Rivas v. Federacion de Asociaciones Pecuarias de Puerto Rico

929 F.2d 814, 1991 U.S. App. LEXIS 5347, 56 Empl. Prac. Dec. (CCH) 40,659, 55 Fair Empl. Prac. Cas. (BNA) 861, 1991 WL 43688
CourtCourt of Appeals for the First Circuit
DecidedMarch 29, 1991
DocketNo. 90-1721
StatusPublished
Cited by29 cases

This text of 929 F.2d 814 (Rivas v. Federacion de Asociaciones Pecuarias de Puerto Rico) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rivas v. Federacion de Asociaciones Pecuarias de Puerto Rico, 929 F.2d 814, 1991 U.S. App. LEXIS 5347, 56 Empl. Prac. Dec. (CCH) 40,659, 55 Fair Empl. Prac. Cas. (BNA) 861, 1991 WL 43688 (1st Cir. 1991).

Opinion

LEVIN H. CAMPBELL, Circuit Judge.

Plaintiffs-appellants appeal from the judgment of the district court dismissing this age discrimination case. The district court granted defendant-appellee’s “Motion for Summary Judgment” and denied plaintiffs-appellants’ “Motion to Alter or Amend Judgment.” Plaintiffs-appellants are stevedores and hatchtenders as well as foremen, all of whom are over forty years of age, who worked loading and unloading ships in the Port of Mayaguez, Puerto Rico. They filed this lawsuit against Fed-eración de Asociaciones Pecuarias de Puer-to Rico (“FAP”), asserting claims for dis[816]*816missal and refusal to hire because of age under the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. § 623(a),1 and also asserted a pendent claim under Puerto Rico’s age discrimination law, Puerto Rico Law No. 100 of June 30, 1959, as amended, 29 L.P.R.A. § 146 et seq. (“Law 100”).

FAP, which operates grain mills for farm animal feed manufacturing in the Port of Mayaguez, moved for summary judgment on the grounds, inter alia, that plaintiffs failed to state a cause of action because FAP was not plaintiffs’ employer. Rather, FAP maintains that Antilles Shipping Company (“Antilles”), with whom FAP contracted to provide unloading services, was plaintiffs’ exclusive employer. FAP asserts that it never employed stevedores, hatchtenders or foremen prior to April 1988, relying until that time on services provided by Antilles. FAP acknowledges that, after concluding it could conduct unloading operations in-house for a lesser price per unloaded ton, it terminated its contract with Antilles in April 1988 and hired and supervised its own stevedores and hatchtenders.

In its “Motion Presenting Additional Ground for Summary Judgment” filed below, FAP contended that plaintiffs were simply disinclined to seek employment with it in April 1988 at the wages then offered (wages which FAP specifically offered to plaintiffs in the Equal Employment Opportunity Commission (“EEOC”) administrative procedures). FAP’s refusal to employ them at the higher wages provided in their collective bargaining agreement with Antilles did not, therefore, constitute age discrimination.

Plaintiffs filed no formal response in the district court to FAP’s “Motion Presenting Additional Ground for Summary Judgment.” 2 On appeal, however, plaintiffs argue that a cost justification for FAP’s treatment of them is not a legitimate defense to their age discrimination claim. Plaintiffs also insist that FAP had exercised such control over them prior to April 1988 as to have been their joint employer.

After receiving depositions, an affidavit and related materials, and after conducting a hearing, the district court concluded, in essence, that plaintiffs had not shown a genuine issue of material fact concerning whether defendant was plaintiffs’ joint employer. Rather, as a matter of law, the court ruled that defendant was not a joint employer. In support of this conclusion, the district court stated:

[T]he record has established that plaintiffs were employed by Antilles; they were paid by Antilles; their work assignment was controlled by Antilles; and their personnel decisions involved only Antilles for the [Collective Bargaining Agreement] was between Antilles and plaintiffs. The foremen who supervised the employees were hired by Antilles. Therefore, plaintiffs have failed to show that FAP exercised a significant control over the work of plaintiffs, who are employees of Antilles, or that FAP shared or co-determined with Antilles those matters governing the essential terms and conditions of employment.

The district court thereupon dismissed plaintiffs' complaint. Plaintiffs moved, thereafter, to alter or amend judgment on the grounds that the district court’s resolu[817]*817tion of the “joint employer” issue did not justify its dismissal of their alternate claim of a discriminatory refusal to hire. The district court denied the motion, stating: “Due to our findings and conclusion [that defendant was not plaintiffs’ joint employer], the present case cannot continue on the issue of adverse impact on defendant’s hiring practice....”

On appeal, plaintiffs make two arguments: (1) the district court erred in finding that no genuine issue of material fact exists as to whether FAP is the plaintiffs’ employer; and (2) the district court erred in dismissing, based on a determination that FAP is not plaintiffs’ employer, plaintiffs’ hiring discrimination claim. We agree with the district court that, on the showing made, FAP was not plaintiffs’ joint employer. Additionally, plaintiffs made no showing that FAP discriminated against them in hiring, whether on the basis of age or any other factor. We, therefore, affirm.

BACKGROUND

Antilles is a ships’ agent in Puerto Rico which is owned and operated independently from FAP. Antilles provides services, including loading and unloading services, in the Port of Mayaguez, for as many as thirty or forty principals. Antilles also solicits incoming and outgoing freight for vessels for as many as three hundred clients. Antilles had a longstanding relationship to provide services to FAP since the inception of FAP’s grain mill in the Port of Maya-guez. Antilles and FAP entered into a letter agreement on July 11, 19723 whereby Antilles would make arrangements for port clearance and berthage of vessels at the FAP pier and would “furnish and supervise” both line handlers to stabilize the vessels in front of FAP’s pier and laborers to unload the vessels. The Antilles work gangs, including deck hands, those working in the cargo holds, and foremen, worked in conjunction with FAP’s directly-employed equipment operators to unload the ships.

Under the agreement between Antilles and FAP, FAP would advise Antilles twenty-four hours in advance of the time a gang should report for work. Antilles would then make arrangements to engage the gangs of laborers that FAP had ordered, and would pay the laborers at the end of the work shift. FAP paid Antilles on a “cost plus” basis.4 Antilles agreed to carry worker’s compensation insurance, as well as specified amounts of public liability, employer’s and property damage insurance. These costs, together with laborers’ wages and other approved miscellaneous out-of-pocket expenses would be reimbursed by FAP,5 and Antilles would be paid an additional fee of twenty to thirty cents per short ton of cargo unloaded.6

The plaintiffs, who constituted the Antilles gangs working at FAP, are members of the Union de Trabajadores de Muelles (“UTM”), Locals 1902 and 1904, and the Asociación Insular de Capataces de Muelles, which groups foremen (or “capa-[818]*818taces”) and stevedores, respectively.7 Plaintiff Juan Muller Rivas estimated at his deposition that only eighty percent of the union members were over forty years of age, and there is no evidence that FAP treated the older union members any differently from the younger members. Throughout this period, UTM entered into three-year collective bargaining agreements with the Association of Steamship Agencies (“Association”), of which Antilles is a member.

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929 F.2d 814, 1991 U.S. App. LEXIS 5347, 56 Empl. Prac. Dec. (CCH) 40,659, 55 Fair Empl. Prac. Cas. (BNA) 861, 1991 WL 43688, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rivas-v-federacion-de-asociaciones-pecuarias-de-puerto-rico-ca1-1991.