TIMOTHY J. CORRIGAN, District Judge.
Up to 2,000 employees of the City of Jacksonville filed this class action alleging that the City violated the Americans With
Order at 11-12. Thus, the Court directed the parties to participate in mediation, believing (as I still do) that they should reach a settlement. The parties mediated on December 4, 2012, and continued their settlement discussions for 10 months. (Docs. 94-99).
However, on October 2, 2013, the mediator informed the Court that the parties were at an impasse. (Doc. 102). Accordingly, the Court reopened the case and directed the parties to rebrief the matter in light of the issues identified in the Court's prior Order and the current state of the law. See Order (Doc. 104). The matter is now before the Court on the parties' renewed cross-motions for summary judgment. (Docs. 107, 109, 110, 113). The Court held oral argument on May 22, 2014. (Doc. 117; the Hearing). Following argument, at the Court's request, the parties filed proposed orders on August 15, 2014. See City's Proposed Order (Doc. 128); Plaintiffs' Proposed Order (Doc. 129).
The Court concludes that, while the City's process which resulted in excluding so many employees based on "pre-existing conditions" was, at best, haphazard, it did not violate the ADA on a class-wide basis. Thus, while some of these employees may seek to prosecute individual ADA actions against the City, this case may not proceed as a class action. Because the ADA is the only basis upon which the class has brought suit, the Court has no occasion to determine whether the City's actions violated some other local, state or federal law. However, nothing in this Order prevents the City from voluntarily offering a remedy to the employees who may have been unnecessarily excluded from the City's Retirement System. My detailed reasoning follows.
Summary judgment is proper "when the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law." Josendis v. Wall to Wall Residence Repairs, Inc., 662 F.3d 1292, 1314 (11th Cir.2011); Fed. R.Civ.P. 56(a), (c). The inquiry is "whether the evidence presents a sufficient disagreement to require submission to a jury or whether it is so one-sided that one party must prevail as a matter of law."
The Charter for the City of Jacksonville provides that "[a]ll officers and employees of the consolidated government employed after the effective date of this Charter shall be members of ... the retirement and pension system for the consolidated government." Defendant's Motion, Ex. B (Doc. 68-3): Jacksonville, Fla. Charter, art. 16, § 16.01. The City of Jacksonville Retirement System (the System) consists of two separate pension plans: the General Employees Retirement Plan (GERP), and the Corrections Officers' Retirement Plan (CORP). Defendant's Motion, Ex. B at 9: Jacksonville, Fla., Code § 120.101(b). The City of Jacksonville's Ordinance Code (the Code) previously required all applicants for membership in either the GERP or the CORP "to undergo a physical examination for the purpose of determining pre existing medical conditions." See Defendant's Motion, Ex. C (Doc. 68-4) at 3; see also Code § 120.302(c). This prior version of the Code provided that "[n]o condition of health shall preclude a person elected or hired by the City from membership, but no application for disability retirement shall be based on a pre existing medical condition revealed by the physical examination provided for in this paragraph." Id. Thus, the Code mandated that "[a]ny applicant determined to have a pre existing medical condition shall, as a condition of admission to the System, waive the right to receive a disability or pre retirement death benefit based on that condition in a form acceptable to the Board [of Trustees]." Id. Additionally, "[m]embership in the System shall be deemed to commence after an applicant has completed the required physical examination, has executed any appropriate waiver forms, has submitted all required enrollment forms, and shall be coincident with the first pay period in which employee contributions are made." Id. The Code was amended, effective September 15, 2008, to remove the physical examination and waiver requirements as to the GERP. See id.; see also Code § 120.202. However, the Code still requires a physical examination and waiver of pre-existing conditions prior to joining the CORP. See Code § 120.302(c)-(d).
Plaintiffs are employees of the City who, upon employment, were each required to undergo a medical examination to determine their eligibility to participate in one of the pension plans of the System. See Second Amended Complaint ¶ 5(a); Answer (Doc. 20) ¶ 5(a). As a result of medical issues revealed by the examinations, Plaintiffs were not admitted into the System at the time their employment with the City commenced. See Second Amended Complaint ¶ 5(b); Answer ¶ 5(b). Plaintiffs maintain, and the City admits, that Plaintiffs were "denied entry" into the System based on a "medical issue" identified in their examinations.
Plaintiffs filed this case on December 2, 2009, alleging that they were excluded from the City's System because of their actual or perceived disabilities in violation of the ADA. In apparent response to the suit, in February of 2010, the City voluntarily admitted into the System "all civil service employees who were not members, unless they specifically asked to remain in the Social Security program." See Defendant's Motion (Doc. 68) at 5, Ex. J; Plaintiffs' Supplemental Brief (Doc. 89) at 16. Having achieved membership in the System, "Plaintiffs are now seeking only equitable relief, in the form of a court order providing for the correction of their membership date back to their date of hire." See Plaintiffs' Supplemental Brief (Doc. 89) at 16. If Plaintiffs achieve this relief, it would potentially affect both the amount of their retirement benefit and how long they have to remain with the City to receive the maximum benefit.
