National Ass'n of Government Employees v. City Public Service Bd. of San Antonio, Tex.

Court of Appeals for the Fifth Circuit·Decided November 9, 1994·No. 92-05549·Published

Opinion

UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT

No. 92-5549

NATIONAL ASSOCIATION OF GOVERNMENT EMPLOYEES, ET AL.,

Plaintiffs-Appellants,

versus

CITY PUBLIC SERVICE BOARD OF SAN ANTONIO, TEXAS, ET AL.,

Defendants-Appellees.

Appeal from the United States District Court for the Western District of Texas

(December 6, 1994)

Before JOHNSON, GARWOOD and JONES, Circuit Judges. GARWOOD, Circuit Judge:

Plaintiffs-appellants Eustacio B. Diaz (Diaz), Guillermo R.

Gaona (Gaona), and the National Association of Government Employees (collectively Plaintiffs) brought this putative class action against defendant-appellee the City of San Antonio, Texas, acting by and through the City Public Service Board (CPS). In 1977, Plaintiffs filed charges with the Equal Employment Opportunity Commission (EEOC), alleging that CPS discriminated against its Mexican-American and Mexican alien workers on the basis of their national origin in hiring, promotion, discipline, and other terms

and conditions of employment.1 After efforts at conciliation failed in 1980, the EEOC referred the case to the Department of Justice and informed Plaintiffs that the Department of Justice would either notify them of its intention to prosecute the case or issue a right to sue letter. Nothing more happened until late 1989, when Plaintiffs determined that the Department of Justice had no record of their case, obtained a right to sue letter, and filed this suit in the district court below. Plaintiffs alleged violations of Title VII, 42 U.S.C. §§ 1981 and 1983, and the Texas constitution. CPS moved to dismiss the Title VII claim on the basis of laches and to dismiss the section 1981 claim either on summary judgment or for failure to state a claim on which relief may be granted. The magistrate judge to whom the case had been referred recommended that both these motions be granted and in addition recommended denial of class certification and dismissal with prejudice of Plaintiffs' Title VII claims and dismissal without prejudice of their section 1981, section 1983, and state law claims. The district court adopted the recommendation of the magistrate judge, and Plaintiffs appeal that judgment. We find no error and therefore affirm.

Facts and Proceedings Below Although the present suit was filed November 29, 1989, the controversy began more than twelve years earlier. On February 18, 1977, Plaintiffs filed employment discrimination charges with the

1 The original union complainant was the American Federation of State, County, and Municipal Employees (AFSCME). In July 1982, CPS employees left AFSCME to join the National Association of Government Employees (NAGE).

EEOC, alleging that CPS discriminated against Mexican-Americans and Mexican aliens in hiring, promotion, job classification, and other terms and conditions of employment.2 The EEOC issued a Reconsideration of Determination on October 31, 1979,3 in which it found that there was reasonable cause to support some of Plaintiffs' allegations with respect to hiring and promotion.4 The

2 Specifically, Plaintiffs complained of:

"(a) Non-job-related educational requirements.

(b) Failure to establish educational job-related training and apprenticeship programs for upward mobility.

(c) Intimidation and harassment of Mexican-Americans and Mexican Aliens/I-151 . . .

(d) Failure to establish a job-posting policy of all job vacancies.

(e) Failure to establish a non-derogatory ethnic/racial slurs policy. . . .

(f) Failure to provide equal opportunity to Mexican-

Americans and Mexican Aliens/I-151 employees as a class who apply for loans through the employer's credit union.

(g) Failure to establish a wages/conditions/grievances committee to include an equal number of Mexican-

Americans and Mexican Aliens/I-151 members.

(h) Failure to establish and [sic] equal sick and vacation leave policy. . . ."

In its Reconsideration of Determination of October 31, 1979, the EEOC found with respect to these charges: that it did not have jurisdiction to consider charge (f); that there was insufficient evidence to support a reasonable cause finding as to charges (b), (c), (d), (g), and (h); and that there was sufficient evidence to support a reasonable cause finding as to charges (a) and (e). 3 This document superseded a letter of determination the EEOC had previously issued on March 30, 1979. 4 See supra note 2. Specifically, the EEOC found:

parties then attempted conciliation, but that effort failed. On June 24, 1980, the EEOC formally informed Plaintiffs in writing that conciliation was unsuccessful, that no further efforts to conciliate would be made, and that it was referring their charges to the Department of Justice for review in anticipation of a possible enforcement action.

Although Plaintiffs retained counsel to represent them in August 1980 and have been represented by counsel continuously since that time,5 no further action was taken in the case. The attorney

"1. Mexican-Americans are not hired into the unskilled and semi-skilled levels of Respondent's work force at a rate proportionate to their availiability [sic] in the relevant labor market;

2. Mexican-Americans, as the result of Respondent's hiring policies, are relegated to the lowest job classifications within Respondent's facilities;

3. Respondent has failed to establish and/or enforce a policy which prohibits the use of ethnic or racial slurs; and

4. Respondent utilizes non-job-related educational requirements as prerequisites for employment and job advancement;

5. [withdrawing certain earlier findings] . . . .

6. . . . . a. Mexican-Americans who are employed as utility workers at Respondent's Gas and General Construction Division are not provided equal opportunities for promotion to the main crew foreman positions." [On April 3, 1980, "the main crew foreman positions" language was changed to "the various supervisory/foreman positions that require direct supervisory responsibility over the Utility Workers"].

5 Plaintiffs have been represented by at least five separate attorneys since August 1980. Their initial two attorneys represented them from 1980 until 1983, when they were replaced by another attorney who represented them until 1987. He in turn was replaced by another attorney, who was succeeded in 1988 by still another who represented them until 1989, when Plaintiffs' current

who represented Plaintiffs from 1983 to 1987 did call a press conference in San Antonio during September 1984 at which he "accused the EEOC of failing to move against CPS after finding evidence of discrimination" and announced that he would file suit against CPS in four to six weeks. However, no suit was filed at that time. In 1989, Plaintiffs contacted the Department of Justice to determine where the case stood. The Department of Justice informed them that it had no record of a referral from the EEOC and therefore had not made any review of the case. Plaintiffs thereafter requested and received right to sue letters from the EEOC and filed this suit on November 29, 1989. They alleged causes of action under Title VII and section 1981. In addition, they moved for certification of the suit as a class action. A subsequent amended complaint added claims under section 1983 and the due course of law and equal protection provisions of the Texas constitution.

On February 8, 1990, CPS moved to dismiss, claiming that it was not a suable entity separate and apart from the City of San Antonio. Plaintiffs requested and were ultimately granted leave to file an amended complaint to name the City as defendant. On March 8, 1990, CPS moved to dismiss Plaintiffs' section 1981 claims either on summary judgment or for failure to state a claim on which relief may be granted. While that motion was pending, the magistrate judge to whom the case had been assigned granted the

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National Ass'n of Government Employees v. City Public Service Bd. of San Antonio, Tex., (5th Cir. 1994).

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