Mark R. Hornak, United States District Judge.
The big issues in this case are whether the Equal Employment Opportunity Commission ("EEOC") can bring a federal civil lawsuit to end what it claims to be employment practices made unlawful by the Americans with Disabilities Act ("ADA"), achieve compensatory relief for specific job applicants and employees as it does so, and whether that effort requires the EEOC's compliance with Rule 23 doctrines. The Court concludes that the answer to the first two questions is yes, and to the third, no.
FedEx Ground Package System, Inc. ("FedEx Ground") has moved to dismiss a Complaint filed by the EEOC alleging unlawful discrimination on the basis of disability. See ECF No. 47; ECF No. 1. In the alternative, FedEx Ground has moved to strike the EEOC's "pattern or practice" related allegations in its Complaint. ECF No. 47. The main dispute now centers on the scope of the EEOC's litigation authority, with FedEx Ground arguing that the EEOC must bring these claims as hundreds of individual federal lawsuits and the EEOC countering that no, it can bring them in just this one.
The issues were robustly briefed, see ECF Nos. 48; 56; 63; 67; 74, and the Court has carefully reviewed all submissions and held a lengthy oral argument on September 11, 2015. Because the Court concludes that the EEOC has statutory litigation authority to bring this suit, that Circuit precedent does not pretermit or limit the EEOC's statutory litigation authority in this case, and that the ADA does not require identification of any singular discriminatory procedure or policy in this context, FedEx Ground's Motions are denied.
The United States Equal Employment Opportunity Commission is charged with enforcing federal laws that prohibit various forms of discrimination against job applicants and employees. See 42 U.S.C. § 2000e-5; EEOC, Overview, http://www.eeoc.gov/eeoc/index.cfm (last visited Jan. 4, 2016). One form of employment discrimination outlawed in the United States is discrimination on the basis of disability. See 42 U.S.C. § 12117(a) (Section 107(a) of the Americans with Disabilities Act, incorporating by reference Section 706 of the Civil Rights Act of 1964 ("Title VII")); 42 U.S.C. § 1981a(2) (Section 102 of the Civil Rights Act of 1991). The EEOC brought this suit to remedy what it alleges is such unlawful discrimination by FedEx Ground.
The EEOC says that FedEx Ground violated the ADA by discriminating against deaf and hard-of-hearing individuals who worked in, and applied for, Package Handler positions with the company. See ECF No. 1. The stated qualifications for the job are modest. To be hired for such entry-level positions, applicants must be at least eighteen years old and pass a criminal background check. Id. at 6, ¶¶ 16-17.
Seventeen (17) deaf or hard-of-hearing individuals filed Charges of Discrimination against FedEx Ground, which the EEOC then consolidated as part of a nationwide systemic investigation of potential ADA violations. Id. at 4-5, 8-9. The EEOC then issued Letters of Determination notifying FedEx Ground that it had reasonable cause to believe FedEx Ground had violated the ADA. The parties then engaged in a process of conciliation, conference, and persuasion. Id. at 5, 9-10. Those efforts were unsuccessful and the EEOC brought this suit for the benefit of the seventeen Charging Parties and other "similarly aggrieved individuals." See id. It seeks a permanent injunction to prevent FedEx Ground from engaging in disability discrimination; an order directing FedEx Ground to implement policies, practices, and programs to provide equal employment opportunities and reasonable accommodations for aggrieved individuals; back pay; compensation for past and future pecuniary and non-pecuniary losses; instatement of aggrieved individuals or front pay; and punitive damages. In response, FedEx Ground filed the pending Motion to Dismiss Plaintiff's Systemic Discrimination Complaint or, in the alternative, Motion to Strike Plaintiff's Pattern-or-Practice-Related Allegations from the Complaint. ECF No. 47.
A Rule 12(b)(6) motion to dismiss for failure to state a claim upon which relief can be granted is evaluated under the standards set forth in Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) and Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). "[A] complaint must contain sufficient factual matter, accepted as true, to `state a claim to relief that is plausible on its face.'" Iqbal, 556 U.S. at 678, 129 S.Ct. 1937 (citing Twombly, 550 U.S. at 570, 127 S.Ct. 1955). "A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged." Iqbal, 556 U.S. at 678, 129 S.Ct. 1937.
The Court must accept all facts alleged in the complaint as true and construe the complaint in the light most favorable to the nonmoving party-here, the EEOC. See Flora v. Casty. of Luzerne, 716 F.3d 169, 175 (3d Cir.2015). Further, the Court may not make findings of fact or resolve any factual disputes. Id.