On March 1, 2010, Plaintiffs moved to certify this case as a class action. See Motion to Certify Class (Doc. 16). Significantly, the City agreed to class certification subject only to the limitation that the City denied that the Class Members have any "entitlement to a reduced-price buy-back." See City's Response to Motion for Class Certification (Doc. 19) at 1. The Court held a hearing (Doc. 22), and on June 21, 2010, entered an Order (Doc. 35) granting class certification. Both parties agreed to the form of the Court's Order. See Order at 2-3.
In the agreed class certification Order, the Court stated that the number of City employees who Plaintiffs assert were wrongfully excluded from the pension plans, although difficult to determine precisely, exceeds 1,500 individuals. Order at 4. In addition, the parties agreed, and the Court held, that the following questions of law or fact were common to the members of the Class:
Order at 4. The Order further states, as the parties agreed, that the question of "whether the City engaged in a uniform and standardized course of conduct of improperly using medical diagnoses from physical examinations to exclude members from the [System], and depriving them of benefits thereunder in violation of the City's Code" was a question of fact or law that "predominate[s] over any questions affecting only individual members of the Classes." Id. at 6-7. For those reasons, inter alia, the Court directed that this case proceed as a class action on behalf of two classes
Id. at 8. The two classes are further divided into five sub-groups based on the class member's length of service with the City. Id. A Court-approved Notice of Class Certification was sent to the Class Members about August 20, 2010. See id. at 9.
Plaintiffs allege that the City violated the ADA and Rehabilitation Act by excluding the Class from the System because those employees have or were perceived to have disabilities.
In the absence of direct evidence, a plaintiff may prove "disparate treatment in disability cases `through circumstantial evidence using the familiar burden-shifting analysis employed in Title VII employment discrimination cases.'" See Nadler v. Harvey, No. 06-12692, 2007 WL 2404705, at *4 (11th Cir. Aug. 24, 2007) (quoting Wascura v. City of S. Miami, 257 F.3d 1238, 1242 (11th Cir.2001)). This analysis, known as the McDonnell Douglas burden-shifting analysis, is a three step process:
Id. (internal quotations omitted). "To establish a prima facie case of [disparate treatment] discrimination under the ADA, a plaintiff must show that, at the time of the adverse employment action, he had a disability, he was a qualified individual, and he was subjected to unlawful discrimination because of his disability." See Mazzeo v. Color Resolutions Int'l, LLC, 746 F.3d 1264, 1268 (11th Cir.2014).
Rather, in the class action context, the class establishes intentional discrimination by demonstrating that "`discrimination was the company's standard operating procedure — the regular rather than the unusual practice.'" See Cooper v. Fed. Reserve Bank of Richmond, 467 U.S. 867, 876 & n. 9, 104 S.Ct. 2794, 81 L.Ed.2d 718 (1984) (quoting Int'l Bhd. of Teamsters v. United States, 431 U.S. 324, 336, 97 S.Ct. 1843, 52 L.Ed.2d 396 (1977)). This
In Teamsters, the Supreme Court set forth the framework for establishing this type of "pattern or practice" claim. See Teamsters, 431 U.S. at 360-62, 97 S.Ct. 1843. Rather than following the McDonnell Douglas framework, pattern or practice claims are litigated in two stages. See Davis v. Coca-Cola Bottling Co. Consol., 516 F.3d 955, 966 (11th Cir.2008). At the initial "liability" stage, the plaintiff bears the burden "to demonstrate that unlawful discrimination has been a regular procedure or policy followed by an employer or group of employers," but the plaintiff is "not required to offer evidence that each person for whom it will ultimately seek relief was a victim of the employer's discriminatory policy." Teamsters, 431 U.S. at 360, 97 S.Ct. 1843. Pattern or practice cases are variants of the disparate treatment theory such that "`proof of discriminatory motive is critical,'" however "statistical evidence often is used to establish the existence of a pattern or practice." Joe's Stone Crab, Inc., 220 F.3d at 1287 (quoting Lujan v. Franklin Cnty. Bd. of Educ., 766 F.2d 917, 929 (6th Cir.1985)). "A plaintiff may establish a pattern or practice claim `through a combination of strong statistical evidence of disparate impact coupled with anecdotal evidence of the employer's intent to treat the protected class unequally.'" Id. (quoting Mozee v. Am. Commercial Marine Serv. Co., 940 F.2d 1036, 1051 (7th Cir.1991)). If the plaintiff establishes a prima facie case that a discriminatory policy existed, "[t]he burden then shifts to the employer to defeat the prima facie showing of a pattern or practice by demonstrating that the [plaintiff's] proof is either inaccurate or insignificant." Teamsters, 431 U.S. at 360, 97 S.Ct. 1843. If the defendant fails to do so and the court finds an ongoing practice of discrimination against the plaintiff class, the court "may then conclude that a violation has occurred and determine the appropriate remedy." Teamsters, 431 U.S. at 361, 97 S.Ct. 1843; Davis, 516 F.3d at 966.
