Chauffeurs, Teamsters and Helpers, Local Union No. 238 v. Iowa Civil Rights Com'n

• Decision Date: 15 October 1986
• Docket Number: No. 85-807,85-807
• Citation: 394 N.W.2d 375
• Parties: 46 Fair Empl.Prac.Cas. (BNA) 603, 42 Empl. Prac. Dec. P 36,837 CHAUFFEURS, TEAMSTERS AND HELPERS, LOCAL UNION NO. 238, Appellant, v. IOWA CIVIL RIGHTS COMMISSION, Appellee.
• Court: Iowa Supreme Court

Page 375

394 N.W.2d 375

46 Fair Empl.Prac.Cas. (BNA) 603,

42 Empl. Prac. Dec. P 36,837

CHAUFFEURS, TEAMSTERS AND HELPERS, LOCAL UNION NO. 238, Appellant, v. IOWA CIVIL RIGHTS COMMISSION, Appellee.

No. 85-807.

Supreme Court of Iowa.

Oct. 15, 1986.

James W. Corcoran of Conley & Barrick, Des Moines, for appellant.

Thomas J. Miller, Atty. Gen., and Steven M. Foritano, Asst. Atty. Gen., for appellee.

Considered by HARRIS, P.J., and McGIVERIN, LARSON, CARTER, and LAVORATO, JJ.

McGIVERIN, Justice.

Petitioner, Chauffeurs, Teamsters and Helpers, Local Union No. 238, (Union) sought judicial review in district court of a decision of the respondent Iowa Civil Rights Commission (Commission) that the Union was guilty of discrimination against a person on the basis of race. The court ruled that substantial evidence supported the Commission's finding and did not address additional issues raised by the Union. Upon consideration of the issues presented in the Union's appeal, we affirm in part and reverse in part.

The Union is engaged in the representation of individuals under the National Labor Relations Act, 29 U.S.C.A. § 159 (1973), and is the certified bargaining representative of the employees of H.J. Heinz Company in Iowa City. Michael Daniels was an employee of H.J. Heinz from November 1978 to October 1, 1979.

On July 19, 1979, Daniels filed a complaint, Iowa Code section 601A.15(1) (1979), with the Iowa Civil Rights Commission alleging the Union had engaged in an unfair practice by discriminating against him on the basis of his race. See Iowa Code § 601A.6(1)(b). The Commission staff investigated the complaint and recommended a determination that probable cause existed for the complaint. Iowa Code § 601A.15(3)(a); 240 Iowa Admin. Code 1.5(1)(a). The hearing officer concurred with the recommendation on September 24, 1981. Iowa Code § 601A.15(3)(c).

Pursuant to the Iowa Civil Rights Act, Iowa Code chapter 601A, the Union and the Commission then attempted conciliation. Iowa Code § 601A.15(3)(d). When that was unsuccessful, the matter was set for hearing as a contested case. Iowa Code § 601A.15(5), (7). After an evidentiary hearing, the hearing officer entered proposed findings of fact and conclusions of law. Iowa Code § 601A.15(8). Therein, the Union was found guilty of discriminating against Daniels on the basis of his race and it was proposed that the Union be ordered to pay Daniels $15,000.00 in damages for emotional distress and $25,000.00 as exemplary damages. No back pay award was made because Daniels found suitable employment after leaving H.J. Heinz. The Union appealed to the Commission. Iowa Code § 17A.15(3). Following oral argument and the submission of exceptions and briefs, the Commission affirmed the decision of the hearing officer on September 20, 1984. Iowa Code §§ 17A.15(2), (3); 601A.15(7).

The Union filed a petition for judicial review of this decision in district court. Iowa Code §§ 601A.17(1); 17A.19. The Union contended the Commission's decision was not supported by substantial evidence, the Commission erred in awarding emotional distress and exemplary damages, and the award of exemplary and emotional distress damages by the Commission deprived the Union of its right of trial by jury. The district court affirmed the decision of the Commission, but limited its review to the issue of whether there was substantial evidence to support the Commission's decision. The court ruled that the Union failed to preserve error before the Commission on the other issues raised.

The Union has appealed the district court's ruling, Iowa Code section 17A.20, mainly contending: (1) the district court erred in concluding the Commission's decision was supported by substantial evidence; (2) the Commission did not have the authority to award damages for emotional distress and (3) the Commission did not have the authority to award exemplary damages.

Before we address these issues, we must treat two preliminary matters. The Union claims that state action on this labor dispute is preempted by the federal National Labor Relations Act. We have previously held that the NLRA does not preempt action by the civil rights commission in a sex discrimination setting. Franklin Manufacturing Co. v. Iowa Civil Rights Commission, 270 N.W.2d 829, 833-34 (Iowa 1978). We also conclude preemption is inapplicable in the present case because we have "an overriding [state] interest under the Iowa Civil Rights Act in protecting [our] citizens against discrimination." Id. at 833.

