Keelan v. Majesco Software, Inc.

407 F.3d 332, 2005 U.S. App. LEXIS 5951, 95 Fair Empl. Prac. Cas. (BNA) 906, 2005 WL 834481
CourtCourt of Appeals for the Fifth Circuit
DecidedApril 12, 2005
Docket04-10317
StatusPublished
Cited by223 cases

This text of 407 F.3d 332 (Keelan v. Majesco Software, Inc.) 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
Keelan v. Majesco Software, Inc., 407 F.3d 332, 2005 U.S. App. LEXIS 5951, 95 Fair Empl. Prac. Cas. (BNA) 906, 2005 WL 834481 (5th Cir. 2005).

Opinion

DeMOSS, Circuit Judge:

Plaintiffs-Appellants Ivor Keelan (“Keelan”) and David Sullivan (“Sullivan”) (together, “Appellants”) appeal from the district court’s granting of summary judgment in favor of Defendant-Appellee Ma-jesco Software, Inc. (“Majesco” or the “company”) in Appellants’ Title VII national origin employment discrimination case. For the following reasons, we AFFIRM the district court’s order.

BACKGROUND

Majesco is a U.S. wholly owned subsidiary of Mastek Ltd. (“Mastek”). Majesco has an office in Irving, Texas. Mastek was founded in 1982; is headquartered in Bombay, India; and is publicly traded on the Bombay Stock Exchange. Mastek’s business is outsourcing software/IT solutions and technicians for its business customers. Majesco is one of several wholly owned international subsidiaries of Mas-tek. Majesco sells Mastek’s IT products and services to its customers based locally in the United States.

Keelan, a citizen of the United Kingdom, began working as a regional sales director for Majesco on or about August 7, 2000, in the Irving office. He was hired as an employee-at-will, with a base salary of $110,000, plus a commission structure. He was terminated in late November 2001 for nonproduction. A female Canadian national was offered his position but did not accept it.

Sullivan, a U.S. citizen born in El Paso, applied to work at Majesco in early 2001. Majesco president and Indian national Atul Vohra (“Vohra”) (former marketing director for Mastek) was one of Sullivan’s interviewers. Sullivan began working as a director of alliances for Majesco, as an employee-at-will, on or about March 1, 2001, in the Irving office with a base salary of $120,000, plus a commission structure. Sullivan signed an employee confidentiality and inventions agreement and an IRS W-4 withholding certificate with another software/IT company, AppWorx Corp. (“App-Worx”), on June 20, 2001. Sullivan took an extended leave from Majesco the first week of July 2001. He submitted his letter of resignation dated July 26, 2001. Sullivan’s W-2s from 2001 indicate he earned more at AppWorx in the five months he worked there than in the five months he worked for Majesco.

During his first four months on the job, Keelan generated no sales. His then-supervisor Gary Hart (“Hart”), a U.S. national, counseled Keelan concerning his sales performance. Keelan made three sales between February and April 2001. He made no sales after that. Sullivan’s initial supervisor was also Hart. Sullivan produced no sales while at Majesco. Both Keelan and Sullivan allege that their sales performances were hindered and obstructed at Majesco due to the fact they are non-Indian. Appellants also contend Majesco’s inadequate marking materials and website hindered their sales performance.

Keelan said he encountered staffing-problems because when no technician employed by Majesco was available for projects, Majesco only brought in Mastek’s Indian technicians on work visas and would not staff projects with local non-Indian hires. Keelan stated one time he lost repeat business because the Indian workers’ visas expired and they left in the middle of a project.

Sullivan said he encountered similar staffing problems. Sullivan stated he was *337 told that the company would not staff one of his projects because it could not get the required people from India. Sullivan stated a pattern developed where sales brought to the table by non-Indians probably were not going to be successful.

Another non-Indian Majesco salesperson, Jennifer Walsh (“Walsh”), based out of New Jersey, also testified to similar staffing problems. When Walsh asked management why the company would not use local people, she stated she was told that “Americans need too much handhold-ing.” Walsh was terminated in November 2001 for nonproduction.

Appellants provided other evidence alleging discrimination. Keelan stated that Vohra (then marketing director for Mas-tek) announced at a sales meeting held in India in November 2000 that he could foresee a time when Mastek would be a totally Indian company. On April 1, 2001, Vohra was appointed president of Majesco. Shortly after Vohra became president, Hart resigned and was replaced by Lokesh Bhagwat, an Indian. Keelan stated that in April 2001, immediately prior to Hart’s leaving, he asked Hart if the company had a policy of forcing the Americans out and that Hart replied, “Is there a document out there somewhere that states that, no; is it practice, of course it is.” Appellants also complained about their working environment, including the lack of windows, the small size of their cubicles, and Majes-co’s requirement that they work from the office instead of home.

Yvette Winfrey (‘Winfrey”), a non-Indian, was the assistant human resources director for Majesco. Winfrey testified that both Keelan and Sullivan complained to her about discrimination at Majesco. Kee-lan said Winfrey directed him to the EEOC, but that he had not yet gone to the EEOC at the time of his termination in November 2001. Keelan and Sullivan also complained to P.N. Prasad (“Prasad”), an Indian Majesco executive, about what they perceived to be discrimination against non-Indians. Keelan said Prasad also stated that “Americans have never worked out” at the company. Sullivan spoke to Ketan Mehta (“Mehta”), Majesco’s CEO and an Indian, about the apparent discrimination; Mehta’s response was, “I can see how you would feel that way.”

Majesco alleges it fell upon hard financial times beginning in fiscal year 2000. The loss of revenues in fiscal year 2001 was almost $20 million, and the company suffered a net loss of over $1.4 million. Because of this, on July 16, 2001, Majesco announced a new pay plan. This plan consisted of an across-the-board pay cut: all rank-and-file employees earning more than $60,000 per year received a ten percent pay cut, with senior management receiving an even larger decrease. The plan also modified the commission structure across the board for salesmen. Salaries were changed to require draws against commission. For example, if a commission employee had a $75,000 salary and earned $100,000 in commission, he would receive the difference of only $25,000 in commission. The plan also specifically excluded commissions on projects over $5 million. Appellants claim the plan gave Majesco discretion to divide commissions among salesmen as management saw fit and, in some instances, not even pay commissions, and thus would be a vehicle for favoritism and discrimination.

Appellants filed charges of national origin discrimination with the EEOC. They then filed this action against Majesco in district court on August 6, 2002, alleging discrimination in the terms and conditions of their employment and in Keelan’s termination and Sullivan’s constructive discharge. The court rejected Appellants’ urging that it analyze their case under the mixed-motive theory. The court deter *338 mined this was a pretext case under McDonnell Douglas Corp. v. Green, 411 U.S. 792, 93 S.Ct. 1817, 36 L.Ed.2d 668 (1973). 1 With regard to Appellants’ terms and conditions claims, the court found that the evidence did not support a prima facie

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