Jones v. American State Bank
| Decision Date | 21 September 1988 |
| Docket Number | No. 87-5480,87-5480 |
| Citation | 857 F.2d 494 |
| Parties | 47 Fair Empl.Prac.Cas. 1686, 47 Empl. Prac. Dec. P 38,305, 57 USLW 2247 Lisa M. JONES, Appellee, Equal Employment Opportunity Commission, Amicus Curiae, v. AMERICAN STATE BANK, Appellant. |
| Court | U.S. Court of Appeals — Eighth Circuit |
Robert Van Norman, Rapid City, S.D., for appellant.
Jane L. Wipf, Rapid City, S.D., for appellee.
Donna J. Brusoski, Washington, D.C., for amicus curiae E.E.O.C.
Before HEANEY and MAGILL, Circuit Judges, and EDWARDS, * Senior Circuit Judge.
This case comes to us on appeal from the district court for the district of South Dakota, 676 F.Supp. 201. That court granted Jones attorney's fees and costs in recognition of her successful prosecution of a sex discrimination claim before a state agency. On appeal, appellant argues that the district court lacked jurisdiction and abused its discretion in its award of fees and costs.
We affirm the district court in all respects and hold that a claimant may bring an action in federal court to recover attorney's fees for work done in a state proceeding to which a claimant was deferred pursuant to Title VII.
American State Bank (Bank) hired Lisa Mae Zechin Jones as a teller in the spring of 1986. Later that spring, Jones informed the officers of the Bank that she was pregnant. The officers immediately fired her. During subsequent proceedings, the Bank admitted that Jones was terminated because she was pregnant. 1
Jones filed a discrimination charge with the Equal Employment Opportunity Commission (EEOC) which was deferred to the South Dakota Division of Human Rights (Agency) for investigation and review. Deferral to the Agency was mandatory under Sec. 706(c) of Title VII of the Civil Rights Act of 1964, 78 Stat. 259, as redesignated, 86 Stat. 104, 42 U.S.C. Sec. 2000e-5(c) (Title VII). 2 The Agency found that the Bank's conduct violated South Dakota law and Title VII. 3 It awarded Jones back pay, interest, costs and disbursements, and ordered reinstatement, as well as the purging of all negative references from Jones' employment records. The Agency declined to award attorney's fees because such fees were unavailable under South Dakota law. 4
Jones filed suit in federal court to recover attorney's fees, subsequently securing a right-to-sue letter from the EEOC. After reviewing the evidence, the district court awarded attorney's fees and costs in the sum of $24,594.97, noting that the Bank's recalcitrance had lengthened the proceeding. 5 The court denied Jones' requests for enhancement and interest.
On appeal, the Bank makes four claims, three relating to the district court's jurisdiction. The Bank argues that: (1) an action solely for attorney's fees may not be brought in federal court; (2) the failure to obtain a right-to-sue letter at the outset was grounds for dismissal; and (3) Jones failed to exhaust state remedies. 6 Finally, the Bank argues that the district court abused its discretion and incorrectly applied the law in fixing the amount of the fee. We consider in detail only the first two jurisdictional claims. 7
The Bank argues that Jones should not be permitted to sue in federal court merely for attorney's fees. It asks us to read the Supreme Court's decision in New York Gaslight Club, Inc. v. Carey, 447 U.S. 54, 100 S.Ct. 2024, 64 L.Ed.2d 723 (1980), as leaving this question open. The Bank argues that Carey is distinguishable from the present case because the plaintiff in Carey had initially also sought adjudication on the merits in federal court. Lastly, the Bank claims that Jones was afforded "complete relief" by the agency.
We disagree with the Bank's reading of Carey. In Carey, the plaintiff filed a charge with the EEOC alleging that she was not hired because of her race. The EEOC deferred the matter to the New York State Division of Human Rights (Division). The hearing examiner awarded her back pay and ordered the employer to offer Carey employment. No attorney's fee was awarded. The employer began a series of appeals within the New York administrative and judicial system. Meanwhile, Carey filed suit in federal district court alleging discrimination and seeking remedies which included attorney's fees. At a pre-trial conference, the employer agreed that if it was denied leave to further appeal in New York's state courts, it would comply with the Division's Order. Subsequently, the employer was denied leave to appeal, and the parties agreed to dismiss all parts of the federal action except Carey's request for attorney's fees. Carey, 447 U.S. at 56-59, 100 S.Ct. at 2027-2029. The district court denied Carey's request. 458 F.Supp. 79 (S.D.N.Y.1978). The Second Circuit reversed, holding that prevailing parties before state agencies could seek fees in federal court. 598 F.2d 1253, 1260 (1979).
