Arguello v. Conoco, Inc.

207 F.3d 803, 2000 U.S. App. LEXIS 6435, 2000 WL 305928
CourtCourt of Appeals for the Fifth Circuit
DecidedApril 10, 2000
Docket98-11280
StatusPublished
Cited by60 cases

This text of 207 F.3d 803 (Arguello v. Conoco, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arguello v. Conoco, Inc., 207 F.3d 803, 2000 U.S. App. LEXIS 6435, 2000 WL 305928 (5th Cir. 2000).

Opinion

CARL E. STEWART, Circuit Judge:

The appellants, a group of Hispanic and African-American consumers, filed suit against appellees, Conoco, Inc. (“Conoco” or “Conoco, Inc.”) alleging that they were subjected to racial discrimination while purchasing gasoline and other services. Appellants challenge the district court’s 12(b)(6) dismissal of their disparate impact claim under 42 U.S.C. § 2000a, and the district court’s grant of summary judgment to Conoco on the appellants remaining 42 U.S.C. §§ 1981 and 2000a claims. For the following reasons we affirm in part, and reverse in part.

FACTUAL AND PROCEDURAL BACKGROUND

There are three different incidents which form the background for this appeal. In March 1995, Denise Arguello (“Arguel-lo”), and her father Alberto Govea (“Go-vea”), along with various other members of their family stopped at a Conoco-owned store 1 in Fort Worth, Texas. After pumping their gasoline Arguello and Govea entered the store to pay for the gasoline and purchase other items. When Arguello approached the counter she presented the store cashier, Cindy Smith (“Smith”), with her items and a credit card. Smith asked to see Arguello’s identification. When Ar-guello gave Smith her Oklahoma driver’s license Smith stated that an out-of-state driver’s license was not acceptable identification. Arguello disagreed with Smith and Smith began to insult Arguello using profanity and racial epithets. 2 Smith also knocked a six-pack of beer off the counter toward Arguello. After Arguello retreated from the inside of the store, Smith used the store’s intercom system to continue yelling racial epithets. Smith also made obscene gestures through the window.

Moments after the incident occurred Ar-guello and Govea used a pay phone outside the station to call a Conoco customer- service phone number and complain about Smith’s conduct. Govea also attempted to reenter the store to discover Smith’s name. When Govea attempted to reenter the store, Smith and another store employee locked the doors. Linda Corbin (“Cor-bin”), a district manager, received Arguello and Govea’s complaints. Corbin reviewed video tape from the store, which had no audio, and concluded that Smith had acted inappropriately. When she was confronted by Corbin, Smith admitted to using the profanity, racial epithets, and obscene gestures. Corbin counseled Smith about her behavior but did not suspend, or terminate Smith. Several months after the incident Corbin transferred Smith to another store for Smith’s protection after receiving phone calls that a group was planning to picket the store at which the incident took place.

*806 In September 1995, Gary Ivory (“Ivory”), Anthony Pickett (“Pickett”), and Michael Ross (“Ross”) visited a Conoco-branded store in Fort Worth, Texas. While inside the store they allege that they were followed by a store employee and after complaining about this treatment a store employee told them “we don’t have to serve you people” and “you people are always acting like this.” The employee refused to serve them and asked them to leave. Eventually the police were summoned and the policeman ordered the store employee to serve the group.

In November 1996, Manuel Escobedo (“Escobedo”) and Martha Escobedo (“Mrs. Escobedo”) stopped at a Conoco-branded store in San Marcos, Texas. Escobedo claims that while visiting this store the store employee refused to provide toilet paper for the restroom, shouted profanities at his wife, and said “you Mexicans need to go back to Mexico.” Escobedo called Co-noco to complain about this incident, and was.told by a Conoco customer service supervisor, Pamela Harper, that there was nothing Conoco could do because that station was not owned by Conoco. In a separate incident at a Conoco-branded store in Grand Prairie, Texas Escobedo was allegedly told by the store clerk that “you people steal gas.” Finally, Escobedo claims that at two Conoco-branded stores in Laredo, Texas he was required to prepay for his gasoline while Caucasian customers were allowed to pump their gas first and then pay.

In March 1997, Arguello, Govea, the Es-cobedos, Ivory, Pickett, and Ross (“plaintiffs” or “appellants”) filed suit against Co-noco, Inc. on behalf of themselves and all other similarly situated parties. 3 The plaintiffs alleged that Conoco was in violation of 42 U.S.C. §§ 1981 4 and 2000a (“Title II”) 5 and state law for refusing to serve Hispanic and African-American customers, and subjecting this class of customers to substandard service and racially derogatory remarks. The plaintiffs also claimed that Conoco had illegal policies and practices which disparately impacted Hispanics and African-Americans.

In July 1997, the district court issued an order dismissing all claims based on the plaintiffs’ allegations of disparate impact and the plaintiffs’ state law claims. In October 1998, the district court granted summary judgment to Conoco on all of the plaintiffs’ remaining claims.

DISCUSSION

Appellants raise several issues on appeal. First, appellants contend that the district court erred in finding no agency relationship between Conoco, Inc. and the Conoco-branded stores. Appellants also argue that the district court erred in finding no agency relationship between Cono-co, Inc. and Cindy Smith because Smith acted outside the scope of her employment. Appellants argue in the alternative that even if Smith was outside the scope of her employment Conoco had'a non-delega-ble duty to prevent racial discrimination, and further that Conoco should be held liable because it ratified Smith’s conduct. Finally, appellants contend that the district court improperly dismissed their disparate impact claims under Title II. We will consider each of these issues in turn.

A. Standard of Review

This court reviews a grant of summary judgment de novo. Neff v. Ameri *807 can Dairy Queen Corporation, 58 F.3d 1063, 1065 (5th Cir.1995). Summary judgment should be granted if there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c). We review the facts drawing all inferences most favorable to the party opposing the motion. Neff, 58 F.3d at 1065 (quoting Reid v. State Farm Mut. Auto. Ins. Co., 784 F.2d 577, 578 (5th Cir.1986)).

B. Agency Relationship between Conoco, Inc.

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207 F.3d 803, 2000 U.S. App. LEXIS 6435, 2000 WL 305928, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arguello-v-conoco-inc-ca5-2000.