The second or remedy stage is where "individual class members may seek redress for injuries sustained, perhaps in separate proceedings." Davis, 516 F.3d at 966. At that stage, the defendant "bears the burden of proving that the challenged decision, made when the discriminatory practice was in force, was not made in pursuit of that practice but was, instead, made because that claimant was unqualified for the benefit he sought." Id. However, if the named plaintiff fails to establish the alleged pattern or practice at the initial stage, the class claim is dismissed
The Teamsters framework applies to private-plaintiff class action cases for Title VII discrimination, see Joe's Stone Crab, Inc., 220 F.3d at 1286-87. However, few courts have addressed whether Teamsters applies in private-plaintiff class actions under the ADA. See Hohider v. United Parcel Serv., Inc., 574 F.3d 169, 179 n. 11 (3d Cir.2009); Bates v. United Parcel Serv., Inc., No. C99-2216 TEH, 2004 WL 2370633, at *20 (N.D.Cal. Oct. 21, 2004). Indeed, the Court has found only one case where Teamsters was applied in a private-plaintiff, class action, ADA discrimination case. See Bates, 2004 WL 2370633, at *20 ("Whether Teamsters applies to a pattern-or-practice case brought by a class of private individuals under the ADA appears to be an issue of first impression.").
Plaintiffs seek to proceed under the pattern or practice theory discussed in Teamsters. As such, in their Motion for Summary Judgment, Plaintiffs request summary judgment on the "stage one" liability stage of the proceedings. See Plaintiffs' Renewed Motion (Doc. 107) at 1, 24. The City argues that disability discrimination claims, unlike the racial discrimination claims at issue in Teamsters, require individualized assessments to determine whether each claimant is "disabled" within the meaning of the ADA. See Defendant's Renewed Motion (Doc. 109) at 20-22. In contending that Teamsters is inapplicable here, the City relies on cases denying class certification in ADA discrimination cases because the issue of whether a plaintiff is "qualified" and "disabled" within the meaning of the ADA is too individualized for class relief. See Defendant's Response at 17 (citing Hohider, 574 F.3d at 196 and Chedwick v. UPMC, No. 07-806, 2011 WL 1559792, at *18-19 (W.D.Pa. Apr. 21, 2011)).
However, Hohider and Chedwick are distinguishable in that, here, with the City's express consent, the Court previously granted class certification. See Order (Doc. 35); see also Hrg. on Mtn for Class Certification Tr. (Doc. 28) at 8. Unlike in
Moreover, the concerns articulated in Hohider and Chedwick regarding the need for individualized assessments are not an impediment here. The City does not appear to contest that the members of the Class, all of whom are current City employees, constitute "qualified" individuals within the meaning of the ADA. See Defendant's Renewed Motion at 22-23. With respect to the "disability" assessment, Plaintiffs argue that the Class Members are "disabled" under the old and new versions of the ADA because the City "regarded" the Class Members as disabled within the meaning of the ADA. See Plaintiffs' Renewed Motion at 6-14.
Having determined that Plaintiffs may employ Teamsters, the Court next considers whether Plaintiffs have offered sufficient evidence of a pattern or practice of intentional discrimination in violation of the ADA. See Teamsters, 431 U.S. at 360, 97 S.Ct. 1843. Plaintiffs must show not merely a discriminatory practice, but one that is unlawful under the ADA. See J.B. Hunt Transp., Inc., 128 F.Supp.2d at 124-25; Hohider, 574 F.3d at 189-90. As such, Plaintiffs must demonstrate a pattern or practice that discriminates against qualified individuals on the basis of disability. See 42 U.S.C. § 12112(a); J.B. Hunt Transp., Inc., 128 F.Supp.2d at 125. The parties do not dispute that the Class Members are qualified individuals, therefore, the questions before the Court are whether Plaintiffs have demonstrated a pattern or practice of (1) discrimination, (2) against individuals with disabilities within the meaning of the ADA, and (3) on the basis of disability. See Mazzeo, 746 F.3d at 1268; J.B. Hunt Transp., Inc., 128 F.Supp.2d at 124. Because the allegations in this case span a period governed by both the old and new versions of the ADA, both versions of the statute apply. See Mazzeo, 746 F.3d at 1267 (citing McElwee v. Cnty. of Orange, 700 F.3d 635, 642 n. 5 (2d Cir.2012) ("The ADAAA became effective on January 1, 2009, and applies to claims ... which arose after that date.")); Tarmas v. Sec'y of Navy, 433 Fed.Appx. 754, 762 n. 9 (11th Cir.2011); Fikes v. Wal-Mart, Inc., 322 Fed.Appx. 882, 883 n. 1 (11th Cir.2009) (noting that a presumption against retroactive application applies in the absence of Congressional expression to the contrary and applying "the ADA as it was in effect at the time of the alleged discrimination").
