DeMuth v. Miller

28 Pa. D. & C.4th 161, 1993 Pa. Dist. & Cnty. Dec. LEXIS 9
CourtPennsylvania Court of Common Pleas, Cumberland County
DecidedDecember 20, 1993
Docketno. 4072 Civil 1991
StatusPublished

This text of 28 Pa. D. & C.4th 161 (DeMuth v. Miller) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Cumberland County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DeMuth v. Miller, 28 Pa. D. & C.4th 161, 1993 Pa. Dist. & Cnty. Dec. LEXIS 9 (Pa. Super. Ct. 1993).

Opinion

HESS, J.,

In October of 1990, the plaintiff, Donald L. DeMuth, fired the defendant, Daniel C. Miller, when he learned that Miller had appeared on a local television station as a spokesman [162]*162for a gay rights group. Miller, a certified public accountant, had worked for DeMuth since December of 1985 as a professional management consultant in De-Muth’s firm, a business which nearly exclusively serves health care professionals. Following a probationary period, Miller became a contract employee. Over the years, his salary was raised substantially. At least three different one year employment contracts were entered into between the parties, covering the period May 1986 through May 1989. At the trial of the case, the plaintiff produced an unsigned copy of a contract which purported to run from June 1, 1989, to May 31, 1990, and testified that although he could not locate his signed copy of the agreement, he believed that one had been executed. The plaintiff conceded, however, that no contract was in effect in October 1990 when Miller was dismissed.

Pursuant to the terms of the earlier written contracts, Miller could be terminated “for cause.” The contract went on to define “cause” as including, among other things, homosexuality. The document further required that, in the event of such termination, Miller would be required to pay DeMuth a sum equal to 125 percent of the fees received by DeMuth from clients taken by Miller, following termination, based on the total fees received from those same clients during the 12 months prior to the termination.

In November of 1991, the plaintiff fried his complaint seeking money damages with respect to those clients of his who had left him in favor of Mr. Miller. The defendant filed a counterclaim in defamation based on a letter which Mr. DeMuth had written prospective clients of Miller suggesting that contact with Miller might involve an increased risk of contracting HIV infection.

At the trial of the case, we permitted to go to the jury the question of whether or not the previous written [163]*163terms of the parties’ contract remained in fall force and effect by virtue of their intervening conduct. We also denied motions to dismiss based on an assertion that the homosexuality provisions of the contract were unenforceable as against public policy. In its verdict, the jury specifically found that Mr. Miller had not misappropriated confidential or secret information belonging to DeMuth insofar as his client base was concerned. On the other hand, they expressly concluded that the parties were bound by their earlier contract containing a provision making homosexuality a basis for terminating Miller’s employment. They then went on to award damages in the amount of $123,648.43; this notwithstanding the stipulation of the parties that 125 percent of all billings which could arguably fall within the disputed contract clause would not exceed $110,000.00.

The basis for relief asserted by the defendant in his post-trial motions, are several. We will deal with these matters in the order in which they were briefed by the parties.

The defendant first suggests that the judgment must be entered, notwithstanding the verdict, for the reason that the contract whereby the plaintiff was permitted to fire the defendant for being gay violated either public policy or state and federal constitutions. The defendant cites to executive orders of this Commonwealth and to other holdings of our courts which prohibit actions of the government — the exercise of state action — in indulging in discrimination of the type at bar. The defendant then argues that merely because enforcement of the contract has been sought in a court of law, the discrimination is one being perpetrated by the government rather than by a private individual. Indeed, in Shelly v. Kraemer, 334 U.S. 1 (1948), the Supreme Court of the United States held that the judicial en[164]*164forcement, by state courts, of covenants restricting the use or occupancy of real property of persons of the white race violated the equal protection clause of the Fourteenth Amendment. The court, while conceding that the Fourteenth Amendment did not reach private conduct but was directed against state action only, held, nonetheless, that judicial action in the enforcement of private agreements is state action and that enforcement of restrictive covenants against certain races was vio-lative of the Fourteenth Amendment. Shelly, in essence, vindicated the views of Mr. Justice Harlin who in dissenting in Plessy v. Ferguson, 163 U.S. 537, 559 (1896) penned the immortal words: “Our constitution is color blind.” At the heart of this case is the question of whether or not the constitution is equally blind to sexual orientation.

In this regard, we are without appellate guidance in Pennsylvania. Certain federal courts have spoken to the issue, some more recently than others. In 1975, in Bennie E. Smith v. Liberty Mutual Insurance Co., 395 F. Supp. 1098 (1975), the United States District Court dealt with the question of whether or not the Civil Rights Act of 1964 forbade employment discrimination based on “aifectional or sexual preference.” Without addressing the issue from a constitutional standpoint, the court assumed that the matter of forbidding discrimination based upon “affectional or sexual preference” was a matter for the legislature. The court left no doubt concerning its feelings in a footnote:

“Significantly, it appears that H.R. 5452 is presently pending before the Congress; it would, if enacted, forbid such discrimination; it has not been enacted as law by the Congress. It will not be enacted here in these chambers.” Smith, 395 F. Supp. at 1101, note 6.

More recently, the federal courts have dealt head-on with the constitutional issues having to do with sexual [165]*165orientation and employment. These make clear that, while Fifth Amendment equal protection claims are brought with respect to acts of the federal government and Fourteenth Amendment equal protection claims relate to actions of the states, the standards for both are essentially the same.

In Doe v. Gates, 981 F.2d 1316 (1993), the United States Court of Appeals for the District of Columbia circuit assumed that a blanket policy on the part of the CIA, against the employment of homosexuals, would violate equal protection rights under the Fifth Amendment but did so only for the purpose of argument. The court based its decision on the fact that the plaintiff was unable to point to evidence contradicting the government’s position that the CIA discharged him after an individualized assessment of the circumstances of his case, rather than pursuant to a blanket ban. In other words, the record of the case did not support a contention that Doe was dismissed merely because of the fact that he was homosexual.

In Dahl v. Secretary of the United States Navy, 830 F. Supp. 1319 (1993), the United States District Court for the Eastern District of California dealt with the policy of the United States Navy excluding homosexuals. The case involves a lengthy discussion of the test to be applied in analyzing equal protection claims.

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Related

Plessy v. Ferguson
163 U.S. 537 (Supreme Court, 1896)
Shelley v. Kraemer
334 U.S. 1 (Supreme Court, 1948)
Smith v. Liberty Mutual Insurance Company
395 F. Supp. 1098 (N.D. Georgia, 1975)
Burge v. Western Pennsylvania Higher Education Council, Inc.
570 A.2d 536 (Supreme Court of Pennsylvania, 1990)
Spector Motor Service, Inc. v. Walsh
139 F.2d 809 (Second Circuit, 1944)
Dahl v. Secretary of the United States Navy
830 F. Supp. 1319 (E.D. California, 1993)
Smith v. Shallcross
69 A.2d 156 (Superior Court of Pennsylvania, 1949)
Jantz v. Muci
976 F.2d 623 (Tenth Circuit, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
28 Pa. D. & C.4th 161, 1993 Pa. Dist. & Cnty. Dec. LEXIS 9, Counsel Stack Legal Research, https://law.counselstack.com/opinion/demuth-v-miller-pactcomplcumber-1993.