Joan L. CHESCHEIR and Charity O’Connell (Gass), Plaintiffs-Appellees, v. LIBERTY MUTUAL INSURANCE COMPANY, Defendant-Appellant

713 F.2d 1142, 1983 U.S. App. LEXIS 24221, 32 Empl. Prac. Dec. (CCH) 33,796, 32 Fair Empl. Prac. Cas. (BNA) 1344
CourtCourt of Appeals for the Fifth Circuit
DecidedSeptember 6, 1983
Docket82-2350
StatusPublished
Cited by31 cases

This text of 713 F.2d 1142 (Joan L. CHESCHEIR and Charity O’Connell (Gass), Plaintiffs-Appellees, v. LIBERTY MUTUAL INSURANCE COMPANY, Defendant-Appellant) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Joan L. CHESCHEIR and Charity O’Connell (Gass), Plaintiffs-Appellees, v. LIBERTY MUTUAL INSURANCE COMPANY, Defendant-Appellant, 713 F.2d 1142, 1983 U.S. App. LEXIS 24221, 32 Empl. Prac. Dec. (CCH) 33,796, 32 Fair Empl. Prac. Cas. (BNA) 1344 (5th Cir. 1983).

Opinion

GOLDBERG, Circuit Judge:

' Plaintiffs Chescheir and O’Connell, both women, claimed that defendant Liberty Mutual Insurance Co. (“Liberty Mutual”) wrongfully discharged them by discriminatory application of its “law school rule,” which prohibits certain employees from attending law school. After a bench trial, the district court found that Liberty Mutual did discriminatorily apply the law school rule against women in violation of Title VII, 42 U.S.C. § 2000e-2(a)(l) (1976), and awarded damages and attorneys’ fees. Liberty Mutual now appeals, arguing that the factual *1144 findings supporting liability, damages, and attorneys’ fees are clearly erroneous. Finding sufficient evidence in the record to support the district court’s findings, we affirm.

I. INTRODUCTION

A. Facts

This case is before us essentially as a factual dispute. Though we recognize that Liberty Mutual hotly disputes some of the district court’s findings, we shall liberally quote from them to establish a factual predicate for our discussion:

4. Liberty Mutual Insurance Company has a rule prohibiting its adjusters and first-year supervisors from attending law school. This “law school rule” was proposed and implemented on a nationwide basis by Mr. Edmund A. Carr, Vice President and Home Office Assistant General Claims Manager for Liberty Mutual, in November, 1972. Prior to that time, “[s]ome of the [defendant’s] nine claims divisions already had rules or policies in effect. . .. The Southwest Division [which encompasses seven states, including Texas, Arkansas, and Louisiana] was one of those divisions ... Since sometime in the middle 1960’s, adjusters and first-year supervisors in the Southwest Division had to choose between law school [and] Liberty Mutual.” Defendant’s Post-trial Brief, at 3, 11. It is the application of the defendant’s law school rule in the Southwest Division that is at issue in the present case.

5. Plaintiff Joan Chescheir was first hired by Liberty Mutual in March, 1973, as a claims adjuster in the Dallas office. In January, 1975, she voluntarily resigned. Five months later, in June, 1975, she sought employment in the defendant’s Houston office. She was hired, once again, as a claims adjuster. A few months later, in the fall of 1975, plaintiff Chescheir entered law school.

6. The following year, on Thursday, August 26, 1976, Mr. Wyatt Trainer, Claims Manager of the defendant’s Houston office, received an anonymous letter informing him that Ms. Chescheir was attending law school. See Defendant’s Exhibit 62. After consulting with his assistants and superior, Mr. Trainer confronted Ms. Chescheir. She admitted that she was going to law school. He informed her that she could not attend law school and continue to work at Liberty Mutual. She refused to give up law school. Consequently, on Friday, August 27, 1976, plaintiff Chescheir was constructively discharged.