The parties appear to agree on the essential contours of the City's practice, but disagree as to whether that practice violated the ADA. The City required Class Members "to undergo a physical and medical examination to determine each [person's] eligibility to participate in one of the plans of the" System. See Second Amended Complaint ¶ 5(a); Answer ¶ 5(a). These medical examinations were referred to as the "pension physical" or "pre-pension physical." See Plaintiffs' Motion, Ex. 1 (Doc. 67-1; Ray Dep.) at 38, 82. If the pension physical revealed a pre-existing medical condition, Class Members were denied entry into the System. See Second Amended Complaint ¶ 5(c); Answer
However, in accordance with the City Code, a Class Member could join the System, despite the presence of a pre-existing medical condition, if he or she executed a waiver.
Chad Poppell explained the City's process for notifying Class Members of the waiver requirements:
Defendants' Motion, Ex. F (Doc. 69-1; Poppell Dep.) at 26-27.
Ray Dep. at 16.
In its initial summary judgment briefing, the City submitted the following records of the waiver process: (1) a July 27, 2009 letter from a doctor to the City following an employee's pension physical recommending "a waiver for hyperlipidemia and any related conditions and also for any related conditions secondary to abnormal CBCs," (2) a "Waiver Request/Release Form" dated May 26, 2009, and (3) a letter from the City to an employee indicating that a waiver form was enclosed and explaining
Indeed, the experiences of the Class Representatives exemplifies the inconsistency and confusion surrounding the City's administration of the System vis-a-vis preexisting conditions. Class Representative Edwin Hernandez began working for the City in 1995 and joined the System in 2001. See Defendant's Motion, Ex. L (Doc. 69-6; Hernandez Dep.) at 11. Although Hernandez does not remember receiving it, the City presents a letter, addressed to Hernandez and dated October 26, 1995, informing him that "additional medical information is required before you may apply for membership" in the System. See Defendant's Motion, Ex. P (Doc. 67-17); Hernandez Dep. at 26-27. Hernandez testified that he's "almost positive medical people or somebody there told me that I had the job, but I wasn't put on the pension because of my medical problems," specifically diabetes, hypertension, and cholesterol. Id. at 23. However, when Hernandez took another medical examination in 2001, the results still showed "type two diabetes, obesity, GERD," yet, at that time, he was recommended for the System. See id. at 39, 41; Defendant's Motion, Ex. R (Doc. 68-19). Hernandez is currently in the System.
Class Representative Christy Sames testified that after she took the pension physical, she did not hear back from anyone and did not realize that she was not in the System for "at least two years." See Defendant's Motion, Ex. I (Doc. 69-4; Sames Dep.) at 18. She did not speak with any one in Human Resources or in the pension office, and does not know why she was kept out of the pension, but "assume[s] it was for medical reasons...." See Sames Dep. at 20, 28. The City produced a letter addressed to Sames dated December 6, 1999, which states that "additional medical information is required before you may apply for membership in the City of Jacksonville's General Employees Pension Plan." See Defendant's Motion, Ex. M. In the letter, the City requests that Sames submit "the results of a Pap smear" to Human Resources. Id. Sames testified
Class Representative Kenneth Tanner testified that he took at least three pension physicals, first in 2001, then in 2004, and again in 2009, but was not placed in the System. See Defendant's Motion, Ex. K (Doc. 69-5; Tanner Dep.) at 24, 33. Tanner is a corrections officer who began working for the City in 2001. Id. at 15. According to Tanner, he was never given any reason why he was not placed in the System. Id. at 31-33. The City submits a Waiver Request/Release Form signed by Tanner and dated July 6, 2009, in which he applied "for a waiver of consequences of a pre-existing condition in order to participate in the City of Jacksonville Retirement System," and an email exchange between two city employees regarding the need to obtain a letter from Tanner's doctor because he requested a waiver for the pension. See Defendant's Supplemental Motion, Ex. S at 40-41. It is unclear whether Tanner completed the waiver process, but he was placed in the System in February 2010. See Tanner Dep. at 44-45.
Class Representative Lynette Clinch began working for the City in approximately 1989, and joined the System in 1994. Defendant's Motion, Ex. H (Doc. 69-3; Clinch Dep.) at 15-16, 23. Clinch testified that "the lady at the pension told me that the reason I was denied was for medical." Clinch Dep. at 15. According to Clinch, after her preemployment physical "[o]ne of the ladies that was doing the hiring" told her that she "passed the physical, but I just didn't pass the pension." Id. at 16-17. She testifies that she kept calling the pension office to find out why she was not in the System and that "it took a while before they would tell me that I could go back and retake the physical." Id. at 17-18. According to Clinch, when she went in for the second physical the doctor told her she passed. Although she cannot remember whether it was the pension office or the doctor, she testifies that at the time of her second physical she found out that the reason she failed the first physical was because she was overweight. Id. at 20-22.
Although the precise number is unclear, Plaintiffs estimated that there were 1,500 Class Members when the Court entered the Order granting class certification, see Order (Doc. 35) at 4, and at the May 22, 2014 Hearing, counsel for the City recalled that the list of people who received the class notice contained approximately 2,000 names. (Doc. 120; Hrg. Tr. at 17). In any event, as a result of the City's practices, it appears that approximately 1,500-2,000 current City employees were denied entry into the System for at least some period during their employment with the City. Pursuant to the City Code, "full-time civil service employees not eligible for membership in another City-sponsored pension plan shall become members of the Plan." City Code §§ 120.202, 120.302 (emphasis added). Thus, these employees were "supposed to be" in the System. See Ray Dep. at 35-36.