Under Rule 12(f), the Court has broad discretion to "strike from a pleading an insufficient defense or any redundant, immaterial, impertinent, or scandalous matter." Fed. R. Civ. P. 12(f). "[I]f class treatment is evidently inappropriate from the face of the complaint," Rule 12(f) can
FedEx Ground moved to dismiss the Complaint, or in the alternative to strike what it styles as "pattern or practice related" allegations in it, based on an essentially unitary argument: that the EEOC must prove that unlawful disability discrimination resulted from some discrete and specific policy or procedure by FedEx Ground and that each deaf and hard-of-hearing employee and applicant is "qualified" under the ADA. This, FedEx Ground maintains, is an inherently fact-specific and individualized analysis precluding any sort of class-wide or "pattern or practice" treatment and therefore this suit cannot go forward in its current form. Bottom line, argues FedEx Ground, the EEOC and/or individual applicants or employees must pursue ADA claims in a series of one-off federal lawsuits. As will be seen, however, FedEx Ground underestimates the EEOC's statutory litigation authority and confuses what the EEOC can allege with how it can prove the allegations. As such, the motions will be denied and the suit can proceed to the next step.
The EEOC has broad power to "prevent any person from engaging in any unlawful employment practice." 42 U.S.C. § 2000e-5. Specifically, the EEOC is authorized to bring civil actions against discriminating employers. Id. § 2000e-5(f)(1). Of particular relevance here are the twin aims of such EEOC litigation. First, and most obviously, the EEOC can bring a suit on behalf of particular individuals, lending its institutional and societal heft to an effort to remedy discrete events of employment discrimination. EEOC litigation also serves an entirely separate and distinct purpose: the vindication of rights protected by federal anti-discrimination laws. That purpose exists wholly apart from securing relief for individual victims; indeed the injury that the EEOC was designed to remedy is the violation itself and not only the actual harm imposed on an employee or applicant for employment. This means that the EEOC is not simply a proxy for individual employees, see Gen. Tel. Co. v. EEOC, 446 U.S. 318,326, 100 S.Ct. 1698, 64 L.Ed.2d 319 (1980); rather it litigates in the public interest, EEOC v. Waffle House, Inc., 534 U.S. 279, 296, 122 S.Ct. 754, 151 L.Ed.2d 755 (2002).
As part of the ADA's comprehensive mandate to eradicate unlawful disability discrimination, section 706 of the ADA (incorporating the authorizing provision of Title VII) confers direct, statutory authority
The Americans with Disabilities Act of 1990 provides a "comprehensive national mandate for the elimination of discrimination against individuals with disabilities." 42 U.S.C. § 12101 (b)(1). The ADA prohibits employers from, among other things, failing to provide reasonable accommodations to disabled employees.
Taylor v. Phoenixville Sch. Dist., 184 F.3d 296, 311 (3d Cir.1999). The EEOC bases its claims on this principle.
A predicate to claims under the ADA (including failure to accommodate claims) is that claimants must be "qualified individuals with disabilities," that is to say, they must be people who have a disability
Whether this predicate of "qualification" renders the EEOC's suit, which would benefit the seventeen Charging Parties and other unnamed "aggrieved individuals," inappropriate for any form of collective litigation or remedy is the central issue here.
FedEx Ground's primary argument is that under Hohider v. UPS, Inc., 574 F.3d 169 (3d Cir.2009), the EEOC's "varied and divergent claims cannot be litigated on a class-wide or pattern-or-practice basis as a matter of law." ECF No. 48, at 6; ECF No. 48, at 21 ("Hohider controls this case."). Because consideration of Hohider is central to the parties' arguments, a more extended discussion is warranted.
