Kalyanaram v. New York Institute of Technology

549 F. App'x 11
CourtCourt of Appeals for the Second Circuit
DecidedDecember 11, 2013
Docket19-369
StatusUnpublished
Cited by3 cases

This text of 549 F. App'x 11 (Kalyanaram v. New York Institute of Technology) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kalyanaram v. New York Institute of Technology, 549 F. App'x 11 (2d Cir. 2013).

Opinion

SUMMARY ORDER

Gurumurthy Kalyanaram appeals from the district court’s grant of summary judgment dismissing his claim of retaliatory termination as barred by the doctrine of collateral estoppel. Over the course of about fifteen months, Kalyanaram’s employer, New York Institute of Technology (“NYIT”), accused him of a series of escalating instances of professional misconduct. Kalyanaram contested these allegations in two ways: He disputed the charges in an arbitration proceeding, as was his right under the collective bargaining agreement governing his employment, and he included an allegation of retaliatory suspension and termination in a qui tam action against NYIT that he filed in federal court midway through his troubles with the school. 1 The arbitration ended in a finding that NYIT fired Kalyanaram for just cause, which was upheld in the state courts. When the district court adjudicating the qui tam action learned of the arbitrator’s decision, it ordered briefing on whether Kalyanaram’s claim of retaliation was precluded by the doctrine of collateral estoppel and, ultimately, dismissed his case. We assume familiarity with the factual and procedural history of the case and the issues on appeal, and we recount only what is necessary to explain our disposition.

Under the doctrine of collateral estoppel, where “the issue in question was actually and necessarily decided in a prior proceeding,” and “the party against whom the doctrine is asserted had a full and fair opportunity to litigate the issue in the first proceeding,” a subsequent court is barred from revisiting the issue. Colon v. Coughlin, 58 F.3d 865, 869 (2d Cir.1995). “To obtain summary judgment on collateral estoppel grounds, the defendants must make a showing so strong that no fair-minded jury could fail to find that the arbitrator necessarily denied the claim for the reason they assert.” BBS Norwalk One, Inc. v. Raccolta, Inc., 117 F.3d 674, 677 (2d Cir.1997). Upon review of the record, and for the reasons set forth below, we hold that Kalyanaram has failed to raise a genuine issue of material fact as to whether the arbitrator failed to reach his retaliation claim.

A prior judgment that an employer had reasonable grounds for firing an employee does not always preclude a separate action challenging that decision as discriminatory. See Vargas v. City of New York, 377 F.3d 200, 206 (2d Cir.2004). As we have explained, “ ‘[a] finding that [a] decision to terminate was supported by substantial evidence — essentially a finding that it was rational — does not lead inexorably to the conclusion that [the impermissible criterion] was not a motivating factor’ ” in determining the penalty. Id. at 207 (quoting Latino Officers Ass’n v. City of New York, 253 F.Supp.2d 771, 785 (S.D.N.Y.2003)). That is so because an employer may have an objectively sound ground on which to take action against an employee, but may have still subjectively chosen that sanction for an impermissible reason, such as an employee’s race (as in Vargas), or his whistleblower activities (as alleged here). *13 Thus, under Vargas, collateral estoppel turns not on whether a prior adjudication found that an employer had a reasonable basis to discipline an employee, but on whether an employee raised a claim that behind the veil of reasonableness lay an impermissible motivating factor.

Here, Kalyanaram maintained through two years of arbitration proceedings that NYIT fired him in retaliation for his complaints about the school’s deceptive and fraudulent accreditation practices, and the arbitrator rejected his claim. According to Kalyanaram, he made these complaints at three different times: in e-mails to the administration sent as early as 2005, in his qui tarn suit in 2007, and in e-mails sent under pseudonyms in the summer of 2008. But Kalyanaram informed the arbitrator only about one set of complaints, the original protests he made between 2005 and 2007; Kalyanaram never disclosed the existence of his qui tarn suit, an action kept under seal until 2012, and he denied sending any e-mails under an assumed name. Thus, Kalyanaram’s initial internal complaints were the only alleged whistleblower activities before the arbitrator when he reviewed NYIT’s disciplinary decisions. The arbitrator reviewed this evidence, and, in two separate opinions “actually and necessarily decided,” Colon, 58 F.3d at 869, that NYIT had not disciplined Kalyanaram in retaliation for his critiques of the school’s fraudulent practices.

The arbitrator first rejected Kalyanar-am’s retaliation claim in August of 2008. At that point, NYIT sought to terminate Kalyanaram because a group of students had complained about his conduct in the classroom. The students alleged that Ka-lyanaram had sexually harassed members of a class by asking intrusive questions about their dating lives, and had shirked his duties as a teacher by, for example, consistently arriving half an hour late. The arbitrator found the students’ critiques to have merit and held that the complaints gave NYIT a reasonable basis to suspend Kalyanaram for a semester. The arbitrator acknowledged that “[a] primary element of [Kalyanaram’s] defense [against the disciplinary action] is that the penalty imposed by NYIT was improperly exaggerated in retaliation for allegations [he made] against the NYIT administration,” J. App’x at 149, but found that the school had not used the students’ dissatisfaction as an excuse to discipline Kalyanar-am for his dissidence: “The evidence suggests that the grievant was the harbinger of unwelcome news on more than one occasion, but there is no reliable evidence that the NYIT administration concocted or materially influenced the nature and level of complaints triggered by the grievant’s conduct in his ... classroom.” Id. at 150.

Kalyanram points out that, later in that decision, the arbitrator appears to have softened his conclusion, noting that “the validity of the grievant’s accusations regarding retaliation need not be determined with certainty to reach the conclusion mandated by the evidentiary record that the grievant committed substantial errors.” Id. At 154 (Emphasis added.) But the arbitrator clarified any ambiguity about his view of Kalyanaram’s retaliation claim in a second opinion handed down in August of 2009. There the arbitrator concluded that NYIT had grounds to fire Ka-lyanaram because he authored a string of pseudonymous e-mails about the school. Kalyanaram again raised retaliation as a defense, still relying in part on his early complaints about the school as evidence. The arbitrator again dismissed the argument, this time without reservation: His ruling acknowledged that “[a]n employee who acts as an identified whistleblower and provides accurate, if damaging, information to a regulatory agency should be immune from retaliation.” Id. at 118. But *14

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549 F. App'x 11, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kalyanaram-v-new-york-institute-of-technology-ca2-2013.