MATHESON, Circuit Judge.
This appeal arises from a grant of summary judgment against Plaintiff-Appellant Parker Excavating, Inc. ("PEI") on its civil rights claim against Defendants-Appellees Lafarge West, Inc. ("Lafarge"),
Lafarge, a construction company, was the primary contractor on a paving project for Pueblo County, Colorado ("the County"). PEI, a Native American-owned construction company, was a subcontractor for Lafarge. MMM replaced Lafarge as the primary contractor. PEI's participation in the project was terminated before it entered into a new subcontract with MMM.
PEI alleged Lafarge retaliated against it with a letter of reprimand and a demand to sign letters of apology after PEI Vice President Greg Parker complained that County employees discriminated against PEI on the basis of its Native American ownership. PEI alleged Lafarge, MMM, and Mr. Guerra retaliated against it when it was asked to vacate the project after Mr. Parker made further complaints of discrimination. PEI based the foregoing on 42 U.S.C. § 1981, which prohibits racial
In separate orders, the district court granted summary judgment on PEI's § 1981 retaliation claim to (1) MMM and Mr. Guerra because PEI could not show its opposition to County employees' discrimination was "protected" opposition under § 1981 and (2) Lafarge because PEI could not show Lafarge took an adverse action against it.
Exercising jurisdiction under 28 U.S.C. § 1291, we affirm the grant of summary judgment to MMM and Mr. Guerra and reverse the grant of summary judgment to Lafarge.
In their summary judgment motion, MMM and Mr. Guerra argued that PEI could not base its § 1981 retaliation claim on its opposition to the alleged discriminatory conduct of third-party County employees. PEI failed to respond to this argument in district court and also has failed to argue on appeal that the district court plainly erred in granting summary judgment on this ground. Under these circumstances, we affirm as to MMM and Mr. Guerra.
In its summary judgment motion, Lafarge argued PEI could not show Lafarge took an adverse action against it. The district court agreed and granted summary judgment on this ground. On appeal, PEI argues there is a genuine issue of material fact on this question. We agree and reverse the grant of summary judgment on the § 1981 retaliation claim as to Lafarge.
We present the following facts in the light most favorable to PEI, the nonmoving party on summary judgment. Twigg v. Hawker Beechcraft Corp., 659 F.3d 987, 997 (10th Cir. 2011).
PEI is associated with the Choctaw Tribe. Mr. Parker is PEI's Vice President. Mr. Guerra was Lafarge's estimator and project manager, and then worked for MMM.
In July 2011, the County hired Lafarge to be the primary contractor on a roadway and drainage improvement project on South McCulloch Blvd. ("the McCulloch Project"). Lafarge subcontracted with PEI for excavation and traffic control work.
Two provisions of the subcontract are especially relevant. First, in lieu of PEI's providing a performance bond, Lafarge agreed that it would retain 50 percent of the funds owed to PEI until PEI completed its work. Second, the arbitration clause required that "[a]ny claim or dispute arising out of this Subcontract ... be subject to and determined by binding arbitration...." App., Vol. IV at 27.
We present the remaining facts to correspond with the elements of PEI's § 1981 retaliation claim: (1) the County employees' alleged discriminatory conduct; (2) PEI's alleged opposition to that discriminatory conduct; and (3) the Appellees' alleged retaliation for that opposition.
PEI contends Mr. Parker was the target of discriminatory conduct during a pre-construction meeting on June 28, 2011, attended by County representatives, Lafarge employees, and other contractors on the McCulloch Project. In that meeting, County employee Alf Randall wadded up PEI's proposed traffic control diagrams and threw them in the trash, calling them "bullshit." App., Vol. V at 130. PEI alleges Mr. Randall acted out of discriminatory
On July 12, 2011, at Mr. Guerra's suggestion, Mr. Parker called County Commissioner John Cordova to complain about Mr. Randall's actions during the pre-construction meeting. Mr. Parker spoke with the Commissioner over a speakerphone in Mr. Guerra's presence.
During the phone call, Mr. Parker said Mr. Randall's behavior was due to PEI's Native American ownership, citing Mr. Randall's comment during the William White Project about affirmative action.
On July 13, 2011 — the day after the phone call to the Commissioner — Mr. Guerra sent Mr. Parker a letter of reprimand on behalf of Lafarge. The letter stated Lafarge had been informed that Mr. Parker had "contacted various public officials" to discuss the incident between Mr. Parker and Mr. Randall. App., Vol. V at 154. The letter explained that, in doing so, Mr. Parker had "circumvented the proper dispute resolution process as outlined in [the] subcontract agreement with Lafarge and [had] put Lafarge at risk of being disqualified as General Contractor on the McCulloch... project." Id.