Some issues concerning damages in the Union's appeal were not addressed by the district court on judicial review. We are faced with whether this court can address those issues on appeal. In Barnes v. Iowa Department of Transportation, 385 N.W.2d 260, 263 (Iowa 1986), we stated "[w]here the district court has not reached certain issues because they were deemed unnecessary to the decision under the rationale it elected to invoke," we may "in the interest of sound judicial administration" decide the issues where they have been fully briefed and argued. We, therefore, conclude that we will consider the Union's damages arguments on this appeal.

I. Substantial evidence.

A. The framework for review. The Union asserts the Commission's decision finding discrimination is not supported by substantial evidence. While the Union acknowledges some of the allegedly discriminatory acts, it contends it did not have responsibility for the acts and it did not have any duty to Michael Daniels concerning such acts. The Commission determined Daniels' relationship with the Union came within the meaning of Iowa Code section 601A.6(1)(b) and the Union acted discriminatorily towards Daniels in violation of that section.

Section 601A.6 provides in pertinent part:

1. It shall be an unfair or discriminatory practice for any:

* * *

* * *

b. Labor organization or the employees, agents or members thereof to refuse to admit to membership any applicant, to expel any member, or to otherwise discriminate against any applicant for membership or any member in the privileges, rights, or benefits of such membership because of the age, race, creed, color, sex, national origin, religion or disability of such applicant or member.

(Emphasis added.)

We have stated the principles concerning the burden and order of presentation of proof in civil rights cases in Iowa State Fairgrounds Security v. Iowa Civil Rights Commission, 322 N.W.2d 293, 296 (Iowa 1982), and Linn Co-operative Oil Co. v. Quigley, 305 N.W.2d 729, 732-33 (Iowa 1981).

To establish a prima facie case of racial harassment the complainant must show: 1) the employee belongs to a protected class; 2) the employee was subject to unwelcome racial harassment; 3) the harassment was based upon race; 4) the harassment affected a term, condition or privilege of employment; and 5) the Union knew or should have known of the harassment and failed to take prompt remedial action. Cf. Henson v. City of Dundee, 682 F.2d 897, 909 (11th Cir.1982) (requirements for Title VII, 42 U.S.C.A. § 2000e et seq. (1981), sexual harassment case enumerated).

The risk of nonpersuasion remains on the complainant during the proceeding. Iowa State Fairgrounds Security, 322 N.W.2d at 296. However, a prima facie case creates a presumption of discrimination which, if believed, will require the Commission to make a finding of discrimination. Id. The Union, once a prima facie case has been established, must dispel the presumption by a showing of some legitimate, nondiscriminatory reason for the challenged action. Id. Complainant may then prevail in his ultimate burden of proof before the Commission by showing that the Union's articulated reason is really a pretext for discriminatory treatment. Id.

Judicial review of final civil rights commission action is governed exclusively by the Iowa Administrative Procedure Act. Iowa Code §§ 17A.19; 601A.17(1). The district court, and this court, in reviewing the agency decision in a contested case determines if there is substantial evidence in the record as a whole to support the decision. Id. at § 17A.19(8)(f); City of Davenport v. Public Employment Relations Board, 264 N.W.2d 307, 311 (Iowa 1978). "Evidence is substantial if a reasonable person would find it adequate to reach the given conclusion, even if a reviewing court might draw a contrary inference." Mercy Health Center v. State Health Facilities Council, 360 N.W.2d 808, 811-12 (Iowa 1985); see also King v. Iowa Civil Rights Commission, 334 N.W.2d 598, 602 (Iowa 1983).

B. The record evidence before the agency. As a black and a member of a minority race, Daniels belonged to a protected class. Daniels was the only black and one of only five non-union employees at Heinz. This caused some Union members to exert pressure on Daniels to join the Union. The record reveals the occurrence of the following acts during the ten months Michael Daniels worked at H.J. Heinz. He was referred to by other employees as "Toby," and the name "Toby" began to appear on notes on the bulletin board and in chalk on boxes and floors throughout the warehouse. The words "Toby" and "scab" were written by Daniels' name on the coffee list and overtime schedule. The name "Toby" was taken from the character who portrayed a slave in the story "Roots."

Cartoons and drawings which were derogatory to blacks were placed on the Union bulletin board in the Heinz lunchroom. One drawing depicted a split rail fence, watermelon patch, a stick figure with "KKK" written across its chest, and a black face labelled "Toby" looking around a tree. The words "Move on Toby!" were written on the drawing. Rod Hanson, the union steward, acknowledged placing the cartoons on the bulletin board.

Daniels also had problems with his locker. On one occasion Super Glue was placed in the lock so he could not open his locker. The words "nigger scab" were written on his locker. On at least two occasions his coat was removed from his...