McDaniel v. Cory

631 P.2d 82, 1981 Alas. LEXIS 606
CourtAlaska Supreme Court
DecidedJuly 10, 1981
Docket4793, 4794
StatusPublished
Cited by24 cases

This text of 631 P.2d 82 (McDaniel v. Cory) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McDaniel v. Cory, 631 P.2d 82, 1981 Alas. LEXIS 606 (Ala. 1981).

Opinions

OPINION

BURKE, Justice.

This appeal involves questions of administrative remedies and procedure under AS 18.80, the statutory enactment which created and defines the authority of the State Commission for Human Rights.

On November 10, 1976, LaVon Williams filed a complaint with the Alaska State Commission for Human Rights (hereinafter referred to as Commission) charging the Northern Lights Cocktail Lounge, Inc., d/b/a Northern Lights Disco, and its owner, Don McDaniel,1 (hereinafter collectively referred to, along with Larry Lewis, as Disco Management)2 with racial discrimination in a place of public accommodations.3 Pursuant to the administrative procedures set forth in AS 18.80.110,4 her complaint was investigated by Karen Cory and Daveed Schwartz, Commission investigators. They went to the Northern Lights Disco on the evening of November 12, 1976 and were also subjected to acts of race and sex discrimination at the establishment. The disco apparently charged different admission fees depending upon the race and sex of the individual seeking entry.5 Cory and [84]*84Schwartz thereafter filed a separate complaint along with two other individuals, Marian Berry and Michael Rogers, who were present at the disco that evening and also subject to the discriminatory admission price structure. The LaVon Williams complaint was later consolidated with the complaints of Cory, Schwartz, Berry and Rogers.

Pursuant to AS 18.80.110, the normal procedure for settling these complaints of discrimination informally through conference, conciliation and persuasion was attempted. On December 2, 1976, a pre-decision settlement agreement was proposed which essentially evidenced an agreement between the parties that the Disco Management would eliminate the complained-of discriminatory admission price scheme. The pre-decision settlement also contained several clauses providing monetary compensation "in consideration of [his or her] termination of these proceedings" for several of the complainants in the action. The Disco Management agreed to pay compensation in the amount of $25.00 to Marian Berry and Michael Rogers. However, the clause awarding LaVon Williams $2,000.00 met with considerable opposition from the Disco Management. Consequently, before Don McDaniel signed his name on the settlement agreement, the $2,000.00 figure was scratched out and was replaced with $25.00, and a new clause added to the terms of the agreement so that it read: "$25 in consideration of her termination of these proceedings and her agreement to a civil compromise of case # 76-7176."6 As a result, the pre-decision settlement was never signed by all parties.

Because the settlement procedure failed to produce a settlement which all parties could agree to, the Commission proceeded with formal hearing procedures. On November 24, 1976, the chairperson of the Commission appointed three hearing commissioners who in turn appointed a hearing examiner on December 14, 1976.7 On December 17, 1976, the hearing examiner held a hearing pursuant to AS 18.80.120.8

[85]*85Prior to the hearing, the Disco Management moved to dismiss the complaint on the ground that the Commission had no jurisdiction to hold a hearing since conciliation had been effected. Their motion stated:

On December 2, 1976, respondent Don L. McDaniel on behalf of all respondents executed a Pre-Decision Settlement agreement ... prepared by the Alaska State Commission for Human Rights agreeing to "eliminate the discrimina-tions complained of" (A.S. 18.80.110) and respondents have agreed to "eliminate the alleged unlawful discriminatory, practices by conference, conciliation, and persuasion," (6 A.A.C. 30.040), with the only amendment by the respondents being that they would not pay LaVon Williams the sum of Two Thousand Dollars ($2,000.00) in consideration of her terminating the proceedings.

The hearing examiner denied the motion and the hearing took place as scheduled.

On January 17, 1977, the hearing examiner issued his proposed memorandum of decision with proposed findings of facts and conclusions of law.9 He concluded that the admission policies of the disco constituted discrimination based on sex and race in ' violation of AS 18.80.230(1),10 but that neither Don McDaniel nor Larry Lewis, as individual respondents, violated AS 18.80.-230(1). He also found no violation of that statute with respect to the treatment of LaVon Williams.

On August 11, 1977, the Commission's Executive Director Niel Thomas filed his objections to the hearing examiner's proposed findings of fact and conclusions of law pursuant to 6 AAC 830.095(a).11 In accordance with 6 AAC 30.095(b),12 the three hearing commissioners reviewed the written record and the hearing examiner's proposed conclusions. On February 28, 1978, the commissioners issued their final findings of facts and conclusions of law. They agreed with the hearing examiner's conclusion that the admission policies of the disco violated AS 18.80.2830(1), but did not follow the hearing examiner's recommended finding with [86]*86respect to LaVon Williams' complaint. They concluded that her treatment at the disco was racially motivated and that Don McDaniel did in fact violate AS 18.80.230(1). The commissioners issued their final order in late summer, 1978 requiring Don McDaniel and Northern Lights Disco to pay LaVon Williams $600.00 as compensatory and punitive damages in addition to refraining from racially motivated discriminatory treatment of patrons and eliminating their admission policy which discriminated among customers on the basis of race and sex.

This decision was appealed to the superior court by the Disco Management pursuant to AS 18.80.135.13 In his decision dated April 19, 1979, Judge Peter Kalamarides reversed the Commission's award of $600.00 to La-Von Williams finding no authority under Alaska law which gave the Commission the ability to award damages to complainants in public accommodation discrimination cases. He upheld the rest of the Commission's decision, finding no error in their proceedings. On May 15, 1979, after the untimely death of Judge Kalamarides, Judge Victor D. Carlson signed the order and judgment reversing the Commission's $600.00 damage award to LaVon Williams, dismissing the complaints against Larry Lewis, and awarding the Commission $1,000.00 in costs and attorney's fees. This decision is the subject of the appeal and cross-appeal now before this court.14

The central issue in this case is whether the Commission has the power to award compensatory and punitive damages to complainants in cases of discrimination in places of public accommodation. The superior court held that the authority to do so did not exist, and the Commission appeals this decision.15

When AS 18.80 was originally enacted, no provisions were made giving the Commission the power to award damages, either compensatory or punitive, at the conclusion of an administrative hearing except for an award of back pay in employment discrimination cases. AS 18.80.130 16 originally au[87]

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McDaniel v. Cory
631 P.2d 82 (Alaska Supreme Court, 1981)

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Bluebook (online)
631 P.2d 82, 1981 Alas. LEXIS 606, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcdaniel-v-cory-alaska-1981.