Mr. Guerra further required Mr. Parker to sign letters to Mr. Randall and Robert Schmidt, another County employee, apologizing for "circumventing the proper procedure for dispute resolution" for disputes between Mr. Parker and Mr. Randall on the McCulloch Project. Id. at 155, 156.
In addition to the June 28, 2011 incident of alleged discrimination, PEI identifies three other allegedly discriminatory acts.
Along with Mr. Parker's phone call to Commissioner Cordova in July 2011, PEI alleges it opposed discrimination on two other occasions.
PEI alleges a series of retaliatory acts between December 12 and December 16, 2011, that were prompted by a December 12 letter from Mr. Randall to Mr. Guerra. In that letter, Mr. Randall wrote:
App., Vol. IV at 84.
On December 12, 2011, the same day as Mr. Randall's letter, Mr. Guerra wrote Mr. Parker a letter stating that MMM had taken over for Lafarge as the County's contractor for the McCulloch Project. It said that MMM would require a new subcontract with PEI and that, unlike Lafarge, MMM would require a bond. It also explained that, due to Mr. Parker's earlier statement that PEI could not post a bond, MMM requested that PEI vacate the project. The letter was on MMM letterhead, but Mr. Guerra signed it as a Lafarge employee. It showed that copies were sent to four Lafarge managers.
On December 15, 2011, Mr. Guerra wrote Mr. Parker another letter reiterating the points in his December 12 letter. Mr. Guerra signed it as an MMM employee. It showed that copies were sent to three of the same managers who were listed in his December 12 letter, this time identified as managers of MMM rather than Lafarge.
On December 16, 2011, Mr. Guerra sent a third letter requesting that PEI vacate the project.
On May 30, 2014, PEI sued Lafarge, Fidelity, MMM, Mr. Guerra, Mr. Randall, and Mr. Schmidt in the United States District Court for the District of Colorado. PEI's first amended complaint, the operative
Three motions for summary judgment were filed by (1) MMM and Mr. Guerra, (2) Lafarge and Fidelity, and (3) Mr. Randall and Mr. Schmidt. Each motion requested summary judgment on PEI's § 1981 retaliation claim. In their motion, Mr. Randall and Mr. Schmidt also asked for summary judgment on the § 1983 retaliation and discrimination claims against them. PEI responded to all three motions in consolidated briefing.
The district court entered three orders on the respective summary judgment motions, granting summary judgment on the § 1981 retaliation claim for (1) MMM and Mr. Guerra, (2) Lafarge, and (3) Mr. Randall and Mr. Schmidt. The court also granted summary judgment in favor of Mr. Randall and Mr. Schmidt on the § 1983 claims against them based on qualified immunity. The court declined to exercise supplemental jurisdiction over the remaining state law claims. After the court entered final judgment against PEI on the § 1981 retaliation claim, this appeal followed.
This appeal concerns only the first two orders because Mr. Randall and Mr. Schmidt have since been dismissed from the case.
When MMM and Mr. Guerra moved for summary judgment on the § 1981 claim, they argued they were not proper defendants because PEI's claim concerned retaliation for PEI's opposition to the alleged discriminatory conduct of third-party County employees, not the conduct of MMM or Mr. Guerra. The district court agreed, noting PEI had not cited any authority to contradict the defendants' argument. It therefore granted summary judgment in favor of MMM and Mr. Guerra.
Lafarge moved for summary judgment on the § 1981 retaliation claim, but on the different ground that it had not taken any adverse action against PEI. Lafarge argued its involvement on the project had ended on December 11, 2011, when MMM had taken over for Lafarge on the project, and PEI was not terminated until December 17, 2011. The parties also disputed in district court whether Lafarge was responsible for taking other adverse actions against PEI. The district court granted summary judgment in favor of Lafarge. It ruled that MMM, not Lafarge, was responsible for PEI's termination, and that Lafarge was not responsible for any other adverse actions.
We review whether the district court properly granted summary judgment on PEI's § 1981 retaliation claim for (1) MMM and Mr. Guerra and (2) Lafarge.
We affirm the grant of summary judgment on the § 1981 retaliation claim as to MMM and Mr. Guerra because PEI forfeited its argument that its opposition to the County's third-party discriminatory conduct qualifies as protected opposition for its § 1981 retaliation claim, and has not
We reverse the grant of summary judgment on the § 1981 retaliation claim as to Lafarge because the district court erred in holding PEI could not show Lafarge took adverse actions against it.
