Rouch World LLC v. Department of Civil Rights

CourtMichigan Supreme Court
DecidedJuly 28, 2022
Docket162482
StatusPublished

This text of Rouch World LLC v. Department of Civil Rights (Rouch World LLC v. Department of Civil Rights) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rouch World LLC v. Department of Civil Rights, (Mich. 2022).

Opinion

Michigan Supreme Court Lansing, Michigan

Syllabus Chief Justice: Justices: Bridget M. McCormack Brian K. Zahra David F. Viviano Richard H. Bernstein Elizabeth T. Clement Megan K. Cavanagh Elizabeth M. Welch

This syllabus constitutes no part of the opinion of the Court but has been Reporter of Decisions: prepared by the Reporter of Decisions for the convenience of the reader. Kathryn L. Loomis

ROUCH WORLD, LLC v DEPARTMENT OF CIVIL RIGHTS

Docket No. 162482. Argued March 2, 2022. Decided July 28, 2022.

Rouch World, LLC, and Uprooted Electrolysis, LLC, brought an action in the Court of Claims against the Department of Civil Rights and its director, seeking, among other relief, a declaratory judgment that the prohibition of sex discrimination in places of public accommodation under the Elliott-Larsen Civil Rights Act (ELCRA), MCL 37.2101 et seq., did not bar discrimination based on sexual orientation or gender identity. The owners of Rouch World had denied a request to host the same-sex wedding of Natalie Johnson and Megan Oswalt at their facility, claiming that doing so would violate their religious beliefs. The owner of Uprooted Electrolysis had denied hair-removal services to Marissa Wolfe, a transgender woman, on the same basis. Johnson, Oswald, and Wolfe filed complaints with the Department of Civil Rights, which had issued an interpretive statement in 2018 indicating that the ELCRA’s prohibition against discrimination based on sex included sexual orientation and gender identity. The Department of Civil Rights opened an investigation into both of these incidents, but the investigations were stayed when plaintiffs brought this action. Defendants moved for summary disposition under MCR 2.116(C)(8). The Court of Claims, CHRISTOPHER M. MURRAY, J., concluded that it was bound to follow Barbour v Dep’t of Social Servs, 198 Mich App 183 (1993), which had relied largely on then-current federal precedent regarding analogous provisions of Title VII of the Civil Rights Act, 42 USC 2000e et seq., to conclude that the ELCRA’s discrimination prohibition did not encompass sexual orientation. The Court of Claims therefore denied defendants’ motion for summary disposition as applied to plaintiff Rouch World’s arguments. However, because Barbour did not concern gender-identity discrimination, the Court of Claims ruled that when a person discriminates against someone who identifies with a gender different than that assigned at birth, then that is dissimilar treatment on the basis of sex and is prohibited under the ELCRA. In so concluding, the Court of Claims relied, in part, on the United States Supreme Court decision in Bostock v Clayton Co, 590 US ___, ___; 140 S Ct 1731 (2020), wherein the Court held that an employer violates Title VII when it intentionally fires a person on the basis of their homosexuality or transgender identity because doing so necessarily involves discrimination based on sex. Accordingly, the Court of Claims granted defendants’ motion for summary disposition as to plaintiff Uprooted Electrolysis’s arguments. Defendants filed an interlocutory application for leave to appeal in the Court of Appeals, challenging the rejection of summary disposition as to Rouch World. Defendants then filed a bypass application in the Supreme Court, which granted the application to address “whether the prohibition on discrimination ‘because of . . . sex’ in the [ELCRA] applies to discrimination based on sexual orientation.” 507 Mich 999 (2021).

In an opinion by Justice CLEMENT, joined by Chief Justice MCCORMACK and Justices BERNSTEIN, CAVANAGH, and WELCH, the Supreme Court held:

Discrimination on the basis of sexual orientation necessarily constitutes discrimination because of sex. Accordingly, the denial of “the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of a place of public accommodation or public service” on the basis of sexual orientation constitutes discrimination “because of . . . sex” and, therefore, constitutes a violation of the ELCRA under MCL 37.2302(a). The Court of Appeals’ decision in Barbour was overruled, and the Court of Claims’ decision with respect to Rouch World was reversed.

1. The ELCRA provides in MCL 37.2302(a) that except where permitted by law, a person shall not deny an individual the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of a place of public accommodation or public service because of religion, race, color, national origin, age, sex, or marital status. In Barbour, the Court of Appeals held that the ELCRA did not encompass sexual-orientation discrimination, and it based this decision on federal cases holding, with regard to Title VII, that Congress’s intent in prohibiting discrimination because of sex was to place women on an equal footing with men rather than to regulate discrimination based on sexual orientation. Since the Court of Appeals decision in Barbour, the cases on which that Court relied were overturned in Bostock, 590 US ___; 140 S Ct 1731. In Bostock, the United States Supreme Court considered whether discrimination based on sexual orientation or gender identity was encompassed by Title VII’s prohibition of employee discharge because of sex. The Court proceeded on the assumption that “sex” referred only to biological distinctions between male and female. Next, the Court noted that it had previously defined “because of” as meaning “by reason of” or “on account of,” which established a but-for standard of causation. The Court specifically eschewed a definition of discrimination that would require an analysis comparing the employer’s differential treatment of employees grouped by protected characteristic rather than individual employees themselves, concluding that the relevant inquiry under Title VII was whether the specific employee was treated differently, not whether the employer treats different groups of persons differently. From these textual assessments, the Court deduced that an employer violates Title VII when it intentionally fires an individual employee based in part on sex. Applying this principle to discrimination on the basis of sexual orientation and gender identity, the Court concluded that it would be impossible to discriminate against a person for being homosexual or transgender without discriminating against that individual based on sex—in other words, the Court held that discrimination based on sexual orientation or gender identity is necessarily encompassed within discrimination because of sex.

2. The Michigan Supreme Court has previously held that the operative phrase “because of” in the ELCRA establishes a but-for causation standard. Under this standard, causation is satisfied where sex is a determining factor in the discriminatory action; in other words, causation is established where the discriminatory action would not have occurred but for the sex of the complainant. Accordingly, the question in this case was whether complainants who were denied service because of their sexual orientation would not have been so denied but for their sex. Like its federal counterpart, the ELCRA does not define the term “sex.” However, regardless of whether one defines “sex” expansively or narrowly, the result of the textual analysis is the same: discrimination on the basis of sexual orientation necessarily involves discrimination because of sex in violation of the ELCRA, for the persuasive reasons articulated in Bostock.

3. Rouch World denied Johnson’s request for services related to her wedding with Oswalt. Had Johnson been a man, Rouch World would not have denied its services. In other words, but for Johnson’s sex, Rouch World would have rendered its services to Johnson.

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