Huguley v. General Motors Corp., 92-1858

• Decision Date: 15 July 1993
• Docket Number: No. 92-1858,92-1858
• Citation: 999 F.2d 142
• Parties: 62 Fair Empl.Prac.Cas. (BNA) 594, 62 Empl. Prac. Dec. P 42,506 Dennis H. HUGULEY, Plaintiff, Abbie L. Perry and Lonnie K. Perry, Plaintiffs-Appellants, v. GENERAL MOTORS CORPORATION, Defendant-Appellee.
• Court: U.S. Court of Appeals — Sixth Circuit

Page 142

999 F.2d 142

62 Fair Empl.Prac.Cas. (BNA) 594,

62 Empl. Prac. Dec. P 42,506

Dennis H. HUGULEY, Plaintiff Abbie L. Perry and Lonnie K. Perry, Plaintiffs-Appellants, v. GENERAL MOTORS CORPORATION, Defendant-Appellee.

No. 92-1858.

United States Court of Appeals Sixth Circuit.

Argued April 7, 1993.

Decided July 15, 1993.

Courtney E. Morgan, Michelle J. Harrison (argued and briefed), Chambers, Steiner, Mazur, Ornstein & Amlin, Detroit, MI, for plaintiffs-appellants.

Robert L. Ashe, Jr., Paul, Hastings, Janofsky & Walker, Atlanta, GA, Brian K. Zahra, Dennis W. Archer, Dickinson, Wright, Moon, Van Dusen & Freeman, Detroit, MI, Wendell R. Tucker, Baker & Daniels, Indianapolis, IN, Barbara A. Brown (argued and briefed), Paul, Hastings, Janofsky & Walker, Washington, DC, Mark Granzotto, Detroit, MI, Mark R. Flora, Mouce & Galatzan, El Paso, TX, for defendant-appellee.

Before: GUY and NELSON, Circuit Judges; and WELLFORD, Senior Circuit Judge.

WELLFORD, Senior Circuit Judge.

The plaintiff, Abbie Perry (Perry), is a salaried black employee of defendant, General Motors Corporation (GM). In August, 1991, Perry and her husband, Lonnie, filed a complaint in Michigan state court alleging that, based on her race, GM had denied Perry promotions and merit pay and had demoted plaintiff by transferring her to a department which lacked promotion opportunities. Perry further alleged that GM had retaliated against her because she used GM's open door policy to challenge the various employment decisions. The husband's claim was for loss of consortium based on the alleged racial discrimination.

GM removed Perry's complaint to federal court where it argued that the consent decree in Huguley v. General Motors Corp., 128 F.R.D. 81 (E.D.Mich.1989), aff'd mem., 925 F.2d 1464 (6th Cir.1991), cert. denied sub nom. Dodson v. General Motors Corp., --- U.S. ----, 112 S.Ct. 304, 116 L.Ed.2d 247 (1991), barred these claims. Judge John Feikens, the same judge who heard the Huguley case, agreed with GM's contentions and enjoined Perry from pursuing her discrimination claims in state court pursuant to the Anti-Injunction Act, 28 U.S.C. § 2283. In issuing the injunction, the district judge interpreted the scope of the consent decree in Huguley, which resolved that protracted litigation. In essence, this case revolves around the scope of the consent decree approved by the district court in Huguley.

Huguley began in 1983 when Laras Eason filed a complaint, individually and on behalf of all similarly situated black salaried employees, against GM. The original complaint, as well as its final refined version (the third amended complaint), alleged violations of (1) Title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e, et seq.), (2) the Civil Rights Act of 1866 (42 U.S.C. § 1981), and (3) the Elliott-Larsen Civil Rights Act (Mich.Comp.Laws § 37.2101, et seq.). On October 16, 1986, the district court certified a class of "all black salaried employees of General Motors in Michigan, Indiana and Ohio who were subject, between October 8, 1982 and September 25, 1986, to the General Motors appraisal systems for salaried employees."

In 1976, GM installed an "appraisal system" to facilitate awarding merit based promotions, transfers and salary increases. Integral to this appraisal system were appraisal ratings consisting of subjective performance evaluations by immediate supervisors. Due to the operation of GM's seniority system over the years, a disproportionate percentage of white employees occupied the supervisory positions responsible for evaluating the performance of GM's front line employees. The thrust of the class action complaint was that racial bias, inherent in the proportion of white supervisors, resulted in latent racial discrimination in both appraisal ratings and in promotions after the appraisals were rendered.

After the Huguley class was certified, extensive discovery and settlement negotiations took place. The core of the dispute became the effect of racial bias on the appraisal ratings, and its alleged trickle down impact upon salary increases and promotions for black employees. Consequently, settlement negotiations focused on discretionary salary increases and promotions--the two employment practices statistically related to the appraisal system. In early 1989, the parties submitted a proposed consent decree, which the district court preliminarily approved on February 3. Objections were later heard and approval of the consent decree became final on September 1, 1989.

