Cain v. Hyatt

734 F. Supp. 671, 1 Am. Disabilities Cas. (BNA) 1567, 1990 U.S. Dist. LEXIS 3686, 53 Empl. Prac. Dec. (CCH) 40,021, 1990 WL 42544
CourtDistrict Court, E.D. Pennsylvania
DecidedApril 3, 1990
DocketCiv. A. 88-6665
StatusPublished
Cited by42 cases

This text of 734 F. Supp. 671 (Cain v. Hyatt) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cain v. Hyatt, 734 F. Supp. 671, 1 Am. Disabilities Cas. (BNA) 1567, 1990 U.S. Dist. LEXIS 3686, 53 Empl. Prac. Dec. (CCH) 40,021, 1990 WL 42544 (E.D. Pa. 1990).

Opinion

MEMORANDUM

RAYMOND J. BRODERICK, District Judge.

In this nonjury case, plaintiff Clarence Cain alleges that the defendants’ decision to remove him as regional partner of Hyatt Legal Services because he had contracted acquired immune deficiency syndrome (AIDS) violated the Pennsylvania Human Relations Act, Act of October 27, 1955, Pub.L. No. 744 (codified as amended at 43 Pa.Stat.Ann. § 951 et seq.), which proscribes employment discrimination on the basis of non-job related handicap or disability. This Court has jurisdiction pursuant to 28 U.S.C. § 1332. See Wolk v. Saks Fifth Avenue Inc., 728 F.2d 221 (3d Cir. 1984); Davis v. United States Steel Supply, 581 F.2d 335, 339 (3d Cir.1978); Petit v. Sears, Roebuck & Co., 32 Fair Empl. Prac.Cas. (BNA) 1867 (E.D.Pa.1982). Having held a bench trial to consider the claim, the Court now finds in favor of the plaintiff.

I. Findings of Fact

The facts of this case are not in serious dispute. Established in 1977, Hyatt Legal Services (Hyatt) is a general practice law firm with over 150 locations nationwide. As with any large interstate enterprise, Hyatt is complexly structured. The firm’s primary unit of operation is the office. Offices in geographical proximity to one another are denominated a region. Several regions, in turn, are grouped into a division.

*673 Generally, staff attorneys are assigned to a particular office and hold a nonmanagerial, entry-level position within the firm’s hierarchy. They interview and cultivate clients, make court appearances, generate documents, and otherwise engage in all the duties that legal practitioners undertake. Hyatt mandates that each staff attorney commence his or her day no later than 9 a.m., remain in the office until 8 p.m. two evenings each week, and work at least every other Saturday. In 1987, Hyatt employed approximately 500 staff attorneys, almost all of whom earned between $20,000 and $24,000 annually.

A managing attorney heads each office. In addition to carrying a caseload, the managing attorney oversees staff attorneys and legal assistants. The managing attorney recruits, instructs, tenders regular evaluations of personnel, hears client complaints, and is charged with maintaining the profitability of the office.

The regional partner, who supervises all managing attorneys situated in the region’s offices, is more akin to a business manager than a practicing lawyer. Unlike staff or managing attorneys, regional partners do not have a caseload or represent clients. Instead, they recruit and train attorneys, evaluate subordinates, inspect offices and files, handle client complaints, organize seminars, and engage in various administrative duties. Like staff and managing attorneys, however, regional partners possess no equity in the firm and are at-will employees. In August 1987, there were 25 regional partners nationwide.

As noted earlier, regions are combined into divisions. Each division is headed by a national partner, who supervises the division’s regional partners. National partners in turn report to a managing partner or a senior partner. The senior partners, defendants Joel Hyatt, Wayne Willis, William Brooks, and Susan Hyatt, promulgate firm policy and hold equity interests in the organization. In 1987, Willis also served as a managing partner.

Hyatt employees accumulate two sick days for every three months of service and one week of vacation time every six months. The firm also has a medical leave policy, which permits attorneys and legal assistants to take, as a matter of right, a thirty day unpaid leave of absence due to illness or injury. They may take up to three months with the approval of the supervising national partner. An employee does not forfeit benefits or seniority while on unpaid leave. The firm, however, does not guarantee that the employee can return to the exact position he or she had prior to an extended absence, although by policy it will make an effort to do so. When regional partners take pregnancy leaves, which have lasted over two months in duration, managing attorneys assume regional partner duties until they return.

On April 7, 1986, Cain, a graduate of the University of Virginia School of Law with almost ten years’ legal experience, entered Hyatt’s Fast Track Regional Partner Program, which was specially tailored by Hyatt to attract talented and knowledgeable attorneys. Bypassing the usual entry-level position of staff attorney, Fast Track participants begin their employment with the firm as managing attorneys. Candidates have six months in which to be either promoted to regional partner or terminated.

After completing a two-week training session at the firm’s headquarters in Kansas City, Cain was appointed managing attorney of the Falls Church, Virginia Office. The plaintiff’s work in that position was exemplary, and, on November 24, 1986, he was promoted to regional partner of the firm’s Philadelphia Region South. In December 1986, Hyatt management consolidated Philadelphia North and Philadelphia South into a single region, which comprised ten offices with thirty-five attorneys and another thirty-five staff members. Cain continued to serve as partner of this new region. His salary was $40,000 per year.

Because the Philadelphia region long had been languishing so seriously, by late January 1987 Willis divided the regional partner duties among three individuals. Cain performed most of the functions. A managing attorney and Fast Track participant, Earl Fisher, assisted with recruiting and *674 reviewing the performance of staff members. Defendant Robert Croyle, who was a Hyatt national partner and Cain’s immediate supervisor, took up residence in Philadelphia in order to focus his energies on the region’s rehabilitation.

In March 1987, Cain’s relationship with his superiors began to deteriorate. Although the plaintiff spent over half of his time recruiting, he regarded the task as distasteful and dull. Cain told Croyle that in particular he disliked the “sales” component of recruiting and that Hyatt needed someone to assume the responsibility full-time. He similarly demonstrated little desire to review the managing attorneys under his authority.

The plaintiff’s conflict with Willis and Croyle stemmed partially from the fact that, as alluded to earlier, the Philadelphia region always had been an unhappy one. Since its inception in 1981, the region has never turned a profit on an annualized basis and even lost over a million dollars a year prior to 1986, has had a high turnover of regional partners, and, in 1987, was significantly understaffed. In fact, Philadelphia North did not even have a regional partner for at least six months prior to Cain’s assumption of his post. Cain complained to his superiors that one person could not possibly rectify all the difficulties. The tensions that this situation naturally created were further aggravated by Cain’s apparent disagreement with Hyatt’s upper-level management about what strategy would best alleviate the troubles in Philadelphia. Croyle and Willis believed that the proper emphasis was on recruiting.

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734 F. Supp. 671, 1 Am. Disabilities Cas. (BNA) 1567, 1990 U.S. Dist. LEXIS 3686, 53 Empl. Prac. Dec. (CCH) 40,021, 1990 WL 42544, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cain-v-hyatt-paed-1990.