Scott v. Federal Reserve Bank of New York

• Decision Date: 13 January 1989
• Docket Number: No. 87 Civ. 9244 (RWS).,87 Civ. 9244 (RWS).
• Parties: Fred SCOTT, Plaintiff, v. FEDERAL RESERVE BANK OF NEW YORK, Defendant.
• Court: U.S. District Court — Southern District of New York

704 F. Supp. 441

Fred SCOTT, Plaintiff, v. FEDERAL RESERVE BANK OF NEW YORK, Defendant.

No. 87 Civ. 9244 (RWS).

United States District Court, S.D. New York.

January 13, 1989.

C. Vernon Mason, New York City, for plaintiff.

Ernest T. Patrikis, (Thomas C. Baxter, Jr. and Jonathan I. Polk, of counsel), New York City, for defendant.

OPINION

SWEET, District Judge.

Defendant Federal Reserve Bank of New York (the "New York Fed") has moved for summary judgment under Rule 56, Fed.R. Civ.P., to dismiss the complaint of plaintiff Fred Scott ("Scott"), who has alleged that his discharge by the New York Fed constitutes a violation of § 1983 of the Civil Rights Act of 1864 (42 U.S.C. § 1983), § 1981 of the same title, and Title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e et seq.). On the facts and conclusions set forth below, the New York Fed's motion is granted and the complaint will be dismissed with costs.

Prior Proceedings

On July 25, 1986, Scott filed a charge of employment discrimination with the Equal Employment Opportunity Commission ("EEOC"). The charge alleged the New York Fed discriminated against Scott because of his race when it fired him. On September 25, 1987, the EEOC issued a notice of right to sue letter. The EEOC never reached a determination with respect to the merits of Scott's charge.

Scott's complaint was filed on December 28, 1987 and the New York Fed has deposed him. In his complaint, Scott raises certain "terms and conditions" claims that he did not raise in his EEOC charge, namely, that the New York Fed discriminated against him in promoting white employees with less seniority. In particular, Scott points to a caucasian's promotion to chauffeur, and another caucasian guard's promotion to special duties. Further, Scott claims that the New York Fed discriminated against him in failing to grant him "grade scale" increases, and finally in investigating grievances of discrimination and the procedure for filing such grievances.

The New York Fed has supported its motion for summary judgment with affidavits of William J. Kelly, Manager of the Protection Function ("Kelly"), James Coffey, Assistant Chief in the Personnel Function ("Coffey"), Carl Turnipseed, Assistant Vice President in the Foreign Relations Function ("Turnipseed"), Leo Smith, Guard ("Smith"), Robert V. Murray, Vice President of the Service Function ("Murray"), and Harold Lee, Captain of the Guard Force ("Lee") and the depositions of Scott and Gabriel Koz ("Dr. Koz"). In opposition, Scott has submitted his affidavit. Both parties have submitted statements under local Rule 3(g) ("3G Statements"). The motion was argued and was considered fully submitted on October 26, 1988.

The Facts

Scott is a 39 year old Black male who resides in Brooklyn, New York. New York Fed is a corporate instrumentality of the United States, organized and existing under federal law. It holds more than $200 billion dollars in gold, currency, and securities in its building at 33 Liberty Street, in New York City. New York Fed maintains a guard force of more than 100 persons.

Scott was hired by the New York Fed in May of 1973 as a computer messenger, worked as a messenger for about a year, and was rehired as a guard. In his capacity as a guard, he received a citation for outstanding service. In 1978, Mrs. Scott divorced Scott after an incident during which he beat her.

In 1981, Rene Talbert ("Talbert"), a female employee of the New York Fed, complained to John Manning, the Assistant Chief of the Protection Function, that Scott threatened to pistol whip her if she did not accept a date with him. Scott vehemently denied Talbert's charge when Manning confronted him with it, and the matter was dropped.

On a number of occasions, in 1984, a female employee of the New York Fed named Sarah accused Scott of being crazy. Scott complained about Sarah to his supervisor, who spoke to Sarah's supervisor, and the problems abated.

In April or May of 1984, Scott ordered Miss Brathway, a female employee of New York Fed, to stay out of the area where he worked with Leo Smith with whom Brathway was friendly. This led to an altercation between Scott and Smith. Prompted by a telephone call from Smith in which Smith referred to Scott as "crazy," Sergeant Rivers, a Black male supervisor on the guard force, interceded.