The Bank is correct in arguing that there was some dispute among the Supreme Court Justices over what issue was presented in Carey. However, at least six Justices, if not eight, believed that the issue presented was "whether, under Title VII of the Civil Rights Act of 1964, a federal court may allow the prevailing party attorney's fees for legal services performed in prosecuting an employment discrimination claim in state administrative and judicial proceedings that Title VII requires federal claimants to invoke." Carey, 447 U.S. at 56, 100 S.Ct. at 2027. 8 Justice Relying on Justice Stevens' analysis, the Bank urges us to distinguish this matter from Carey because Jones sought only attorney's fees. This is, however, a distinction without a difference. The analysis of Title VII offered by the majority in Carey requires a decision in favor of Jones.
Stevens concurred separately, arguing that the question as framed by the majority was not reached because Carey had originally filed a claim seeking adjudication on the merits. Id. at 71, 100 S.Ct. at 2034-2035
Section 706(k) of the Civil Rights Act of 1964 allows courts to award attorney's fees to prevailing parties "[i]n any action or proceeding * * *." 78 Stat. 261, 42 U.S.C. Sec. 2000e-5(k) (emphasis added). In Carey, the Court concluded that the inclusion of "proceedings" reflected "an intent to subject the losing party to an award of attorney's fees and costs that includes expenses incurred for administrative proceedings." 447 U.S. at 61. Further, Title VII uses the term "proceedings" to describe the state action desired under the system of deferrals, suggesting that state administrative proceedings were adequate triggers for attorney's fees. Carey, 447 U.S. at 62, 100 S.Ct. at 2030 (examining section 706(c)). In so construing the attorney's fee provision of section 706(k), the Court drew on legislative intent and its own precedent interpreting Title VII.
The co-author of the 1964 Civil Rights Act, Senator Hubert H. Humphrey, explained that the award of attorney's fees under section 706(k) was designed to "make it easier for a plaintiff of limited means to bring a meritorious suit." Senate Debate on the Civil Rights Act of 1964, 110 Cong.Rec. 12724 (1964). The Supreme Court considered the remarks of Senator Humphrey and others when it elected to constrain the judicial discretion bestowed in section 706(k) by requiring that "a prevailing plaintiff ordinarily is to be awarded attorney's fees in all but special circumstances." Christiansburg Garment Co. v. EEOC, 434 U.S. 412, 417, 98 S.Ct. 694, 698, 54 L.Ed.2d 648 (1978). The Court based its decision in Christiansburg on its longstanding view that Title VII must be interpreted in light of "the purposes which inform Title VII." Albermarle Paper Co. v. Moody, 422 U.S. 405, 417, 95 S.Ct. 2362, 2371, 45 L.Ed. 280 (). The Court in Albemarle concluded that Congress' purpose in vesting courts with discretionary remedies was "to make possible the 'fashion[ing of] the most complete relief possible." Id. at 421, 95 S.Ct. at 2373 (). In fashioning relief, courts have "not merely the power but the duty to render a decree which will so far as possible eliminate the discriminatory effects of the past as well as bar like discrimination in the future." Albemarle, 422 U.S. at 418, 95 S.Ct. at 2372 (quoting Louisiana v. United States, 380 U.S. 145, 154, 85 S.Ct. 817, 822-823, 13 L.Ed.2d 709 (1965)).
To further the dual aims of redress and deterrance, Title VII has sought to coordinate the actions of state agencies, federal agencies, state courts and federal courts in an effort to provide victims of discrimination " 'complete justice' and 'necessary relief'." Albemarle, supra at 418, 95 S.Ct. at 2372.
Congress envisioned that Title VII's procedures and remedies would "mes[h] nicely, logically, and coherently with the State and city legislation," and that remedying employment discrimination would be an area in which "[t]he Federal Government and the State governments could cooperate effectively." 110 Cong.Rec. 7205 (1964) (quoting remarks of Sen. Clark).
Carey, 447 U.S. at 63-64, 100 S.Ct. at 2030-2031.
Thus, although claims may initially be deferred to state agencies, the EEOC retains concurrent jurisdiction and federal courts The Carey majority thought it would be anomalous to deny fees to a party who prevailed before a state tribunal, while allowing fees to a party who was only partly successful in state proceedings and hence proceeded on the merits in federal court. Id. at 66, 100 S.Ct. at 2032. In support of its conclusion that a suit could be sustained in federal court solely for fees, the Court explained:
retain the " 'ultimate authority' to secure compliance with Title VII * * *." Id. at 64, 100 S.Ct. at 2031 (citing Alexander v. Gardner-Denver Co., 415 U.S. 36, 44-45,...To continue reading
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