WIENER, Circuit Judge:
Plaintiff-Appellant Cynthia Heinsohn brought this action in Texas court against her former employer, Defendant-Appellee, the law firm of Carabin & Shaw, P.C. ("C & S"). She alleged violations of the Family Medical Leave Act ("FMLA") and the Texas Commission on Human Rights Act ("TCHRA"). C & S removed the action to federal court. Following discovery, both C & S and Heinsohn moved for summary judgment. The magistrate judge recommended granting C & S's motion and denying Heinsohn's. The district court agreed, and entered judgment. Heinsohn now appeals, and we reverse and remand.
In 2011, C & S hired Heinsohn as a legal assistant and assigned her to work exclusively on Social Security Administration ("SSA") cases. Her wages were $10 an hour, and her responsibilities included (1) updating case notes in C & S's electronic case management system, (2) communicating with clients and with the SSA, and (3) monitoring deadlines. She was assigned to assist George Escobedo, an "of counsel" lawyer responsible for all SSA cases,
Late in 2011, Heinsohn decided to accept a better-paying position with another employer and tendered her resignation to C & S. Escobedo, who "thought she was doing a good job, and ... didn't want to see her leave," convinced James Shaw, the managing partner of C & S, to raise her pay. He did so, and Heinsohn withdrew her resignation. Her wages eventually rose to $14 an hour.
Heinsohn became pregnant early in 2012. Shortly before she left on maternity
Within days after Heinsohn's departure, Rendon told Escobedo that, according to the notes in the case management system, deadlines had been missed in some of Heinsohn's cases and good-cause letters had been sent on Escobedo's behalf. Neither Rendon nor Escobedo sought an explanation from Heinsohn.
Early in 2013, Heinsohn filed a claim with the Equal Employment Opportunity Commission ("EEOC"), alleging "sex and retaliation discrimination." C & S responded, asserting that it had nondiscriminatory reasons for terminating her. Heinsohn filed a petition in state court later that year, claiming that C & S had violated the FMLA and the TCHRA. C & S then removed the action to federal court on the basis of the FMLA claim. In so doing, it explained: "Removal of this action is proper because [Heinsohn]'s suit involves a federal question. Specifically, [her] claim arises under [the FMLA]."
In late 2014, after discovery had been conducted, C & S moved for summary judgment. Heinsohn then filed her own motion for summary judgment on the question of liability, which she subsequently corrected. About a week later, Heinsohn responded to C & S's motion for summary judgment. She acknowledged that C & S did not have enough employees to be subject to the FMLA, so she "will withdraw that portion of her claim" against C & S. She also attached a new affidavit, dated December 17, 2014 (the "earlier affidavit"). C & S then moved to strike both the earlier affidavit and various portions of Heinsohn's deposition.
Early in 2015, the magistrate judge granted much of C & S's motion to strike, recommended that C & S's motion for summary judgment be granted, and recommended that Heinsohn's motion for summary judgment be denied. The district court reviewed the motions for summary judgment de novo and adopted the magistrate judge's recommendations. In so doing, it refused to consider a new affidavit by Heinsohn, dated February 18, 2015 (the "later affidavit"). The court then dismissed Heinsohn's claims and entered judgment
As a preliminary matter, we have "an independent obligation to determine whether-subject matter jurisdiction exists, even in the absence of a challenge from any party."
In its notice of removal, C & S asserted that federal question jurisdiction exists under 28 U.S.C. § 1331 because Heinsohn had asserted a federal law claim under the FMLA. Heinsohn, however, later "withdrew" that federal law claim in her memorandum in opposition to C & S's motion for summary judgment after stipulating that C & S might not have enough employees to be covered by the FMLA. In his recommendations, the magistrate judge acknowledged that Heinsohn had withdrawn the claim, and those recommendations were adopted by the district court. Heinsohn's federal law claim was properly dismissed because "stipulations (including those made for purposes of the motion only)" constitute evidence on summary judgment.
Without her federal law claim, Heinsohn's only remaining claim is her state law claim under the TCHRA. And, as she and C & S are both residents of Texas, we must determine whether there is supplemental jurisdiction based on Heinsohn's state law claim alone.
Although the FMLA only applies to employers with a specified minimum number of employees or more, that requirement "is an element of the claim, not a limit upon the federal court's subject-matter jurisdiction."
Generally, "whether a court has subject-matter jurisdiction over a claim is distinct from whether a court chooses to exercise that jurisdiction."
As noted, C & S alleged a basis for subject matter jurisdiction over the federal law claim, but it did not allege supplemental jurisdiction over the state law claim in its notice of removal.