"We review a district court's grant of summary judgment de novo, applying the same legal standard as the district court." Twigg, 659 F.3d at 997. "The court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). "In applying this standard, we view the evidence and the reasonable inferences to be drawn from the evidence in the light most favorable to the nonmoving party." Twigg, 659 F.3d at 997.
PEI's claim is based on a provision from the Civil Rights Act of 1866. Under 42 U.S.C. § 1981(a),
The statute "prohibits not only racial discrimination but also retaliation against those who oppose it." Univ. of Tex. Sw. Med. Ctr. v. Nassar, ___ U.S. ___, 133 S.Ct. 2517, 2529, 186 L.Ed.2d 503 (2013) (citing CBOCS, 553 U.S. at 445, 128 S.Ct. 1951).
A corporation can be a § 1981 plaintiff when it has "acquired a racial identity, either as a matter of law or by imputation ...." Thinket Ink Info. Res., Inc. v. Sun Microsystems, Inc., 368 F.3d 1053, 1059 (9th Cir. 2004); see also Allstate Sweeping, LLC v. Black, 706 F.3d 1261, 1265 (10th Cir. 2013) (providing that an independent contracting company could bring a claim under § 1981).
When courts consider § 1981 retaliation claims, "the principles set forth in Title VII retaliation cases apply with equal force ...." Twigg, 659 F.3d at 998. As with a Title VII retaliation claim, "a plaintiff bringing a § 1981 retaliation claim must establish that retaliation played a part in the employment decision ...." Id. (quotations omitted). This can be done in two ways. Id. First, a plaintiff can show that retaliatory animus played a "motivating part" in the employment decision. Id. (quotations omitted). Second, a plaintiff can rely on the burden-shifting framework set forth in McDonnell Douglas Corp. v. Green, 411 U.S. 792, 93 S.Ct. 1817, 36 L.Ed.2d 668 (1973), to prove retaliation indirectly. Id.
On appeal, PEI relies only on the McDonnell Douglas framework. Under this framework, the plaintiff must make out a prima facie case of retaliation by showing that: (1) it engaged in opposition to racial discrimination that is protected under the statute; (2) a reasonable person would have found the challenged action materially adverse; and (3) a causal connection existed between the protected activity and the adverse action. Id. The burden then shifts to the alleged retaliator to offer a legitimate, nonretaliatory reason for its conduct. Id. If the employer satisfies this burden, the plaintiff must show the employer's reason was merely a pretext for retaliation. Id.
PEI's appeal of the first summary judgment order as to MMM and Mr. Guerra
PEI's appeal of the second summary judgment order as to Lafarge relates to the second element of the prima facie case. Is there a triable issue of fact that Lafarge terminated PEI?
We address the grant of summary judgment on the § 1981 retaliation claim first as to MMM and Mr. Guerra, and then as to Lafarge.
We affirm the grant of summary judgment on the § 1981 retaliation claim for MMM and Mr. Guerra because PEI has forfeited any argument that its opposition to third-party discriminatory conduct of County employees Mr. Randall and Mr. Schmidt qualifies as "protected opposition" capable of supporting a retaliation claim against MMM and Mr. Guerra under § 1981.
PEI's amended complaint alleged MMM and Mr. Guerra violated § 1981 by retaliating against it for opposing discriminatory conduct of the third-party County employees. MMM and Mr. Guerra's summary judgment motion argued that PEI could not satisfy the first prima facie element because the claim was based on PEI's opposition to discriminatory conduct of third parties — County employees Mr. Randall and Mr. Schmidt. PEI did not respond to this argument in its consolidated briefing opposing summary judgment. The district court granted summary judgment on the ground that MMM and Mr. Guerra could not be liable for retaliation that was based on PEI's opposition to the County employees' alleged discriminatory conduct.
On appeal, PEI attempts to argue it can satisfy the first element of its prima facie case because its opposition to the County employees' alleged discrimination amounts to "protected opposition" under § 1981. Because it failed to present any such argument to the district court, it cannot obtain relief on appeal unless it shows the district court plainly erred in granting summary judgment. PEI has not attempted to do so, and its appeal as to MMM and Mr. Guerra therefore fails.
