Milner v. National School of Health Technology

73 F.R.D. 628, 14 Fair Empl. Prac. Cas. (BNA) 835, 22 Fed. R. Serv. 2d 1429, 1977 U.S. Dist. LEXIS 17490
CourtDistrict Court, E.D. Pennsylvania
DecidedFebruary 7, 1977
DocketCiv. A. No. 75-2717
StatusPublished
Cited by35 cases

This text of 73 F.R.D. 628 (Milner v. National School of Health Technology) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Milner v. National School of Health Technology, 73 F.R.D. 628, 14 Fair Empl. Prac. Cas. (BNA) 835, 22 Fed. R. Serv. 2d 1429, 1977 U.S. Dist. LEXIS 17490 (E.D. Pa. 1977).

Opinion

MEMORANDUM

JOSEPH S. LORD, III, Chief Judge.

This is an action for employment discrimination brought under 42 U.S.C. §§ 1981, 1983, 1985(3) and (4) and 2000e et seq. (“Title VII”). Plaintiff claims her rights were violated in that she was discharged because she was a divorced woman. The § 1981 claim has been dismissed. A motion to dismiss the §§ 1983 and 1985(3), (4) claims is outstanding pending discovery on the state action and conspiracy issues. Plaintiff now seeks to amend the complaint to add as a party-defendant the “National School of Health Technology, Inc.” She also has moved to compel answers to interrogatories and to produce documents. Because the discovery issues depend to a significant extent on the resolution of the motion to amend, I am ruling on them together. Both motions will be granted with the qualifications set forth in the order which is filed concurrently with this memorandum.

I

The Motion to Amend the Pleadings

The National School of Health Technology was a proprietorship at the time of the plaintiff’s discharge on October 25, 1974. On or about November 1, 1974, the defendant Lobel, owner of the proprietorship, incorporated the business. The plaintiff apparently did not realize that the form of ownership had changed until some discovery was completed. Accordingly, the corporation was not “named in the charge” before the Equal Employment Opportunity Commission (“EEOC”) as required by 42 U.S.C. § 2000e-5(f)(l) as a jurisdictional prerequisite to a subsequent civil action.

Rule 15(a) provides that amendments to pleadings under circumstances such as these can be granted only with leave of the court, but “leave shall be freely given when justice so requires.” Fed.R. Civ.P. 15(a). When an amendment seeks to change a party defendant against whom a claim will relate back to the date of the original pleading, Rule 15(c) requires that such party (1) received such notice of the commencement of the action that he will not be prejudiced in presenting a defense, and (2) that he knew, or should have known that, but for a mistake concerning the identity of the proper party, the action would have been against him. Fed.R. Civ.P. 15(c).

[631]*631The defendant Lobel is the principal in both the proprietorship and the corporation. He is identified in the body of the complaint as “founder, owner and president” of the defendant National School of Health Technology. (Complaint ¶ 6). It is clear, therefore, that the notice and absence of prejudice requirements of Rule 15 are met in this case.

Absence of technical notice in the charge before the EEOC does not in all cases prevent jurisdiction. In labor law, the rule has evolved that where there is a substantial or complete identity of interest between a predecessor employer which has disappeared by a change in the form of ownership and a successor employer, employees may enforce unfair labor practice claims against the successor even though the claims arose against the predecessor. John Wiley & Sons, Inc. v. Livingston, 376 U.S. 543, 551, 84 S.Ct. 909, 11 L.Ed.2d 898 (1964); Golden State Bottling Co., Inc. v. N.L.R.B., 414 U.S. 168, 174-85, 94 S.Ct. 414, 38 L.Ed.2d 388 (1973). This “successor doctrine” applies to unlawful employment practices under Title VII. EEOC v. MacMillan Bloedel Containers, Inc., 503 F.2d 1086, 1090 (6th Cir. 1974); Slack v. Havens, 522 F.2d 1091, 1094-95 (9th Cir. 1975).

All of the factors of “sameness” cited by the Sixth Circuit in applying the successor doctrine are present here. See MacMillan Bloedel, supra, 503 F.2d at 1094. The corporation had notice through its principal, Lobel, and defense counsel has conceded it is not prejudiced. Since all the assets of the proprietorship belong to the corporation, there is some question whether the plaintiff, if successful, will be able to obtain full relief unless the corporation is joined as a party. The business continued after incorporation without interruption in substantially the same form, with the same personnel and at the same location. Although in the intervening years the business has grown considerably, nothing would put an outsider on notice that the form of ownership had changed.

It would frustrate the policy of Title VII to allow employers to escape liability for unlawful employment practices simply by changing the form of ownership. Therefore, the corporation in this case must be deemed to have assumed contingent liabilities of the proprietorship under Title VII.

Nor does the jurisdictional prerequisite of § 2000e-5(f)(l) require the plaintiff to refile against the corporation with the EEOC. The jurisdictional prerequisite is designed to provide notice to the charged party and to permit the EEOC to attempt voluntary reconciliation. Alexander v. Gardner-Den ver Co., 415 U.S. 36, 44, 94 S.Ct. 1011, 39 L.Ed.2d 147 (1974). Where there is a substantial or complete identity between the EEOC respondent and the new defendant in the civil action, these purposes of the statute are served. MacMillan Bloedel, supra, 503 F.2d at 1093; Slack v. Havens, supra, 522 F.2d at 1095. Title VII places a premium on avoiding delay, see §§ 2000e-5(e), 2000e-5(f)(4), and mandates settlement and conciliation. § 2000e-5(b). As the Sixth Circuit reasoned, the charging requirement of § 2000e-5(f)(1) together with the statute of limitations of § 2000e-5(e) indicates a Congressional intent that the discriminatee be required to name only those known to him who could have been charged within the limitations period. MacMillan Bloedel, supra, 503 F.2d at 1092-93; Slack v. Havens, supra, 522 F.2d at 1094-95.

II

The Motion to Compel

Plaintiff’s requested discovery embraces a period from January, 1970 “until the present” which in the first set of interrogatories was August 12, 1976, or a six and one-half year period. Defendants object that the relevant time period for discovery ends on October 31,1974, the date on which the proprietorship ceased to exist.

There are two bases for this position. First, Rules 33(a) and 34(a) are limited to discovery between parties. Discovery after October 31, 1974 relates to the corporation which was not named as a defendant in the original complaint. As I am granting the [632]*632motion to amend to join the corporation as a party-defendant, this position no longer has merit.

Secondly, as the alleged unlawful act was a discharge, the defendants maintain that discovery after the date of the discharge, October 25, 1974, is irrelevant.

In general, the scope of discovery through interrogatories and requests for production of documents is limited only by relevance, in the sense that the requested information could not lead to the discovery of relevant and admissible evidence, and by burdensomeness. Fed.R.

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73 F.R.D. 628, 14 Fair Empl. Prac. Cas. (BNA) 835, 22 Fed. R. Serv. 2d 1429, 1977 U.S. Dist. LEXIS 17490, Counsel Stack Legal Research, https://law.counselstack.com/opinion/milner-v-national-school-of-health-technology-paed-1977.