Plaintiffs contend that the City's decision to deny entry into the System to any employee with a pre-existing medical condition violates the current and prior versions of the ADA. Although those employees could subsequently obtain entry into the System by signing a waiver, at the Hearing, Plaintiffs maintained that the
Under § 12112(a) of the ADA, "no covered employer may use the disability of an otherwise qualified person as an excuse for discrimination in hiring, promotion, discharge, compensation, training, or `other terms, conditions, and privileges of employment.'" See Doe v. Dekalb Cnty. Sch. Dist., 145 F.3d 1441, 1447 (11th Cir.1998) (quoting 42 U.S.C. § 12112(a)). "Thus, the ADA prohibits `a broad variety of adverse employment actions, whenever those actions are taken for a prohibited reason.'" Id. (quoting McNely v. Ocala Star-Banner Corp., 99 F.3d 1068, 1077 (11th Cir.1996)). Generally, the old and new versions of the statute both elaborate that the term "discriminate against a qualified individual on the basis of disability" includes, in relevant part:
See 42 U.S.C. § 12112(b). Because Plaintiffs are proceeding solely under a theory of disparate treatment, to the extent Plaintiffs rely on these forms of discrimination, Plaintiffs must still show that the City's standard operating procedure was intentional disability discrimination. Thus, for example, Plaintiffs' argument that the City's practice violates 42 U.S.C. § 12112(b)(6) as a selection criteria that excludes or tends to exclude a class of individuals with disabilities, is unavailing in that it relies on a theory of disparate impact discrimination. See Raytheon, 540 U.S. at 54, 124 S.Ct. 513 (citing Grano v. Dep't of Dev. of City of Columbus, 637 F.2d 1073, 1081 (6th Cir.1980)); Davidson v. Am. Online, Inc., 337 F.3d 1179, 1189 (10th Cir.2003). Indeed, in the briefing, Plaintiffs assert this § 12112(b)(6) argument in precisely the manner rejected by the Supreme Court in Raytheon. After the City offered the waiver requirement as the purportedly neutral explanation for the exclusion of the Class Members, Plaintiffs argued that this policy is not a "legitimate non-discriminatory" reason for excluding Class Members because it had the "effect" of blocking employees with disabilities from joining the System, and it was not consistent with "business necessity." See Plaintiffs' Renewed Motion at 22-23; Plaintiffs' Response at 18-19. As discussed further below, these are factors which "pertain to disparate-impact claims but not disparate-treatment claims." See Raytheon, 540 U.S. at 54, 124 S.Ct. 513;
Rather, to prevail on their pattern or practice claim, Plaintiffs must establish the City's discriminatory motive. Here, the parties essentially agree that the City had a practice of denying entry into the System to employees with pre-existing conditions unless those employees signed a waiver, while employees without any condition were admitted without a waiver. As such, the City utilized a practice which treated employees with "pre-existing conditions" differently than employees without such conditions. Thus, the Court considers whether disparate treatment on the basis of generic "pre existing conditions" is a disability-based distinction. Notably, Plaintiffs do not contend that the ADA is violated by the exclusion of pre-existing conditions from disability benefits coverage for members of the System. Counsel conceded at the Hearing that had the Class Members simply been admitted to the System and notified that the pre-existing conditions identified in their pension physicals could not form the basis of a claim for disability benefits, such a practice would not violate the ADA. (Doc. 120; Hrg. Tr. at 41-42). Indeed, "a uniform pre-existing condition clause, which excludes the treatment of all conditions that pre-date an individual's eligibility for benefits from coverage, is not a disability-based distinction." Morrison v. Unum Life Ins. Co. of Am., Civil No. 06-2400, 2008 WL 4224807, at *6 (W.D.La. Sept. 10, 2008); see also Krauel v. Iowa Methodist Med. Ctr., 95 F.3d 674, 678 (8th Cir.1996); McLaughlin v. Gen. Am. Life Ins., No. CIV. A. 97-1410, 1998 WL 736689, at *2-3 (E.D.La. Oct. 21, 1998); E.E.O.C. v. Hinsdale Hosp., No. 98 C 3482, 1999 WL 495480, at *4-5 (N.D.Ill. June 30, 1999).
