Pegram v. Honeywell, Inc.

361 F.3d 272, 15 Am. Disabilities Cas. (BNA) 523, 2004 U.S. App. LEXIS 4266, 85 Empl. Prac. Dec. (CCH) 41,640, 93 Fair Empl. Prac. Cas. (BNA) 649, 2004 WL 315145
CourtCourt of Appeals for the Fifth Circuit
DecidedMarch 5, 2004
Docket03-10172
StatusPublished
Cited by315 cases

This text of 361 F.3d 272 (Pegram v. Honeywell, 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
Pegram v. Honeywell, Inc., 361 F.3d 272, 15 Am. Disabilities Cas. (BNA) 523, 2004 U.S. App. LEXIS 4266, 85 Empl. Prac. Dec. (CCH) 41,640, 93 Fair Empl. Prac. Cas. (BNA) 649, 2004 WL 315145 (5th Cir. 2004).

Opinion

CARL E. STEWART, Circuit Judge:

In this employment discrimination case, appellant Ron L. Pegram (“Pegram”) appeals the district court’s grant of summary judgment in favor of his former employer Honeywell, Inc., (“Honeywell”) dismissing Pegram’s claims of racial and disability discrimination under 42 U.S.C. § 1981 (2003) and the Texas Commission for Human Rights Act (“TCHRA”), TEX. LAB. CODE ANN. § 21.002 et seq. (Vernon 1998). Pegram also challenges the district court’s dismissal of his claims to recover employee benefits for violations under the Employment Retirement Income Security Act (“ERISA”), 29 U.S.C. § 1140, as well as the common law theories of breach of contract and promissory estoppel. For the following reasons, we affirm in part, reverse in part, and remand for further proceedings.

FACTUAL AND PROCEDURAL BACKGROUND

The relevant background, drawn in the light most favorable to the plaintiff, is as follows: Pegram, an African-American sales employee, began working at Honeywell in 1991. In August 2000, Pegram was promoted to the position of Total Plant Account Manager (“TPAM”), in the power industry, otherwise known as the Industrial Automation and Control (“IAC”) division. As a TPAM, Pegram sold a wide-range of Honeywell products, with Pe-gram’s yearly sales quota in the amount of $3-^4 million.

*277 In September 2000, Honeywell geographically reorganized its IAC division’s sales territories and reporting relationships. After the reorganization, Pegram reported to David Spencer, the IAC division’s Regional Sales Manager, and Guy Grumbles, the Solutions Sales Director for the eastern sales region. In October of 2000, Pegram learned that Grumbles expressed concerns about Pegram’s ability to satisfactorily accomplish his tasks as a TPAM. Thereafter, Spencer and Grumbles attempted to persuade Pegram to accept a position as a Service Account Manager (“SAM”). The SAM position offered Pegram a base salary comparable to a TPAM, but with a lower incentive pay.

On December 14, 2000, Pegram aggravated a pre-existing back condition, during an automobile accident, and Honeywell subsequently transferred him to a SAM position. 1 Spencer and Grumbles then hired a white male to replace Pegram in the TPAM position. On several occasions Pegram expressed disillusionment in serving as a SAM and an unwillingness to continue in that role. Despite Pegram’s desire to continue working as a TPAM, Spencer informed him that there were no available TPAM positions in Pegram’s region at the time, and advised Pegram to search for a TPAM position elsewhere in the company.

On March 13, 2001, while in pursuit of other TPAM opportunities, Pegram sent an email to Honeywell officials explaining that he had scheduled back surgery on April 16, 2001, and that he would need short-term disability benefits. The next day, Pegram met with Spencer and a representative of Honeywell’s Human Resources Department in Houston to discuss his employment situation. During the Houston meeting, Spencer apprised Pe-gram that no TPAM positions were currently available, and that unless Pegram was able to secure another position at Honeywell, he would be terminated. Pe-gram was unable to secure such a position, and was terminated. Thereafter, Pegram applied for, and was denied, any short-term disability benefits from Honeywell.

On April 5, 2001, Pegram filed a charge of discrimination with the Equal Employment Opportunity Commission (“EEOC”) and the Texas Commission on Human Rights (“TCHR”) alleging employment discrimination based upon race and disability. Upon receipt of this Notice of the Right to Sue from the EEOC, Pegram timely filed a complaint in federal court on May 4, 2001. In his complaint, Pegram alleged that Honeywell discriminated against him because of his race in violation of 42 U.S.C. § 1981. He also asserted claims for breach of contract and promissory estoppel under Texas law based upon his claim for short-term disability benefits. On February 7, 2002, Pegram amended the complaint to add claims under the TCHRA for discrimination based upon race and disability, and under section 510 of ERISA for interference with his rights under the short-term disability plan.

On April 30, 2002, Honeywell moved for summary judgment on all of Pegram’s claims. After the parties completed briefing, the district court instructed the parties to submit additional briefing and evidence on whether Pegram’s reassignment was an “adverse employment action” under the TCHRA and section 1981. On February 5, 2003, the district court granted Honeywell’s motion for summary judg *278 ment. Regarding Pegram’s reassignment, the district court held that the transfer did not constitute an adverse employment action. Pegram timely filed a notice of appeal.

STANDARD OF REVIEW

We review a district court’s grant of summary judgment de novo, applying the same standards as the district court. Evans v. City of Houston, 246 F.3d 344, 347 (5th Cir.2001). Summary judgment is appropriate “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, 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); see also Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). If the moving party meets the initial burden of showing there is no genuine issue of material fact, the burden shifts to the non-moving party to produce evidence or designate specific facts showing the existence of a genuine issue for trial. Allen v. Rapides Parish Sch. Bd., 204 F.3d 619, 621 (5th Cir.2000) (internal quotations and citations omitted). Doubts are to be resolved in favor of the nonmoving party, and any reasonable inferences are to be drawn in favor of that party. See Burch v. City of Nacogdoches, 174 F.3d 615, 619 (5th Cir.1999).

We review the district court’s evidentia-ry rulings for an abuse of discretion. St. Romain v. Industrial Fabrication & Repair Serv., 203 F.3d 376, 381 (5th Cir.2000).

DISCUSSION

I. Timeliness of Federal & State Law Claims

Honeywell asserts on appeal, as it did before the district court, that prior to reaching any substantive issues, this court should find Pegram’s federal and state law claims untimely. The district court granted Honeywell’s motion for summary judgment finding that Pegram’s claims under section 1981 were only actionable if they accrued post May 4, 1999, and Pegram’s state law claims under TCHRA were actionable only if they occurred after October 7, 2000. We affirm.

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361 F.3d 272, 15 Am. Disabilities Cas. (BNA) 523, 2004 U.S. App. LEXIS 4266, 85 Empl. Prac. Dec. (CCH) 41,640, 93 Fair Empl. Prac. Cas. (BNA) 649, 2004 WL 315145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pegram-v-honeywell-inc-ca5-2004.