Jacques R. Williams, Esq.
Hamstead, Hamstead & Williams
Morgantown, West Virginia
and
Larry W. Mayfield, Esq.
Gianola, Barnum & Wigal
Morgantown, West Virginia
and
C. Paul Estep, Esq.
Kingwood, West Virginia
Attorneys for Appellants
Stephen M. LaCagnin, Esq.
Jackson & Kelly
Morgantown, West Virginia
and
Robert M. Vukas, Esq.
CONSOL, Inc.
Pittsburgh, Pennsylvania
Attorneys for Appellees
JUSTICE McGRAW delivered the Opinion of the Court.
CHIEF JUSTICE DAVIS and JUSTICE MAYNARD concur
and reserve the right to file concurring opinions.
2. In
disparate treatment cases under the West Virginia Human Rights Act, W. Va.
Code, 5-11-9 (1992), proof of pretext can by itself sustain a conclusion that
the defendant engaged in unlawful discrimination. Therefore, if the plaintiff
raised an inference of discrimination through his or her prima facie case
and the fact-finder disbelieves the defendant's explanation for the adverse
action taken against the plaintiff, the factfinder justifiably may conclude
that the logical explanation for the action was the unlawful discrimination.
Syl. pt. 5, Skaggs v. Elk Run Coal Co., Inc., 198 W. Va. 51, 479
S.E.2d 561 (1996).
3. In
disparate treatment discrimination cases under the West Virginia Human Rights
Act, W. Va. Code, 5-11-9 (1992), a plaintiff can create a triable issue of discrimination
animus through direct or circumstantial evidence. Thus, a plaintiff who can
offer sufficient circumstantial evidence on intentional discrimination may prevail,
just as in any other civil case where the plaintiff meets his or her burden
of proof. The question should not be whether the evidence was circumstantial
or direct, but whether the evidence in its entirety was strong enough to meet
the plaintiff's burden of proof. Syl. pt. 7, Skaggs v. Elk Run
Coal Co., Inc., 198 W. Va. 51, 479 S.E.2d 561 (1996).
4. In disparate treatment discrimination cases arising under the West Virginia Human Rights Act, W. Va. Code § 5-11-9 (1998), where a plaintiff seeks to introduce statistical evidence in an effort to prove that a particular procedure utilized by the employer is intentionally discriminatory based upon its disproportionate impact upon workers in a protected class, evidence of the employer's utilization of alternative procedures having a more proportionate impact upon the protected class is relevant and admissible to further prove that the employer acted with discriminatory purpose.
McGraw, Justice:
Appellants in this case
are eight coal miners
(See footnote 1) who brought suit against appellee Consolidation
Coal Company (Consol) under the West Virginia Human Rights Act
(the Human Rights Act), W. Va. Code §§ 5-11-1 to -20,
alleging that Consol, in the process of closing its Arkwright mine in 1995,
systematically discriminated against them on the basis of age by transferring
younger employees to other mine operations while leaving them to face termination
when the mine ultimately shut down. Following trial on these claims, the jury
found in favor of Consol, and appellants now appeal arguing that the lower
court erred at trial by (1) prohibiting them from calling two rebuttal witnesses;
and (2) refusing to admit evidence that Consol had previously employed alternative
procedures for implementing layoffs at other facilities, which, had they been
utilized at the Arkwright mine, would have resulted in a less disproportionate
impact upon older workers. We find merit in appellants' second argument, and
accordingly reverse.
Appellants were employed by Consol as salaried foremen and mine engineers at the company's Arkwright mine in Monongalia County during the period immediately
preceding its closure in October 1995. Beginning in March 1994, Consol began offering a number of employees transfers to other company facilities. In determining which employees would be extended such offers, Consol employed a ranking system predicated upon employee performance evaluation scores, with transfer decisions normally being made with respect to individual performance in specific job classifications, although consideration was at times given to transferring employees to other positions for which they were qualified. Appellant's theory of the
case was that Consol intentionally lowered the evaluation scores of older
employees during the period leading up to the mine closure, such that the
performance-based method chosen by the company for allotting transfer opportunities
would result in the ultimate termination of a greater proportion of older
workers. The only direct evidence supporting this version of events was testimony
by appellant Harold Moore, who stated that soon after rumors surfaced that
the Arkwright mine would be closing, he was told in 1993 by Arkwright's superintendent,
Terry Suder, to watch out for the evaluations, as there's
a good chance that evaluations on persons that they are going to get rid of
[are] going to be low. (Mr. Suder testified at trial and denied making
such statements.) Mr. Moore further testified that in fact, the evaluation
scores he received for the annual period ending in July 1993 were significantly
lower than those he would receive just one year later.
