Salgado v. Atlantic Richfield Co.

Decision Date29 July 1987
Docket NumberNo. 86-6293,86-6293
Citation823 F.2d 1322
Parties48 Fair Empl.Prac.Cas. 546, 43 Empl. Prac. Dec. P 37,270, 4 Indiv.Empl.Rts.Cas. 1240 Eduardo SALGADO, Plaintiff-Appellant, v. ATLANTIC RICHFIELD COMPANY; Arco Seed Company, Inc.; Anthony "Tony" Edmondson; Miguel "Mike" Yslava; W.H. "Bud" Sands; and Does I Through XX, Inclusive, Defendants-Appellees.
CourtU.S. Court of Appeals — Ninth Circuit

Ann M. Smith, San Diego, Cal., for plaintiff-appellant.

Lawrence A. Michaels, Los Angeles, Cal., for defendants-appellees.

Appeal from the United States District Court for the Southern District of California.

Before ANDERSON, SKOPIL, and REINHARDT, Circuit Judges.

J. BLAINE ANDERSON, Circuit Judge:

Eduardo Salgado ("Salgado") appeals from the district court's grant of summary judgment on his age discrimination claim under the California Fair Employment and Housing Act ("FEHA" or "The Act") and his state common law causes of action in this employment discrimination case. The district court held that the state common law causes of action were preempted by the Act and the age discrimination claim was barred by the Act's one-year time limit. We reverse and remand.

I. FACTS

This is an action for wrongful termination based on violations of state and federal age discrimination laws and other state common law theories brought by Salgado against his former employer, Arco Seed Company; its parent corporation, Atlantic Richfield Company; his former supervisors; and others (hereinafter collectively "the Company").

                October 13, 1983   Salgado filed a charge of discrimination
                                   with the Equal Employment Opportunity
                                   Commission (EEOC) alleging
                                   harassment.  The EEOC automatically
                                   filed the complaint with
                                   the California Department of Fair
                                   Employment and Housing ("the
                                   Department") under the agencies
                                   "work sharing" agreement
                October 24, 1983   The Department issued a "right-to-sue"
                                   letter indicating that "(a)ny
                                   court action must be taken within
                                   one year of the date of this notice."
                                   Cal. Gov't Code Sec. 12965(b) (West
                                   1987).  The letter also stated that
                                   the EEOC would be responsible for
                                   the investigation and evaluation of
                                   the merits of his complaint and that
                                   the Department was closing its case
                                   on the basis of "processing waived
                                   to another agency."
                November 7, 1983   Salgado filed a letter with the EEOC
                                   alleging continued harassment and
                                   retaliation for filing his original
                                   complaint
                November 30, 1983  Salgado advised the EEOC, by letter
                                   of his indefinite suspension without
                                   pay effective November 28, 1983
                December 2, 1983   Salgado was terminated.  This was
                                   reported to the EEOC
                January 16, 1984   EEOC conducted a fact finding
                                   conference on Salgado's charge.  The
                                   Company was present.
                January 31, 1984   The Company provided the EEOC
                                   with documents in defense of its
                                   position.
                May 9, 1984        An EEOC representative conducted
                                   an on-site inspection of the Company's
                                   facility in its investigation of
                                   Salgado's complaint.
                July 31, 1984      The EEOC issued its "right-to-sue"
                                   letter.
                November 30, 1984  Salgado filed a civil action in Imperial
                                   County Superior Court for age
                                   discrimination.  In his complaint,
                                   Salgado also alleged five state common
                                   law causes of action: wrongful
                                   and retaliatory termination, breach
                                   of contract, breach of the implied
                                   covenant of good faith and fair dealing,
                                   and intentional infliction of emotional
                                   distress.  This action was filed
                                   one year and thirty-seven days after
                                   the issuance of the California
                                   Department of Fair Employment and
                                   Housing's right-to-sue letter.
                January 16, 1985   The Company removed the action to
                                   federal district court on the basis
                                   that Salgado charged a violation of
                                   the Federal Age Discrimination in
                                   Employment Act.  The district court
                                   exercised pendent jurisdiction over
                                   Salgado's state common law claims
                                   and state age discrimination claim.
                April 29, 1986     The Company filed a Notice of Motion
                                   and Motion for Summary Judgment
                                   on each of Salgado's state
                                   causes of action.
                May 2, 1986        Salgado filed a Notice of Motion and
                                   Motion for Leave to Voluntarily Dismiss
                                   his federal age discrimination
                                   claims with prejudice (Fed.R.Civ.P.
                                   41(a)(2)) and for remand of his
                                   pendent state claims.
                June 9, 1986       A district court order was entered
                                   granting the Company's motion for
                                   summary judgment on each of Salgado's
                                   state causes of action.  Salgado
                                   withdrew his motion for leave to
                                   voluntarily dismiss his federal
                                   claims.
                June 26, 1986      Salgado applied to the district court
                                   for reconsideration of his motions,
                                   asking the district court to rescind
                                   its order granting the Company summary
                                   judgment on his state law
                                   causes of action; to grant him leave
                                   to voluntarily dismiss his federal
                                   claims; and to remand the state law
                                   causes of action.
                July 14, 1986      The court denied Salgado's application
                                   for reconsideration.  Salgado
                                   moved to dismiss his federal age
                                   discrimination claims with prejudice.
                                   The Company orally stipulated to the
                                   dismissal which the court granted.
                July 25, 1986      The court entered its final judgment
                                   dismissing Salgado's federal age
                                   discrimination claims with prejudice
                                   and delaring his five state common
                                   law causes of action were preemped
                                   by the California Fair Employment
                                   and Housing Act and his state age
                                   discrimination claim was barred by
                                   the Act's one-year time limit.
                