As set forth in the Code, the City applied a uniform requirement that, as a condition of admission to the System, employees must take a pension physical and sign a waiver of the right to disability benefits for any pre-existing conditions identified in the physical. All qualified employees were subject to this requirement, regardless of whether he or she could be considered disabled, and the evidence indicates that the City required a waiver for preexisting conditions of all types, severity, and duration. Although individuals whose physicals did not reveal any pre-existing conditions were admitted
Pokorney v. Miami Valley Career Tech. Ctr., No. C-3-94-247, 1997 WL 1764769, at *8 (S.D.Ohio Mar. 31, 1997) (quoting EEOC: Interim Enforcement Guidance on Application of ADA to Health Insurance (June 8, 1993)); see also Krauel, 95 F.3d at 678. Therefore, just as the City's decision to exclude pre-existing conditions from coverage under its benefits plan is not disability-based discrimination, so too, requiring those employees who may be affected by the exclusion to sign a waiver acknowledging this term does not constitute disparate treatment on the basis of disability. As the Code itself excluded pre-existing conditions from coverage, employees did not lose any benefits to which they would have otherwise been entitled by signing the waiver, and once admitted to the System, received the same benefits as employees without pre-existing conditions.
Thus, employees with disabilities were given the same opportunity as everyone else to join the System — sign a waiver acknowledging that any pre-existing condition identified in the pension physical would not be covered and join the System, or be placed in the Social Security system. This is not a case where a defendant "discriminated on the basis of disability in offering its pension plan to anyone. It did not charge higher prices to disabled people, on the theory that they might require more benefits. Nor did it vary the terms of its plan depending on whether or not the employee was disabled." See E.E.O.C. v. CNA Ins. Cos., 96 F.3d 1039, 1044 (7th Cir.1996) (internal citations omitted); Weyer v. Twentieth Century Fox Film Corp., 198 F.3d 1104, 1116 (9th Cir.2000). Indeed, the City's intent as expressed in the Code was that all qualified City employees would join the System, regardless of the existence of any pre-existing medical condition. See Defendant's Motion, Ex. C at 3 ("No condition of health shall preclude a person elected or hired by the City from membership...."). Plaintiffs do not argue that the City enforced the pre-existing condition waiver only as to some medical conditions but not others. As such, the Court concludes that the City's practice makes a broad-distinction, encompassing all manner of conditions and constraining individuals both with and without disabilities, and therefore, under either version of the ADA, this practice does not constitute "discrimination on the basis of disability."
However, despite the seemingly neutral process for joining the System set forth in the Code, the City's procedures for implementing this requirement were inadequate such that numerous employees with preexisting conditions apparently failed to sign the waiver and were excluded from the System. As such, Plaintiffs appear to argue that the City intentionally administered
Generally, a plaintiff demonstrates a pattern or practice of disparate treatment through "`a combination of statistical evidence demonstrating substantial disparities ... buttressed by evidence of general policies or specific instances of discrimination.'" See In re W. Dist. Xerox Litigation, 850 F.Supp. 1079, 1084 (W.D.N.Y.1994) (quoting E.E.O.C. v. Chicago Miniature Lamp Works, 947 F.2d 292, 299 (7th Cir.1991)). Here, Plaintiffs present the affidavits of twenty-two employees who state that "the City" told him or her that he or she was not eligible to join the pension because of that individual's particular physical condition revealed during the pension physical.
Moreover, even if the affidavits were admissible evidence, the Court would find them insufficient to create a material issue of fact. In the first affidavit, the affiant states her name, employment dates with the City, and most recent job title. (Doc. 70-1 at 1). Next, she asserts that, at the time the City hired her, "the City sent me for a pension medical examination to decide whether I could be a member of one of the two pension plans that make up the City of Jacksonville Retirement System," and that "I took the medical examination as directed by the City." Id. She then concludes with the assertion that "Shortly after I took the pension medical examination, I was informed by the City that I was not eligible to be a member of the City of Jacksonville Retirement System and of the pension plan that covered my job title because I had diabetes." Id. Every affidavit thereafter is an exact replica of this document with only the name, employment date, job title, and medical condition changed to reflect the particular affiant.
Plaintiffs also rely on a January 24, 2007 email to several city managers by Chief of Personnel William Marshall as purported anecdotal evidence of discriminatory intent. See Plaintiffs' Response, Ex. 1 (Doc. 75-2). In response to an email containing a "spreadsheet for all COJ employees currently
See id. According to Plaintiffs, this email is evidence of "an unscrupulously misleading attempt to justify the fact that the employees were still being excluded from the plans." See Plaintiffs' Response at 15; Plaintiffs' Renewed Motion at 21. However, the Court does not find the Marshall email to constitute probative evidence of discriminatory intent. The meaning of this email is unclear, but Plaintiffs' interpretation of the email as evidencing an intent to use the waiver requirement as a cover for excluding disabled employees from the System is strained at best. See Plaintiffs' Renewed Motion at 21. Indeed, Marshall expresses an interest in moving employees into the System, not keeping them out. While the email demonstrates the City's undeniable problem in poorly administering the enrollment process and documenting the pension preferences of its employees, there is nothing about the email which suggests that these employees were deliberately excluded from the System due to some actual or perceived impairment.
