Reed v. Lawrence Chevrolet, Inc.

14 F. App'x 679
CourtCourt of Appeals for the Seventh Circuit
DecidedJuly 23, 2001
DocketNo. 00-3933
StatusPublished
Cited by8 cases

This text of 14 F. App'x 679 (Reed v. Lawrence Chevrolet, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reed v. Lawrence Chevrolet, Inc., 14 F. App'x 679 (7th Cir. 2001).

Opinion

ORDER

Melvin Reed sued under Title VII of the CM Rights Act of 1964, 42 U.S.C. § 2000e, and 42 U.S.C. § 1981, alleging that Lawrence Chevrolet, Inc. (“Lawrence Chevrolet”), a car and truck dealership in Menomonee Falls, Wisconsin, failed to hire him on several occasions because he is African-American. Reed also alleged that Falls Chevrolet, Inc. (“Falls Chevrolet”), which subsequently acquired Lawrence Chevrolet’s assets, purchased Lawrence Chevrolet’s liabilities and therefore is liable as a successor corporation. The district court granted summary judgment for Defendants, concluding that Reed’s Title VII claims were partially time-barred, that Reed presented no evidence that Lawrence Chevrolet’s proffered reasons for not hiring him were pretextual, and that Falls Chevrolet was not liable as a successor. Reed appeals, and we affirm in part and reverse in part.

Reed alleges that on five separate occasions between 1996 and March 1998, he applied for jobs at Lawrence Chevrolet as a salesperson and finance manager. Lawrence Chevrolet acknowledges that Reed applied to be a finance manager in August 1997 and a salesperson in March 1998, but denies that Reed filed any other applications. Lawrence Chevrolet never hired Reed. After rejecting Reed’s August 1997 application, Larry Malinowski, Lawrence Chevrolet’s sole shareholder, hired a Caucasian, Jackie Lefco, as finance manager. Malinowski testified by affidavit that Lefco had several years of finance experience and that he believed she was more qualified. As for the March 1998 application, sales manager Pete Steinhauer testified by affidavit that he did not hire Reed because (1) he wanted a long-term salesperson and Reed told him that his long term interest was in finance and not sales, and (2) Reed had lengthy gaps in his employment history. Lawrence Chevrolet filled the open sales positions with Caucasians. Reed claims that he became suspicious of Lawrence Chevrolet’s explanations for not hiring him when he observed an all-Caucasian workforce at Lawrence Chevrolet on unspecified dates during his visits to its offices in connection with his applications.

In April 1998 Reed filed a discrimination charge against Lawrence Chevrolet with the Equal" Rights Division of the Wisconsin Department of Workforce Development (“ERD”) and the Equal Employment Opportunity Commission (“EEOC”). In November 1998 the ERD concluded that no probable cause existed to believe that Lawrence Chevrolet had discriminated against Reed on the basis of his race. Reed requested a notice of right to sue, which the EEOC issued in June 1999.

Soon after the ERD made its probable cause finding, in December 1998, Lawrence Chevrolet sold all of its assets to Falls Chevrolet.

Reed filed this federal lawsuit in August 1999. Defendants answered in November 1999. In January 2000, before the parties had conducted any discovery other than the exchange of initial disclosures under Federal Rule of Civil Procedure 26(a)(1) (the district court never issued a discovery schedule), Defendants moved for summary [683]*683judgment. The motion was supported by the affidavits of Steinhauer and Malinowski. Malinowski asserted that Lawrence Chevrolet did not hire Reed in 1997 because of his lack of experience. Steinhauer asserted that Lawrence Chevrolet did not hire Reed in 1998 because he had no long-term interest in sales and had lengthy gaps in his employment history. Defendants argued that Reed’s claims arising out of Lawrence Chevrolet’s failure to hire him in 1996 were time-barred, that Reed could not demonstrate pretext, and that Falls Chevrolet was not a successor as a matter of law. Five days after Defendants moved for summary judgment, the district court stayed all proceedings on the basis that Reed’s filing of a bankruptcy petition divested him of standing to pursue his claims on his own behalf. Reed’s bankruptcy petition subsequently was dismissed, and the court lifted the stay in May 2000.

Ten days later, Reed moved under Federal Rule of Civil Procedure 56(f) to stay the summary judgment proceedings for 120 days in order to conduct discovery on the issues of pretext and Falls Chevrolet’s liability as a successor. Reed submitted supporting affidavits from his attorney that detailed the discovery which he contended was necessary to demonstrate that Lawrence Chevrolet’s proffered reasons for not hiring him were pretextual and that Falls Chevrolet was liable as a successor. Reed also responded to Defendants’ limitations argument by asserting that his claims arising out of Lawrence Chevrolet’s failure to hire him in 1996 were timely as part of a continuing violation.

In June 2000 the district court denied the Rule 56(f) motion, concluding that “[i]n some cases, including this one, an early motion for summary judgment is entirely appropriate,” and that “a substantial factual record” was developed before the ERD. The court added that discovery was not necessary regarding the question of Falls Chevrolet’s successorship because that question could be decided as a matter of law.

In September 2000 the district court granted summary judgment for Defendants. The court first concluded that Reed’s Title VII claims arising out of the 1996 failure to hire were time-barred because they were based on conduct that occurred more than 300 days before Reed filed his discrimination charge with the ERD. The court rejected Reed’s continuing violation argument, reasoning that Reed failed to present evidence as to why he should not have been aware of the allegedly discriminatory nature of Lawrence Chevrolet’s failure to hire him when it occurred in 1996. In any event, the court concluded that Reed could not sustain his Title VII and § 1981 claims because he faded to present any evidence that Lawrence Chevrolet’s articulated reasons for not hiring him in 1997 and in 1998 were pretextual. Finally, the district court found that Falls Chevrolet did not succeed to Lawrence Chevrolet’s liability under Wisconsin law because Falls Chevrolet’s business was not a “mere continuation” of Lawrence Chevrolet’s business without evidence of any identity of ownership and control between the two companies.

On appeal Reed contends (1) that the district court erred in rejecting his continuing violation argument and thus in finding that his claims were time-barred, (2) that the district court erred in denying his Rule 56(f) motion, (3) that the district court erred in finding that Falls Chevrolet was not hable as a successor, and (4) that Judge Randa was unfairly biased against Reed and should have recused himself. Our review is de novo, and we evaluate the record in the light most favorable to Reed, drawing all reasonable inferences in his [684]*684favor. Jordan v. Summers, 205 F.3d 337, 341 (7th Cir.2000). Summary judgment is appropriate when “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).

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14 F. App'x 679, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reed-v-lawrence-chevrolet-inc-ca7-2001.