Marra v. Philadelphia Housing Authority

• Citation: 497 F.3d 286
• Decision Date: 03 August 2007
• Docket Number: No. 06-1140.,06-1140.
• Parties: Edward J. MARRA, Jr.; Albert Digravio v. PHILADELPHIA HOUSING AUTHORITY, Milton D. Soiferman Philadelphia Housing Authority, Appellant.
• Court: U.S. Court of Appeals — Third Circuit

497 F.3d 286

Edward J. MARRA, Jr.; Albert Digravio v. PHILADELPHIA HOUSING AUTHORITY, Milton D. Soiferman Philadelphia Housing Authority, Appellant.

No. 06-1140.

United States Court of Appeals, Third Circuit.

Argued March 6, 2007.

Opinion filed: August 3, 2007.

As Amended August 28, 2007.

Melanie M. Kennedy, Esquire (Argued) Cozen & O'Connor, Jessamyne M. Simon, Esquire Buchanan Ingersoll & Rooney, Philadelphia, PA for Appellant.

Nancy D. Wasser, Esquire (Argued) Philadelphia, PA, for Appellees.

Before: SLOVITER and AMBRO, Circuit Judges, THOMPSON,^* District Judge.

OPINION OF THE COURT

AMBRO, Circuit Judge.

The Philadelphia Housing Authority ("PHA") appeals from jury verdicts in favor of plaintiffs Edward Marra and Albert DiGravio on their claims for unlawful retaliation under the Pennsylvania Human Relations Act ("PHRA"), 43 P.S. §§ 951-963. PHA raises a host of challenges before us, contesting the admission of certain evidence at trial, the sufficiency of the evidence supporting the verdicts, and the consistency of those verdicts with particular findings made by the jury on the plaintiffs' other claims for relief. PHA also argues, based on a misreading of our decision in Bereda v. Pickering Creek Indus. Park, Inc., 865 F.2d 49 (3d Cir.1989), that the right to a jury trial on state law claims brought in federal court is governed by state, rather than federal, law, and that, as matter of uncontroverted Pennsylvania law, Marra and DiGravio had no right to have a jury decide their PHRA claims. We reject all of PHA's contentions and affirm.

I. Factual Background and Procedural History

PHA, a state agency employing approximately 2,000 people, is responsible for developing and operating public housing in the City of Philadelphia. At the time of the adverse employment decisions that form the basis of their retaliation claims, Edward Marra and Albert DiGravio were both employed in supervisory positions in the Inspections Division of PHA's Design and Construction Department.¹ DiGravio served as a Rehabilitation Supervisor, a low-level supervisory position, directly supervising approximately fifteen housing inspectors (also known as Rehabilitation Specialists). Marra worked as a Project Manager, a higher level supervisory position, directly supervising Nicholas DiPiero, Construction Manager, to whom DiGravio reported. Marra's direct supervisor was Georgette Galbreth, Assistant General Manager of the Design and Construction Department, who in turn reported to Ramesh Panchwagh, General Manager of the Design and Construction Department. Panchwagh's direct supervisor, Deputy Executive Director Michael Leithead, reported directly to PHA's highest ranking official, Carl Greene, Executive Director.² Events giving rise to plaintiffs' respective claims, viewed in the light most favorable to each of them, are recounted below.

A. Edward Marra

In 1996, PHA hired Marra to work as Director of the Inspections Division. In this capacity, he was responsible for arranging and overseeing the inspection of houses that had been rehabilitated by PHA to ensure compliance with all pertinent housing codes, regulations and specifications. At the time, among the several housing inspectors who worked under Marra were DiGravio, Gerald Paladino, and James Wright.

In 1997, PHA created a new supervisory position in the Inspections Division entitled Rehabilitation Supervisor. It held a competition among the housing inspectors to fill three available Rehabilitation Supervisor positions. Marra chaired a panel that conducted interviews of the candidates and ultimately recommended the promotion of Paladino, Wright, and DiGravio to fill the new positions. Formal notices of appointment were sent to both Paladino and Wright but later rescinded after George Fields, an African American candidate, filed a grievance charging race discrimination in the selection process. After holding a second competition, PHA opted not to promote Paladino or Wright, instead awarding the three Rehabilitation Supervisor positions to DiGravio, Fields, and a third inspector named Leonard Panarella.