In addition, Plaintiffs argue that the City's poor documentation of the waiver process indicates the City's discriminatory intent. Plaintiffs' Renewed Motion at 23; Plaintiffs' Reply at 9. The City has produced several examples of waiver request forms, letters from doctors recommending a waiver, and letters to employees with the waiver itself. See City's Motion, Ex. D; City's Supplemental Motion, Exs. S-T. Eight of the waiver-related documents submitted by the City pertain to named Plaintiffs in this case. See City's Supplemental Motion, Ex. S at 2, 11, 21, 25, 30, 35, 40, 43. The City also produced documents indicating that Plaintiffs Hernandez and Sames were not enrolled in the System due to a failure to submit additional medical tests. See City's Motion, Exs. M, P. Following the Hearing, the City filed all of the Class Members' waiver-related documents in its possession, which amounted to 765 pages of paperwork pertaining to ninety-four City employees total. See Sealed Exhibits (Doc. 125). The Court fully acknowledges that in light of the large number of Class Members, the number of waiver-related letters and forms produced by the City is shockingly small. Nonetheless, counsel for Plaintiffs stated at the Hearing that he had no basis to challenge the testimony of Ray and Poppell regarding the process for administering the waiver requirement. (Doc. 120; Hrg. Tr. at 52).
Moreover, Plaintiffs offer no evidence to connect the City's poor record-keeping with a discriminatory motive. Indeed, "[e]vidence of lapses in the employer's record-keeping cannot on its own establish a pretext claim." See Harding v. Careerbuilder, LLC, 168 Fed.Appx. 535, 539 (3d Cir.2006). Rather, "[p]oor documentation by the employer of the basis for its asserted reason will strengthen a plaintiff's case if the plaintiff has evidence of an alternative reason, evidence that the asserted reason had no basis in fact, or evidence that the employer intentionally destroyed or concealed the relevant documents." Id. Plaintiffs have not submitted any of these types of evidence, and as such, the Court cannot draw the inference that the City's failure to produce more waiver forms indicates that the application process was designed to exclude disabled employees from the System. See Casillas v. U.S. Navy,
Finally, Plaintiffs contend that the waiver requirement had a discriminatory effect of disproportionately excluding disabled employees from the System, and as such, the Court should infer an intentionally discriminatory intent. See Plaintiffs' Renewed Motion at 23. Plaintiffs add that such an inference is especially warranted because a waiver was unnecessary given that pre-existing conditions were already excluded from coverage under the terms of the Code. Id. Plaintiffs also maintain that the City could have administered its pension and disability plans differently so as not to cause this disparate impact, and therefore, the waiver requirement is not consistent with business necessity. See Plaintiffs' Reply at 6-7. However, whether the City's practice was consistent with "business necessity" is a question that pertains only to disparate impact claims. Raytheon, 540 U.S. at 53-54, 124 S.Ct. 513. Moreover, to the extent Plaintiffs now argue that a "good faith attempt to neutrally administer the plan," would still constitute prohibited discrimination because it had the "effect" of blocking employees with disabilities from the System, see Plaintiffs' Renewed Motion at 23, this argument is misplaced. See Raytheon, 540 U.S. at 53-54, 124 S.Ct. 513. As Plaintiffs' claims are premised on disparate treatment, Plaintiffs must show a pattern or practice of intentional discrimination. If the City excluded the Class Members from the System as a result of their failure to comply with a neutrally administered waiver requirement, then their exclusions cannot be said to have been motivated by their purported disabilities. Id. at 55, 124 S.Ct. 513. Thus, the Court considers only whether Plaintiffs have offered sufficient evidence to conclude that the Class Members were actually excluded from the System because the City regarded them as disabled. Whether the waiver policy violates the ADA based on its allegedly disparate impact on disabled individuals is not the question before the Court and, as Plaintiffs' counsel affirmed at the Hearing, not the basis for Plaintiffs' claims. (Doc. 120; Hrg. Tr. at 51, 58-59).
Nonetheless, although this is not a disparate impact case, disparate impact evidence is still relevant to the analysis because strong statistical evidence of disparate impact can be, and often is, used to demonstrate a pattern or practice of disparate treatment. Joe's Stone Crab, Inc., 220 F.3d at 1287. However, Plaintiffs do not present the type of statistical analysis from which the Court could draw the conclusion that unlawful animus motivated the City's pension decisions. Indeed, despite repeated requests for a more complete evidentiary record, the Court has only a rough estimate that up to 2,000 employees were "supposed to be" in the System, but were not. See Ray Dep. at 36-38, 63. Plaintiffs have not presented any analysis of how that statistic relates to the number of City employees in total, the number of City employees in the System, or the number of employees in the System via the waiver process. Additionally, Plaintiffs do not offer any information regarding how many of these 2,000 employees may have intentionally declined to sign a waiver and elected to receive social security benefits. As such, the Court has no way of comparing the number of excluded employees to the number of City employees who were able to complete the application and waiver process, or were otherwise able to join the System despite having a pre-existing condition.
Where statistical evidence is lacking, Plaintiffs must come forward with strong anecdotal evidence of discrimination. See In re W. Dist. Xerox Litigation, 850 F.Supp. at 1085. As discussed above, Plaintiffs' anecdotal evidence is not sufficiently probative of any discriminatory intent. For example, Plaintiffs do not offer evidence of a single class member who, having signed the waiver, was not admitted to the System, or was thwarted in his or her efforts to sign a waiver. Nor do Plaintiffs offer evidence that employees with minor preexisting conditions were offered a waiver and admitted to the System while those with more serious conditions were kept out.
