Russell v. Delco Remy Div. of General Motors Corp.

• Decision Date: 06 April 1995
• Docket Number: No. 94-2896,94-2896
• Citation: 51 F.3d 746
• Parties: 67 Fair Empl.Prac.Cas. (BNA) 673, 66 Empl. Prac. Dec. P 43,512, 32 Fed.R.Serv.3d 224 Milton B. RUSSELL, Plaintiff-Appellant, v. DELCO REMY DIVISION OF GENERAL MOTORS CORPORATION, Saegertown Manufacturing Company and Jordan Chalmer, Defendants-Appellees.
• Court: U.S. Court of Appeals — Seventh Circuit

Page 746

51 F.3d 746

67 Fair Empl.Prac.Cas. (BNA) 673,

66 Empl. Prac. Dec. P 43,512, 32 Fed.R.Serv.3d 224

Milton B. RUSSELL, Plaintiff-Appellant, v. DELCO REMY DIVISION OF GENERAL MOTORS CORPORATION Saegertown Manufacturing Company and Jordan Chalmer, Defendants-Appellees.

No. 94-2896.

United States Court of Appeals Seventh Circuit.

Argued Jan. 4, 1995.

Decided April 6, 1995.

Randall Palmer, III (argued), Frank L. Milton, San Antonio, TX, for plaintiff-appellant.

Reginald Bishop (argued), Roberts & Bishop, Indianapolis, IN, for defendant-appellee.

Gwendolyn Young Reams, Carolyn L. Wheeler, James R. Neely, Jr., Susan Starr, and Mary L. Clark (argued), E.E.O.C., Office of Gen. Counsel, Washington, DC, for amicus curiae.

Before POSNER, Chief Judge, CUDAHY, Circuit Judge, and GRANT, District Judge. ^*

CUDAHY, Circuit Judge.

Milton Russell brought suit against his employer, Delco Remy, alleging race-based employment discrimination. The district court dismissed his complaint in light of his failure to file a charge of discrimination within Title VII's 180-day filing period. After the entry of judgment, Russell filed a motion requesting that the district court amend its ruling to take account of Title VII's 300-day filing limitation, ordinarily applicable to discrimination claims involving state agencies. The district court refused to reconsider its prior determination. It held that Russell's failure to file his motion within ten days of the entry of judgment converted that motion into a request for relief from judgment under Fed.R.Civ.P. 60(b). In view of Rule 60(b) standards for correcting errors of law, the district judge refused to examine the merits of Russell's request. We believe that the district court's refusal to reexamine its previous ruling was error. We therefore vacate and remand.

I.

Delco Remy employed Milton Russell from June 6, 1973 until October 4, 1990. At the time of his discharge, he was working as a senior buyer in charge of purchasing parts and inventory. Delco Remy became suspicious of Russell's possible involvement in illegal activities at some point during the course of his employment. In September of 1990, Russell was arrested for his alleged involvement in a "kickback" scheme. Delco Remy suspended his employment soon thereafter, and on October 4, 1990, Delco Remy formally terminated him. Four days later, on October 8, 1990, the authorities formally charged Russell with extortion in violation of 18 U.S.C. Sec. 1951.

Russell went to trial for extortion sometime in December of 1990. He was eventually acquitted. On June 6, 1991, he filed a charge of discrimination with the Equal Employment Opportunity Commission (EEOC), alleging that he had been treated unfavorably and ultimately fired because of his race. This filing occurred 245 days after Russell's termination by Delco Remy.

After a bit of procedural wrangling, the district court granted summary judgment in favor of Delco Remy. It held that Russell's discrimination claim was time-barred because it believed that Title VII required a victim to file a charge "within 180 days after the alleged unlawful employment practice." Rejecting Russell's argument that the last discriminatory act occurred during the prosecution of his criminal trial, the district court started the limitations clock on October 4, 1990, the day Delco Remy terminated Russell. In light of its conclusion that October 4th was the latest date of any alleged discrimination, the district court entered judgment in favor of Delco Remy. Prior to the entry of judgment, Russell had not contested the district court's use of the 180-day limitations period.

The district court's judgment was docketed on January 10th. Ten days later, on January 20th, Russell mailed a post-judgment motion requesting that the district court reconsider its ruling in light of Title VII's 300-day limitations period. Russell's motion was not filed until January 27th.

The district court ultimately refused to reach the merits of Russell's claim concerning the 300-day limitations period. It concluded that Russell's failure to file his post-judgment motion within ten days of the judgment converted his request into a motion seeking relief from judgment under Rule 60(b), rather than a motion for reconsideration under Rule 59(e). In light of Rule 60(b)'s standards, the district court concluded that it would be inappropriate to address the previously-omitted argument about the limitations period. It therefore denied Russell's motion. We conclude that the district court committed error, and vacate and remand Russell's case.

II.

