JAMES O. BROWNING, District Judge.
Woodward and McCabe assert that they are both Native Americans of Navajo race and ethnicity, and members of the Navajo Tribe and the Navajo Nation. See First Amended Complaint of Discrimination and Petition for Class Action Seeking Monetary Damages and Injunctive Relief ¶ 1, at 1, filed August 11, 2009 (Doc. 4)("First Amended Complaint"). Before the Plaintiffs initiated this action, Woodward was an Education Line Officer with the Bureau of Indian Affairs ("BIA"), working in the Bureau of Indian Education ("BIE"). See First Amended Complaint ¶¶ 5, 19, at 2, 7; Defendant's Answer ¶¶ 5, 19, at 2, 4, filed November 13, 2009 (Doc. 10). Woodward was forced to retire when she was given an ultimatum directing her either to resign or to accept a reassignment to Portland, Oregon. See First Amended Complaint ¶¶ 5, 20, at 2, 7. The Plaintiffs state that such reassignment was "part of a pattern where Navajo Education Line Officers (Program Administrators) were removed from supervision of Navajo BIA schools and replaced with non-Navajo Education Line Officers." Id. ¶ 22, at 7. Woodward was also threatened with suspension for allegedly violating BIA protocols, but the Plaintiffs contend that such accusations were a pretext to force her to retire so that BIE could replace her with a non-Navajo. See First Amended Complaint ¶ 24, at 8.
McCabe is an employee of the Bureau of Indian Affairs, working as an architect in the Office of Facilities, Management and Construction ("OFMC"). First Amended Complaint ¶¶ 1, 6, at 1, 3. The Plaintiffs assert that McCabe was denied employment advancement opportunities in OFMC. See id. ¶ 6, at 3. She has applied for multiple project-management jobs, for which she is qualified, and has been consistently rejected. See id. ¶ 39, at 11. She has also requested training and education to make her more competitive for such project-management jobs, but those requests have likewise been rejected. See id. The Plaintiffs argue that other, non-Navajo employees have been given the opportunities that McCabe, because she is Navajo, was denied. See id. ¶ 45, at 12.
On November 6, 2006, Woodward filed a formal Complaint of Discrimination with the United States Department of the Interior. See U.S. Department of the Interior Complaint of Discrimination (dated November 6, 2006), filed January 15, 2010 (Doc. 15-1)("Woodward Complaint"). In her Complaint, Woodward claimed that
Id. The Complaint did not expressly include class allegations. The Final Agency Decision on Woodward's Complaint of Discrimination stated that the following claim was accepted for decision: "Whether on February 17, 2007, Complainant was subjected to constructive discharge on the basis of race (American Indian, Navajo) and age ... when she was forced to retire from her position." Final Agency Decision at 1 (dated May 20, 2009), filed January 15, 2010 (Doc. 15-2).
On January 24, 2006, McCabe filed a formal Complaint, which included an extensive four-page narrative description of the alleged discrimination and its negative effects. See U.S. Department of the Interior Complaint of Discrimination (dated January 24, 2006), filed January 15, 2010 (Doc. 15-3)("McCabe Complaint"). The Administrative Judge found no discrimination, and a Final Order by the United States Department of the Interior adopted that finding. See Decision Without a Hearing (dated January 24, 2008), filed January 15, 2010 (Doc. 15-4). In her Complaint of Discrimination, McCabe asserted she had been retaliated against for having previously made an informal complaint about alleged discrimination and harassment. See McCabe Complaint at 2, 5 ("I have been harassed, intimidated, and discriminated against in my work environment... in apparent retaliation for filing a previous harassment and discrimination complaint on January 30, 2003 and a resulting fact finding report on August 4, 2003[.]"). McCabe's Complaint also alleges that she was subjected to bias and prejudice in performance assessments, and wrongfully accused of failing to satisfy job requirements. See id. at 5. McCabe's Complaint of Discrimination did not include class allegations. The Decision Without a Hearing, dated January 24, 2008, stated that the issues being addressed were as follows:
Decision Without a Hearing at 2.