When a plaintiff raises a legal theory on appeal that was not raised in district court, we consider that theory forfeited. Richison v. Ernest Grp., Inc., 634 F.3d 1123, 1127-28 (10th Cir. 2011). An appellant's failure to argue for plain error on appeal "marks the end of the road for an argument for reversal not first presented to the district court." Id. at 1131. "To show plain error, a party must establish the presence of (1) error, (2) that is plain, which (3) affects substantial rights, and which (4) seriously affects the fairness, integrity, or public reputation of judicial proceedings." Id. at 1128.
On appeal, PEI points to three instances of opposition to discrimination it asserts were "protected" under § 1981: (1) Mr. Parker's July 12, 2011 call to County Commissioner Cordova; (2) his November 3, 2011 letter to Mr. Guerra, and (3) his December 7, 2011 letter to Mr. Randall.
In their summary judgment motion, MMM and Mr. Guerra argued that PEI's alleged opposition to the third-party County employees' discrimination was not "protected" under § 1981 and thus could not satisfy the first element of a prima facie retaliation claim. See App., Vol. I at 194-95. They argued, citing cases, that "[f]ederal courts have consistently rejected retaliation claims based on a complaint of a third party's alleged discrimination where the plaintiff makes no affirmative showing of the defendant's own discriminatory intent or that the defendant had any duty or authority to prevent the discriminatory conduct of the third party." Id. at 194. We refer to this as MMM and Mr. Guerra's "third-party argument."
PEI failed to respond to this argument in district court. Although PEI asserted that it engaged in "protected activity," it provided no legal argument or authority to show why Mr. Parker's conduct qualified as protected opposition under § 1981. See App., Vol. 1 at 265, 279; Vol. II at 6, 17, 21, 25. Indeed, in its 67 pages of responsive briefing in district court, PEI never argued it could satisfy the first element of its prima facie case by opposing third-party discrimination, despite acknowledging that "[t]he Defendants" (referring to all the Defendants collectively, and not just MMM and Mr. Guerra), had argued PEI could not show it engaged in protected activity. App., Vol. II at 9.
In its first summary judgment order, the district court noted PEI had failed to cite any authority to contradict MMM and Mr. Guerra's third-party argument that it had not engaged in protected opposition. See App., Vol. II at 110. Analogizing to Title VII, which "focus[es] ... on whether the employee opposed an unlawful employment practice by the employer[,]" the court concluded that PEI must oppose discriminatory conduct of MMM and Mr. Guerra — not of third-party County employees over whom the defendants had no authority or control — to succeed in its § 1981 retaliation claim. Id. at 110-11.
For the first time on appeal, PEI attempts to argue why its opposition to the County employees' alleged discrimination was "protected" for purposes of its § 1981 claim. Attempting to draw from the Title VII context, it argues that the County employees' third-party discriminatory conduct can be imputed to MMM and Mr. Guerra, which we call PEI's "imputation argument." Aplt. Br. at 29-31 (MMM); Aplt. Br. at 57 (incorporating its arguments against MMM as to Mr. Guerra). PEI's contention is that MMM and Mr. Guerra "carried out the discriminatory preference of the [County] — the third party that committed the alleged discriminatory acts — and therefore is liable for retaliation." Id. at 30. This argument is PEI's sole argument on appeal to respond to MMM and Mr. Guerra's third-party argument.
MMM and Mr. Guerra argue that PEI forfeited its imputation argument by failing to raise it first in district court. We agree. Further, PEI has failed to argue the district court's decision to accept MMM and Mr. Guerra's third-party argument was plain error. Without a showing of plain error, we will not reverse the grant of summary judgment. See Richison, 634 F.3d at 1131.
Rather than argue for plain error, PEI contends it did not forfeit its imputation argument because, to preserve the issue, it needed only to allege its retaliation claim in district court and then could present any supportive legal theory for the first time on appeal. PEI relies on the Supreme Court's statement that "[o]nce a federal claim is properly presented, a party can make any argument in support of that claim; parties are not limited to the precise arguments they made below." Aplt. Reply Br. at 12 (quoting Yee v. City of Escondido, 503 U.S. 519, 534, 112 S.Ct. 1522, 118 L.Ed.2d 153 (1992)).
PEI's reliance on Yee is misplaced. The quote from Yee was made in the context of deciding whether the Court would consider an argument outside the scope of the grant of certiorari. See Yee, 503 U.S. at 534-38, 112 S.Ct. 1522. The statement had nothing to do with an appellant's raising arguments on appeal to a circuit court that were not first raised in district court. See Thomas M. Cooley Law Sch. v. Kurzon Strauss, LLP, 759 F.3d 522, 529 (6th Cir. 2014) (distinguishing Yee as based on "prudential limitations applicable to the Supreme Court's certiorari jurisdiction" and "not alter[ing] [the court's] well-settled rule that `this court declines to entertain arguments not presented in the first instance to the district court'"). PEI's extension of Yee would conflict with our "long-standing practice" of reviewing newly raised legal arguments only under the plain-error standard. Richison, 634 F.3d at 1128.
