Hook v. Enrst & Young

CourtCourt of Appeals for the Third Circuit
DecidedJune 28, 1994
Docket92-3724
StatusUnknown

This text of Hook v. Enrst & Young (Hook v. Enrst & Young) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Hook v. Enrst & Young, (3d Cir. 1994).

Opinion

Opinions of the United 1994 Decisions States Court of Appeals for the Third Circuit

6-28-1994

Hook v. Enrst & Young Precedential or Non-Precedential:

Docket 92-3724

Follow this and additional works at: http://digitalcommons.law.villanova.edu/thirdcircuit_1994

Recommended Citation "Hook v. Enrst & Young" (1994). 1994 Decisions. Paper 62. http://digitalcommons.law.villanova.edu/thirdcircuit_1994/62

This decision is brought to you for free and open access by the Opinions of the United States Court of Appeals for the Third Circuit at Villanova University School of Law Digital Repository. It has been accepted for inclusion in 1994 Decisions by an authorized administrator of Villanova University School of Law Digital Repository. For more information, please contact Benjamin.Carlson@law.villanova.edu. UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT

___________

No. 92-3724 ___________

DEBRA V. HOOK, an individual, Appellant

v.

ERNST & YOUNG, a partnership, Appellee

Appeal from the United States District Court for the Western District of Pennsylvania (D.C. Civil Action No. 92-00748)

Argued: August 4, 1993

PRESENT: STAPLETON, HUTCHINSON and ROTH, Circuit Judges

(Opinion Filed: June 28, 1994)

____________

Louis M. Tarasi, Jr., Esquire Joseph J. Hinchliffe, Esquire (Argued) Tarasi & Johnson 510 Third Avenue Pittsburgh, PA 15219 Attorney for Appellant

Paul A. Manion, Esquire Mary-Jo Rebelo, Esquire Manion, McDonough & Lucas Suite 882 600 Grant Street Pittsburgh, PA 15219

and

1 Kathryn A. Oberly, Esquire Associate General Counsel Thomas L. Riesenberg, Esquire (Argued) Assistant General Counsel Ernst & Young Suite 400 1200 19th Street, N.W. Washington, D.C. 20036

Elizabeth B. Healy, Esquire Associate General Counsel Ernst & Young 380 Madison Avenue New York, NY 10017 Attorneys for Appellee

OPINION OF THE COURT ____________

HUTCHINSON, Circuit Judge.

Appellant, Debra Hook ("Hook"), appeals a judgment the

United States District Court for the Western District of

Pennsylvania entered on a jury verdict for her former employer appellee Ernst & Young. Hook claims Ernst & Young intentionally

discriminated against her on the basis of sex in violation of

Title VII of the Civil Rights Act of 1964 ("Title VII"), 42

U.S.C.A. §§ 2000e to 2000e-17 (West 1981 & Supp. 1993), when it

terminated her employment. On appeal, she contends that she was

entitled to a mixed-motives burden shifting jury instruction

under the 1991 amendments to Title VII and Price Waterhouse v. Hopkins, 490 U.S. 228 (1989), and therefore the court erred in

charging the jury that it was her burden to show that sex was a

2 "determinative" rather than a "motivating" factor in the decision

to terminate her.

More specifically, Hook argues section 107(a) of the

Civil Rights Act of 1991 ("the 1991 Act"), codified at 42

U.S.C.A. § 2000e-2(m) (West Supp. 1993), automatically entitles

Title VII plaintiffs who make out a prima facie case of illegal

discrimination on a pretext theory to a motivating factor mixed-

motives instruction. If a mixed-motives instruction is not

required when a Title VII plaintiff's case depends on pretext,

Hook argues in the alternative that she was entitled to a mixed-

motives instruction because the evidence in this case showed the

discriminatory animus Price Waterhouse requires.

We conclude that section 107 does not govern this case

because that section does not apply to conduct occurring prior to

its enactment in 1991. We also conclude that Hook has not

produced the kind of evidence that would entitle her to a mixed

motives, burden shifting instruction under Price Waterhouse.

Finally, we reject Hook's argument that a mixed-motives

instruction is required whenever there is circumstantial evidence

sufficient to establish a prima facie case under McDonnell Douglas Corp. v. Green, 411 U.S. 792 (1973) and Texas Department

of Community Affairs v. Burdine, 450 U.S. 248 (1981). We think a

holding to that effect would be in conflict with the teaching of

the United States Supreme Court in St. Mary's Honor Center v.

Hicks, 113 S. Ct. 2742, 2749 (1993). That case holds that a

plaintiff who seeks to establish illegal discrimination on a

pretext theory must persuade the factfinder not only that illegal

3 discrimination or bias was present but also that it was a cause

of the act on which her Title VII claim is based. In contrast, a

Price Waterhouse mixed-motives instruction, which requires

evidence sufficient to show discriminatory animus more directly,

implies cause and shifts to the employer the burden of persuading

the factfinder its bias had, in fact, no causal connection with

its act against the protected employee. Thus, in a mixed-motives

case the employer must negate causation, i.e., persuade the

factfinder it would have acted as it did even if it were not

invidiously prejudiced. Therefore, we will affirm the district

court's order entering judgment for Ernst & Young on the jury's

verdict against Hook.

I. Factual & Procedural History

Arthur Young & Co. ("Arthur Young"), a major accounting

firm, hired Hook in June of 1989 as a tax senior, its lowest

supervisory position. Hook had a law degree and work experience

with another major accounting firm but was not a certified public

accountant ("CPA"). At her job interview, Hook inquired when she

might be eligible for promotion. James Chemel ("Chemel"), the

director of the section which would employ Hook, stated that she

would be promoted to tax manager within six months.

On October 1, 1989, Arthur Young merged with Ernst &

Whinney to become Ernst & Young. After the merger, Chemel told

Hook that the merger prevented him from promoting her to tax

manager within the six months he had promised. Ernst & Young

soon replaced Chemel with John McCann ("McCann"). He told Hook

4 that Ernst & Young preferred CPA's for promotion to that

position. A little later the staff in Ernst & Young's Pittsburgh

office received a memorandum. It stated that any person who

sought promotion to tax manager had to pass the CPA examination.

This new policy had a grandfather clause excusing employees like

Hook from the CPA requirement.

Ernst & Young rates its employees on a scale of one to

five. Five indicates the employee "consistently excels" but one

indicates "unacceptable" performance. As Hook continued at

Ernst & Young, her performance reviews started to go downhill. In

her first written evaluation in April of 1990 Hook received four

"2s," three "3s," and one "4." At her next evaluation in April

of 1991 Hook received three "1s," two "2s," and one "3" from

Chemel. She received equally low ratings from McCann, her

supervisor when she was terminated.

During the 1990 economic down-turn, Ernst & Young

suffered a considerable loss of business and decided to reduce

its workforce. Between March and June of 1990 it fired seven

members of its tax staff, six men and one woman. In February

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