Equal Employment Opportunity Commission v. Gaddis

733 F.2d 1373, 34 Fair Empl. Prac. Cas. (BNA) 1210
CourtCourt of Appeals for the Tenth Circuit
DecidedMay 2, 1984
DocketNo. 82-1959
StatusPublished
Cited by4 cases

This text of 733 F.2d 1373 (Equal Employment Opportunity Commission v. Gaddis) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth 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. Gaddis, 733 F.2d 1373, 34 Fair Empl. Prac. Cas. (BNA) 1210 (10th Cir. 1984).

Opinion

SEYMOUR, Circuit Judge.

The Equal Employment Opportunity Commission (EEOC) instituted this action [1375]*1375under 42 U.S.C. § 2000e et seq. (1976) (Title VII) against Preston Gaddis individually and d/b/a Morning American (hereinafter referred to as Gaddis). The EEOC alleged that Gaddis intentionally committed an unlawful employment practice by discriminating against Hugh Stone, who is black. Stone intervened, asserting claims against Gaddis under Title VII and 42 U.S.C. §§ 1981, 1983, and 1985(3) (1976). After a bench trial, the district court made findings of fact and conclusions of law and entered judgment against Gaddis on the Title VII and section 1981 claims.1

On appeal Gaddis contends that: (1) Stone’s claim under section 1981 is barred by the applicable statute of limitations; (2) the district court erred in its findings and conclusions; and (3) the court also erred in denying Gaddis an opportunity to make a post-trial argument. The EEOC argues that this court has no jurisdiction to review the above claims because Gaddis failed to file a timely appeal from the judgment on the merits. We conclude that we may consider the merits of Gaddis’ claims, and we affirm the judgment of the district court.

I.

TIMELINESS OF THE APPEAL

Stone’s complaint asserted a request for attorney’s fees along with claims for monetary and injunctive relief. In its decision on the merits, entered March 25, 1982, the district court awarded Stone backpay under Title VII and compensatory and punitive damages under section 1981, in the total amount of $18,225. The court further concluded that Stone was entitled to attorney’s fees pursuant to Title VII and 42 U.S.C. § 1988 (1976), but did not set an amount. The parties subsequently stipulated to the amount of attorney’s fees, and the court then entered a second judgment on June 11, 1982. This judgment ordered the same relief provided in the March 25 decision and in addition awarded Stone $6,000 in attorney’s fees. Gaddis filed his appeal on August 4, 1982, one hundred days after the March 25 judgment but within sixty days of the judgment setting the amount of attorney’s fees.2

In Gurule v. Wilson, 635 F.2d 782, 787 (10th Cir.1980), this court held that a judgment on the merits is not a final order for purposes of appeal if it does not address a prior request for attorney’s fees made pursuant to section 1988. We extended the Gurule analysis in Glass v. Pfeffer, 657 F.2d 252, 255 (10th Cir.1981), and concluded that if a request for attorney’s fees was not made before entry of judgment on the merits, “such application must be made within the ten-day period required by Fed. R. Civ.P. 59(e) for alteration or amendment of a judgment.” Id. We held that where a request for attorney’s fees was made prior to the end of the ten-day post-judgment period, “there is no appealable final order until this issue is decided or abandoned.” Id.

On March 2, 1982, shortly before the original judgment on the merits in the instant case, the Supreme Court ruled that a post-judgment application for attorney’s fees is not a Rule 59(e) motion to alter or amend a judgment so as to be subject to the ten-day rule. See White v. New Hampshire Department of Employment Security, 455 U.S. 445, 451-52, 102 S.Ct. 1162, 1166-67, 71 L.Ed.2d 325 (1982). “[A] request for attorney’s fees under § 1988 raises legal issues collateral to the main cause of action — issues to which Rule 59(e) was never intended to apply.” Id. at 451, 102 S.Ct. at 1166 (footnote omitted).

The EEOC argues that White overruled Gurule, and that under the holding in White the March 25 judgment was a final order from which Gaddis failed to take timely appeal. We disagree. While White clearly overruled Glass, the ruling was narrow. The Court did not decide the app'eala[1376]*1376bility of a judgment that does not finally dispose of a request for attorney’s fees made in the complaint, the fact situation presented in Gurule and in the present case. Although this court subsequently relied on the rationale in White to conclude that Gurule should no longer be followed, see Cox v. Flood, 683 F.2d 330 (10th Cir.1982), we cannot agree that White overruled Gurule directly in view of the factual distinctions between the two cases.

In Cox, we expressly overruled Gurule and held that “judgments finally disposing of the merits are appealable even though questions relating to attorney’s fees have been left undecided.” Id. at 331. This decision was issued after the instant appeal was filed. Given Gaddis’ failure to file an appeal within sixty days of the March 25 judgment, we must determine whether Cox should be applied retroactively to preclude our review of the merits of that judgment.

Three factors are relevant to the nonretroactive application of judicial decisions.

“First, the decision to be applied nonretroactively must establish a new principle of law, either by overruling clear past precedent on which litigants may have relied ... or by deciding an issue of first impression whose resolution was not clearly foreshadowed ____ Second, it has been stressed that ‘we must ... weigh the merits and demerits in each case by looking to the prior history of the rule in question, its purpose and effect, and whether retrospective operation will further or retard its operation.’ ... Finally, we have weighed the inequity imposed by retroactive application, for ‘[wjhere a decision of this Court could produce substantial inequitable results if applied retroactively, there is ample basis in our cases for avoiding the “injustice or hardship” by a holding of nonretroactivity.’ ”

Chevron Oil Co. v. Huson, 404 U.S. 97, 106-07, 92 S.Ct. 349, 355-56, 30 L.Ed.2d 296 (1971) (citations omitted); see also Northern Pipeline Construction Co. v. Marathon Pipe Line Co., 458 U.S. 50, 87-88, 102 S.Ct. 2858, 2880-2881, 73 L.Ed.2d 598 (1982) (plurality opinion); West v. Keve, 721 F.2d 91, 95 (3d Cir.1983).

All of the Chevron factors weigh in favor of nonretroactive application in this case. First, our decision in Cox made a clear break with past precedent, as exemplified by Gurule and Glass, upon which the parties may have relied. Moreover, in balancing the second and third Chevron factors, we conclude that retroactive application would impose a substantial inequity on Gaddis.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
733 F.2d 1373, 34 Fair Empl. Prac. Cas. (BNA) 1210, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equal-employment-opportunity-commission-v-gaddis-ca10-1984.