Equal Employment Opportunity Commission v. Peabody Western Coal Co.

773 F.3d 977
CourtCourt of Appeals for the Ninth Circuit
DecidedSeptember 26, 2014
Docket12-17780
StatusPublished
Cited by13 cases

This text of 773 F.3d 977 (Equal Employment Opportunity Commission v. Peabody Western Coal Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth 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. Peabody Western Coal Co., 773 F.3d 977 (9th Cir. 2014).

Opinion

ORDER AND AMENDED OPINION

ORDER

Plaintiff-Appellant’s motion to amend the court’s opinion is GRANTED. The Opinion, filed on September 26, 2014, and reported at 768 F.3d 962 (9th Cir.2014), is amended as follows:

At Slip Op. 22, 768 F.3d at 974, the sentence beginning with <The Indian preference exemption > and ending with <does not extend to Indians. > is deleted and replaced with:

The Indian preference exemption contained in Section 703(i) is therefore necessary to clarify that Title VII’s prohibition against racial or national origin discrimination does not extend to preferential hiring of Indians living on or near reservations.

An Amended Opinion is filed concurrently with this Order.

OPINION

W. FLETCHER, Circuit Judge:

Peabody Western Coal Co. (“Peabody”) mines coal at the Black Mesa Complex and Kayenta mines on the Hopi and Navajo reservations in northeastern Arizona under leases with the tribes. At issue in this appeal are two leases with the Navajo Nation (“the Nation”) that permit Peabody to mine coal on Navajo reservation land. Each lease requires Peabody to give preference in employment to “Navajo Indians.” Both leases received approval from the Department of the Interior (“Interior”) under the Indian Mineral Leasing Act of 1938, 25 IJ.S.C. §§ 396a, 396e (“IMLA”), Since at least as early as the 1940s, Interi- or-approved mineral leases, including the two at issue here, have routinely included tribal hiring preference provisions.

This appeal is the latest stage in a long-running legal dispute about the tribal hir *980 ing preferences. 1 The Equal Employment Opportunity Commission (“EEOC”) sued Peabody in the District of Arizona in 2001, alleging that Peabody’s implementation of the tribal hiring preference constituted national origin discrimination in violation of Title VII of the Civil Rights Act of 1964. The EEOC also claimed that Peabody had violated Title VIPs record-keeping requirements. See 42 U.S.C. § 2000e~8(c). Several years of litigation on procedural matters resulted in the joinder of the Nation under Federal Rule of Civil Procedure 19 and impleader of the Secretary and Assistant Secretary of the Interior (collectively, “the Secretary”) under Federal Rule of Civil Procedure 14. The principal issue now before us is the EEOC’s claim that Title VII prohibits the tribal hiring preference contained in the Peabody leases.

In the decision now on appeal, the district court granted summary judgment against the EEOC on the merits. It held that the Navajo hiring preference in the leases is a political classification, rather than a classification based on national origin, and therefore does not violate Title VIL We have jurisdiction over the EEOC’s appeal pursuant to 28 U.S.C. § 1291. We agree with the district court that the tribal hiring preference is a political classification. We therefore affirm.

I. Background

Peabody’s predecessor-in-interest entered into two leases with the Navajo Nation. The first, Lease No. 8580, signed in 1964, permits Peabody to mine coal on the Navajo reservation. The second, Lease No. 9910, signed in 1966, permits Peabody to mine on reservation land formerly held in trust for both the Navajo and Hopi tribes, now partitioned between the tribes.

In Lease No. 8580, Peabody “agrees to employ Navajo Indians when available in all positions for which, in the judgment of [Peabody], they are qualified, and to pay prevailing wages to such Navajo employees and to utilize services of Navajo contractors whenever feasible.” The lease also provides that Peabody “shall make a special effort to work Navajo Indians into skilled, technical and other higher jobs in connection with [its] operations under this lease.” Lease No. 9910 contains a similar provision, and also states that Peabody “may at its option extend the benefits of [the hiring preference] to Hopi Indians.” Interior drafted the leases and required the inclusion of the Navajo hiring preferences. The leases were approved by Interior under the IMLA. Peabody IV, 610 F.3d at 1075.

In 1998, two members of the Hopi Tribe and one member of the Otoe Tribe filed discrimination charges with the EEOC. They alleged that they had applied to Peabody for positions for which they were qualified, and that they were not hired because they were not Navajo. After an investigation, the EEOC sued Peabody in federal district court in Arizona in 2001. *981 The EEOC alleged that Peabody’s implementation of the tribal hiring preference provisions constituted national origin discrimination forbidden by Title VII.

After the EEOC brought its Title VII claims, Peabody moved for summary judgment. The district court granted the motion on two grounds, holding that the suit presented a nonjusticiable political question and that the Nation was a necessary party for whom joinder was not feasible. Peabody I, 214 F.R.D. at 560-61. We reversed, holding that the suit did not present a political question and that Rule 19 joinder was feasible, provided that the EEOC sought no affirmative relief against the Nation. Peabody II, 400 F.3d at 778. The Supreme Court denied review. Peabody W. Coal Co. v. EEOC, 546 U.S. 1150, 126 S.Ct. 1164, 163 L.Ed.2d 1128 (2006) (mem.).

On remand, the EEOC amended its complaint to join the Nation under Rule 19. The district court again granted summary judgment against the EEOC. It held that the EEOC sought affirmative relief against the Nation, defeating Rule 19 join-der; that the Secretary was a necessary party for whom joinder was not feasible; and that the tribal hiring preference did not violate Title VII because it was authorized by the Navajo-Hopi Rehabilitation Act of 1950, 25 U.S.C. §§ 631-638. Peabody III, 2006 WL 2816603.

On appeal, we reversed in part and vacated in part. We again held that joinder of the Nation was feasible. We held further that, although the EEOC could not join the Secretary as a defendant under Rule 19, Peabody or the Nation could im-plead the Secretary as a third-party defendant under Rule 14(a) on claims for injunc-tive or declaratory relief. We vacated the judgment on the Title VII claim in order to allow the district court to consider the Secretary’s arguments. Peabody TV, 610 F.3d 1070. The Supreme Court again denied review. EEOC v. Peabody W. Coal Co., — U.S. —, 132 S.Ct. 91, 181 L.Ed.2d 21 (2011) (mem.).

On remand, the EEOC filed a second amended complaint.

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773 F.3d 977, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equal-employment-opportunity-commission-v-peabody-western-coal-co-ca9-2014.