The notice of removal must therefore "contain[] a short and plain statement"
In such an instance, the otherwise "[d]efective allegations of jurisdiction may be amended, upon terms, in the trial or appellate courts,"
It is clear from the instant record that Heinsohn's state law claim under the TCHRA is part of the same case or controversy as her now-dismissed federal law claim under the FMLA, so supplemental jurisdiction does exist. C & S, on remand, should be allowed to amend its complaint to assert supplemental jurisdiction under § 1367.
The deferential abuse of discretion standard applies when we review a district court's evidentiary rulings.
Heinsohn contends that the magistrate judge erred in striking the portion of her earlier affidavit in which she stated that C & S fired her because her post-partum recovery would last too long. Heinsohn, however, had no knowledge of C & S's reasons for terminating her, so the magistrate judge did not abuse his discretion in striking this portion of her earlier affidavit.
After the magistrate judge made his recommendations, Heinsohn requested leave from the district court to produce the later affidavit. The district court rejected the later affidavit, in part because Heinsohn provided no reason for her delay in producing it. The court also rejected that affidavit because it was "contradictory to her previous [deposition] testimony." The court noted that in her deposition she had "denied that she missed any deadlines" but in the later affidavit she "state[ed] that if there was a missed deadline, she would have told Escobedo about it." The district court rightly observed that Heinsohn provided no reason for her delay in producing the later affidavit, but the court erred in stating that it contradicted her earlier deposition: Heinsohn never denied that deadlines were missed by someone; she only denied that deadlines were missed by her. Yet, because Heinsohn could very well have produced this affidavit earlier and did not give any reason for her failing to do so, the district court did
The magistrate judge wrote that "Heinsohn's deposition testimony is refuted by the e-mail exchange between Heinsohn and Leonard. Heinsohn's assertion that Leonard wanted a guaranteed return date is STRICKEN." "Except as provided in [Federal] Rule [of Evidence] 1002, `there is no general rule that proof of a fact will be excluded unless its proponent furnishes the best evidence in his power.'"
We review a motion for summary judgment de novo.
The TCHRA prohibits an employer from discriminating against an employee because of the employee's sex,
When, as here, an employee attempts to use only circumstantial evidence,
At the first step of the McDonnell Douglass framework, the employee must produce evidence that, if uncontested by the employer, is sufficient to prove each of the elements of prima facie intentional discrimination.
In the second step of the McDonnell Douglass framework, the employer must produce evidence of a legitimate, nondiscriminatory reason for the adverse employment action, apart from the inferred discriminatory reason.
C & S met this intermediate burden of production. It produced evidence of legitimate, nondiscriminatory reasons for terminating Heinsohn, which refute or contest Heinsohn's circumstantial evidence of a discriminatory reason. C & S produced Shaw's deposition, in which he averred that C & S terminated Heinsohn because (1) she had missed appeals deadlines, and (2) she had attempted to conceal this by failing to inform Escobedo and by sending good-cause letters without Escobedo's knowledge.
At the third step, the employee must produce evidence, or rely on evidence already produced, that refutes or contests the employer's evidence of a legitimate,
Significantly, the third step of the McDonnell Douglas framework yields different results, depending on the stage at which it is applied. Once the employee demonstrates that she met her burden of producing or relying on evidence that refutes or contests the employer's evidence of a legitimate, nondiscriminatory reason, there is often a genuine issue of material fact as to the veracity of that reason. In the context of a motion for judgment as a matter of law, as in Reeves v. Sanderson Plumbing Products, the finder of fact has already resolved this issue of fact at trial, so the court merely tests that finding for sufficiency. In the context of a garden variety motion for summary judgment, however, there has been no trial, so the court has no finding on which to rely. In the latter context, the genuine issue of material fact precludes summary judgment.
Here, at the summary judgment state, Heinsohn produced evidence sufficient to contest and refute C & S's evidence of a legitimate, nondiscriminatory reason. In so doing, she created a genuine issue of material fact as to whether (1) C & S had a legitimate, nondiscriminatory reason for terminating her or (2) its articulated reason was merely pretextual.
As a preliminary observation, there is little for Heinsohn to refute or contest. C & S produced only scant evidence of a legitimate, nondiscriminatory reason for firing Heinsohn. "As the ultimate issue is the employer's reasoning at the moment the questioned employment decision is made, a justification that could not have motivated the employer's decision is not evidence that tends to illuminate this ultimate issue and is therefore simply irrelevant at this stage of the inquiry."