At the administrative hearing, several witnesses' testimony sought to establish discriminatory animus on the part of the agency by alleging discrimination against Navajos generally. See Plaintiffs' Response to Defendant's Rule 12(b)(1) Motion to Dismiss at 4-7, filed February 1, 2010 (Doc. 16)("Response")(citing the Final Agency Decision, attached as Exhibit 1). Notwithstanding that testimony, the administrative judge held that there was insufficient evidence of discriminatory animus. See Final Agency Decision at 9, filed February 1, 2010 (Doc. 16-2)("[T]he Complainant [Woodward] has not presented any evidence to indicate that the Agency officials harbored a discriminatory animus toward members of the Complainant's protected groups.")(emphasis in original).
On August 11, 2009, the Plaintiffs filed their First Amended Complaint of Discrimination and Petition for Class Action Seeking Monetary Damages and Injunctive Relief. See Doc. 4.
First Amended Complaint ¶ 49, at 13.
On January 15, 2010, Salazar, the Secretary of the United States Department of the Interior, filed this motion pursuant to rule 12(b)(1) of the Federal Rules of Civil Procedure, asking the Court to dismiss Plaintiff's First Amended Complaint with prejudice for lack of subject-matter jurisdiction.
The Plaintiffs responded on February 1, 2010. They argue that, while Woodward's Complaint did not use the word "class" or "class action," it did "served to provide notice to Defendant that a group of employees had been adversely affected by agency personnel management policy and/or practice that discriminated against a group on the basis of their race and/or ethnicity." Response at 4. The Plaintiffs thus assert that, because Salazar could reasonably have expected that the claims would give rise to a class action, the Plaintiffs have exhausted their administrative remedies with respect to the class claims. See Response at 8-13. They also argue that they were not required to exhaust administrative remedies with respect to the class because such exhaustion would be futile. See Response at 13-14. The Plaintiffs thus ask the Court to deny Salazar's motion and allow the case to proceed as a class action.
At the hearing, the parties reiterated many of the arguments in their respective briefs. Phyllis Dow, Salazar's attorney, argued that the Plaintiffs failed to exhaust their administrative remedies with respect to their class-action claims and that the Court must therefore dismiss the class-action claims. See Transcript of Hearing at 2:4-23 (taken March 1, 2010)("Tr.")(Dow).
"Federal courts are courts of limited jurisdiction; they are empowered to hear only those cases authorized and defined in the Constitution which have been entrusted to them under a jurisdictional grant by Congress." Henry v. Office of Thrift Supervision, 43 F.3d 507, 511 (10th Cir.1994). A plaintiff generally bears the burden of demonstrating the court's jurisdiction to hear his or her claims. See McNutt v. Gen. Motors Acceptance Corp., 298 U.S. 178, 182, 56 S.Ct. 780, 80 L.Ed. 1135 (1936)("[T]he party invoking federal jurisdiction bears the burden of establishing its existence."); Montoya v. Chao, 296 F.3d 952, 955 (10th Cir.2002); Byrd v. EPA, 174 F.3d 239, 243 (D.C.Cir.1999); Miller v. United States, 710 F.2d 656, 662 (10th Cir.1983). Rule 12(b)(1) of the Federal Rules of Civil Procedure allows a party to raise the defense of the court's "lack of jurisdiction over the subject matter" by motion. Fed.R.Civ.P. 12(b)(1). The United States Court of Appeals for the Tenth Circuit has held that motions to dismiss for lack of subject-matter jurisdiction "generally take one of two forms: (1) a facial attack on the sufficiency of the complaint's allegations as to subject matter jurisdiction; or (2) a challenge to the actual facts upon which subject matter jurisdiction is based." Ruiz v. McDonnell, 299 F.3d 1173, 1180 (10th Cir.2002). These two forms of attack differ.
Alto Eldorado Partners v. City of Santa Fe, No. CIV 08-0175 JB/ACT, 2009 WL 1312856, at **8-9 (D.N.M. Mar. 11, 2009)(Browning, J.) (citations omitted). As the United States Court of Appeals for the Fifth Circuit has stated:
Williamson v. Tucker, 645 F.2d 404, 412-13 (5th Cir.1981)(quoting Mortensen v. First Fed. Sav. & Loan Ass'n., 549 F.2d 884, 891 (3d Cir.1977)).