Later in 1984, another incident occurred between Scott and Smith. This took place on the New York Fed's minibus used to transport New York Fed employees who work the 4:00 p.m. to midnight shift (the shift on which Scott worked) to the Katz Parking Garage, where the employees are provided with parking. Scott wanted the minibus to wait for one of his friends, who had gone back into the 33 Liberty Street building to retrieve a forgotten item. This led to an argument between Scott and Smith, and Smith says that Scott threatened to "get" him. Scott denies threatening Smith.

In August of 1985, an incident occurred between Scott and a Hispanic chauffeur named Cartagena in the trucking area of the 33 Liberty Street building involving Scott being annoyed by Cartagena's handling of his vehicle while Scott was directing traffic. This incident involved nothing more than harsh words, although Scott recalls that Cartagena called him crazy. Subsequently, there was another incident involving Smith that occurred in the trucking area, where, according to Smith, Scott said that he was going to "get" Smith.

On August 22, 1985 a caucasian guard, Kollar, was promoted to Special Duty Guard after four years of employment with the New York Fed. He had also completed 20 years service as a New York City Transit Police Officer. Scott did not apply for the position.

In November of 1985, there was an announcement to the guard force that some of the guards would receive a "President's Award," a special lump-sum cash award for outstanding performance. It was reported to management that when Scott heard about this program, he characterized the recipients of the President's Award as "backstabbers."

In early December of 1985, Captain Chappas, who headed the guard force, directed all guards working on the 4:00 p.m. to midnight shift to report for duty two hours early on December 18, 1985 in order to attend a training course introducing the guards to new uniforms and weapons. Scott slept late and failed to attend.

Scott was directed to attend a make-up session on January 6, 1986 by Freddy Gist ("Gist"), a Black Lieutenant working on the 4:00 p.m. to midnight shift. Once again, Scott failed to attend the make-up session. When Gist confronted him on the telephone and asked him what happened, Scott hung up. Scott did not remember hanging up on Gist, but recalled telling Gist that he was not at the make-up because he was shopping.

On January 14, 1986, there was an incident between Scott and Rosario, another guard, in the trucking area. According to a report of the incident prepared by Lieutenant Gist, the incident occurred when Scott refused to alternate positions with Rosario, although Scott remembers this differently, for he remembered that Rosario had been intransigent, and not him. The two men argued, and Gist was called to intervene. When Gist arrived, he heard Scott accuse Rosario of consuming alcoholic beverages on the job, which is a violation of New York Fed work rules.

On January 27, 1986, there was an incident in the guard's locker room. Scott was playing music while other guards were playing cards. One of the other guards apparently believed that Scott's music was too loud, and he asked Scott to turn it down. This led to an altercation between the two men, and Lee was called to intercede. Lee is Black and now heads the guard force, having replaced Chappas. Lee reported that when he arrived on the scene, he was told by a guard named Papajohn that Scott was "a time bomb waiting to go off." He also said that Scott proclaimed that "I know the game plan and you're all going to get yours." Scott claims that the incident was not his fault, but admits that he was referred to as "crazy."

During this period, Ficarra, a caucasian guard, inadvertently discharged a weapon indoors during a general alarm. Three other caucasian guards received counselling. One had his pistol permit suspended. None were returned to guard duty until after receiving a favorable recommendation with respect to their emotional stability.

Management of the Protection Function became concerned about Scott because his duties required him to be armed and reports indicated that Scott had become increasingly insular, withdrawn, and insubordinate with respect to the directions of his supervisors. In addition were the series of altercations involving Scott and his fellow guards, some of which required supervisors to be called to intercede. In addition, Scott's colleagues were openly referring to him as a "crazy" person.

In late January of 1986, management of the Protection Function and Gervasio met with representatives of the Personnel Function to discuss Scott. The New York Fed's Medical Director, Dr. Jack Osterritter ("Dr. Osterritter"), also attended this meeting. A decision was made to ask Scott to see a representative of the Employee Assistance Program ("EAP"). EAP is an independent entity that the New York Fed and other employers in the New York metropolitan area use to provide psychological and other types of counselling to employees.

After appropriate arrangements were made with EAP, Scott was asked to interview with an EAP representative. Although initially reluctant, Scott agreed to the interview. Scott was interviewed by Michael Selwyn of EAP, who, after the appropriate client consent forms were executed by Scott, communicated his opinion to Dr. Osterritter.

Dr. Osterritter then informed Kelly, then Manager of the Protection Function (the corporate officer responsible for the guard force) that EAP was concerned about Scott's mental condition, and recommended that Scott be seen by a psychiatrist...