Appellants relied heavily upon
statistical evidence to buttress their claim that Consol's conduct was at least
partially motivated by discriminatory intent. Appellants' expert in labor economics
and econometrics, Professor Clifford Hawley, Ph.D., testified to having reviewed
data regarding Consol's transfer decisions concerning 29 persons holding positions
comparable to those of appellants who were employed at the Arkwright mine during
the period preceding closure. Of these 29 employees, a total of 24 were over
the age of 40. While according to appellants' version of the facts all five
of the employees under the age of 40 were permitted to transfer to other jobs,
only nine of the 24 persons over the age of 40 were given similar offers. Professor
Hawley testified that this disparity was statistically significant in that the
odds of an age-neutral process obtaining such a result was one in 59. Consol's
expert statistician, Dennis Brady, Ph.D., criticized Professor's Hawley's methodology,
particularly the choice to concentrate only on a limited number of job categories.
Doctor Brady also testified that his analysis of the closure of the Arkwright
mine indicated that it resulted in a greater overall percentage of younger workers
retaining employment with Consol.
After a trial conducted
on August 14-21, 2000, the jury found in favor of Consol in all respects.
Appellants' subsequent motion for a new trial, which raised the same arguments
as advanced herein, was denied on April 13, 2001, and this appeal followed.
The
West Virginia Rules of Evidence . . . allocate significant discretion
to the trial court in making evidentiary . . . rulings. Thus, rulings
on the admission of evidence . . . are committed to the discretion
of the trial court. Absent a few exceptions, this Court will review evidentiary
. . . rulings of the circuit court under an abuse of discretion
standard.
(Quoting syl. pt. 1, in part, McDougal v. McCammon, 193 W. Va.
229, 455 S.E.2d 788 (1995)). Accord syl. pt. 10, Board of Ed. of
McDowell County v. Zando, Martin & Milstead, Inc., 182 W. Va.
597, 390 S.E.2d 796 (1990) (Rulings on the admissibility of evidence
are largely within a trial court's sound discretion and should not be disturbed
unless there has been an abuse of discretion.) (citations and internal
quotation marks omitted); syl. pt. 6, State v. Kopa, 173 W. Va.
43, 311 S.E.2d 412 (1983) (The action of a trial court in admitting
or excluding evidence in the exercise of its discretion will not be disturbed
by the appellate court unless it appears that such action amounts to an abuse
of discretion.).
Appellants assert that the
trial court committed reversible error in this case by refusing to permit
them to introduce evidence that Consol had previously utilized alternative
procedures at other mine locations to determine those employees who would
be terminated in the course of workforce reductions_methods which in this
case, according to appellants, would have resulted in the retention of a greater
number of workers within the protected class of persons over the age of forty.
(See footnote 2)
Appellants contend that such evidence was probative of whether Consol's
explanation for its employment decisions was pretextual.
The evidence at issue is set forth in a deposition taken of Consol's human resources manager, Joseph Nypaver. Mr. Nypaver testified that Consol had used as many as seven different ranking methods to make employment decisions in implementing reductions in force. At least two of the seven ranking procedures took into consideration either the employee's years of service or both service and age, and were utilized by Consol at
approximately the same time as it used the straightforward evaluation scoring method at the Arkwright mine. One of these was described by Mr. Nypaver as involving evaluation scores and service, which consisted of a method where we would take evaluation scores from the last couple of years . . . and come up with . . . either a 70, 75, or 80 percent weight for that particular part of the evaluation score and then give them the corresponding 20, 25, or 30 percent weight for length of service. In addition to the testimony
of Mr. Nypaver, appellants also indicated that they intended to elicit testimony
from their expert, Professor Hawley, regarding the statistical effect that
such alternative procedures would have had on older workers had they been
utilized in connection with the closure of the Arkwright mine.