When making a rule 12(b)(1) motion a party may go beyond the allegations in the complaint to challenge the facts upon which jurisdiction depends, and may do so by relying on affidavits or other evidence properly before the court. See New Mexicans for Bill Richardson v. Gonzales, 64 F.3d 1495, 1499 (10th Cir.1995); Holt v. United States, 46 F.3d 1000, 1003
"Title VII of the Civil Rights Act of 1964 forbids employment discrimination based on race, color, religion, sex, or national origin." Brown v. Gen. Servs. Admin., 425 U.S. 820, 825, 96 S.Ct. 1961, 48 L.Ed.2d 402 (1976)(citing 42 U.S.C. §§ 2000e-2 and 2000e-3).
Farley v. Leavitt, No. CIV 05-1219 JB/ LFC, 2007 WL 6364329, at *6 (D.N.M. Dec. 31, 2007) (Browning, J.)(internal quotes and alterations omitted). With the 1972 amendments to the statute, the protection of Title VII applies to federal employees as well as employees of private concerns. See Brown v. Gen. Servs. Admin., 425 U.S. at 825-26, 96 S.Ct. 1961 (citing 42 U.S.C. § 2000e(b)). For a federal court to have jurisdiction over a private action under Title VII, the federal employees wishing to pursue such discrimination claims must first exhaust their administrative remedies. See Brown v. Gen. Servs. Admin., 425 U.S. 820, 832-33, 96 S.Ct. 1961, 48 L.Ed.2d 402 (1976). See DeWalt v. Meredith Corp., 288 Fed.Appx. 484, 490 (10th Cir.2008)("Failure to exhaust administrative remedies—such as a refusal to cooperate with an EEOC investigation—is a jurisdictional bar to suit."); Alcivar v. Wynne, 268 Fed.Appx. 749, 753 (10th Cir. 2008)("The Tenth Circuit has consistently held that `exhaustion ... is a jurisdictional prerequisite to suit under Title VII—not merely a condition precedent to suit.'")(quoting Shikles v. Sprint/United Mgmt. Co., 426 F.3d 1304, 1317 (10th Cir. 2005)); Sizova v. Nat'l Inst. of Standards & Tech., 282 F.3d at 1325 ("We have held that the exhaustion of administrative remedies is a jurisdictional prerequisite to suit under Title VII."); Woodman v. Runyon, 132 F.3d 1330, 1341 (10th Cir.1997)("[E]xhaustion of administrative remedies is a jurisdictional prerequisite to instituting a Title VII action in federal court.")(quoting Khader v. Aspin, 1 F.3d 968, 970 (10th Cir.1993)); Johnson v. Orr, 747 F.2d 1352, 1356 (10th Cir.1984) ("The Tenth Circuit has held that exhaustion of administrative remedies is a jurisdictional prerequisite to suit under [42 U.S.C.] § 2000e-16.")(citing Sampson v. Civiletti, 632 F.2d 860, 862
The most common method of administrative exhaustion for federal employees is the individual EEO complaint process. The regulations promulgated by the Equal Employment Opportunity Commission, see 29 C.F.R. Part 1614, and the Commission's Management Directive 110 govern the initial EEO complaint process. Pre-complaint counseling is the first step in that process, see 29 C.F.R. § 1614.105, requiring the aggrieved employee to consult with an agency counselor within forty-five days of the alleged discriminatory act or, in the case of a personnel action, within forty-five days of the effective date of the action, see id. In 1977, in response to judicial criticism, "the Civil Service Commission promulgated specific class administrative remedies [which] created a detailed scheme markedly different than the administrative mechanism for addressing individual discrimination claims." Gulley v. Orr, 905 F.2d 1383, 1384 (10th Cir.1990). The class administrative process, embodied in 29 C.F.R. § 1614.204, requires that the applicant first engage in counseling, see 29
The Tenth Circuit draws stark distinction between the exhaustion process for individual claims and the exhaustion process for class claims. See Gulley v. Orr, 905 F.2d at 1384 ("[T]he Civil Service Commission promulgated specific class administrative remedies [which] created a detailed scheme markedly different than the administrative mechanism for addressing individual discrimination claims.").
