JOHN R. BROWN, Chief Judge:
This case involves a unique question arising under Title VII of the 1964 Civil Rights Act.
That question is whether a charge filed pursuant to § 704(a) of the Act (42 U.S.C.A. § 2000e-3(a)) prohibits an employer from discharging an
employee for having made false statements in a request for reconsideration of his case before the Equal Employment Opportunity Commission claiming racial discrimination against him and fellow Negro employees. The District Court, finding that the statement was not privileged, upheld the discharge and refused to grant relief to the discharged employee. We reverse. Appellant here, Peter Wrenn, a Negro, had been employed by Employer, American Cast Iron Pipe Co. of Birmingham, Alabama, for some 17 years at the time of his discharge in September 1967.' The Employer was willed in trust to the employees by its founder in 1924. The stock was left to a Board of Management and a Board of Operatives. Membership on the Board of Operatives and the Board of Management is limited to white male employees. Another board, called the Auxiliary Board, is limited to Negro male employees. The Auxiliary Board does not have a meaningful voice in matters of management but exists solely for the purpose of bringing to the attention of the Board of Operatives matters which affect Negro employees. Employer employs some 2700 employees, of whom 790 are Negro. None of the employees are represented by a labor organization. There are 12 members on the Auxiliary Board and 12 on the Board of Operatives. Each member serves for a 2-year term and 6 new members are elected each year. The race lines are preserved throughout. Only Negro employees vote for members of the Auxiliary Board and only white employees vote for members of the Board of Operatives. Wrenn, prior to his discharge, had been elected by his fellow Negro employees to serve 2 terms of 2 years each on the Auxiliary Board. He was serving his second 2-year term as a member of the Auxiliary Board and as chairman of that board at the time of his discharge.
The Company has been a contractor with the United States since the effective date of Executive Order No. 10925 signed by President Kennedy, and therefore has been under an obligation since 1961 to undertake an affirmative action program to eliminate discriminatory’employment based on race or to institute affirmative action programs to assure equal employment opportunities to minority groups.
At least since 1963, Wrenn and other Negro employees have continuously and persistently sought relief from claimed racially discriminatory employment practices of Employer through various appeals to Federal agencies and officials. In November 1963— prior to the availability of Title VII— Wrenn sent a letter to the President of the United States alleging the continuance of serious racial discrimination by Employer. He received a reply from a Mr. Brimm, Chief Equal Employment Opportunity Officer, who came to Birmingham and investigated the charge and subsequently filed a no-eause finding. Wrenn and others continued to petition the President for relief. On March 30, 1965, the Committee For Equal Job Opportunity was organized by a majority of the Negro employees of Employer.
After the effective date of Title VII of the Civil Rights Act of 1964,
Wrenn, as Chairman of the Committee For Equal Job Opportunity, in addition to filing on his own behalf, assisted fellow Negro employees in the filing of numerous charges of employment discrimination. Several of those charges, including the one of Wrenn, formed the basis of
Pettway
7
recently decided by an
other panel of this Court, During the pendency of
Pettway I
in the Court below, Wrenn was suspended from his job for two weeks because of an alleged altercation with a white employee. In September 1966, Wrenn filed a charge with EEOC alleging that he had been suspended because of his race. In May 1967, Wrenn was advised by EEOC that his charge had been dismissed, because EEOC after investigation had concluded that his suspension did not constitute a violation of Title VII. However, Wrenn was advised that he could submit additional information if he thought EEOC should reconsider its finding. It is the response to this invitation which is at the bottom of the present case. On July 13, 1967, Wrenn, in his capacity as Chairman of the Committee For Equal Job Opportunity wrote a letter to Stephens Shulman, Chairman of EEOC stating his objections to the May 1967 no-cause finding, and requesting further investigation.