C & S's only contemporaneous evidence of its reason for terminating Heinsohn is the letter in which it stated: "Based on a review of your work, it has been decided that your employment with [C & S] has been terminated as of October 19, 2012." This letter, signed by Leonard, does not indicate that Heinsohn violated any policy or even that her work was flawed or inadequate. Neither does it indicate who decided to terminate her. Instead, C & S relies entirely on post hoc evidence of its reason, viz, Shaw's deposition, in which he declared that the decision to terminate Heinsohn was his and was based on what Escobedo and Leonard
Although Shaw said that "files were discovered" indicating that "deadlines were missed," he did not reference any specific file on which his decision to terminate Heinsohn was based. He averred: "I do not remember which two files I was looking at on that day, but I do remember that it appeared that she had attempted to cover it up." Shaw said that he did not remember asking either Escobedo or Leonard any questions about what had occurred and that he did not ask, nor did he need to ask, Heinsohn any questions.
There may be an explanation for this lack of specificity. There is a genuine issue of material fact as to whether Shaw was Heinsohn's supervisor and, perhaps, whether he was responsible for terminating her.
In addition to Shaw's deposition, C & S produced a number of documents, including files from its case management system. These notes, which are largely contemporaneous with Heinsohn's activity, are not themselves evidence of the reason C & S terminated Heinsohn.
If the testimony of a witness with knowledge "that an item is what it is claimed to be" is evidence of authenticity,
Neither is it entirely clear whether the notes in the case management system, even if authentic, constitute evidence of what Heinsohn did or did not do. This is because it is not clear exactly what C & S required her to record in those notes. The uncontested evidence indicates that Heinsohn did not receive any training on C & S's policies. In her deposition, Heinsohn declared that she had no experience in
Heinsohn averred that, if she had questions, she would ask Escobedo or Carvajal. When asked how long it had taken her to feel "comfortable or that [she] had an appropriate understanding of — on what was required," she replied: "I always had questions. I always felt that the training was very limited. As a matter of fact, [Rendon] and I, we often had questions about [things] that [Carvajal] did — knew nothing about, so we had to literally call the [SSA]."
The uncontested evidence further reflects that Escobedo and Carvajal did not closely supervise Heinsohn or Rendon. Heinsohn declared that the SSA cases proceeded almost entirely without Escobedo: "Many times we did win cases without [Escobedo] even touching a file." Escobedo contended that he did, in fact, review Heinsohn's and Rendon's notes on occasion to ensure that "we don't miss any deadlines." Yet, Carvajal, who conducted those reviews, stated that there was not a set "amount of months or weeks" between reviews. Instead, she said that it "depend[ed] on how busy I am," but that the reviews occurred about every six months.
C & S has not produced evidence of any written policy dictating exactly what Heinsohn was required to include in her notes in the case management system; only evidence that Escobedo and Carvajal orally instructed Heinsohn to maintain such notes. C & S adduced evidence that Heinsohn did, in fact, maintain notes. Yet, because there is no uncontested evidence of any policy, it is not clear whether the notes Heinsohn maintained in the case management system should amount to exhaustive evidence of what Heinsohn did or did not do. For instance, it is not clear that C & S required Heinsohn to record every telephone call she placed to or received from a client or to the SSA. To the contrary, there is undisputed evidence that Heinsohn did not record every such call, indicating that the notes were incomplete.
Assuming, however, that the notes in the case management system were authentic and complete, there is also a genuine issue of material fact as to whether they indicate that Heinsohn violated C & S's policies. These notes provide the only evidence of C & S's legitimate, nondiscriminatory reason for terminating Heinsohn.
In his deposition, Shaw stated: "[I]t is my policy with all the employees under me, as well as the attorneys under me, if —
In their own depositions, affidavits, and declarations, Escobedo, Carvajal, Rendon, and Heinsohn
But, even if Shaw's policy applied to Heinsohn and even if he had made her aware of it, there is no evidence that Heinsohn violated it. Shaw clarified that, if C & S had not received notice of the event triggering the deadline, "yes, a deadline would have been technically missed," but also that the employee would not be responsible for failing to meet that deadline. This appears to be consistent with Escobedo's policy as well. When asked whether, as her supervisor, he would hold Heinsohn responsible for missing a deadline if she was not copied on a letter notifying C & S of the event triggering that deadline, he replied: "No. It's not her fault." Rendon confirmed this in her deposition.
Significantly, the notes from the case management system indicate that although deadlines were missed, those deadlines were not missed by Heinsohn. In both cases, Heinsohn's notes indicate that the SSA did not copy her on the notice of the event triggering the deadline.
Shaw said that he terminated Heinsohn because the notes in the case management system indicated that a deadline was missed by her. But, to the contrary, the uncontested evidence indicates that the deadline was not missed by Heinsohn, so she did not violate C & S's policy.
Shaw declared that he "would expect any of my employees, if they've been told by a client that an event [triggering a deadline] has occurred, that they [would] at least react on that event or come to an attorney and ask them how to react on that event."
The notes that Heinsohn maintained in the case management system indicate when and how she became aware of each of the deadlines that was missed. The notes in the cases facially indicate that the SSA did not provide C & S with notice of the event triggering the deadline, as it was required to do.