Gulley v. Orr, 905 F.2d at 1385 (citing McIntosh v. Weinberger, 810 F.2d 1411, 1423-25 (8th Cir.1987); Wade v. Sec'y of Army, 796 F.2d 1369, 1373 (11th Cir. 1986); Lewis v. Smith, 731 F.2d 1535, 1540 (11th Cir.1984); Patton v. Brown, 95 F.R.D. 205, 207-08 (E.D.Pa.1982); Johnson v. Bond, 94 F.R.D. 125, 127 (N.D.Ill. 1982); Downes v. Adams, 33 Fair Empl. Prac.Cas. (BNA) 929, 930-31 (E.D.N.Y. 1982); Williams v. U.S. Postal Serv., 33 Fair Empl.Prac.Cas. (BNA) 533, 534-35 (N.D.Ga.1983); Moore v. Orr, 33 Fair Empl.Prac.Cas. (BNA) 523 (D.Colo.1982); Thomas v. U.S. Postal Serv., 33 Fair Empl.Prac.Cas. (BNA) 521, 522-23 (N.D.Cal.1981)). The Tenth Circuit joined this "weight of authority" in 1990 and held that "class action claims [are] barred [by] failure to exhaust class administrative remedies." Gulley v. Orr, 905 F.2d at 1385. Since Gulley v. Orr, the Tenth Circuit has maintained that exhaustion of administrative remedies on individual claims will not suffice to satisfy the exhaustion requirement as to class claims. See Ransom v. U.S. Postal Serv., 170 Fed.Appx. 525, 528 (10th Cir. 2006)("The brief reference made [in the administrative complaint] to the maltreatment of other employees did not qualify as a class complaint. Therefore, any request for counseling pursuant to those claims was for individual counseling only and cannot satisfy the counseling requirement for class claims."); Barrett v. Rumsfeld, 158 Fed.Appx. 89, 92 (10th Cir.2005)("Plaintiffs' individual agency complaints, if any, are inadequate to support jurisdiction over their class complaint because administrative exhaustion of individual Title VII claims is not sufficient to exhaust administrative remedies for class claims[.]"); Monreal v. Potter, 367 F.3d 1224, 1233 (10th Cir.2004)("[W]e have held that class claims cannot be exhausted through an individual complaint[.]")(emphasis in original); Persons v. Runyon, 172 F.3d 879 (Table), 1999 WL 104427, at *2 (10th Cir. Mar. 2, 1999)("[W]e have consistently held that
Salazar asks the Court to dismiss the Plaintiffs' class-action claims for lack of subject-matter jurisdiction, because the Plaintiffs failed to exhaust their class administrative remedies before filing this action in federal court. The Plaintiffs advance several arguments why they successfully exhausted class administrative remedies. In the alternative, they argue that they need not exhaust administrative remedies because such exhaustion would be futile. The Court concludes that administrative exhaustion of the class claims was necessary and that the Plaintiffs' exhaustion of individual administrative remedies did not satisfy that requirement.
As an initial matter, the Court finds that neither Woodward nor McCabe exhausted the class-action administrative process that 29 C.F.R. § 1614.204 sets out. The Plaintiffs do not contest this issue. It is the basis of Salazar's motion, see Motion at 10-13, and the Plaintiffs' argument is not that they exhausted their class administrative remedies, but rather that the individual administrative remedies that Woodward and McCabe each exhausted were sufficient to put Salazar on notice that a class action might be asserted against him. See Response at 2 ("Plaintiffs are not required to exhaust a class complaint administratively because class issues could reasonably be expected to grow out of Plaintiffs' individual administrative complaints and Defendant engaged in a class investigation in regard to Plaintiff Woodward's individual administrative complaint."). The Court will explore the Plaintiffs' arguments below, but begins by holding that the Plaintiffs did not exhaust their class administrative remedies.
The Plaintiffs' primary argument why the Court should not dismiss their class-action claims is that the individual EEO complaints that Woodward and McCabe filed put Salazar on notice that the eventual district-court action brought against him might be a class action. See Response at 4. The Plaintiffs argue that, because Salazar could reasonably have expected that the individual claims would
The Plaintiffs ask the Court to adopt a new exhaustion rule in Title VII class-action cases. They suggest that the Court should not ask whether the Plaintiffs have exhausted class administrative remedies, but rather ask whether Salazar could reasonably foresee from the Plaintiffs' individual administrative complaints that a class action might lie. See Tr. at 4:14-6:15 (Court, Dahl). Such a rule would be at odds with several Tenth Circuit cases addressing the class/individual exhaustion problem. The Court thus rejects the Plaintiffs' argument.