II. DISCUSSION

A grant of summary judgment is reviewed de novo. Darring v. Kincheloe, 783 F.2d 874, 876 (9th Cir.1986) (citing Lojek v. Thomas, 716 F.2d 675, 677 (9th Cir.1983)).

A. Statute of Limitations

Initially, the issue to be addressed is whether California Government Code Sec. 12965(b)'s 1 one-year time limit for filing a civil action is a statute of limitations subject to equitable tolling. If this one-year time period is a statute of limitations, noncompliance may be excused by the "equitable tolling" doctrine. Valenzuela v. Kraft, Inc., 801 F.2d 1170, 1172 (9th Cir.1986), amended by 815 F.2d 570 (9th Cir.1987). If, on the other hand, the time period is a jurisdictional prerequisite, this equitable doctrine does not apply and noncompliance will divest the court of jurisdiction to hear the case. Zipes v. Trans World Airlines, Inc., 455 U.S. 385, 392, 398, 102 S.Ct. 1127, 1131, 1135, 71 L.Ed.2d 234 (1982); Valenzuela, 801 F.2d at 1172. There is no direct authority construing this particular state statute's one-year time period. However, there is a trend toward finding time limits placed on filing court actions or other similar filing periods to be statutes of limitations rather than jurisdictional prerequisites. See, e.g., Zipes, 455 U.S. 385, 102 S.Ct. at 1127 (filing timely charge with EEOC pursuant to 42 U.S.C. Sec. 2000e-5(e)'s 180-day period is not jurisdictional prerequisite but a statute of limitations subject to equitable tolling); Valenzuela, 801 F.2d at 1174 (90-day filing period from issuance of right-to-sue letter by the EEOC in 42 U.S.C. Sec. 2000e-5(f)(1) is statute of limitations subject to equitable tolling); Gibbs v. Pierce County Law Enforcement Support, 785 F.2d 1396 (9th Cir.1986) (follows Zipes in holding that 180-day filing requirement of Sec. 2000e-5(e) is statute of limitations). We find the analysis and reasoning in these cases persuasive. Therefore, we hold the one-year filing period from the issuance of a right-to-sue letter by the Department to be a statute of limitations subject to equitable tolling.

Salgado clearly filed his civil action more than one year after the Department issued him a right-to-sue letter. We must, therefore, determine whether the facts in this case support the application of equitable tolling to Sec. 12965(b)'s one-year statute of limitations. "To determine whether equitable tolling is available in a particular case we examine 'whether congressional purpose is effectuated by tolling the statute of limitations in given circumstances.' " Valenzuela, 801 F.2d at 1174 (quoting Burnett v. New York Central Railroad, 380 U.S. 424, 427, 85 S.Ct. 1050, 1054, 13 L.Ed.2d 941 (1965)). We conclude that the EEOC's investigation of Salgado's claims, under the work sharing agreement with the Department, tolled the running of the one-year time period. This statute of limitation was tolled until July 31, 1984 when the EEOC completed its investigation and issued its right-to-sue letter.

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