Prior to trial, Consol brought a motion in limine objecting to the introduction of any evidence dealing with such alternative ranking systems, arguing that it was not relevant to any matter at issue in the case. The circuit court granted Consol's motion during a hearing conducted on August 14, 2000, stating from the bench that any method that [Consol] used to determine whose job was saved and whose job was not is not relevant unless it can be demonstrated that there's a discriminatory animus, and that was the Court's ruling before. (See footnote 3)
[i]n a human rights case . . .
the question is not whether an employment decision was essentially fair or
whether it was made in accordance with pre-established procedures. The question
is whether the individual was discriminated against because of race, religion,
color, national origin, ancestry, sex, age, blindness, or handicap.
Id. at 212, 406 S.E.2d at 438 (citation omitted).
(See footnote 4)
This line of reasoning simply proves too much.
(See footnote 5) Appellants did not seek to
have the evidence dealing with alternative procedures
This case is predicated
solely upon a claim of disparate treatment. Under the Human Rights Act, such
a claim of discrimination is governed by the familiar three-step evidentiary
framework outlined in McDonnell Douglas Corp. v. Green, 411 U.S. 792,
802-04, 93 S. Ct. 1817, 1824-25, 36 L. Ed. 2d 668, 677-79 (1973),
and Texas Dep't of Community Affairs v. Burdine, 450 U.S. 248, 101
S. Ct. 1089, 67 L. Ed. 2d 207 (1981). Under the McDonnell
Douglas/Burdine structure, First, the plaintiff
has the burden of proving by the preponderance of the evidence a prima facie
case of discrimination. Second, if the plaintiff succeeds in proving the prima
facie case, the burden shifts to the defendant 'to articulate some legitimate,
nondiscriminatory reason for the employee's rejection.' . . . .
Third, should the defendant carry this burden, the plaintiff must then have
an opportunity to prove by a preponderance of the evidence that the legitimate
reasons
As was pointed out in Skaggs
v. Elk Run Coal Co., Inc., 198 W. Va. 51, 479 S.E.2d 561 (1996),
'[t]he shifting burdens of proof set forth in McDonnell Douglas
are designed to assure that the plaintiff [has] his day in court despite
the unavailability of direct evidence.' Id. at 71, 479
S.E.2d at 581 (quoting Trans World Airline, Inc. v. Thurston,
469 U.S. 111, 121, 105 S. Ct. 613, 622, 83 L. Ed. 2d 523, 533 (1985)).
Under the third step of the ordering of proof, a plaintiff is required to
show, by a preponderance of the evidence, that the defendant's proffered reason
was not the actual motivating force behind its adverse employment action.
See Wynne v. Tufts University School of Medicine, 976 F.2d 791, 796
(1st Cir. 1992) (When pretext is at issue in a discrimination case,
it is a plaintiff's duty to produce specific facts which, reasonably viewed,
tend logically to undercut the defendant's position.). Such a demonstration
of pretext permits a jury to infer discriminatory motive on the part of the
employer:
In disparate
treatment cases under the West Virginia Human Rights Act, W. Va. Code,
5-11-9 (1992), proof of pretext can by itself sustain a conclusion that the
defendant engaged in unlawful discrimination. Therefore, if the plaintiff raised
an inference of discrimination through his or her prima facie case and the fact-finder
disbelieves the defendant's explanation for the adverse action taken against
the plaintiff, the factfinder justifiably may conclude that the logical explanation
for the action was the unlawful discrimination. Importantly, we have made
clear that a plaintiff in a disparate treatment case may establish an inference
of discriminatory motive on the part of an employer through the introduction
of circumstantial as well as direct evidence: In
disparate treatment discrimination cases under the West Virginia Human Rights
Act, W. Va. Code, 5-11-9 (1992), a plaintiff can create a triable issue of
discrimination animus through direct or circumstantial evidence. Thus, a plaintiff
who can offer sufficient circumstantial evidence on intentional discrimination
may prevail, just as in any other civil case where the plaintiff meets his
or her burden of proof. The question should not be whether the evidence was
circumstantial or direct, but whether the evidence in its entirety was strong
enough to meet the plaintiff's burden of proof. While this case is not predicated
upon an allegation of disparate impact,
(See footnote 6) we nevertheless find instructive
the concepts developed and applied under this separate approach
Shepherdstown Volunteer Fire Dep't v. State ex rel. West Virginia Human
Rights Comm'n, 172 W. Va. 627, 637, 309 S.E.2d 342, 352 (1983) (quoting
Burdine, 450 U.S. at 252-53, 101 S. Ct. at 1093, 67
L. Ed. 2d at 215); see also Barefoot v. Sundale Nursing
Home, 193 W. Va. 475, 483, 457 S.E.2d 152, 160 (1995); Conaway
v. Eastern Associated Coal Corp., 178 W. Va. 164, 358 S.E.2d 423
(1986).