EEOC, and later the
District Court, treated the letter as a timely filed petition for reconsideration. EEOC forwarded a copy of the letter to the Company in August 1967. On September 5, 1967, an official of Employer summoned Wrenn to his office, and upon ascertaining the authenticity of Wrenn’s signature on the letter, permanently discharged Wrenn for making false and malicious statements about Employer in the letter. On September 13, 1967, Wrenn filed another charge with EEOC alleging that his discharge of September 5 was an act of reprisal for Wrenn’s having previously filed charges of discrimination against Employer and that his discharge was based on discrimination because of his race.
Wrenn filed a petition in the District Court for injunctive relief on September 15, 1967, as an ancillary matter to
Pettway I
(No. 24813, see note 4
supra).
The District Court concluded that since it had earlier dismissed that ease for lack of jurisdiction, the case was not then pending so it did not have jurisdiction as an ancillary proceeding. However, the Court treated the motion as a new and independent action and after hearing, denied relief on the merits, ruling that the letter constituted serious, false charges and was not privileged.
We must first determine whether the District Court erred in refusing to treat Wrenn’s motion as ancillary to
Pettway I.
We find that it did. Wrenn’s motion for injunction pending appeal specifically invoked F.R.Civ.P. 62 (c). It plainly asserted that while
Pettway I
was pending in the District Court, Wrenn had been suspended by Employer for two weeks supposedly because of his involvement in an altercation with another employee, but that his later discharge actually resulted from charges filed with EEOC protesting that suspension, and that both the suspension and discharge were the result of Wrenn’s continuing efforts to seek relief under Title VII from racially discriminatory employment practices assailed in
Pettway I.
Wrenn sought reinstatement to maintain the status quo pending determination of the question whether, in fact, the Company was in violation of Title VII. Regardless of the District Court’s view concerning the necessity for conciliation efforts before suit could be filed,
the District Court did have
jurisdiction of this motion for injunc-tive relief as ancillary to the case then pending on appeal.
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JOHN R. BROWN, Chief Judge:
This case involves a unique question arising under Title VII of the 1964 Civil Rights Act.
That question is whether a charge filed pursuant to § 704(a) of the Act (42 U.S.C.A. § 2000e-3(a)) prohibits an employer from discharging an
employee for having made false statements in a request for reconsideration of his case before the Equal Employment Opportunity Commission claiming racial discrimination against him and fellow Negro employees. The District Court, finding that the statement was not privileged, upheld the discharge and refused to grant relief to the discharged employee. We reverse. Appellant here, Peter Wrenn, a Negro, had been employed by Employer, American Cast Iron Pipe Co. of Birmingham, Alabama, for some 17 years at the time of his discharge in September 1967.' The Employer was willed in trust to the employees by its founder in 1924. The stock was left to a Board of Management and a Board of Operatives. Membership on the Board of Operatives and the Board of Management is limited to white male employees. Another board, called the Auxiliary Board, is limited to Negro male employees. The Auxiliary Board does not have a meaningful voice in matters of management but exists solely for the purpose of bringing to the attention of the Board of Operatives matters which affect Negro employees. Employer employs some 2700 employees, of whom 790 are Negro. None of the employees are represented by a labor organization. There are 12 members on the Auxiliary Board and 12 on the Board of Operatives. Each member serves for a 2-year term and 6 new members are elected each year. The race lines are preserved throughout. Only Negro employees vote for members of the Auxiliary Board and only white employees vote for members of the Board of Operatives. Wrenn, prior to his discharge, had been elected by his fellow Negro employees to serve 2 terms of 2 years each on the Auxiliary Board. He was serving his second 2-year term as a member of the Auxiliary Board and as chairman of that board at the time of his discharge.
The Company has been a contractor with the United States since the effective date of Executive Order No. 10925 signed by President Kennedy, and therefore has been under an obligation since 1961 to undertake an affirmative action program to eliminate discriminatory’employment based on race or to institute affirmative action programs to assure equal employment opportunities to minority groups.
