Porio v. Department of Revenue

951 N.E.2d 714, 80 Mass. App. Ct. 57, 2011 Mass. App. LEXIS 1101, 112 Fair Empl. Prac. Cas. (BNA) 1857
CourtMassachusetts Appeals Court
DecidedAugust 9, 2011
DocketNo. 10-P-1073
StatusPublished
Cited by10 cases

This text of 951 N.E.2d 714 (Porio v. Department of Revenue) is published on Counsel Stack Legal Research, covering Massachusetts Appeals Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Porio v. Department of Revenue, 951 N.E.2d 714, 80 Mass. App. Ct. 57, 2011 Mass. App. LEXIS 1101, 112 Fair Empl. Prac. Cas. (BNA) 1857 (Mass. Ct. App. 2011).

Opinion

Milkey, J.

The plaintiff, Richard A. Porio, worked as a tax examiner for the Department of Revenue (DOR). In 2002, citing budgetary shortfalls, DOR eliminated Porio’s position. Porio filed an appeal with the Civil Service Commission (commission) pursuant to G. L. c. 31, § 43. In that proceeding (civil service appeal), Porio argued that DOR violated G. L. c. 31, § 39, by laying him off while retaining certain other tax examiners who had less seniority. The commission ultimately ruled against him, and its decision was upheld on appeal in an unpublished decision pursuant to our rule 1:28. See Human Resources Div. v. Porio, 72 Mass. App. Ct. 1110 (2008).

Separately, Porio filed an action pursuant to G. L. c. 151B, § 4(1C), alleging that DOR had discriminated against him because of his age. This claim was based on both disparate treatment and disparate impact theories. A Superior Court judge dismissed the c. 151B action in its entirety on the ground that, in light of the outcome of the civil service appeal, “Porio is . . . collaterally estopped from arguing that the DOR’s reason for terminating him was anything other than justified.” We disagree, and we additionally reject DOR’s argument that it is immune from age-based discrimination claims that are based on disparate impact.

1. Background, a. Porio’s appointment and layoff. In 1985, DOR hired Porio as a clerical employee. Six years later, Porio took and passed the civil service exam for a Tax Examiner I (TE-I) position, the lowest of seven tax examiner classifications used by DOR. In 1998, DOR appointed him to that position, and because he came to that position through having taken the relevant exam, he was classified as a “permanent” employee. See G. L. c. 31, § 1.

On September 6, 2002, DOR notified Porio that it was eliminating all existing TE-I positions (twenty-six in all) because of budgetary problems it was facing. DOR offered him a demotion to a clerical position, which he accepted (with a corresponding reduction in salary).

b. Civil service appeal. In his administrative appeal filed pursuant to G. L. c. 31, § 43, Porio focused on the fact that DOR eliminated his position while retaining a large group of tax examiners who had less seniority than he. The tax examiners in [59]*59that group held Tax Examiner II (TE-II) positions through provisional promotions (see G. L. c. 31, § 15), not as a result of their having taken civil service exams for the positions. Because these “provisional TE-IIs” “held permanency” only as TE-Is, Porio argued that they had to be considered as TE-Is for purposes of determining which tax examiners should be laid off first pursuant to G. L. c. 31, § 39.1 On this basis, Porio maintained that DOR was required to lay off these employees before it laid off other TE-Is, including him, who had greater seniority. The commission initially agreed with Porio and ordered DOR to reinstate him. As the commission explained, “[U]nder the circumstances here of existing and further expected departmental budget cuts, the appointing authority had the right to lay off employees but the wrong employees were chosen for layoff.”

DOR appealed to the Superior Court pursuant to G. L. c. 30A, § 14. While that appeal was pending, the Supreme Judicial Court issued its ruling in Andrews v. Civil Serv. Commn., 446 Mass. 611 (2006). In Andrews, the court resolved how provisionally promoted employees should be treated when reductions in force are conducted pursuant to § 39. Specifically, the court stated:

“Provisional promotion pursuant to G. L. c. 31, § 15, effects a real change from ‘one title to the next higher title.’ A provisionally promoted employee ceases to be ‘in’ the original title for purposes of § 39, and does not return to the lower title until the provisional promotion ceases to have effect.”

Id. at 618. The commission agreed to reconsider its decision in light of Andrews and concluded that § 39 did not prevent DOR from laying off Porio before it laid off provisional TE-IIs who had less seniority than he. A Superior Court judge [60]*60upheld the commission’s ruling, and we affirmed. Human Resources Div. v. Porio, 72 Mass. App. Ct. 1110.

c. Chapter 151B action. Porio was fifty-three years old at the time the layoffs occurred. According to his complaint, all but three of the laid-off TE-I employees were over forty at that time, with a mean age of forty-nine and a median age of forty-seven. The complaint further alleged that — in order to perform work that the laid-off TE-I employees previously had done — DOR promoted employees designated as “Management Analysts” to TE-II status, and that these newly-promoted TE-IIs were on average “substantially younger” than the employees they effectively replaced.2 DOR filed an answer in which it admitted that it had promoted significantly younger workers to TE-II status (the new entry-level tax examiner position) after the TE-I positions were eliminated. Specifically, DOR admitted that the mean and median ages of the terminated employees were fifty and forty-eight, respectively (slightly higher than the complaint alleged), and that the mean and median ages of the newly-promoted TE-II employees were 31.6 and 27.5, respectively.3 DOR denied that its employment decisions were motivated by age discrimination and instead maintained that its actions were “based upon legitimate, non-discriminatory reasons.”

2. Discussion. Porio brought his age discrimination claim on two separate theories: disparate treatment and disparate impact.4 [61]*61A disparate treatment case is one in which the employer “purposefully uses” the protected status in making its employment decisions. School Comm. of Braintree v. Massachusetts Commn. Against Discrimination, 377 Mass. 424, 428 (1979). By contrast, disparate impact cases “involve employment practices that are facially neutral in their treatment of different groups, but that in fact fall more harshly on one group than another.” Id. at 429. Because the motion judge focused on Porio’s disparate treatment theory, we examine that first.

a. Disparate treatment count. In his disparate treatment count, Porio alleges in essence that DOR improperly targeted older workers in deciding which positions to eliminate in order to meet its budgetary needs.5 For purposes of its motion to dismiss, DOR conceded that Porio’s complaint set forth a prima facie disparate treatment case. However, DOR argued, and the motion judge agreed, that the civil service appeal conclusively established both that DOR had demonstrated legitimate reasons for eliminating Porio’s position and that those reasons were not a pretext. Specifically, the judge ruled that the civil service appeal “resulted in a final judgment that the DOR was justified in terminating Porio, and that it did so for valid and good faith reasons.” As set forth below, the judge overstated the preclusive impact of the civil service appeal.

The test for when collateral estoppel lies is well established. A party is precluded from relitigating an issue when:

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Bluebook (online)
951 N.E.2d 714, 80 Mass. App. Ct. 57, 2011 Mass. App. LEXIS 1101, 112 Fair Empl. Prac. Cas. (BNA) 1857, Counsel Stack Legal Research, https://law.counselstack.com/opinion/porio-v-department-of-revenue-massappct-2011.