Syl. pt. 5, Skaggs, supra; accord syl. pt. 5, in part,
Barefoot, supra (A finding of pretextuality allows a juror
to reject a defendant's proffered reasons for a challenged employment action
and, thus, permits the ultimate inference of discrimination.).
Syl. pt. 7, Skaggs, supra. As we explained in Conaway,
[b]ecause discrimination is essentially an element of the mind, there
will probably be very little direct proof available. Direct proof, however,
is not required. What is required of the plaintiff is to show some
In
proving a prima facie case of disparate impact under the Human Rights Act
. . ., the plaintiff bears the burden of (1) demonstrating that the employer
uses a particular employment practice or policy and (2) establishing that
such particular employment practice or policy causes a disparate impact on
a class protected by the Human Rights Act. The employer then must prove that
the practice is job related and consistent with business
necessity. If the employer proves business necessity, the plaintiff
may rebut the employer's defense by showing that a less burdensome alternative
practice exists which the employer refuses to adopt. Such a showing would
be evidence that employer's policy is a pretext for discrimination. Although Decker's
allusion to pretext in relation to claims of disparate impact
is somewhat misdirected, as a plaintiff is not required in this context to
prove discriminatory motive on the part of the employer,
(See footnote 7) the relationship between
the existence Appellants argue that this
evidence of alternative procedures was all the more relevant in the present
case because of their reliance upon statistical evidence to demonstrate that
Consol's explanations for choosing the performance evaluation method for effectuating
its reduction in force were pretextual. We agree. This Court has recognized
that '[d]isparate impact in an employment discrimination case is ordinarily
proved by statistics[.]' Syl. pt. 2, Dobson v. Eastern Assoc.
Coal Corp., 188 W. Va. 17, 422 S.E.2d 494 (1992) (quoting syl. pt.
3, in part, Guyan Valley Hospital, Inc. v. West Virginia Human Rights Comm'n,
181 W. Va. 251, 382 S.E.2d 88 (1989)). We have likewise indicated with
respect to disparate treatment cases that [s]tatistical evidence may
be employed by a plaintiff in proving a claim of age discrimination in employment
under the West Virginia Human Rights Act, W. Va. Code, 5-11-1, et
seq. Syl. pt. 3, in part, Dobson v. Eastern Assoc. Coal
Corp., 188 W. Va. 17, 422 S.E.2d 494 (1992); see also Conaway,
178 W. Va. at 171, 358 S.E.2d at 430 (stating that circumstantial
evidence of purposeful discrimination may include statistics in a large
operation which show that members of the protected class received substantially
worse treatment than others) (footnote omitted). As one court has explained,
such evidence is relevant because it can
be used to establish a general discriminatory pattern in an employer's hiring
or promotion practices. Such a discriminatory pattern is probative of motive
and can therefore create an inference of discriminatory intent with respect
to the individual employment decision at issue. Just as with cases predicated
upon claims of disparate impact, the use of statistical evidence to establish
improper motive on the part of an employer in choosing a particular procedure
for making an employment decision raises the inherent question of whether
the employer has at its disposal alternative methods for making such determinations
that are less onerous with respect to the protected class than the procedure
actually employed. In fact, neither of these two forms of proof standing alone
are particularly helpful to a trier of fact who is faced with the question
of whether an employer has acted with discriminatory purpose: [W]hile
statistics may be used to demonstrate that the employer's proffered reason
for discharge is pretextual, standing alone they are not likely to establish
a case of individual disparate treatment. Rummery v. Illinois Bell
Telephone Co., 250 F.3d 553, 559 (7th Cir. 2001) (citation omitted); see
also Sengupta v. Morrison-Knudsen Co., Inc., 804 F.2d 1072, 1075
(9th Cir. 1986) (recognizing that while statistics have a place in a
disparate treatment case, their utility 'depends on all of the surrounding
facts and circumstances') (quoting International Bhd. of Teamsters,
431 U.S. at 340, 97 S. Ct. at 1857). This Court consequently
holds that in disparate treatment discrimination cases arising under the Human
Rights Act, W. Va. Code § 5-11-9 (1998), where a plaintiff
seeks
(Emphasis added.) See also syl. pt. 6, Barefoot, 193 W. Va.