The present case requires us to examine the differences between Federal Rules of Civil Procedure 59(e) and 60(b). Both rules govern post-judgment motions attacking the merits of a district court's decision. Both rules can be used to have a court correct a judgment. Yet the rules differ from each other in certain well-known respects. The particular rule under which a party files a post-judgment motion affects matters ranging from appellate jurisdiction to the standards to be employed when deciding whether to grant post-judgment relief.

Rule 59(e) permits a district court to entertain a motion to alter or amend a judgment. A claimant can invoke the rule to direct a court's attention to matters such as newly discovered evidence or a manifest error of law or fact. See Bank of Waunakee v. Rochester Cheese Sales, Inc., 906 F.2d 1185, 1191-92 (7th Cir.1990). The rule essentially enables a district court to correct its own errors, sparing the parties and the appellate courts the burden of unnecessary appellate proceedings. Charles v. Daley, 799 F.2d 343, 348 (7th Cir.1986). The rule must be invoked, however, within ten days of the entry of judgment. And the rule may not be used to raise novel legal theories that a party had the ability to address in the first instance. Federal Deposit Ins. Corp. v. Meyer, 781 F.2d 1260, 1268 (7th Cir.1986).

Rule 60(b), to some degree, provides overlapping relief. It enables a court to grant relief from a judgment under the particular circumstances listed in the text of the rule. One of those circumstances envisions the vacation of a judgment in the event of "mistake, inadvertence, surprise or excusable neglect." Fed.R.Civ.P. 60(b)(1). Rule 60(b) is, however, an extraordinary remedy. See McKnight v. United States Steel Corp., 726 F.2d 333, 338 (7th Cir.1984). The rule was designed to address mistakes attributable to special circumstances and not merely to erroneous applications of law. McMillan v. MBank Fort Worth, N.A., 4 F.3d 362, 367 (5th Cir.1993). Attorney failures, for instance, provide no basis for avoiding a judgment under Rule 60(b). United States v. 7108 West Grand Ave., 15 F.3d 632, 635 (7th Cir.1994).

The overlap between the two rules is therefore imperfect. A court should correct a manifest error of law under Rule 59(e). Rule 59(e)'s strict time limit permits the correction of such a mistake at a relatively early, and consequently less expensive, stage in the process of the review of judgments. See Western Industries, Inc. v. Newcor Canada Limited, 709 F.2d 16, 17 (7th Cir.1983); Charles, 799 F.2d at 348. Rule 60(b), on the other hand, is not an appropriate vehicle for addressing simple legal error; otherwise, a party could circumvent the ordinary time limitation for filing a notice of appeal. ¹ McMillan, 4 F.3d at 367. See also Parke-Chapley Construction Co. v. Cherrington, 865 F.2d 907, 914-15 (7th Cir.1989). The correction of mistakes under Rule 60(b) is, of course, committed to the district court's sound discretion. United States v. Golden Elevator, Inc., 27 F.3d 301, 303 (7th Cir.1994). But that discretion must be exercised with a view to the differences inherent in the two rules.

The district court did as much here. It relied upon the difference between the two rules to deny Russell's request for post-judgment relief. It essentially determined that it had no obligation to examine the specifics of Russell's claim because his claim was a motion to alter or amend judgment under Rule 60(b). His attorney's failure to seek application of Title VII's 300-day limitations period, in the district court's view, constituted an error which the court could not address. See 7108 West Grand, 15 F.3d at 635.

The problem with this reasoning lies not in the district court's approach, but in its conclusion that Russell's motion was asserted under Rule 60(b). The district court believed that Rule 60(b) standards governed because Russell's motion was filed more than 10 days after the entry of judgment. This was error. Characterization of a post-judgment motion depends entirely upon when that motion is served. The plain language of Rule 59(e) states that "[a] motion to alter or amend the judgment shall be served not later than 10 days after the entry of the judgment." Fed.R.Civ.P. 59(e). Service by mail, of course, is complete at the time of mailing. Fed.R.Civ.P. 5(b). Therefore, to determine whether the post-judgment motion was governed by the standards of Rule 59(e) or Rule 60(b), the district court ought to have examined the date that Russell mailed his motion. See Miller v. Maxwell's Int'l Inc., 991 F.2d 583, 585-86 (9th Cir.1993), cert. denied, --- U.S. ----, 114 S.Ct. 1049, 127 L.Ed.2d 372 (1994).

Russell mailed his motion on January 20th, ten days after the district court's judgment had been docketed. Because this mailing accomplished the required service, Russell satisfied Rule 59(e)'s standards. Under the law of this circuit, his motion must be characterized as a motion to reconsider under Rule 59(e). See United States v. Deutsch, 981 F.2d 299, 301 (7th Cir.1992) (adopting bright-line test that all substantive motions served within 10 days of judgment would be treated under Rule 59); Harcon Barge Co. v. D & G Boat Rentals, Inc., 784 F.2d 665, 669 (5th Cir.), cert. denied, 479 U.S. 930, 107 S.Ct. 398, 93 L.Ed.2d 351 (1986) (same). The...