Ofori-Tenkorang v. American International Group, Inc.

460 F.3d 296, 2006 U.S. App. LEXIS 20934, 88 Empl. Prac. Dec. (CCH) 42,477, 98 Fair Empl. Prac. Cas. (BNA) 1089
Court of Appeals for the Second Circuit·Decided August 15, 2006·No. Docket No. 05-5272-cv·Published·Cited by 3 cases

Opinion

JOSÉ A. CABRANES, Circuit Judge.

The issue presented is whether the Civil Rights Act of 1871, as amended, 42 U.S.C. § 1981 (“Section 1981”),1 may be applied to [298] prohibit an employer’s allegedly discriminatory conduct arising from the overseas assignment of plaintiff, a non-citizen. We review here the dismissal by the United States District Court for the Southern District of New York (Denise Cote, Judge) of claims against American International Group, Inc., AIG International, Inc., AIG Financial Products Corp., and AIG Trading Group, Inc. (collectively “AIG” or “defendants”) of unlawful discrimination on the basis of race brought under Section 1981. Presumably because other discrimination statutes reaching the employment relationship, such as Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq. (“Title VII”), limit pertinent aspects of their coverage to U.S. citizens,2 plaintiffs federal law claims rest entirely on Section 1981, which protects “persons.” But unlike those other civil rights statutes, which have been amended deliberately to reach conduct occurring outside the United States,3 Section 1981 protects only “persons within the jurisdiction of the United States,” 42 U.S.C. § 1981(a).

Based on the text and legislative history of Section 1981, we conclude, as a matter of first impression in this Circuit, that Congress has not extended the coverage of Section 1981 beyond the territorial jurisdiction of the United States. Accordingly, we affirm the holding of the District Court dismissing plaintiffs Section 1981 claims to the extent that those claims arise from- alleged discriminatory conduct that occurred while plaintiff was living and working in South Africa. We conclude, however, that the District Court erred in dismissing plaintiffs claims insofar as he alleges discriminatory conduct that occurred while he was in the United States. We therefore vacate the judgment of the District Court insofar as it dismissed those claims, and we remand the cause for further proceedings consistent with this opinion.

I. Background

We set forth the facts as alleged by plaintiff, mindful that on a motion to dismiss we accept all factual allegations as true and draw all reasonable inferences in plaintiffs favor. See Twombly v. Bell Atl. Corp., 425 F.3d 99, 106 (2d Cir.2005).

Plaintiff-appellant John Ofori-Tenko-rang (“Ofori”) is a black man who has been employed by AIG and who maintains his [299] permanent residence in Connecticut. Ofo-ri, a non-citizen, began working in AIG’s Connecticut offices in September 1996 as a Research Analyst. “By September 2003, Ofori held the position of Structurer and Marketer in AIG’s Financial Services Division.” Compl. ¶ 8. At that time, senior AIG executives based in Connecticut and London decided to reassign Ofori to work on a temporary basis in one of the company’s offices in South Africa. According to a “Confirmation of Assignment Letter” signed by Ofori on September, 2, 2003, South Africa was designated as Ofori’s “host country,” while the United States remained his “home country.” AIG promised, among other things, to (a) pay Ofori’s salary in U.S. dollars, which were to be directly deposited into Ofori’s bank account in Connecticut, (b) cover his housing and transportation costs in South Africa, (c) prepare all necessary paperwork pertaining to his South African employment, and (d) reimburse him for certain travel expenses to and from the United States. Id. ¶¶ 10-12.

Ofori alleges that before and after his arrival in South Africa he was singled out for discriminatory treatment on account of his race. Specifically, Ofori asserts that before he left the United States, AIG personnel decided to send him to South Africa and made arrangements with respect to his work environment in South Africa. Ofori’s workplace in South Africa was allegedly situated in an office with a white colleague of questionable ethics, apart from the office where a majority of his white, soon-to-be colleagues worked. See id. ¶¶ 16-17. Upon his arrival, Ofori allegedly was subjected to greater scrutiny than his white colleagues when attempting to obtain reimbursement for business-related expenses, see id. ¶ 18, blamed for poor business performance that was unrelated to his work, see id. ¶ 20, threatened with termination after only a single poor performance review, see id. ¶23, given a smaller bonus than similarly-situated colleagues, see id. ¶ 24, wrongfully accused of stealing funds from the South African businessman with whom he shared an office, see id. ¶¶ 25-26, improperly suspended from work, see id. ¶¶ 27-31, and required to provide more documentation than his white colleagues to justify his request for medical leave, see id. ¶¶ 36, 39.

In March 2005, Ofori brought an action in the United States District Court for the Southern District of New York against AIG and its subsidiaries, alleging that he was (1) subjected to discrimination and retaliated against on the basis of his race, in violation of 42 U.S.C. § 1981 and New York State Human Rights Law, N.Y. Exec. Law § 290 et seq. (“NYHRL”), and (2) subsequently defamed by AIG. Defendants-appellees moved to dismiss Ofori’s claims under Federal Rule of Civil Procedure 12(b)(6), arguing that despite Ofori’s many contacts with the United States, neither Section 1981 nor the NYHRL applies to discriminatory conduct that took place outside the territory of the United States.

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Ofori-Tenkorang v. American International Group, Inc., 460 F.3d 296, 2006 U.S. App. LEXIS 20934, 88 Empl. Prac. Dec. (CCH) 42,477, 98 Fair Empl. Prac. Cas. (BNA) 1089 (2d Cir. 2006).

460 F.3d 296 (Ofori-Tenkorang v. American International Group, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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