475, 457 S.E.2d 152.
Diaz v. AT&T, 752 F.2d 1356, 1363 (9th Cir.1985). 'In many
cases the only available avenue of proof is the use of . . . statistics
to uncover clandestine and covert discrimination by the employer or union
involved.' International Broth. of Teamsters v. United States,
431 U.S. 324, 340 n.20, 97 S. Ct. 1843, 1857 n.20, 52 L. Ed. 2d 396 (1977)
(quoting United States v. Ironworkers Local 86, 443 F.2d 544, 551 (9th Cir.), cert.
denied, 404 U.S. 984, 92 S. Ct. 447, 30 L. Ed. 2d 367 (1971)).
For the reasons stated,
the judgment of the Circuit Court of Monongalia County is reversed and remanded
for further proceedings consistent with this opinion.
For example, Consol relies heavily upon Anderson v. HCA Deer Park Hosp., 834 F. Supp. 183 (S.D. Tex. 1993), where the plaintiffs brought disparate treatment claims against the employer alleging that it had utilized a racially discriminatory selection process when it underwent a reorganization and related reduction in force. In implementing the reduction in force that resulted in the termination of the plaintiff mental health workers, the employer in Anderson relied upon a procedure whereby retention decisions were based upon an employee's seniority in a particular unit of the hospital. This procedure resulted in five of nine black workers in plaintiffs' unit being terminated, while all five white mental health workers were retained. Approximately five months later, the employer used a different method to implement a second round of layoffs, which resulted in the layoff of six white and one black mental health workers. Following a bench trial in which the evidence of the employer's use of an alternative procedure was introduced into evidence, the district court found in favor of the defendant hospital, stating that [p]laintiffs have made no showing . . . that the selection criterion utilized in the layoff was applied to them in a discriminatory manner because of their race. 834 F. Supp. at 190. Consol points to additional language where the Anderson court went on to note that [w]ere the court to conclude that a different method for selecting candidates for layoff might operate more fairly, this would not assist plaintiffs, as the discrimination laws are 'not intended to be a vehicle for judicial second guessing of business decisions, nor . . . to transform the courts into personnel managers.' Id. (citations omitted). Rather than making a determination as to relevance of evidence dealing with alternative procedures, the Anderson court merely made a determination that the plaintiffs had failed to carry their burden to show that the hospital's chosen procedure was selected with an intent to discriminate. Other cases cited by Consol similarly fail to address the evidentiary issue posed in the present case.
there are two theories of
employment discrimination, the disparate impact theory and the disparate treatment
theory. The first theory focuses on the discriminatory effect of the employer's
acts, the second on the discriminatory motive of the employer. More specifically,
the disparate impact theory is invoked to attack facially neutral policies
which, although applied evenly, impact more heavily on a protected group.
Under the disparate treatment theory, the complainant must show that the employer
treats some people less favorably than others because they belong to a protected
class. Thus, a complainant asserting a disparate treatment theory must prove
discriminatory intent to prevail, while a complainant asserting a disparate
impact theory need not offer any such proof.
Id. at 317, 431 S.E.2d at 356 (citations and internal quotation
marks omitted); see also Guyan Valley Hosp., Inc. v. West Virginia
Human Rights Comm'n, 181 W. Va. 251, 253, 382 S.E.2d 88, 90 (1989)
(If a plaintiff cannot prove intentional discrimination under
the disparate treatment theory, he may proceed under a disparate impact theory.
This is appropriate when a facially-neutral hiring policy has the effect of
irrationally excluding persons in a protected class.) (emphasis in original),
overruled on other grounds, West Virginia Univ./West Virginia Bd. of Regents
v. Decker, 191 W. Va. 567, 447 S.E.2d 259 (1994).
it is inconsistent with
the nature of a disparate impact case to focus on the employer's intent. It
may be more accurate to say that the existence of an alternative, nondiscriminatory
practice that satisfies the employer's needs shows that it is not necessary for the employer to use a practice that has a discriminatory impact. That
showing, thus, overcomes the evidence of business justification that the employer
offered at the previous stage of the burden shifting process.
Butler v. Vanagas, 149 Or. App. 443, 448, 944 P.2d 972, 975 (1997).