Considering all the evidence as a whole, and viewing it in the light most favorable to Plaintiffs, the Court finds that Plaintiffs fail to create a material dispute as to whether the City had a pattern or practice of intentionally treating employees with actual or perceived disabilities differently than non-disabled employees. See Perryman, 698 F.2d at 1143. At best, Plaintiffs show that approximately 2,000 City employees took a pension physical and following that examination, were not put in the System because of a "medical issue." The evidence indicates that this "medical issue" constitutes any multitude of dissimilar medical and physical conditions, of varying severity and duration, as well as, in some cases, no condition at all but a failure to submit required test results. At the Hearing, Plaintiffs conceded that they have no reason to dispute that when a pre-existing medical condition was identified in the pension physical, the City's practice, although poorly executed, was to deny initial entry into the System but offer that employee the opportunity to sign a waiver for the pre-existing condition. The employee could then sign the waiver form and join the System, or elect Social Security benefits.
The Court has little doubt that the process for joining the System was ineffective, and that the City's efforts in ensuring that its employees joined the System, as the City Code intended, left much to be desired. However, there is simply no evidence in the record from which a factfinder could conclude that this failure was due to a pattern or practice of intentional disability discrimination. While the Court does not rule out that the City's actions may run afoul of some other provision of federal, state or municipal law, the City's conduct does not fall within the specific ADA claims brought here.
Thus, the Court will grant the City's Renewed Motion as to Plaintiffs' class action pattern or practice claim, and deny Plaintiffs' Renewed Motion. Because the class action fails, it appears that "all that remains are the claims of the individual class members, and those claims will be litigated under the familiar McDonnell Douglas burden-shifting framework." See Davis, 516 F.3d at 966. Nonetheless, it is unclear whether Plaintiffs intend to proceed with their individual claims in the absence of a class action. As such, the Court will direct the parties to confer and file a joint notice on or before December 15, 2014, indicating how they intend to proceed with this case in light of the Court's ruling.
It appears that paperwork snafus, poor record-keeping, and the City's inconsistent administration of the waiver process kept many City employees from being enrolled in the City's Retirement System as they were "supposed to be." While the Court has ruled that the City's practices did not violate the ADA on a class-wide basis, this does not prevent the City from fashioning some equitable remedy for the affected employees. Nor does the Court rule out that the parties could resume their long-running negotiations to try to reach a fair resolution. In fact, the Court encourages the parties to do so and stands ready upon request to assist the parties in facilitating their settlement discussions.
Accordingly, it is
In addition, Plaintiffs bring their claims under Title II of the ADA which governs public entities. See 42 U.S.C. § 12132. In Bledsoe v. Palm Beach Cnty. Soil & Water Conservation Dist., 133 F.3d 816 (11th Cir.1998), the Eleventh Circuit held that Title II encompasses public employment discrimination. Bledsoe, 133 F.3d at 820-25.
For purposes of paragraph (1)(C):
42 U.S.C. § 12102(1), (3). Under the prior version of the statute, the "regarded as" provision defined disability as "being regarded as having such an impairment," and did not contain the current paragraph (3) which broadens the definition. See 42 U.S.C. § 12102(2) (eff. to Dec. 31, 2008).
In addition, the Court rejects Plaintiffs' contention that the City "waived" its waiver argument because it failed to include this defense in its Answer. Id. at 3. The City has argued that Plaintiffs failed to complete the application process, including the waiver of preexisting conditions, consistently throughout this case. Plaintiffs have had multiple opportunities to address this defense and have availed themselves of those opportunities. Although the Court questions whether this argument is a type of affirmative defense which must be raised in an Answer, even if it is, in the absence of any showing that Plaintiffs were prejudiced by the City's failure to do so, the Court rejects Plaintiffs' argument that the City waived this defense. See Edwards v. Fulton Cnty., Ga., 509 Fed.Appx. 882, 887-88 (11th Cir.2013) ("[A] defendant does not waive an affirmative defense if the earlier omission from responsive pleadings does not prejudice the plaintiff."). Moreover, Plaintiffs' contention that the City asserted the "waiver" defense only as to appointed employees is mistaken. Plaintiffs' Renewed Motion at 3-4. The "waiver" defense in the Answer as to appointed employees pertains to an argument that appointed employees had the ability to "opt-out" of the System, and thus the City raised a defense that those employees had "waived" their right to join the System. This is an entirely different argument than the City's contention here that the civil service employees were not placed in the System because they failed to complete the required waiver form.
(Doc. 120; Hrg. Tr. at 4-5). When asked why his partners who had handled the case were not present, Mr. Warman responded:
Id. at 6. Mr. Warman later allowed how "fatigue" "was a poor choice of verbiage...." Id. at 8. Later, the Court addressed the City's attorney:
Id. at 15, 18-19.