According to FedEx Ground, the Third Circuit in Hohider, and district courts in the Circuit subsequently applying Hohider, have held that the "qualified individual" inquiry — a prerequisite for showing discrimination under the ADA — is always far too fact — specific and individualized to permit collective treatment in any federal court litigation. ECF No. 48, at 14. Further, FedEx Ground says "Hohider applies with full force here." Id. at 15. The EEOC counters that reliance on Hohider is totally inapposite. See ECF No. 56, at 13. It says that Hohider's holding applies only to private Rule 23 class action suits under the ADA. Therefore, the EEOC claims, ADA "class actions"
In Hohider, a group of private plaintiffs sought to bring a Rule 23 class action to vindicate alleged employment discrimination on the basis of disability. 574 F.3d at 172. The nub of their claims was that the employer, UPS, discriminated against them by failing to accommodate their disabilities after returning to work from medical leaves of absence. Id. The district court certified the class under Federal Rules of Civil Procedure 23(a) and (b)(2). Id. at 174. That trial court decided that the issues of "qualification" under the ADA and liability due to UPS's policy could be separated, using the two-step Teamsters
As a preliminary matter, it is plain that Hohider's central holding addresses only private class actions under Rule 23. Hohider says so. 574 F.3d at 183, 203. The Circuit's reasoning is clear-Rule 23's commonality and typicality strictures require that there be a high level of homogeneity among the private class members. In Hohider, there was no such unity because the plaintiffs, in a wide array of jobs, suffered from all manner of disabilities and the only thing bringing them together was UPS's alleged policy of not accommodating them upon returning from their medical leaves of absence. There was no unifying disability, or even a unifying job, position, or decisional process that brought them together. Thus, a court would have to determine whether each individual "with or without reasonable accommodation, [could] perform the essential functions of the employment position that such individual holds or desires." 42 U.S.C. § 12111(8). With the extreme diversity of job positions, claimed disabilities, and return-to-work decisions of those potential class plaintiffs, the Circuit held that it was inappropriate to litigate the claims on a class-wide basis because it would be super difficult, if not impossible, to satisfy Rule 23's commonality and typicality requirements.
It is also plainly evident that the EEOC is not subject to Rule 23's requirements. Gen. Tel. Co., 446 U.S. at 324, 100 S.Ct. 1698 (the EEOC's "authority to bring such actions is in no way dependent upon Rule 23, and the Rule has no application to a § 706 suit."). That is so given the independent litigation interests that the EEOC has, apart from those of any individual plaintiffs. See id. at 329, 100 S.Ct. 1698 ("it is clear that the Rule was not designed to apply to EEOC actions brought in its own name for the enforcement of federal law"); see also EEOC v. Northwest Airlines, Inc., 216 F.Supp.2d 935, 938 (D.Minn.2002). Thus, the Court concludes that Hohider's central holding simply does not apply in this case.
In its later briefs, FedEx Ground appeared to ease off its argument that Hohider is a complete bar to litigating ADA cases on a class-wide basis.
The issue then appears to boil down to one of case management, with FedEx Ground cautioning the Court about the anticipated need to hold hundreds of "mini-trials" with the EEOC's use of individual proof models as to each individual employee or applicant. See ECF No. 63, at 11. That and the resulting discovery, FedEx Ground says, would be "incredibly burdensome and unmanageable not only for the parties, but also for the Court." Id. n.2. While the Court appreciates this legitimate concern, the fact that it may be hard
At bottom, this dispute is about what exactly the EEOC is alleging. FedEx Ground attempts to deposit the ADA claims brought by the EEOC into one or another of only two buckets, either: (1) discrimination relating to a specific discriminatory procedure or policy that can be proven only with the Teamsters evidentiary framework, or (2) claims that do not identify a specific procedure or policy and thus cannot, under any circumstances, be subject to any form of collective treatment. See ECF No. 48, at 6. The EEOC maintains that it is simply bringing an employment discrimination case, with the discrimination affecting a lot of individuals (starting with the seventeen specific claimants named in its Complaint) with one overall disability-they have trouble hearing. ECF No. 56, at 7. It says that whether it uses any specific proof framework or identifies one specific unlawful procedure or policy is irrelevant to whether it may exercise its statutory authority to advance the claims it pleads.
All parties agree — and the statute and case law support the view — that the first step in an ADA discrimination case is to show the aggrieved individuals are "qualified." Where FedEx Ground's argument derails is its position that Hohider facially precludes any inquiry into qualification in a litigation context other than a single-plaintiff, one-off federal lawsuit. See Section III.C, supra. Where it leaves the tracks altogether is what FedEx Ground says is a necessary next step: "[t]o show that FedEx Ground engaged in a pattern or practice of discrimination-i.e., to create an inference of discrimination for purposes of the first Teamsters phase." ECF No. 48, at 16.
