Blue Comet Diner v. Pennsylvania Human Relations Commission

905 A.2d 1058, 2006 Pa. Commw. LEXIS 411, 2006 WL 2085430
Commonwealth Court of Pennsylvania·Decided July 28, 2006·No. 465 C.D. 2005·Published·Cited by 2 cases

Opinions

OPINION BY

Judge LEAVITT.

Blue Comet Diner petitions this Court to review an order of the Pennsylvania Human Relations Commission awarding back pay and prospective pay to Christine Seliga, a former employee of Blue Comet. The Commission issued this order after it found that Blue Comet had breached its agreement to reinstate Seliga to her job. In this case we consider the proper scope of an administrative hearing that is held by the Commission when presented with a complaint that a predetermination settlement of charges of discrimination has been breached.

In 2001, Christine Seliga, a waitress at Blue Comet, was discharged when she contracted hepatitis C. As a result, she filed a complaint with the Commission, asserting that her discharge violated the Pennsylvania Human Relations Act (Human Relations Act), Act of October 27, 1955, P.L. 744, as amended, 43 P.S. §§ 951-963. On April 16, 2003, Blue Comet’s counsel executed a “Respondent and Complainant Agreement” (Settlement Agreement), stating that “[Seliga] will be eligible to return to work at the Blue Comet Diner. Starting May 1, 2003, [Seliga] will be scheduled to work 3rd shift.” Reproduced Record at 98a (R.R. -). The Settlement Agreement was entered on a form prepared by the Commission; referenced the docket number of Seliga’s complaint; and was maintained by the Commission. As a result of the settlement, the Commission’s Executive Director, Homer Floyd, notified Seliga and Blue Comet that the Commission was “closing the case.” R.R. 100a.

When Seliga reported for work on May 1, 2003, Blue Comet’s manager, Sharon Belletiere, asked her to leave because the other waitresses on the shift refused to work with Seliga and had threatened to quit. Thereafter, Seliga filed a petition for reconsideration of adjustment with the Commission alleging that Blue Comet had breached the Settlement Agreement. The Commission determined that sufficient evidence of breach had been presented to merit a hearing on the issue, and it appointed a hearing officer to conduct the proceeding, which took place on September 24, 2004.

[1060] Blue Comet’s owner, Chalabosos Manta-sas, testified that he employs approximately forty people in three shifts. According to Mantasas, the first complaints he received about Seliga’s hepatitis were from customers, several of whom indicated that they would no longer patronize the diner if Seliga continued to work there. Several employees also informed Mantasas that they were unwilling to work with Seliga. All of these complaints occurred prior to Seliga’s termination, and well before the parties entered into the Settlement Agreement. Mantasas testified that one employee resigned because of Seliga’s medical condition, but this event also occurred pri- or to the execution of the Settlement Agreement.

Belletiere also testified on behalf of Blue Comet. She explained that she had read pamphlets, on hepatitis C and was aware that it is transmitted primarily through contact with the blood of an infected person. She claimed to have explained this to Seliga’s co-workers; however, one of those co-workers testified at the hearing that hepatitis C is “very contagious” and that she does not know how it is transmitted. R.R. 76a.

At the conclusion of the hearing, the parties opted to submit post-hearing briefs. Seliga’s attorney indicated that he intended to seek an award of prospective pay in lieu of reinstatement. The hearing officer advised the parties to brief that issue as well as the claim that Blue Comet had breached the Settlement Agreement.

In its post-hearing brief, Blue Comet argued that reinstating Seliga would cause an exodus of virtually all of the diner’s employees and many of its regular customers, thereby inflicting an “undue hardship” on the diner’s business. It argued that under Section 12112(b)(5)(A) of the Americans With Disabilities Act (ADA), 42 U.S.C. § 12112(b)(5)(A), it did not have to make an accommodation for Seliga.1 Blue Comet raised no other defenses to Seliga’s petition, nor did it make any legal argument regarding Seliga’s request for an award of prospective pay.

The hearing officer issued his recommendation and proposed final order on January 11, 2005. There was no dispute that Blue Comet had breached the Settlement Agreement; the only question considered by the hearing officer was whether, under general principles of contract law, the breach was justified. The hearing officer held, first, that Blue Comet’s reliance on the ADA was misplaced because Blue Comet’s obligation arose under the Settlement Agreement.2 Treating Blue Comet’s hardship defense as one of impossibility of contract performance, the hearing officer next concluded that Blue Comet failed to meet its burden of proving impossibility because all of its evidence concerned events that occurred prior to the Settlement Agreement. The hearing officer recommended that the Commission award Seliga $8,679.20 for past lost earnings, $6,401.20 for prospective lost earnings in lieu of reinstatement, plus prejudgment and post-judgment interest at the statutory rate of 6% per annum. The Commissioners adopted the hearing officer’s opinion and recommendations in a final order dated February 1, 2005. On March 1, 2005, Blue Comet petitioned this [1061] Court to review the Commission’s adjudication.3

On December 15, 2005, this Court entered a per curiam order directing the parties to file supplemental briefs to address the question of whether the Commission had jurisdiction to enforce the Settlement Agreement. Specifically, we asked the parties to consider whether Section 42.73 of the Commission’s Special Rules of Administrative Practice and Procedure (Special Rules), 16 Pa.Code § 42.73, conflicts with Section 10 of the Human Relations Act, 43 P.S. § 960, and whether this Court’s decision in Mechensky v. Pennsylvania Human Relations Commission, 134 Pa.Cmwlth. 192, 578 A.2d 589 (1990), should be overruled. Thereafter, an en banc panel of this Court heard argument from the Commission on March 1, 2006.4 The matter is now ready for disposition.

We consider, first, whether the Commission had jurisdiction to conduct a hearing on Blue Comet’s alleged breach of the Settlement Agreement.5 Blue Comet posits that Section 42.73 of the Special Rules, which empowers the Commission to enforce a settlement agreement, conflicts with Section 10 of the Act, which requires the Commission to petition a court to enforce a final order. To the extent Mechen-sky supports the procedure followed by the Commission in this case, Blue Comet asks us to overrule that decision.

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Blue Comet Diner v. Pennsylvania Human Relations Commission, 905 A.2d 1058, 2006 Pa. Commw. LEXIS 411, 2006 WL 2085430 (Pa. Ct. App. 2006).

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