PEI's specific argument that it did not forfeit its imputation argument finds no legal support. It cannot rely on the mere fact that it alleged a § 1981 claim to justify making new arguments on appeal. The complaint's allegations cannot substitute for responding to MMM and Mr. Guerra's argument in their summary judgment motion. Although a movant bears the burden to show summary judgment is appropriate, "[t]he nonmovant also must demonstrate a plausible ground for his claim or defense," including a viable legal theory that would entitle the nonmovant to relief. 10A Charles Alan Wright & Arthur R. Miller, Federal Practice & Procedure § 2727.2 (4th ed. 2017); see also Windon Third Oil & Gas P'ship v. FDIC, 805 F.2d 342, 346 (10th Cir. 1986) (providing that a genuine issue of fact to survive summary judgment "must be predicated on a viable legal theory" (quotations omitted)), overruled on other grounds by Anixter v. Home-Stake Prod. Co., 77 F.3d 1215 (10th Cir. 1996); Dorris v. Absher, 179 F.3d 420, 426 (6th Cir. 1999) (providing summary judgment is appropriate when the plaintiffs had not presented "a viable legal theory under which liability [could] attach to [the defendant]"). MMM and Mr. Guerra put PEI on notice that it needed to present such a
PEI's forfeited argument here is analogous to the one in Richison. In Richison, the defendants had moved for summary judgment, arguing that the plaintiff's claims were time-barred based on the undisputed facts. 634 F.3d at 1126. "On notice and in the face of [the defendants'] challenge," the plaintiff argued only that the facts were in dispute, and "[a]t no point" introduced his legal theory that his claims were not time-barred. Id. at 1127. The district court agreed with the defendants and granted summary judgment. Id. On appeal, the plaintiff argued for the first time that the claims were not time-barred. Id. We declined to reverse on this basis because the plaintiff forfeited his time-bar argument by failing to raise it in district court and failing to show plain error on appeal. Id. at 1128, 1130-31.
Like the defendants' challenge to the timeliness of the claims in Richison, MMM and Mr. Guerra put PEI on notice of their challenge that PEI could not rely on opposition to third-party discrimination to support its § 1981 retaliation claim against them. And, like the plaintiff in Richison, PEI failed to respond to this challenge in district court with the legal argument it now presents on appeal. Thus, as in Richison, we do not address PEI's imputation argument raised for the first time on appeal in the absence of an argument that the district court plainly erred.
In sum, because PEI had an opportunity to present its imputation argument as a response to MMM and Mr. Guerra's third-party argument in district court but failed to do so, it forfeited the only argument it has presented on appeal that it engaged in "protected opposition" under § 1981. And because it did not argue the district court plainly erred in granting summary judgment, we affirm as to MMM and Mr. Guerra.
Lafarge asks us to affirm the district court's ruling that PEI did not show Lafarge took adverse action against PEI. Alternatively, Lafarge asks us to affirm on the grounds that: (1) PEI admitted at a deposition that Lafarge did not retaliate against PEI; (2) PEI cannot show a causal relationship between PEI's alleged protected opposition and any alleged adverse action; and (3) PEI has failed to present evidence showing Lafarge's reasons for any adverse actions were pretextual. Lafarge does not argue we should affirm based on MMM and Mr. Guerra's third-party argument.
We reverse the grant of summary judgment to Lafarge on PEI's § 1981 retaliation claim because the district court erred in holding PEI could not show Lafarge had not taken adverse action against it.
To show an adverse action for a retaliation claim under § 1981, "a plaintiff must show that a reasonable employee would have found the challenged action materially adverse, which ... means it well might have dissuaded a reasonable worker from making or supporting a charge of discrimination." Burlington N. & Santa Fe Ry. Co. v. White, 548 U.S. 53, 68,
PEI argues Lafarge was responsible for its termination in December 2011.
The court erred in ruling there was no genuine issue of fact as to whether Lafarge played a role in terminating PEI.
We therefore reverse because the court erred in holding PEI could not show Lafarge took adverse action against it to state a prima facie case of retaliation under § 1981.
We affirm the grant of summary judgment on PEI's § 1981 claim against MMM and Mr. Guerra because PEI forfeited its argument that its opposition to discrimination by opposing third-party conduct is