or whether on the other hand they are of such coagulation that they must be considered one.
I am of the view that they, under the evidence as has been presented in this case, are sufficiently separate that they are not to be treated as one; but must be treated separately. That means that there has not been a showing that any of the defendants, they being now only Stuart Broadcasting Company, Grand Island Broadcasting Company and Richard Chapin, is an employer within the meaning of this act.
If there were the slightest evidence that the separateness of the corporation (sic) was for the purpose of avoiding this act it would be easy for me to say they must be treated collectively. There is no such evidence.
The sole issue presented upon this appeal is whether the district court erred in this ruling. For the reasons which follow, we reverse and remand for further proceedings.
We start with the proposition that "Title VII of the Civil Rights Act of 1964 is to be accorded a liberal construction in order to carry out the purposes of Congress to eliminate the inconvenience, unfairness and humiliation of racial discrimination". Parham v. Southwestern Bell Telephone, 433 F.2d 421, 425 (8th Cir. 1970); Parliament House Motor Hotel v. Equal Employment Opportunity Commission, 444 F.2d 1335 (5th Cir. 1971); Puntolillo v. New Hampshire Racing Commission, 375 F.Supp. 1089 (D.C.N.H.1974). Such liberal construction is also to be given to the definition of "employer". Sibley Memorial Hospital v. Wilson, 160 U.S.App.D.C. 14, 488 F.2d 1338 (1973).
In Hassell v. Harmon Foods, Inc., 336 F.Supp. 432 (W.D.Tenn.1971), aff'd, 454 F.2d 199 (6th Cir. 1972), the court declined to treat two corporations as one, for the purposes of the definition of "employer" in 42 U.S.C. § 2000e(b), because "(t)here is nothing in the statutory language or legislative history . . . which supports the contention that you can and there is no case called to our attention that so holds". Id. at 433. Since that case, however, a number of courts have allowed such consolidation, basing their reasoning on the remedial purposes of Title VII. See Williams v. New Orleans Steamship Association, 341 F.Supp. 613 (E.D.La.1972); United States v. Jacksonville Terminal Company, 351 F.Supp. 452 (M.D.Fla.1972); United States v. Local 638, Enterprise Association of Steam, Hot Water, Hydraulic Sprinkler, Pneumatic Tube, Compressed Air, Ice Machine, Air Conditioning and General Pipefitters, 360 F.Supp. 979 (S.D.N.Y.1973), modified, 501 F.2d 622 (2d Cir. 1974); Black Musicians of Pittsburgh v. Local 60-471, American Federation of Musicians, AFL-CIO, 375 F.Supp. 902 (W.D.Pa.1974) (); cf., Clark v. Universal Builders, Inc., 501 F.2d 324 (7th Cir. 1974), cert. denied, 419 U.S. 1070, 95 S.Ct. 657, 42 L.Ed.2d 666 (1974) ().
These cases hold that the standard to be employed to determine whether consolidation of separate entities is proper are the standards promulgated by the National Labor Relations Board: (1) interrelation of operations, (2) common management, (3) centralized control of labor relations; and (4) common ownership or financial control. Radio & Television Broadcast Technicians Local Union 1264, International Brotherhood of Electrical Workers, AFL-CIO v. Broadcast Service of Mobile, Inc., 380 U.S. 255, 85 S.Ct. 876, 13 L.Ed.2d 789 (1965); Royal Typewriter Company v. National Labor Relations Board, 533 F.2d 1030 (8th Cir. 1976); Marine Welding and Repair Works, Inc. v. National Labor Relations Board, 439 F.2d 395 (8th Cir. 1971); National Labor...
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