First, the Court notes that the Plaintiffs' rule has no logical end-point that does not eviscerate the class-exhaustion requirement. Any claim that a plaintiff was discriminated against because he or she is in a protected class, by necessity, implies that there could be a class action. If one person in that protected class is being discriminated against, and the defendant employs more than one person in that protected class, it is reasonable to assume that the other member of the class is also being discriminated against. Moreover, the standard mechanism by which a plaintiff proves discriminatory animus is to show that others of the same protected class were likewise discriminated against, making it all the more obvious that there is the potential for a class action. The rule would thus be that, any time the defendant employs enough members of the
Notwithstanding the above logic, the Civil Service Commission added a specific procedural requirements for individuals bringing class-action complaints against a federal employer, and the Tenth Circuit requires exhaustion of those class administrative remedies. Several Tenth Circuit opinions have affirmed dismissal of Title VII class actions because no plaintiff exhausted the class administrative remedies. See Ransom v. U.S. Postal Serv., 170 Fed. Appx. at 528; Barrett v. Rumsfeld, 158 Fed.Appx. at 92; Monreal v. Potter, 367 F.3d at 1233; Persons v. Runyon, 1999 WL 104427, at *2; Belhomme v. Widnall, 127 F.3d at 1217; Gulley v. Orr, 905 F.2d at 1385. In many of those Tenth Circuit cases, the issue was racial or ethnic discrimination, see Barrett v. Rumsfeld, 158 Fed.Appx. at 90 (race discrimination); Monreal v. Potter, 367 F.3d at 1233 (race and national-origin discrimination); Belhomme v. Widnall, 127 F.3d at 1217 (race and national-origin discrimination), and the discrimination presumably affected people other than the individual claimant. In Ransom v. United States Postal Service, for example, the plaintiff filed a class-action complaint in federal district court, which the court dismissed for lack of subject-matter jurisdiction because the plaintiff had failed to exhaust class administrative remedies. See 170 Fed.Appx. at 526-27. The plaintiff argued that she raised her class claims in her EEO complaint. See 170 Fed.Appx. at 528. In upholding the district court's decision, the Tenth Circuit rejected the plaintiff's position and found that "[t]he brief references made to the maltreatment of other employees did not qualify as a class complaint." 170 Fed.Appx. at 528. Citing Belhomme v. Widnall and Gulley v. Orr, the Tenth Circuit held that "any request for counseling pursuant to those claims was for individual counseling only and cannot satisfy the counseling requirement for class claims." 170 Fed.Appx. at 528. Like the complaint at issue in Ransom v. United States Postal Service, the Plaintiffs' allegations in their individual complaints include, at most, "brief references ... to the maltreatment of other employees," id., and do not qualify as exhausting class administrative remedies, see Response at 12 (arguing that Salazar was put on notice of a possible class action by testimony that the agency "discriminates against Navajos as a group").
At the hearing, Mr. Dahl suggested that the structure of the relevant regulations leaves open the possibility that a plaintiff can raise class issues whenever they become apparent, even after the administrative process had ended and the time has come for a complaint in federal court. See Tr. at 6:16-8:2 (Court, Dahl). He then argued that the Plaintiffs' administrative complaint raised class implications and that the agency determination contemplated class claims. See id. at 8:3-11:16 (Dahl). The portion of the regulation to which Mr. Dahl refers states: "A complainant may move for class certification at any reasonable point in the process when it becomes apparent that there are class implications to the claim raised in an individual complaint." 29 C.F.R. § 1614.204(b). He suggests that "the process" to which this sentence refers could be the entire litigation process, rather than the administrative process, and therefore it could be reasonable to raise the class issues in the district-court complaint. See Tr. at 6:16-8:2 (Court, Dahl).
For two reasons, the Court rejects this argument. First, it is contrary to the regulation's plain language. The final sentence of the subsection to which Mr. Dahl refers states: "The administrative judge shall deny class certification when the complainant has unduly delayed in moving for certification." 29 C.F.R. § 1614.204(b). The reference to the administrative judge as the one who shall deny class certification indicates that the provision applies only to times during which the administrative judge would have jurisdiction. That sentence would thus imply that "any reasonable point in the process" means "any reasonable point in the administrative process." The Tenth Circuit appears to have taken this position in Belhomme v. Widnall.
