Adamson v. Multi Community Diversified Services, Inc.

514 F.3d 1136, 2008 U.S. App. LEXIS 2418, 90 Empl. Prac. Dec. (CCH) 43,109, 102 Fair Empl. Prac. Cas. (BNA) 1061, 2008 WL 274736
CourtCourt of Appeals for the Tenth Circuit
DecidedFebruary 1, 2008
Docket05-3478
StatusPublished
Cited by208 cases

This text of 514 F.3d 1136 (Adamson v. Multi Community Diversified Services, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adamson v. Multi Community Diversified Services, Inc., 514 F.3d 1136, 2008 U.S. App. LEXIS 2418, 90 Empl. Prac. Dec. (CCH) 43,109, 102 Fair Empl. Prac. Cas. (BNA) 1061, 2008 WL 274736 (10th Cir. 2008).

Opinion

KANE, Senior District Judge.

This is an appeal from the entry of summary judgment in a non-profit corporate employer’s favor on federal age and sex discrimination claims brought by plaintiff family members after they were simultaneously terminated from their employment by the corporation’s board of directors. Plaintiffs also appeal from the district court’s decision declining to exercise supplemental jurisdiction over their state law claims for breach of implied contract and defamation.

In the proceedings below, Barry Adam-son, Patricia Adamson and daughter Jessica Curl claimed they were terminated based on their status as “husband, wife and daughter” in contravention of the prohibition against sex-discrimination in Title VII of the Civil Rights Act of 1964. Mr. Adamson, 56 at the time of his termination, also claimed discrimination on the basis of age in violation of the Age Dis *1141 crimination in Employment Act. Defendants moved for summary judgment, asserting that, while no cause was required to terminate any of the Adamsons, who were at-will employees, Mr. Adamson was terminated based on legitimate concerns over money transfers and other unilateral actions he had taken as the corporation’s Chief Executive Officer, and because his hiring and direct supervision of his wife and daughter to work for the new corporation were ill-advised under the company’s discretionary anti-nepotism policy. Defendants also argued daughter Jessica’s position was simply eliminated as unnecessary. Defendants denied sex or age discrimination entered into the board’s employment decisions.

Applying the standard analysis under McDonnell Douglas v. Green, 411 U.S. 792, 93 S.Ct. 1817, 36 L.Ed.2d 668 (1973), the district court rejected Plaintiffs’ claims on various grounds, including that Mr. Adamson had failed to establish a prima facie case of age discrimination and that none of the Plaintiffs had adduced sufficient evidence of pretext to avoid summary judgment on their sex discrimination claims. The district court also determined Jessica had failed to come forward with sufficient evidence to support even a prima facie case of gender-based discrimination in her termination under Amro v. Boeing Co., 232 F.3d 790, 797 (10th Cir.2000), and concluded Defendants were entitled to summary judgment on this alternate basis as well.

We affirm the district court’s determination that Barry Adamson failed to establish a prima facie case of age discrimination. We generally affirm the entry of summary judgment against Plaintiffs on their Title VII sex-discrimination claims, but articulate additional and alternate reasons for that decision. Specifically, we reject the assertion that “familial status” is a protected classification under Title VII and therefore dismiss Plaintiffs’ claims that they were discriminated against because they were “husband, wife and daughter” as outside Title VIPs scope. Our de novo review of the record convinces us, moreover, that no independent claims for gender-discrimination survive this ruling because, as presented by Plaintiffs, those claims are inextricably entwined with their “familial status” theory of relief.

Alternatively, and because the district court engaged in the analysis, we review Plaintiffs’ individual gender discrimination claims under the traditional McDonnell Douglas framework as well. The female Adamsons’ claims are analyzed under the standards for assessing Title VII discriminatory discharge claims under Kendrick v. Penske Transp. Servs., Inc., 220 F.3d 1220 (10th Cir.2000) and Plotke v. White, 405 F.3d 1092 (10th Cir.2005), while Barry’s claim is properly analyzed as one for reverse discrimination under Notari v. Denver Water Dep’t, 971 F.2d 585, 588-91 (10th Cir.1992).

Both analyses require Plaintiffs to present facts giving rise to an inference that each was terminated on the basis of his or her gender. Because reverse discrimination requires a determination that defendant is the “unusual” employer that discriminates against the traditionally favored class of men, rather than women, Barry’s burden is higher, requiring proof of “background circumstances” tending to establish that fact or, in the alternative, that but for his status of being a man, he would not have been terminated. Notari, 971 F.2d at 591. Mr. Adamson’s evidence falls short of either standard, and Defendants are entitled to summary judgment on his Title VII claim without reference to pretext.

The female Adamsons’ claims have marginally more heft based on allegations that *1142 (1) the company applied its anti-nepotism policy to terminate them while it did not apply it to terminate a set of similarly situated male employees and (2) assertions that Plaintiffs’ terminations were premised in part on concerns Mr. Adamson would exercise “undue influence” over them if they remained with the company. Applying the appropriate standards under Kendrick and Plotke, however, we conclude this evidence, too, fails to support a claim for gender discrimination independently of Plaintiffs’ claims of “familial status” discrimination because neither gives rise to the requisite inference of gender-based discriminatory animus.

Alternatively, we agree with the district court that the facts marshaled fail to establish Defendants’ stated reasons for firing Patricia and Jessica were but pretexts for gender (rather than family-based) discrimination, and affirm the grant of summary judgment on that alternate basis as well.

We perceive no error or abuse of discretion in the district court’s decision to decline to exercise supplemental jurisdiction over Plaintiffs’ state law claims.

I. FACTS AND PROCEDURAL HISTORY

Barry Adamson, his wife Patricia and daughter Jessica Curl appeal the district court’s rejection of their employment discrimination claims arising out of their termination by the board of directors of Multi Community Diversified Services (MCDS) — a nonprofit corporation with a mission to assist disabled persons — and MCDS’s wholly-owned franchise, Cartridge King of Kansas, Inc. (CKK). Barry and Patricia Adamson, together with their daughter, Jessica Curl, filed suit against MCDS and CKK, asserting both federal and state law claims related to their terminations by the MCDS board of directors on the same day in October 2002. The terminations occurred just three months after Barry, as MCDS’s Chief Executive Officer, acted to incorporate the company’s Cartridge King operations as a separate entity and to hire his wife and daughter as CKK’s business manager and sales representative, respectively. At the time of their terminations, Barry had been with MCDS for nine years and Patricia had been with the company for 16 months. Jessica, a college student at the time, had worked at MCDS off and on throughout her high school years.

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514 F.3d 1136, 2008 U.S. App. LEXIS 2418, 90 Empl. Prac. Dec. (CCH) 43,109, 102 Fair Empl. Prac. Cas. (BNA) 1061, 2008 WL 274736, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adamson-v-multi-community-diversified-services-inc-ca10-2008.