As the EEOC points out, "pattern or practice" is not itself a legal claim. It is one evidentiary framework with which discrimination may be proved. See Hohider, 574 F.3d at 184 (holding the district court erred in using "pattern or practice" elements to define a discrimination claim); see also, e.g. Serrano v. Cintas Corp., 699 F.3d 884, 898 (6th Cir.2012) ("Teamsters provides an evidentiary framework pursuant to which the EEOC may seek to prove its allegations of intentional discrimination, not an independent cause of action.") (citing Hohider, 574 F.3d at 183); EEOC v. PBM Graphics, Inc., 877 F.Supp.2d 334, 343 (M.D.N.C.2012) (pattern or practice cases are not "separate and free-standing cause[s] of action."). Nevertheless, in the face of the EEOC's invocation of its Section 706 authority, ECF No. 1, at 1, ¶ 1, FedEx Ground claims that the EEOC must necessarily meet the standard it would need to meet under Section 707. ECF No. 63, at 2. As a logical matter, that does not add up. What the EEOC must demonstrate, as discussed above, is a prima facie case of disability discrimination-not necessarily the existence of one specific policy or procedure, or a "pattern or practice." And fatal to FedEx Ground's attempt to pigeonhole this case into being one about a "pattern or practice" is the Supreme Court's pronouncement that federal court complaints need not commit to a specific evidentiary framework, especially where the appropriate one may not become apparent until after discovery. See Swierkiewicz v. Sorema NA., 534 U.S. 506,
Moreover, the Court concludes that this suit could fairly and properly be characterized as alleging an unlawful "centralized or blanket policy adopted or applied by FedEx Ground." ECF No. 48, at 19. The EEOC pleads that "FedEx has not implemented a corporate-wide procedure" for accommodating deaf or hard-of-hearing individuals. ECF No. 1, at 9, ¶ 32. This is not, as FedEx Ground would have the Court believe, the "antithesis" of a standard operating procedure. See ECF No. 48, at 19. The law imposes affirmative obligations on employers to engage in interactive processes as they make reasonable accommodations for otherwise qualified individuals with disabilities. See Taylor, 184 F.3d at 311. A blanket failure to engage in any interactive process or to make any reasonable accommodations can, from where the Court sits, constitute a standard operating procedure resulting in unlawful discrimination. Without an affirmative obligation, this sort of "failure to seek out reasonable accommodations" claim might fall short of the mark. But faced with a legal duty to seek reasonable accommodations, an employer's complete and uniform failure to do so can fairly be conceptualized as a standard operating procedure of unlawful conduct.
Additionally, FedEx Ground's assertions of prejudice at having to litigate against "hundreds of unnamed aggrieved individuals" appear overstated. EEOC has provided, and at oral argument FedEx Ground acknowledged possessing, a list of 168 named individuals that are the subject of this suit. And while the EEOC generally "may not use discovery ... as a fishing expedition to uncover more violations," EEOC v. CRST Van Expedited, Inc., 679 F.3d 657, 674 (8th Cir.2012), cert. granted, 136 S.Ct. 582 (Dec. 4, 2015) (No. 14-1375) (internal quotation marks omitted), here the EEOC has already cast its net, see ECF No. 1, at 5, ¶ 9 (noting the nationwide systemic investigation it conducted).
The EEOC has pled facts sufficient to state a claim for disability discrimination. The EEOC, in its Complaint, alleges that the Charging Parties and other aggrieved individuals are qualified and disabled within the meaning of the ADA, ECF No. 1, at 6, ¶ 19; the aggrieved individuals were either applicants for or employed as Package Handlers, id. at 5, ¶ 15; and they suffered unlawful discrimination because FedEx Ground failed to accommodate their disabilities,
FedEx Ground also argues that the EEOC's "pattern or practice" related claims and/or any references to as-yet-unnamed aggrieved individuals should be stricken under Rule 12(f). Rule 12(f), however, "may not serve as an avenue to procure the dismissal of all or part of a Complaint." Davila v. N. Reg'l Joint Police Bd., 979 F.Supp.2d 612, 620, 624 (W.D.Pa. 2013) (vacated in part upon reconsideration). "Striking some or all of a pleading is considered a drastic remedy to be granted only when required for the purposes of justice." Id. Justice does not so require here.
FedEx Ground's tacked-on Motion to Strike appears to be another shot at dismissal if the Motion to Dismiss didn't work out. There is little in the record that supports the argument that "pattern or practice" claims are here immaterial, impertinent, or scandalous as those terms are used in Rule 12(f).
For the foregoing reasons, FedEx Ground's Motion to Dismiss and in the alternative Motion to Strike is DENIED.
An appropriate Order will issue.