EQUAL EMPLOYMENT OPPORTUNITY COMMISSION, Plaintiff-Appellant, v. D. H. HOLMES CO., LTD., Defendant-Appellee

556 F.2d 787, 15 Fair Empl. Prac. Cas. (BNA) 378, 23 Fed. R. Serv. 2d 1324, 1977 U.S. App. LEXIS 12214, 14 Empl. Prac. Dec. (CCH) 7768
CourtCourt of Appeals for the Fifth Circuit
DecidedJuly 29, 1977
Docket76-4184
StatusPublished
Cited by46 cases

This text of 556 F.2d 787 (EQUAL EMPLOYMENT OPPORTUNITY COMMISSION, Plaintiff-Appellant, v. D. H. HOLMES CO., LTD., Defendant-Appellee) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION, Plaintiff-Appellant, v. D. H. HOLMES CO., LTD., Defendant-Appellee, 556 F.2d 787, 15 Fair Empl. Prac. Cas. (BNA) 378, 23 Fed. R. Serv. 2d 1324, 1977 U.S. App. LEXIS 12214, 14 Empl. Prac. Dec. (CCH) 7768 (5th Cir. 1977).

Opinion

KUNZIG, Judge:

This case of first impression (at the appellate level) comes to us on an interlocutory appeal from an order of the United States District Court for the Eastern District of Louisiana. The two questions presented on appeal are: Did the district court properly characterize this particular suit as a class action and, if so, did it correctly determine that the Equal Employment Opportunity Commission (EEOC) is governed by Fed.R.Civ.P. 23 1 just as any *789 normal plaintiff? We answer both questions in the affirmative and, therefore, uphold the order of the district court and remand the case for further proceedings.

The underlying dispute concerns instances of alleged sex discrimination in employment. The D. H. Holmes Company, Ltd. (Holmes, defendant-appellee), a Louisiana corporation which operates nine retail stores and employs approximately 3500 persons, is alleged to have violated certain provisions of Title VII of the Civil Rights Act of 1964 as amended, 42 U.S.C. § 2000e et seq. (1970 & Supp. V 1975). The Equal Employment Opportunity Commission (EEOC, plaintiff-appellant) instituted suit under the authority of the Civil Rights Act, § 706(f)(1), 42 U.S.C. § 2000e-5(f)(l) (Supp. V 1975) 2 and seeks an injunction prohibiting *790 alleged sex discrimination, an order compelling affirmative action programs, and an award of back pay to “those persons adversely affected.”

There has, of course, been no finding of facts by the court below and we make no intimation here concerning the truth of the matters asserted. But, drawing upon the already voluminous record made pursuant to pre-trial discovery, and, for the purposes of this appeal, construing those documents most favorably to the plaintiff (EEOC), the alleged facts may be stated as follows:

Holmes operates nine stores, is divided into 494 departments, and employs about 3500 workers. In October 1973, a series of incidents occurred which involved employees of the security department (store detectives) at the Lakeside store. Joseph Tardo, Lakeside store 3 security manager, was transferred to the Oakwood store and replaced at Lakeside by a new security supervisor. On October 15, 1973, his first duty day in his new position, the new Lakeside supervisor allegedly grabbed the arm of Maria Marino, a store detective with some years experience and a subordinate of his. In a second incident, on October 16, 1973, the new supervisor allegedly rubbed his body against Mrs. Marino. Sharon Neidhardt, also a store detective at Lakeside, allegedly witnessed the October 16 incident and was herself a subject of alleged sexual advances by the same supervisor who was said to have drawn her attention to the zipper of his trousers on or about October 22. The two women brought these matters to the attention of upper management. Following an informal investigation, after which the charges were found to be groundless, the Holmes Company discharged the two women.

Mrs. Marino subsequently filed a complaint with the EEOC. She alleged first that the job of Lakeside store security manager should have gone to her on October 15, upon Mr. Tardo’s departure, but that the position was denied her because of her sex. She further alleged that she was fired for having reported to upper management that the new security manager had made improper sexual advances to her.

Sharon Neidhardt also filed a complaint with the EEOC. She alleged that she was discharged for having reported that the new security manager had exposed himself to her. She requested and obtained a “right to sue” 4 letter from the EEOC, retained counsel, and instituted suit against Holmes. Neidhardt v. Holmes Co., Ltd., No. 72-2395 (E.D.La.) (subsequently consolidated with EEOC v. Holmes (Order of the court, dated Jan. 12, 1976), hereinafter referred to as EEOC v. Holmes Co., Ltd.)

Three other charges have been filed with EEOC. In November 1973, Pamela Clark, a *791 display artist, filed a charge with EEOC that she had been fired because of her sex. In January 1974, Beverly Saxon, a security department employee at the Canal Street store filed a charge with EEOC alleging that she was being denied promotion because of her sex. Finally, in March 1974, Joseph Tardo, the former security department supervisor at Lakeside whose transfer in October 1973 set in motion the subsequent events of that month and who had just been discharged, filed a complaint with EEOC alleging that his discharge was a result of his having refused to cooperate with Holmes in its defense of Mrs. Marino’s charges during the EEOC investigation.

In September 1975, EEOC itself instituted court action against Holmes. It filed an initial complaint against practices at the Lakeside store and later amended the complaint to include all the other stores. The amended complaint, filed in district court in March 1976, is drawn in general terms. It broadly alleges violations of §§ 703 and 704 of Title VII, 42 U.S.C. §§ 2000e-2 and 2000e-3 (1970 & Supp. V 1975) commencing on July 2, 1965, and continuing thereafter. It seeks monetary and injunctive relief on behalf of “all those affected” but does not further identify this class in the complaint. In the course of discovery (which has been ongoing since October 1975), including depositions, interrogatories, and answers to interrogatories, it seems increasingly clear that EEOC is not limiting itself to securing relief only on behalf of the five parties (Marino, Neidhardt, Clark, Saxon and Tar-do) who had filed complaints, but rather EEOC is seeking relief for a broad class of persons.

Though not styled as a class action, the complaint, together with the subsequent course of discovery, created apprehension on the part of defendant. Holmes was concerned that it was in fact about to become the defendant in a class action law suit without being afforded the procedural protections and judicial controls embodied in Fed.R.Civ.P. 23. On June 25, 1976, Holmes moved to dismiss the class action aspect of the complaint.

District Court Judge Charles Schwartz, Jr. held that EEOC had “intended to bring this suit in the form of a class action.” The court below further held that EEOC must comply with Fed.R.Civ.P. 23 and local rule 2.12, 5 giving EEOC 90 days in which to do so. The court stayed the proceedings until further order while denying Holmes’ motion to dismiss the class action aspect at this stage. EEOC v. Holmes Co., Ltd., 13 FEP Cases 449 (E.D.La.1976).

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556 F.2d 787, 15 Fair Empl. Prac. Cas. (BNA) 378, 23 Fed. R. Serv. 2d 1324, 1977 U.S. App. LEXIS 12214, 14 Empl. Prac. Dec. (CCH) 7768, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equal-employment-opportunity-commission-plaintiff-appellant-v-d-h-ca5-1977.