Holland v. Zarif

794 A.2d 1254, 2002 Del. Ch. LEXIS 1, 87 Fair Empl. Prac. Cas. (BNA) 1681, 2002 WL 75469
CourtCourt of Chancery of Delaware
DecidedJanuary 4, 2002
DocketCiv.A. 2099-S
StatusPublished
Cited by3 cases

This text of 794 A.2d 1254 (Holland v. Zarif) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holland v. Zarif, 794 A.2d 1254, 2002 Del. Ch. LEXIS 1, 87 Fair Empl. Prac. Cas. (BNA) 1681, 2002 WL 75469 (Del. Ct. App. 2002).

Opinion

OPINION

STRINE, Vice Chancellor.

In her complaint, plaintiff Mrs. Patricia Holland alleges that she was fired from her employment as an office manager by defendant Dr. Alae Zarif, M.D., because of unfounded accusations by Dr. Zarifs wife that Mrs. Holland had an affair with Dr. Zarif at a Chicago medical conference. Dr. Zarif allegedly terminated Mrs. Holland’s employment in order to appease his jealous wife, and Mrs. Holland contends that her firing would not have happened if she were not a woman.

After her termination, Mrs. Holland attempted to file a sex discrimination charge under the Discrimination in Employment and Handicapped Persons Employment Protections Act (“State Discrimination Act” or “Act”). 1 According to Mrs. Holland, employees of the Department of Labor refused to allow her to file a charge and gave her no written explanation of the reason for their refusal. Mrs. Holland thereafter brought this action, in which she alleges, among other things, that the defendant Department and two of its employees who are also named as defendants (together, the “Department”) abused their discretion and committed an error of law in refusing her charge. Mrs. Holland has also proffered a second amended complaint in which she makes certain common law claims against Dr. Zarif and his wife, proposed defendant Kimberly Zarif.

This opinion addresses the Department’s and Dr. Zarifs motions to dismiss the complaint. The basis for their motion is their assertion that the Department has the unreviewable discretion to refuse to *1257 allow the filing of a discrimination charge (a Departmental “Refusal Decision”). In the alternative, the Department argues that Mrs. Holland has not set forth a cognizable claim of sex discrimination. For his part, Dr. Zarif asserts that if any court has jurisdiction over this matter, it is the Superior Court, and not this one.

In this opinion, I conclude that Mrs. Holland has stated a claim in equity that the Department abused its discretion in its handling of her discrimination claim. The provisions of the Act do not permit the Department to refuse to accept a charge of discrimination; rather, the Department must accept a charge and dismiss it by written decision (a Departmental “Dismissal Decision”) if it concludes that a charge is without factual or legal merit. In the circumstances presented, I decline to go on to decide whether Mrs. Holland’s complaint states facts that, if true, support a claim of unlawful sex discrimination under the Act. Instead, I intend to give the Department an opportunity to process her charge as it should have in the first instance. This will possibly moot Mrs. Holland’s claims against the Department, if it concludes that she has stated a claim that should be submitted to the statutory review board for prosecution. If it concludes otherwise, this approach will provide the court with a written Dismissal Decision, thus providing a more reliable basis for judicial review.

I. Factual Background

Because the structure and text of the Act are so important to the resolution of this motion, I describe them next, and thereafter briefly describe the facts alleged in the complaint.

A. The Basic Operation Of The State Discrimination Act

The heart of the State Discrimination Act is contained in 19 Del. C. § 711, which states in pertinent part:

(a) It shall be an unlawful employment practice for an employer to:
(1) Fail or refuse to hire or to discharge any individual or otherwise to discriminate against any individual with respect to compensation, terms, conditions or privileges of employment because of such individual’s race, marital status, color, age, religion, sex or national origin.

The Department of Labor of the State of Delaware has administrative responsibility for implementing the State Discrimination Act, 2 which applies to employers who employ four or more persons. The Department of Labor also processes claims of unlawful discrimination under federal law, such as claims under Title VII of the Civil Rights Act of 1964 (“Title VII”), 3 under a work-sharing agreement with the Equal Employment Opportunity Commission. Federal law generally prohibits the same types of discrimination as the State Discrimination Act by employers with fifteen or more employees. 4 As a result, many of the complainants who come to the Department wish to lodge “dual-filed charges,” *1258 that is, claims under both federal law and the State Discrimination Act.

The statutory process by which discrimination charges are handled under the Act starts with the filing of a charge, as outlined in § 712(b) of Title 19:

Whenever a charge is filed by ... a person claiming to be aggrieved ... alleging that an employer ... has engaged in an unlawful employment practice, the Department shall serve a copy of the charge on such employer ... (hereinafter referred to as ‘respondent’) and shall make an investigation thereof.... If the Department determines after such investigation that there is reasonable cause to believe that the charge is not true, it shall dismiss the charge and promptly notify the person claiming to be aggrieved and the respondent of its action. Such notice shall be in writing and shall set forth the facts upon which the decision is based.

In processing claims under Title VII, the Department of Labor is required to accept charges regardless of its own view that the charges do not state a federal discrimination claim. In a Title VII case, even if the Department recommends dismissal of a charge and the EEOC accepts that recommendation, the complainant receives a “right-to-sue” letter informing her of her right to bring a lawsuit to prove her claim of unlawful discrimination. 5 That is, under federal law, a complainant must exhaust her administrative remedies, but thereafter is given access to the courts to press her statutory discrimination claim.

The State Discrimination Act does not contain any similar process by which complainants are given the opportunity to bring a private cause of action in the event the Department dismisses a complaint or, as in this case, refuses to even accept a charge. The General Assembly did not include in the Act the “right-to-sue” process used under Title VII. The Act has been amended since the Title VII process has been in place, but not to create a private right of action for complainants modeled on Title VII. Furthermore, courts interpreting the Act have held that it creates no private right of action independent of the administrative procedures set forth in the Act itself. 6

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Bluebook (online)
794 A.2d 1254, 2002 Del. Ch. LEXIS 1, 87 Fair Empl. Prac. Cas. (BNA) 1681, 2002 WL 75469, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holland-v-zarif-delch-2002.