In Belhomme v. Widnall, the Tenth Circuit considered a situation similar to that in this case, in which a federal employee— Belhomme—sued his employer under Title VII for racial and national-origin discrimination. See 127 F.3d at 1215. As is true in this case, Belhomme exhausted his administrative remedies as to his individual claim, then, once in federal district court, sought to promote his suit to be a class action. See id. at 1215-16. The district
The second reason that the Court believes the Plaintiffs should be prohibited from asserting class claims is that, even if 29 C.F.R. § 1614.204(b) allowed a plaintiff to raise the class-certification issue for the first time in the federal-court action under certain circumstances, it would not do so under the facts of this case. Section 1614.204(b) allows a claimant to move for class certification "at any reasonable point in the process," which, it clarifies, refers to "when it becomes apparent that there are class implications to the claim." The Court believes that class implications were likely always present in this case, as the Court alluded in its analysis in Section II of this opinion. Even if no class implications existed when a Navajo employee— one of many Navajo employees that Salazar employs—filed an EEO complaint alleging racial/ethnic discrimination based on her Navajo heritage, such implications clearly existed when witnesses to the administrative hearing began testifying to discriminatory conduct against Navajos generally. Section 1614.204(b) thus required the Plaintiffs to raise the class certification issue "at [a] reasonable point in the process" after that testimony came out. And the regulation requires the administrative judge to deny leave to promote the suit to a class action if the plaintiff unduly delays in bringing the class-action issue to the administrative judge's attention. The Court finds that the point at which the plaintiff files a civil action in federal court is not a "reasonable point in the process" and that waiting until the administrative process is complete—at least where the Plaintiffs were aware of the class implications of the suit before that point—is undue delay. If the administrative judge were faced, at this point in the proceeding, with whether to allow the case to proceed as a class action, the Court is confident the administrative judge would conclude that § 1614.204(b) requires that he or she deny the request based on undue delay. This undue delay provides the Court with additional reason to grant Salazar's motion to dismiss the class claims.
The Plaintiffs' final argument is that they do not have to exhaust class administrative remedies because such exhaustion would be futile. See Response at 13-14. They assert that class administrative action would be futile, because the agency at issue has already concluded, in response to the Plaintiffs individual complaints, "that there is no evidence to indicate that the Agency officials harbored a discriminatory animus toward members of the Navajo tribe." Response at 13 (internal quotations omitted). Salazar argues that requiring class exhaustion would not be futile because "a dismissal of Plaintiffs' class claims would not hinder their individual complaints." Reply at 10. Salazar distinguishes all of the authority the Plaintiffs cite in support of their exhaustion argument as involving disabled children and asserts that there is no authority supporting a futility exception in the Title VII
The Plaintiffs fail to point to a Title VII case identifying a futility exception to the administrative-exhaustion requirement. See Response at 12 (citing McQueen v. Colo. Springs Sch. Dist. No. 11, 488 F.3d at 874 (stating, in the context of an Individuals with Disabilities Education Act ("IDEA") claim, that "exhaustion is not required where it would be futile or fail to provide adequate relief")(alterations omitted); N.M. Assoc. for Retarded Citizens v. New Mexico, 678 F.2d 847, 850 (10th Cir.1982)(stating, in the context of a Rehabilitation Act claim, that "[i]mprobability of obtaining adequate relief by pursuing administrative remedies is often a reason for dispensing with the exhaustion requirement."); and Hoeft v. Tucson Unified Sch. Dist., 967 F.2d 1298, 1303-04 (9th Cir.1992)(stating, in the context of an IDEA claim, that exhaustion should be excused where "it is improbable that adequate relief can be obtained by pursuing administrative remedies.")). The Plaintiffs thus have no support for the proposition that this judicially created futility exception applies in the Title VII context.
Moreover, the Plaintiffs have not satisfactorily explained why exhaustion would be futile.
Finally, the Court's order will not deny any other potential class members a remedy for the agency's alleged violation of the civil-rights laws. Those employees may bring individual EEO complaints or may bring the class action contemplated in this case, and use their individual claim of discrimination as the basis upon which a court might find he or she is an adequate