Davis v. Bethlehem Steel Corp.

769 F.2d 210, 38 Fair Empl. Prac. Cas. (BNA) 1054, 1985 U.S. App. LEXIS 21877, 38 Empl. Prac. Dec. (CCH) 35,712
Court of Appeals for the Fourth Circuit·Decided August 7, 1985·No. No. 85-1153·Published·Cited by 11 cases

Opinion

SPROUSE, Circuit Judge:

Leford T. Davis, Leroy S. Aiken, William C. Bland and Alfred T. Smith (hereinafter Davis) brought this action against Bethlehem Steel Corporation (Bethlehem) and Locals 2609 and 2610 of the United Steel Workers of America (the Unions) alleging racial discrimination violative of Title VII of the Civil Rights Act of 1964, 42 U.S.C. §§ 2000e et seq. (1982), and the Civil Rights Act of 1866, 42 U.S.C. § 1981 (1982). The action was filed in November 1982, although all the alleged discriminatory actions occurred prior to 1974. Davis, however, contends that the applicable statutes of limitations were tolled under the principles of American Pipe & Construction Co. v. Utah, 414 U.S. 538, 94 S.Ct. 756, 38 L.Ed.2d 713 (1974), and Crown, Cork & Seal v. Parker, 462 U.S. 345, 103 S.Ct. 2392, 76 L.Ed.2d 628 (1983). We agree with the district court, 600 F.Supp. 1312 (D.C.Md.1985), that the prerequisites for tolling under American Pipe and Crown are not present in this case.

[211] The employment practices involved in this suit have been in litigation for over fourteen years. A class action was originally filed in 1971, styled Lane v. Bethlehem Steel Corp., Civ.Action No. M-71-580 (D.Md. May 4, 1981), aff'd sub nom. Adams v. Bethlehem Steel Corp., 736 F.2d 992 (4th Cir.1984). In it the forty-one named black plaintiffs alleged thirty-seven broad pattern and practice charges of discrimination against 6,000 black employees at Bethlehem’s Sparrows Point, Maryland, plant. The district court in that case denied class certification because the named plaintiffs alleged no injuries to themselves. The named individuals in that suit then settled their claims. Additional individual plaintiffs were allowed to intervene, however, for the limited purpose of appealing the court’s refusal to certify the class. This court affirmed the trial court in Adams v. Bethlehem Steel, 736 F.2d 992 (4th Cir.1984), aff'g Lane v. Bethlehem Steel Corp., Civ.Action No. M-71-580 (D.Md. May 4, 1981). Davis then brought this class action in 1982 alleging again many of the same charges contained in the Lane action and also alleging that he had individually suffered from racial discrimination and had been denied the benefit of a working environment not charged with racial discrimination, thereby suffering “humiliation, intense mental anguish, emotional and physical distress and great economic harm.” All of these allegations were .confined to events occurring between 1967 and 1974.

'The trial court dismissed the complaint because it was time-barred, but granted Davis the right to amend and allege . any continuing violations or new discriminatory acts occurring within the applicable time limits. Davis declined, asserting reliance solely on the allegations of discrimination occurring prior to 1974. Relying on American Pipe and Crown, Davis contends that the 1971 Lane complaint kept the claims alive until 1984 when we affirmed in Adams the district court’s refusal to certify the class. The sole question on appeal is whether the applicable statutes of limitations were tolled during Lane’s pendency in the trial court and on appeal. Davis contended below and contends on appeal that Bethlehem and the Unions received notice sufficient for tolling under American Pipe from the Lane proceeding. He argues primarily that although the Lane allegations were quite nonspecific, Bethlehem and the Unions should have been placed on “constructive” notice that the plaintiffs had suffered psychological injuries and were denied the benefits of association with white workers at the plant.

In American Pipe, after the district court had ruled that a federal antitrust suit could not proceed as a class action, putative class members moved to intervene in the named plaintiffs’ individual action. The Supreme Court ruled that the claims of the intervenors were not time-barred, holding that the statute of limitations was tolled by the filing of the class action as to all members of the putative class who made timely motions to intervene after the denial of class certification. 414 U.S. at 552-53, 94 S.Ct. at 765-66. In Crown, the Supreme Court, in affirming this court’s decision in a Title VII ease, held the same tolling principle to apply to all putative members of the class whether they subsequently chose to intervene or to bring a separate individual action. 462 U.S. at 353-54, 103 S.Ct. at 2397. The Supreme Court in both American Pipe and Crown emphasized the necessity of reconciling the policies for permitting class actions with policies underlying statutes of limitations generally. In outlining these policies and their interrelationship, Justice Stewart, in American Pipe, said:

This rule is in no way inconsistent with the functional operation of a statute of limitations. As the court stated in Order of Railroad Telegraphers v. Railway Express Agency [321 U.S. 342, 64 S.Ct. 582, 88 L.Ed. 788 (1944) ], statutory limitation periods are “designed to promote justice by preventing surprises through the revival of claims that have been allowed to slumber until evidence has been lost, memories have faded, and witnesses have disappeared. The theory is that [212] even if one has a just claim it is unjust not to put the adversary on notice to defend within the period of limitation and that the right to be free of stale claims in time comes to prevail over the right to prosecute them.” The policies of ensuring essential fairness to defendants and of barring a plaintiff who “has slept on his rights,” are satisfied when, as here, a named plaintiff who is found to be representative of a class commences a suit and thereby notifies the defendants not only of the substantive claims being brought against them, but also of the number and generic identities of the potential plaintiffs who may participate in the judgment.

414 U.S. at 554-55, 94 S.Ct. at 766-67 (citations omitted).

The Davis plaintiffs concede the nonspecific nature of their Lane complaint, stating in their brief:

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Davis v. Bethlehem Steel Corp., 769 F.2d 210, 38 Fair Empl. Prac. Cas. (BNA) 1054, 1985 U.S. App. LEXIS 21877, 38 Empl. Prac. Dec. (CCH) 35,712 (4th Cir. 1985).

769 F.2d 210 (Davis v. Bethlehem Steel Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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