Carmelo Melendez v. Illinois Bell Telephone Company

79 F.3d 661, 1996 WL 135671
CourtCourt of Appeals for the Seventh Circuit
DecidedApril 25, 1996
Docket94-3496
StatusPublished
Cited by115 cases

This text of 79 F.3d 661 (Carmelo Melendez v. Illinois Bell Telephone Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carmelo Melendez v. Illinois Bell Telephone Company, 79 F.3d 661, 1996 WL 135671 (7th Cir. 1996).

Opinion

FLAUM, Circuit Judge.

Carmelo Melendez filed a complaint in district court, alleging the defendant, Illinois Bell Telephone Company (“Illinois Bell”), violated 42 U.S.C. § 1981, Title VII and the Age Discrimination in Employment Act (“ADEA”) by engaging in discriminatory hiring practices. The district court entered summary judgment against the plaintiff on his ADEA claim, but the § 1981 and Title VII claims, based on race discrimination, proceeded to trial. As a sanction for discovery abuses, the district court barred defendant’s sole expert witness from testifying. The § 1981 disparate treatment claim was tried before a jury, which returned a general verdict for the defendant. After the § 1981 jury trial, the district court conducted a hearing on plaintiffs Title VII claims, which alleged both disparate treatment of and disparate impact upon Hispanies. In particular, Melendez challenged the discriminatory nature of a standardized management test, the BSAT. The district court held that the § 1981 jury verdict controlled the Title VII disparate treatment claim, but ruled for the plaintiff on his disparate impact claim. The defendant appeals the judgment in favor of the plaintiff on the Title VII disparate impact claim. We affirm.

I.

In September 1988, Melendez, a Hispanic male, applied for the position of Manager of Urban Affairs at Illinois Bell. This job was a first-level management position that entailed analysis and investigation of issues in the urban environment that might have impacted Illinois Bell’s service to its Chicago-area Hispanic customers. The vacancy for which Melendez applied was created when the incumbent in that job, an Hispanic woman, was promoted to a higher level position.

At the time, Illinois Bell screened management candidates through a three-part process administered by its personnel department. The personnel department required candidates to complete a formal application for employment and to pass both a structured interview, the Management Selection Interview (“MSI”) and a standardized test, the Basic Skills Abilities Test (“BSAT”). Normally, candidates could interview with the particular department at Illinois Bell that was hiring only after successfully completing all three requirements. To accommodate schedules, however, Illinois Bell would occasionally have the hiring department interview candidates before they completed the tripartite screening process.

On September 21, 1988, before being screened by the personnel department, Melendez interviewed with two managers from the urban affairs department, John McDer-mott and Suzette Broom. Although Melendez did not particularly impress McDermott and Broom during his interview, McDermott directed Melendez to the personnel department for further processing. In the personnel department Melendez completed an employment application and passed the MSI. Melendez also had graduated in the top half of his class from college, which was another one of Illinois Bell’s objective qualifications for management positions. Melendez, however, failed the BSAT. Illinois Bell required *665 applicants taking the BSAT to receive a score of at least 196 to be eligible for employment. 1 Melendez’s score was 157. On September 25, 1988, Illinois Bell’s personnel department advised Melendez that he had failed the BSAT and therefore was not qualified for the manager of urban affairs position. He was informed that he could retake the BSAT in six months. McDermott thereafter selected Henry Lara, an internal candidate who was also Hispanic, to become manager of urban affairs.

The BSAT is a standardized cognitive ability test, which Illinois Bell used to measure the learning potential of candidates for management positions. AT & T psychologists developed the BSAT in 1979 for telephone companies nationally. Local telephone companies, including Illinois Bell, implemented the BSAT in the early 1980’s. The examination is “speeded,” consisting of 100 multiple choice questions during a one hour time period. The BSAT tests four different skills: mathematics, grammar, reading comprehension, and following directions. The parties stipulated that the BSAT has a disparate impact against Hispanics. 2

To support the fairness and validity of the BSAT, AT & T psychologists conducted a validation study, which reported various statistical analyses of how the BSAT related to job performance. The validation study correlated test scores with actual job performance ratings and directly examined the BSAT by race for its ability to predict job performance. To review this validity evidence, Melendez introduced the expert testimony of Dr. Fred Bryant, Professor of Psychology at Loyola University of Chicago. Dr. Bryant received a Ph.D. in Social Psychology from Northwestern University and has numerous publications involving the statistical analysis of data. Dr. Bryant testified that, in the context of employment examinations, an examination is “valid” if it can pre-diet how people will perform on the job. Dr. Bryant opined that the BSAT is very poor at predicting job performance and therefore lacks validity. In Dr. Bryant’s opinion, the statistical evidence from the validation study convincingly showed that BSAT scores and job performance are unrelated for Hispanics. Moreover, Dr. Bryant concluded that the great weight of statistical evidence from the validation study demonstrated that there is no relationship between BSAT scores and job performance for whites. Dr. Bryant likewise found little evidence that the BSAT predicted job performance for African-Americans. Dr. Bryant also attacked the methodology of the validation study, asserting that the study improperly pooled data from different racial subgroups, which caused inflated validity data for the overall group. Even if one uses the inflated overall data, the BSAT predicts job performance only 3 percent better than chance alone. Indeed, prior to this litigation, psychologists hired by Illinois Bell to review its management hiring process concluded that “there is little or no support for the validity of BSAT scores in predicting the core areas of management performance....” Importantly, the data from the validation study illustrates that, despite a statistically significant difference in test scores between whites and Hispanics, there is no significant difference in job performance between the two groups.

In December 1988, Melendez filed a charge with the EEOC, alleging that the BSAT had an unlawful disparate impact on Hispanics. On August 28, 1990, Melendez filed the current action in district court. While his charge was pending before the EEOC, Illinois Bell formed a consortium with other local telephone companies to revise or replace the BSAT. Illinois Bell’s representative to the consortium was Dr. *666 Gary Morris. 3 On July 11, 1990, Psychological Services, Inc. (“PSI”), a consulting firm, sent a proposal to Dr. Morris and other consortium representatives, which indicated the necessity of establishing a new test with “face validity.” The consortium retained PSI to develop a replacement test, which was labelled the BSAT-Replacement (“BSAT-R”).

Dr. Morris was personally involved with the development of the BSAT-R.

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79 F.3d 661, 1996 WL 135671, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carmelo-melendez-v-illinois-bell-telephone-company-ca7-1996.