Equal Employment Opportunity Commission v. Enterprise Ass'n Steamfitters Local No. 638

542 F.2d 579, 13 Fair Empl. Prac. Cas. (BNA) 705, 1976 U.S. App. LEXIS 7222, 12 Empl. Prac. Dec. (CCH) 11,212
CourtCourt of Appeals for the Second Circuit
DecidedSeptember 7, 1976
DocketNos. 976, 975, 1286 to 1289, Dockets 75-6132, 75-6140, 75-7646, 75-7668, 75-7699 and 75-7011
StatusPublished
Cited by43 cases

This text of 542 F.2d 579 (Equal Employment Opportunity Commission v. Enterprise Ass'n Steamfitters Local No. 638) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second 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 v. Enterprise Ass'n Steamfitters Local No. 638, 542 F.2d 579, 13 Fair Empl. Prac. Cas. (BNA) 705, 1976 U.S. App. LEXIS 7222, 12 Empl. Prac. Dec. (CCH) 11,212 (2d Cir. 1976).

Opinion

OAKES, Circuit Judge:

Cross appeals, challenging backpay and attorney’s fees orders in a case involving unlawful discrimination in union membership and related employment, raise a congeries of questions relating to remedial relief under Title VII of the Civil Rights Act of 1964. The underlying question of discrimination has been a matter of protracted litigation,1 with quite careful consideration given to the issues by a district judge whose exercise of remedial discretion2 we are, needless to say, reluctant to reverse. Separate actions brought by the Government and by individual plaintiffs (“the Rios plaintiffs”) against Enterprise Association Steamfitters Local 638 of U.A. (hereinafter “Local 638” or “the union”), the Joint Steamfitters Apprenticeship Committee of the Steamfitters Industry (JAC), and the Mechanical Contractors Association of New York, Inc. (MCA), have been consolidated for the trial below, and for these appeals. The orders appealed from were entered in the United States District Court for the Southern District of New York by Dudley B. Bonsai, Judge. See 400 F.Supp. 988 (S.D.N.Y.1975) (back-pay); 400 F.Supp. 993 (S.D.N.Y.1975) (attorneys’ fees). A previous order of the district court providing injunctive relief has been separately reviewed in this court; the attorneys’ fees and backpay issues were reserved at that time. United States v. Local 688, Enterprise Association of Steamfitters, 360 F.Supp. 979 (S.D.N.Y.1973), aff’d but remanded in part, 501 F.2d 622 (2d Cir. 1974), modified on remand sub nom., Rios v. Enterprise Association Steamfitters Local 638, 400 F.Supp. 983 (S.D.N.Y.1975). Appeal from the present orders is taken by way of certification under 28 U.S.C. § 1292(b).3 Since appeal has not been taken from any of the district court’s findings on [584]*584discrimination, see 501 F.2d at 627, the only questions we have here, and they are several, relate to remedial relief.

I. BACKPAY

The district court’s assorted holdings in respect to backpay may be summarized as follows. First, backpay was to be awarded to qualified members who applied in writing for membership in A Branch 4 of Local 638, and were denied admission after October 15, 1968, but before June 21, 1973, the date of the order granting injunctive relief. See 400 F.Supp. at 992. The district court’s reasoning for denying backpay to others was that damages arising from discriminatory work referral practices are not ascertainable since Local 638 had no hiring hall and there are no accurate records of job openings for the period involved; damages to individuals who did not make formal written application to the A Branch are “hypothetical”; damages suffered as a result of the administration of the apprenticeship program are “speculative”; and equitable considerations weigh against broader relief since the admission test to the apprenticeship program was registered with the United States and New York State Departments of Labor and was adopted by the defendants in good faith on the recommendation of experts. Id. at 991.5

Second, while ability to pay is an equitable factor to be taken into account in awarding backpay under Title VII, and the union in this case has only limited financial resources, the court concluded that the union is nevertheless liable. Id. at 991-92. In light of the union’s financial situation, however, the court reserved the right to make a pro rata reduction of each claimant’s award, or to provide for payments in installments, after the court has reviewed the total impact of the backpay orders. Id. at 993.

Third, the MCA is not responsible for all of the unlawful or discriminatory practices —indeed, there has been no specific MCA discrimination shown, the only showing being that there has been a lack of nonwhite employment in the industry generally with the result that industry referral practices must be changed. Id. at 992. MCA was, therefore, found not liable for backpay.

Fourth, the district court held that the JAC, a joint committee composed of four members chosen by MCA and four members chosen by Local 638 which has conducted the Steamfitters Apprenticeship Program throughout the years, had no “demonstrated responsibility for direct admissions to the A Branch of Local 638 of persons already qualified as journeymen steamfitters.” Id. Thus it too was found not liable. Id.

Fifth, the court adopted the two-year statute of limitations which was set forth in Pub.L. No. 92-261, §§ 4(a) (Mar. 24, 1972), 14; see 42 U.S.C. § 2000e-5(g), a statute enacted after the suit was brought and its classes defined.6 The court also limited for[585]*585ward recovery of backpay to the period predating the court’s order granting a permanent injunction against the unlawful discriminatory practices. 400 F.Supp. at 992. See Pettway v. American Cast Iron Pipe Co., 494 F.2d 211, 258 (5th Cir. 1974); Johnson v. Goodyear Tire & Rubber Co., 491 F.2d 1364, 1379 (5th Cir. 1974).

Sixth, the court limited backpay recovery to residents of a county within the geographical jurisdiction of Local 638 at the time of their application for membership in the Local 638 A Branch.7 400 F.Supp. at 993.

And seventh, the court ordered that income from other employment or from public assistance is to be deducted from any backpay award. Id.

The EEOC and the Rios plaintiffs claim that in each of the above respects the district court’s order was too narrowly drawn to accord with the dictates of Albemarle Paper Co. v. Moody, 422 U.S. 405, 95 S.Ct. 2362, 45 L.Ed.2d 280 (1975), and courts of appeals precedents. Local 638 argues on cross-appeal that the district court abused its discretion in ordering a backpay award against a union defendant in a Title VII suit. The union claims that the effect of the backpay award will be to bankrupt it, thereby destroying the affirmative relief granted and frustrating the policy of the Act. The union also points to the lack of evidence that it had engaged in purposeful discrimination against nonwhites in connection with work referrals, see 360 F.Supp. at 990. We will consider first the union’s claim on the cross-appeal, and then the issues raised by the appellants.

A. Liability of Union for Backpay. We agree with the Government and the Rios plaintiffs that the union’s arguments against a backpay award amount to a claim for special treatment for unions and special immunity for the discriminatory practices in which they engage. This claim has no support in equity or law. The statute, which refers to “back pay (payable by the employer, employment agency, or labor organization, as the case may be, responsible for the unlawful employment practice) . . .,” 42 U.S.C. § 2000e-5(g), is directly to the contrary. To be sure, Albemarle, supra,

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Bluebook (online)
542 F.2d 579, 13 Fair Empl. Prac. Cas. (BNA) 705, 1976 U.S. App. LEXIS 7222, 12 Empl. Prac. Dec. (CCH) 11,212, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equal-employment-opportunity-commission-v-enterprise-assn-steamfitters-ca2-1976.