In the Huguley consent decree, a computer driven statistical check on the number of blacks receiving promotions and pay increases was directed. It provided affirmative action style remedies (principally automatic pay increases and promotions for blacks) if the percentage of promotions for blacks dropped below a particular statistical standard. ¹ The district court recognized that "[t]he appraisal system itself is left relatively untouched" by the consent decree. (Opinion of district court approving consent decree).

In addition to establishing the complex computer monitoring system designed to eradicate the effect of racial discrimination, GM also agree to establish a pool from which it would pay over three million dollars in monetary damages to members of the affected class. The opinion approving the decree contained the following provision:

The consent decree resolves all claims of race discrimination asserted in, or in any way placed in issue by, the third amended complaint. This includes all claims related to any alleged racially discriminatory purpose, adverse impact of effect of the General Motors appraisal system for black salaried employees in the tri-state area or in any way related to race discrimination in promotions, pay, demotion, transfer, layoff, recall or other personnel decisions, including alleged retaliation for participation in this suit and from any claim for attorney fees and costs.

Huguley, 128 F.R.D. at 83 (emphasis added). Judge Feikens also ruled that an "opt-out" provisions was inappropriate under the circumstances.

Approximately fifteen percent of the class members objected to the consent decree during the June, 1989 hearings. A number of these objectors appealed the court's approval of the consent decree. In an unpublished opinion, we affirmed the district court in all respects, rejecting all the challenges thereto. Huguley v. General Motors Corp., 925 F.2d 1464 (6th Cir.1991) (Per Curiam). We also noted that it might have been an abuse of discretion not to deny the plaintiff's request for an opt out provision. Id. The Supreme Court rejected a petition for certiorari on October 15, 1991. Dodson v. General Motors Corp., --- U.S. ----, 112 S.Ct. 304, 116 L.Ed.2d 247 (1991).

We now consider Perry's contention that the district court erred by finding that her claims fell within the preclusive scope of the Huguley consent decree.

A court of the United States may not grant an injunction to stay proceedings in a State Court except as expressly authorized by Act of Congress, or where necessary in aid of its jurisdiction, or to protect or effectuate its judgments.

28 U.S.C. § 2283 (emphasis added). The italicized clause is commonly referred to as the "relitigation exception" to the Anti-Injunction Act, and it is this language that Judge Feikens used to enjoin the Perrys from pursuing their state claims against GM. Based on its jurisdiction over the underlying controversy (the Huguley case), the district court retained jurisdiction to enjoin all state actions if necessary "to protect or effectuate" its judgment in an underlying controversy. Royal Ins. Co. of Am. v. Quinn-L Capital Corp., 759 F.Supp. 1216, 1228 (N.D.Tex.1990), aff'd in part, 960 F.2d 1286 (5th Cir.1992) ("no independent basis of jurisdiction is required for a federal court to entertain an application to enjoin relitigation in state court"). Thus, while the Anti-Injunction Act generally precludes federal courts from interfering with state court proceedings, there is an exception to "protect" or "effectuate" prior federal court judgments.

The district judge determined that an injunction was necessary to protect its judgment because "[t]he issues raised in ... Perrys' complaint are the exact same issues that were dealt with and resolved by the Huguley consent decree." We review de novo the district judge's legal determination that the consent decree had res judicata effect over Perry's claim and that the relitigation exception applies. Chick Kam Choo v. Exxon Corp., 486 U.S. 140, 146-47, 108 S.Ct. 1684, 1689-90, 100 L.Ed.2d 127 (1988); Atlantic Coast Line R. Co. v. Brotherhood of Locomotive Engineers, 398 U.S. 281, 286-87, 90 S.Ct. 1739, 1742-43, 26 L.Ed.2d 234 (1970). We review, based on abuse of discretion, the further discretionary decision to enjoin the Perrys' prosecution of their claims in state court. We conclude that the Perry suit fell within one of the statutory exceptions allowing an injunction where one would otherwise be prohibited. Having decided that an injunction legally could issue, we further conclude that Judge Feikens did not abuse his discretion by doing so. ²

The relitigation exception is grounded in principles of res judicata and collateral estoppel. Chick Kam Choo, 486 U.S. at 147, 108 S.Ct. at 1690. The Supreme Court has counseled caution in employing the relitigation exception to enjoin state proceedings, and it has given the relitigation exception a narrow construction. Id. at 148, 108 S.Ct. at 1690. Balancing the narrow construction afforded exceptions to the Anti-Injunction Act, and the de novo standard of review, is the well established principle that a district court's interpretation of its consent decrees is entitled to substantial deference on appeal. Such deference is required because, "[f]ew persons are in a better position to understand the meaning of a consent decree than the district judge who oversaw and approved it." ...