At least since 1963, Wrenn and other Negro employees have continuously and persistently sought relief from claimed racially discriminatory employment practices of Employer through various appeals to Federal agencies and officials. In November 1963— prior to the availability of Title VII— Wrenn sent a letter to the President of the United States alleging the continuance of serious racial discrimination by Employer. He received a reply from a Mr. Brimm, Chief Equal Employment Opportunity Officer, who came to Birmingham and investigated the charge and subsequently filed a no-eause finding. Wrenn and others continued to petition the President for relief. On March 30, 1965, the Committee For Equal Job Opportunity was organized by a majority of the Negro employees of Employer.
After the effective date of Title VII of the Civil Rights Act of 1964,
Wrenn, as Chairman of the Committee For Equal Job Opportunity, in addition to filing on his own behalf, assisted fellow Negro employees in the filing of numerous charges of employment discrimination. Several of those charges, including the one of Wrenn, formed the basis of
Pettway
7
recently decided by an
other panel of this Court, During the pendency of
Pettway I
in the Court below, Wrenn was suspended from his job for two weeks because of an alleged altercation with a white employee. In September 1966, Wrenn filed a charge with EEOC alleging that he had been suspended because of his race. In May 1967, Wrenn was advised by EEOC that his charge had been dismissed, because EEOC after investigation had concluded that his suspension did not constitute a violation of Title VII. However, Wrenn was advised that he could submit additional information if he thought EEOC should reconsider its finding. It is the response to this invitation which is at the bottom of the present case. On July 13, 1967, Wrenn, in his capacity as Chairman of the Committee For Equal Job Opportunity wrote a letter to Stephens Shulman, Chairman of EEOC stating his objections to the May 1967 no-cause finding, and requesting further investigation.
EEOC, and later the
District Court, treated the letter as a timely filed petition for reconsideration. EEOC forwarded a copy of the letter to the Company in August 1967. On September 5, 1967, an official of Employer summoned Wrenn to his office, and upon ascertaining the authenticity of Wrenn’s signature on the letter, permanently discharged Wrenn for making false and malicious statements about Employer in the letter. On September 13, 1967, Wrenn filed another charge with EEOC alleging that his discharge of September 5 was an act of reprisal for Wrenn’s having previously filed charges of discrimination against Employer and that his discharge was based on discrimination because of his race.
Wrenn filed a petition in the District Court for injunctive relief on September 15, 1967, as an ancillary matter to
Pettway I
(No. 24813, see note 4
supra).
The District Court concluded that since it had earlier dismissed that ease for lack of jurisdiction, the case was not then pending so it did not have jurisdiction as an ancillary proceeding. However, the Court treated the motion as a new and independent action and after hearing, denied relief on the merits, ruling that the letter constituted serious, false charges and was not privileged.
We must first determine whether the District Court erred in refusing to treat Wrenn’s motion as ancillary to
Pettway I.
We find that it did. Wrenn’s motion for injunction pending appeal specifically invoked F.R.Civ.P. 62 (c). It plainly asserted that while
Pettway I
was pending in the District Court, Wrenn had been suspended by Employer for two weeks supposedly because of his involvement in an altercation with another employee, but that his later discharge actually resulted from charges filed with EEOC protesting that suspension, and that both the suspension and discharge were the result of Wrenn’s continuing efforts to seek relief under Title VII from racially discriminatory employment practices assailed in
Pettway I.
Wrenn sought reinstatement to maintain the status quo pending determination of the question whether, in fact, the Company was in violation of Title VII. Regardless of the District Court’s view concerning the necessity for conciliation efforts before suit could be filed,
the District Court did have
jurisdiction of this motion for injunc-tive relief as ancillary to the case then pending on appeal.
That
Pettway I
was dismissed for want of jurisdiction, rather than on the intrinsic merits, is a matter of no consequence. Of course, the Trial Court could not, during the pendency of the appeal, take action with respect to the order then under review which would hinder or frustrate
determination by the Court of Appeals. But the case was a “pending” one, at least in the sense that if, as actually happened, the Court of Appeals differed with the District Court, the case would go back as a viable one from the very date of its filing.
