Colby v. J.C. Penney Co.

127 F.R.D. 509, 11 Employee Benefits Cas. (BNA) 1645, 1989 U.S. Dist. LEXIS 10569, 50 Fair Empl. Prac. Cas. (BNA) 1869, 1989 WL 102651
CourtDistrict Court, N.D. Illinois
DecidedSeptember 6, 1989
DocketNo. 80 C 2032
StatusPublished
Cited by5 cases

This text of 127 F.R.D. 509 (Colby v. J.C. Penney Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Colby v. J.C. Penney Co., 127 F.R.D. 509, 11 Employee Benefits Cas. (BNA) 1645, 1989 U.S. Dist. LEXIS 10569, 50 Fair Empl. Prac. Cas. (BNA) 1869, 1989 WL 102651 (N.D. Ill. 1989).

Opinion

MEMORANDUM OPINION

BRIAN BARNETT DUFF, District Judge.

On January 31, 1989, this court granted J.C. Penney Company, Inc. summary judgment on Diane Colby’s claims that a so-called “head of household” rule contained in Penney’s medical and dental plans violated federal law. The court entered summa[510]*510ry judgment after chastising both parties for their misguided efforts on the motion, efforts which forced this court to take the extraordinary step of decertifying Colby as representative of a class of similarly situated individuals. See Colby v. J. C. Penney Co., Inc., 705 F.Supp. 425 (N.D.Ill.1989) (hereafter “Colby II”).

Colby has moved for reconsideration of the entry of judgment and the ancillary class decertification order pursuant to Rule 59(e), Fed.R.Civ.P. A party can seek to alter or amend a judgment under Rule 59(e) if the party can “clearly establish either a manifest error of law or fact or ... present newly discovered evidence.” A party may not use Rule 59(e) to raise arguments “which could, and should, have been made before judgment issued,” or to propound a new legal theory to the court. Federal Deposit Ins. Corp. v. Meyer, 781 F.2d 1260, 1268 (7th Cir.1986). A party may use the Rule, however, to demonstrate to the court that the court has “ ‘patently misunderstood a party, or has made a decision outside the adversarial issues presented ... by the parties, or has made an error not of reasoning but of apprehension.’ ” Instituto Nacional de Comercializacion Agricola (INDECA) v. Continental Illinois National Bank and Trust Co. of Chicago, 38 Fed.Rules Serv.2d 1087, 1088 (N.D.Ill.1984), quoting Above The Belt v. Mel Bohannan Roofing, Inc., 99 F.R.D. 99, 101 (E.D.Va.1983).

In this court’s earlier decision, the court explained Colby’s claims under Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. §§ 2000e et seq. (1982), that Penney’s head of household rule treated men and women differently. The court noted that while Colby presented a prima facie case of disparate treatment under Title VII, Penney made an unrebutted showing that it had adopted its rule—one which relied on a factor other than gender—for a legitimate business reason. This made out an affirmative defense under the Bennett Amendment to Title VII, 42 U.S.C. § 2000e-2(h), and thus this court ruled that Penney was entitled to summary judgment on Colby’s claim of disparate treatment. The court then addressed Colby’s claim that Penney’s rule violated Title VII by having a disparate impact upon women. Again the court allowed that Colby had made a prima facie case of disparate impact. The court noted, however, that Penney stated a good business justification for its rule, which put the burden on Colby to demonstrate that Penney’s practices either were mere pretexts for discrimination, or that Penney could achieve its legitimate interests in a less discriminatory manner. Colby had not carried this burden, and so the court entered judgment on her disparate impact claims in Penney’s favor. The court also noted that Penney had a defense under the Bennett Amendment to Colby’s disparate impact claims. See Colby II, 705 F.Supp. at 429-33.

In ruling on Penney’s motion, the court relied principally on two facts: a sworn affidavit by R.T. Messinger, Penney’s Manager of Benefits, which stated that the head of household rule helped Penney achieve its goal of covering as many Penney associates as possible; and Colby’s failure to challenge any of Penney’s factual allegations, as set forth in Penney’s Local Rule 12(e) statement. See Colby II, 705 F.Supp. at 431-32, 433. Colby takes issue with this court’s reliance on these facts. Colby first contends that Judge Parsons, who had this case earlier, and the Seventh Circuit in Colby v. J.C. Penney Co., Inc., 811 F.2d 1119 (7th Cir.1987) (hereafter “Colby I”), had concluded as a matter of law that Messinger’s affidavit could not support Penney’s motion for summary judgment.

Colby mischaracterizes what has happened in this case. Judge Parsons’s ruling on Penney’s February 5, 1982, motion for summary judgment never decided that Messinger’s affidavit could not support Penney’s claim of a legitimate business justification for the head of household rule. Second, contrary to Colby’s assertion here, Colby never raised facts to Judge Parsons contradicting Messinger’s statement. Instead, Colby’s lawyer analyzed Messinger’s claims, and demonstrated that on the basis of evidence which indicated that Penney’s rule could have been a pretext for discrimi[511]*511nation, summary judgment was inappropriate. See Motion For Reconsideration, Ex. A 10-12 (Colby’s Brief in Opposition to Penney’s 2/5/82 Motion). In his later order denying Penney’s motion, Judge Parsons noted that the sole issue with respect to Penney’s justification was whether it was a pretext—not whether Messinger had stated a legitimate business justification. See Colby v. J.C. Penney Co., Inc., No. 80 C 2032, Mem.Op. 5 (N.D.Ill. June 11, 1983).

Colby’s characterization of the Seventh Circuit’s ruling is similarly flawed. The Seventh Circuit never suggested that it was reviewing Judge Parsons’s June 1983 order. In fact, the court stated it was reviewing another decision which Judge Parsons made nearly three years later. The court suggested at several points that, in the decision which it was reviewing, Judge Parsons had not yet determined if Colby had presented a prima facie case of discrimination. If Judge Parsons had not made such a determination, he could not have properly reached the issue of Penney’s justification for its practices, and thus the Seventh Circuit had no occasion to address the issue of justification. See Colby I, 811 F.2d at 1122, 1127-28.

Thus, contrary to what Colby believes, no court has decided the issues which were at the heart of this court’s decision in Colby II: the justification for Penney’s practice. No court had disallowed Messinger’s affidavit, and a court could have considered it in ruling on Penney’s motion for summary judgment on Colby’s Third Amended Complaint. The real question is whether this court should have considered the affidavit. Colby rightly points out that Penney never referred this court to the critical passages of the affidavit where Messinger gives Penney’s purpose for the head of household rule. Indeed, Penney never indicated to the court in its briefs on its motion for summary judgment or in its Local Rule 12(e) statement that it had a valid business justification for its decision. Instead, as the court noted in Colby II, Penney felt content to reargue what it had argued to the Seventh Circuit in Colby I, and left it to the court to tease out of Penney’s briefs Penney’s desire to present the factual issue of a justification for its rule to this court.

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127 F.R.D. 509, 11 Employee Benefits Cas. (BNA) 1645, 1989 U.S. Dist. LEXIS 10569, 50 Fair Empl. Prac. Cas. (BNA) 1869, 1989 WL 102651, Counsel Stack Legal Research, https://law.counselstack.com/opinion/colby-v-jc-penney-co-ilnd-1989.