The uncontested evidence indicates that, rather than "hiding the ball," Heinsohn contemporaneously recorded the circumstances of each of the missed deadlines in her notes in the case management system. All of these notes — which provide the sole basis for C & S's proffered legitimate, nondiscriminatory reason for firing her — were accessible to Escobedo and Carvajal from the moment they were created. Escobedo himself stated that they reviewed the notes, in part to ensure that "we don't miss any deadlines." Escobedo also said: "My function is mainly to making — make these cases — or the case management of these cases, make them go forward, make sure we don't miss deadlines, things like that." The only evidence of missed deadlines that C & S has produced are Heinsohn's own notes, which were entered contemporaneously with her learning of the missed deadlines. Those notes were available to Escobedo and Carvajal at all times. Again, C & S has not produced evidence that, in addition to informing Escobedo of the missed deadlines by maintaining the notes in the case management system, Heinsohn was also required to inform him of the missed deadlines through other means.
The uncontested evidence demonstrates that Escobedo permitted Heinsohn to function somewhat autonomously. She stated: "Many times we did win cases without [Escobedo] even touching a file." In fact, it appears that Escobedo permitted Heinsohn to prepare and sign good-cause letters on his behalf. When asked whether Escobedo authorized Heinsohn to prepare and send good-cause letters on his behalf, Shaw replied: "You'd have to ask him that question." Shaw also said: "I would expect [Escobedo] to be involved in the decision[-]making of sending out a good[-]cause letter." He did not say that he or C & S had actually required this of Escobedo. Shaw remarked that he asked Escobedo if he had signed the good-cause letters in the cases, and "[Escobedo] said he was unaware of the entire situation until it was brought to his attention." This, however, is hearsay. And even if it were not, it does not resolve whether Escobedo had provided Heinsohn with general authorization to prepare and send good-cause letters on his behalf.
In fact, Escobedo himself said that, although "[Heinsohn] wrote a good-cause letter to the [SSA] saying that we never got notice" on his behalf and although he was unaware of the entire situation, Escobedo conceded that her doing so "wasn't necessarily my problem with it." The uncontested evidence indicates that Heinsohn was not required to obtain Escobedo's authorization before sending good-cause letters.
Before beginning her maternity leave, Heinsohn met with Escobedo and Rendon — but not with Carvajal — to review her pending cases. According to Escobedo:
Even so, the notes themselves reflect that, before leaving, Heinsohn completed all outstanding work in her pending cases. Although Heinsohn was aware that two deadlines had been missed because of the SSA's failure to provide C & S notice of the events triggering those deadlines, Heinsohn prepared and sent good-cause letters to the SSA for both. Until the SSA ruled on those good-cause letters, there was nothing further for her to do.
Escobedo, Carvajal, and Rendon all had access to Heinsohn's notes in the case management system, so they were at least constructively aware of the status of each of her cases, including any missed deadlines and good-cause letters. And, before Heinsohn left, Rendon actually knew the status of each case, including the missed deadlines and good-cause letters.
Rendon became aware of the missed deadline and good-cause letter in one of the two relevant cases while Heinsohn was transferring the cases to her.
Rendon learned of the missed deadline in the other relevant case on Heinsohn's last day. Rendon said that she answered a telephone call from the SSA regarding the good-cause letter Heinsohn had sent on several days earlier.
At this summary judgment stage of the proceedings, the uncontested evidence makes clear that Heinsohn acted consistently with Escobedo's instructions. Her alleged failure to adhere to those instructions could not have provided a legitimate reason for firing her.
In sum, there are genuine issues of material fact that preclude summary judgment. To determine whether C & S's nondiscriminatory reason for terminating Heinsohn was legitimate or pretextual, a finder of fact must weigh the evidence. At bottom, the magistrate judge and district court erred in rejecting Heinsohn's statements as self-serving and accepting Shaw's, Escobedo's, Carvajal's, and Rendon's. Such an "approach is inconsistent with fundamental rules governing summary judgment."
Simply put, Heinsohn's statements are no more and no less self-serving than those of the others. If we toss Heinsohn's deposition, we must also toss the depositions, affidavits, and declarations of the others for the same reason. To hold otherwise would signal that an employee's account could never prevail over an employer's. This would render an employee's protections against discrimination meaningless.
When, as here, a motion for summary judgment is premised almost entirely on the basis of depositions, declarations, and affidavits, a court must resist the urge to resolve the dispute — especially when, as here, it does not even have the complete depositions. Instead, the finder of fact should resolve the dispute at trial.
For the forgoing reasons, we REVERSE and REMAND for further proceedings consistent with this opinion. We express no view on how the finder of fact should resolve this dispute on remand. We decide this appeal only on the basis of the record before us at this relatively early stage.