7. Plaintiff Charity O’Connell was hired by Liberty Mutual as a claims adjuster in the Houston office in November, 1975. While working for' Liberty Mutual, plaintiff O’Connell took a coffee break with Ms. Sue Smith, a fellow adjuster, Ms. Carolyn Bailey, a supervisor, and Mr. Timothy Schwirtz, a new adjuster. It is not clear whether Ms. Shirley Cole, another supervisor at Liberty Mutual, also took part in the coffee break. It was Mr. Schwirtz’s first day on the job. When Joan Chescheir’s name came up in the conversation, he asked who she was. It was explained to Mr. Schwirtz that Joan Chescheir was a former adjuster who had been fired for going to law school. According to plaintiff O’Connell, Mr. Schwirtz then said, “Oh, that’s strange, because when I was hired, when [Charles S.] Wells [Southwest Division Claims Manager] interviewed me, he told me that I could go to law school and in fact if I came down to the Houston office, there were law schools in Houston.” Tr. at 287.

8. Plaintiff O’Connell testified that she was “shocked” by this revelation and became “rather angry.” Tr. at 288-289. After the coffee break was over, she confronted Mr. Terry Hickman, her supervisor. She related her conversation with Mr. Schwirtz to Mr. Hickman. She said that it was unfair: Joan Chescheir had been fired for going to law school, yet Tim Schwirtz had been told that he could go to law school. She told Mr. Hickman that she, like Joan Chescheir, was presently attending law school and that if Liberty Mutual fired her, it would be discriminating on the basis of sex.

9. Mr. Hickman relayed this information to Mr. Wyatt Trainer, Houston Office Claims Manager, who had confronted Ms. Chescheir. See Finding of Fact 6. Mr. Trainer did not speak with Mr. Wells or Mr. Schwirtz to determine if Mr. Wells had, in *1145 fact, told Mr. Schwirtz that he could go to law school. He did, however, speak with plaintiff O’Connell. He informed her that she had to either quit láw school or leave Liberty Mutual. Plaintiff O’Connell refused to quit law school. She was, therefore, fired that afternoon.

10. As the defendant states in its post-trial brief, at 2, “this is essentially a one issue case: whether the defendant applied the [law school] rule equally to male[s] and female[s].” The plaintiffs allege that Liberty Mutual allowed at least three male employees — William McCarthy, Alvin Dwayne White, and James Ballard — to attend law school while working as adjusters or first-year supervisors. The defendant denies this allegation.

11. Mr. William McCarthy was hired as a claims adjuster in Liberty Mutual’s Houston office in May, 1971. Four months later, in September, 1971, Mr. McCarthy entered law school. Mr. McCarthy continued to work as an adjuster in Liberty Mutual’s office and attend law school until January, 1974. At that time, he left Liberty Mutual to attend law school full time.

[Findings 12 and 13 relate Mr. McCarthy’s notoriety for including detailed legal analyses in his claim reports.]

14. Given the above, it is not surprising that, as Mr. Walter Smith testified, Mr. McCarthy was well known at Liberty Mutual for his legalistic reports. Tr. at 538. Mr. Smith was a supervisor in Liberty Mutual’s Houston office for a portion of the time during which Mr. McCarthy served as an adjuster and attended law school. He admitted that it was rumored, at that time, that Mr. McCarthy was attending law school. Tr. at 536. Having had an opportunity to observe his demeanor on the witness stand, the Court is convinced that Mr. Smith knew, while he was a supervisor in the Houston office, that Mr. McCarthy was attending law school.

15. The Court is also convinced that Mr. Richard Krueger, the assistant claims manager in the Houston office who was so enthusiastic about Mr. McCarthy’s pipeline memo, knew that Mr. McCarthy was attending law school while working as an adjuster. Mr. Charles Neathery, the other assistant claims manager, and Mr. Wyatt Trainer, the Houston Office Claims Manager, at a minimum, suspected that Mr. McCarthy was attending law school, but preferred not to ask and confirm their suspicions.

16. When Mr.

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713 F.2d 1142, 1983 U.S. App. LEXIS 24221, 32 Empl. Prac. Dec. (CCH) 33,796, 32 Fair Empl. Prac. Cas. (BNA) 1344, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joan-l-chescheir-and-charity-oconnell-gass-plaintiffs-appellees-v-ca5-1983.