Ortiz v. Shaw Group, Inc.

250 F. App'x 603
CourtCourt of Appeals for the Fifth Circuit
DecidedOctober 11, 2007
Docket06-20983
StatusUnpublished
Cited by7 cases

This text of 250 F. App'x 603 (Ortiz v. Shaw Group, 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
Ortiz v. Shaw Group, Inc., 250 F. App'x 603 (5th Cir. 2007).

Opinion

PER CURIAM: *

This appeal arises from the district court’s grant of summary judgment in favor of Stone & Webster, Inc., and Webster Services, L.L.C. (collectively “Stone & Webster”) on Roberto Ortiz’s claims of intentional race discrimination. We affirm the district court’s judgment.

I. FACTUAL AND PROCEDURAL BACKGROUND

Stone & Webster provides engineering, procurement, and construction (“EPC”) products and services. Oritz, an employee at Stone & Webster, worked as a process engineer. In this position, Ortiz dealt with clients in the petrochemical and refining industries. In 2000, Ortiz transferred into the technology group as a specialist. Shortly thereafter, Ortiz asked Don Bernard, the head of business development, for a transfer to the business development group. In 2001, Bernard granted Ortiz a transfer to work as a sales representative and later as a business development manager. Ortiz focused on providing clients products and services in the petrochemical and refinery business. The business development group also serviced power plants. Over time, Bernard assigned additional duties and customers to Ortiz’s workload. As Ortiz gained more experience, Bernard increased his responsibilities to include developing business with refinery clients on the West and Gulf Coasts of the United States, PEMEX in Mexico, and PDVSA in Venezuala. Ortiz *605 received positive work evaluations in this position.

In 2000, Stone & Webster’s business declined with refining companies due to a downturn in the domestic process market. As a result of the adverse market, Stone & Webster decreased its Houston workforce from 500 employees to approximately 250 employees over a four-year period. In 2002, Stone & Webster’s management instructed Bernard to lay off business development managers. During the initial reduction, Bernard released two Caucasian business development managers but kept Ortiz on the team.

In late 2008, Stone & Webster continued its organization. Abe Fatemizadeh, the Operations Manager, met with Randy Harrison, Bernard’s direct supervisor, and Bernard to review staffing decisions for the process business development group. The managers determined that Stone & Webster needed to shift the focus of the process business development group from primarily selling technology to primarily selling EPC services. Fatemizadeh suggested that Bernard lay off approximately half of his process business development managers, and Fatemizadeh and Harrison requested that Bernard recommend employees for termination.

Bernard’s staff included business development managers working both in territories outside North and South America and in the United States and territories in the Americas. According to Stone & Webster, due to the specialized knowledge and experience of the managers working outside of the United States, Bernard only considered process business development managers assigned to the Americas for the impending lay off. These three managers were Ortiz and two Caucasian males, William Wallendorf and William Creighton. Stone & Webster contends that Bernard based his employment decision on which managers possessed the most beneficial skills and experiences for the company in light of market conditions and the company’s plan to emphasize the sale of EPC services.

Bernard decided to keep Creighton and lay off Ortiz and Wallendorf. Creighton worked on business development for the petrochemicals market. Based on Bernard’s assessment, even though the petrochemicals market suffered a decline, the prospect for growth seemed better than the refining market. Creighton also possessed more EPC sales experience than Ortiz and Wallendorf, and he was working on two major EPC projects for Chevron Phillips Chemical in the Middle East valued at $300 million and $1.2 billion at the time Bernard executed the lay off decision. In light of Creighton’s current projects and experience, Bernard decided to retain him at the company. Bernard’s superiors accepted his recommendation.

After terminating Ortiz, Stone & Webster did not hire a replacement. During the corporate reorganization, Stone & Webster laid off thirty-one employees— nine of the thirty-one employees worked in the Houston office and of the Houston employees, six were Caucasian, two were Hispanic, and one was African American.

On May 9, 2005, Ortiz filed a lawsuit against Stone & Webster, claiming unlawful discrimination based on his race, color, and national origin. Stone & Webster moved for summary judgment. Stone & Webster argued that it articulated a legitimate, non-discriminatory reason for Ortiz’s termination, a reduction-in-force prompted by declining market conditions, which suffices to preclude a finding of intentional discrimination. The district court granted Stone & Webster’s motion and on November 15, 2006, entered final judgment as a matter of law. Ortiz timely appeals the district court’s judgment.

*606 II. STANDARD OF REVIEW

This court reviews a district court’s grant of summary judgment de novo, applying the same legal standards as the district court. Machinchick v. P.B. Power, Inc., 398 F.3d 345, 350 (5th Cir.2005). In deciding a motion for summary judgment, the court must determine whether the submissions show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c); Hart v. Hairston, 343 F.3d 762, 764 (5th Cir.2003).

III. DISCUSSION

To establish a prima facie case of intentional discrimination in a reduction-in-force case, a plaintiff must establish the following elements: (1) he is a member of a protected group; (2) he was adversely affected by the employer’s decision; (3) he was qualified to assume another position at the time of discharge; and (4) there is sufficient evidence, either circumstantial or direct, from which a fact finder may reasonably conclude that the employer intended to discriminate in reaching the adverse employment action, or others who were not members of the protected class remained in similar positions. Nichols v. Loral Vought Sys. Corp., 81 F.3d 38, 41 (5th Cir.1996); Amburgey v. Corhart Refractories Corp., Inc., 936 F.2d 805, 812 (5th Cir.1991). If the plaintiff successfully establishes his prima facie case and creates a rebuttable presumption of discrimination, then the employer must assert a legitimate, nondiscriminatory reason for the employment action. Bauer v. Albemarle Corp., 169 F.3d 962, 966 (5th Cir. 1999).

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250 F. App'x 603, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ortiz-v-shaw-group-inc-ca5-2007.