In December 1999, Paladino and Wright filed a reverse-race discrimination lawsuit against PHA in federal court, asserting violations of Title VII of the Civil Rights Act of 1964 ("Title VII") and the PHRA, among other statutes.³ Paladino v. Philadelphia Hous. Auth., Civ. A. No. 99-6424 (E.D.Pa.) (hereinafter, "Paladino"). In the course of discovery, Paladino and Wright subpoenaed Marra to give deposition testimony. On June 2, 2000, shortly after being deposed, Marra received a written notice, signed by Executive Director Greene, among others, advising him that he had been "involuntarily demoted" to the position of Project Manager. Although his salary and job duties were not materially affected by the demotion, Marra did lose a $425 monthly stipend to cover the costs of using his private vehicle for PHA business.

Approximately one year later, in June 2001, the Paladino case proceeded to trial. Marra testified on behalf of Paladino and Wright, appearing by subpoena. The jury subsequently returned a verdict in favor of both Paladino and Wright and against PHA, finding that PHA had discriminated against them in violation of Title VII and the PHRA.⁴

After testifying at the Paladino trial, Marra went on vacation. On his return to work in early July 2001, he discovered that the hard drive on his computer had been "totally wiped out," resulting in an extensive loss of work product that he would be forced to prepare anew. App. at 222. Marra immediately reported the computer damage to PHA's Information Systems Management, and sent a written memorandum to his supervisors, Panchwagh and Galbreth, alerting them to what he believed to be suspicious activity. A PHA employee from Information Systems Management later informed Marra that his computer had "burned out" without providing any additional details. Marra had never before experienced any problems with his computer. To the best of his knowledge, PHA never conducted an independent investigation into whether the computer crash was the product of foul play.

At some point shortly after his return from vacation, Marra attended a meeting at which Greene was present. During the meeting, Greene pointedly asked Marra whether he had testified at the Paladino trial. When Marra answered yes, Greene reacted with a "look of disgust." App. at 296.

A few months later, in the fall of 2001, at the request of Greene and Deputy Executive Director Leithead, Panchwagh and Galbreth undertook an evaluation of the Inspections Division's ongoing staffing needs as part of a reorganization project designed to streamline operations within several of PHA's departments and divisions. Over the next several months, with Galbreth's assistance, Panchwagh prepared a series of memoranda giving his recommendations for reorganization of the Inspections Division, which he forwarded to Leithead for review. In the first memorandum, dated November 14, 2001, Panchwagh recommended the elimination of the Project Manager position, which was held by Marra, as well as four inspector positions, based on a dearth of available work. In particular, Panchwagh opined that the Inspections Division's "hierarchy consist[ing] of four management layers above the field staff [i.e., Assistant General Manager, Project Manager, Construction Manager, and Rehabilitation Supervisor] . . . is an ineffective use of resources . . . [,] le[aving] very little work for the Project Manager, even at full workload and staffing levels." App. at 870. Panchwagh also believed that the elimination of four inspector positions would "provide a more effective use of resources." App. at 871. According to Marra, however, both he and his subordinates in the Inspections Division had more than enough work throughout the second half of 2001, including a major construction project that had been assigned to him directly from Greene and needed to be completed by year's end, as well as several other projects that continued into 2002.

In his second memorandum to Leithead, dated December 4, 2001, Panchwagh reiterated his recommendation that Marra's position be eliminated, specified by name three of the four inspectors whose positions he recommended eliminating based on date of hire, and noted that the Human Resources Department would select the fourth inspector position to eliminate. Panchwagh submitted various additional materials with the memorandum, including draft lay-off notices for Marra and the selected inspectors.

Panchwagh's third and final memorandum to Leithead, however, recommended a reorganization of the Inspections Division that was considerably smaller in scope. Panchwagh now urged the elimination of Marra's position alone, his memorandum making no mention of the four inspector positions he had recommended eliminating twice previously. This final memorandum was sent to Leithead on March 19, 2002.

Three days later, at a meeting attended by Panchwagh, Galbreth, and a representative from the Human Resources Department, Marra was informed that his position had been eliminated as part of a reorganization of the Inspections Division and that he would be laid off at the close of business that day. Marra was naturally skeptical, this being the first he heard about the reorganization, and decided to seek out Panchwagh after the meeting in the hope of obtaining more information. In response to Marra's queries, however, Panchwagh claimed to know nothing. At the time of his termination, Marra was sixty-eight years old and had planned on retiring within the next year and a half.

B. Albert DiGravio

DiGravio also was deposed by Paladino and Wright and testified on their behalf at trial, appearing by subpoena on both occasions. During this period of time, DiGravio continued to work as a Rehabilitation Supervisor, the position to which he had been promoted after his successful participation in the hiring competition...