Several cases
give strong support to the conclusion that the Trial Court erred in failing to treat the petition as ancillary to
Pettway I. Pettway II
followed the traditional Title VII pleading seeking an injunction and reinstatement.
Pettway II
sought relief under F.R.Civ.P. 62(c). It is well settled that 62(c) is expressive of the power in the courts to preserve the status quo pending appeal.
Once power to act is established, it is equally plain that there was a need for the Trial Court to maintain the status quo and thus avoid the
possibility that
Pettway I
might become moot as to Wrenn.
We therefore find that the District Court should have considered the motion as ancillary to
Pettway I.
Considering that the denial of a preliminary injunction was for nearly all practical purposes the ultimate determination of Wrenn’s case on the merits — maybe as to both
Pettway I
as well as
II
— we look upon it in that light, uninsulated by the usual principle that tests a grant or denial of preliminary injunctions in terms of abuse of discretion. Here there were a number of reasons clearly calling for interim protection.
The question of charging party privilege is one of first impression under Title VII. The Employer’s position, as we understand it, is that Wrenn’s allegations contained in his July 13, 1967 letter to EEOC “constitutes a false and malicious accusation that [Employer] bribed or improperly influenced federal officers in the exercise of their official duties.” The Employer maintains that it was knowingly and maliciously libeled and discharged Wrenn for that reason.
Wrenn, on the other hand, makes a dual response. First, he maintains that the allegedly offensive portion of the letter
is a mere expression of personal opinion, conjecture, or arguing technique. Second, even if seriously libelous, the real cause for being fired was his prior activities in the civil rights movement within Employer’s operations, not the letter. Wrenn claims that these statements, even if false, are protected under section 704(a) of the Act (42 U.S. C.A. § 2000e-3(a)), which clearly states that “it shall be unlawful employment practice for an employer to discriminate against any of his employees * * * because he has opposed any practice made an unlawful employment practice by this sub-chapter, or because he has made a charge * * * or participated * * * in an investigation, (or) proceeding * * * under the sub-chapter.” We can assume that the Court found the letter was false and inaccurate because there was no evidence to support the bribery charge. However, it is not at all clear that the Court found the letter motivated by malice. The District Court found that Wrenn was discharged for good and sufficient cause in no way motivated by an intention to retaliate for filing and prosecuting discriminatory employment charges, and that the discharge did not constitute an unlawful employment practice under § 704(a).
It bears repeating, that EEOC, two months later, arrived at exactly the opposite conclusion. See note 6
supra.
EEOC declared: “Charging party’s statements were made in the exercise of his right under Title VII of the Civil Rights Act of 1964 to complain to this Commission and to avail himself fully of our power to hear, decide, and attempt to conciliate charges of job discrimination that are within our jurisdiction. * * * Reasonable cause exists to believe that the Respondent discharged Charging Party as an act of reprisal in violation of Section 704(a) of Title VII of the Civil Rights Act of 1964 as alleged.”
There
can be no doubt about the purpose of § 704(a). In unmistakable language it is to protect the employee who utilizes the tools provided by Congress to protect his rights. The Act will be frustrated if the employer may unilaterally determine the truth or falsity of charges and take independent action.
This is particularly required under the machinery set up by Title VII. Unlike so many Governmental structures in administrative law, EEOC is an administrative agency without the power of enforcement. While it can subpoena witnesses, hold hearings, and attempt conciliation, it has no authority to issue orders or compel enforcement. More than that, except for the pattern or practice situation, (§ 707(a), 42 U.S.C.A. § 2000e-6(a)), in which the Attorney General may institute suit and intervention by him by leave of the court on the Attorney General’s certification that the ease is of general public importance, either on his own or in response to recommendation of EEOC, (§ 705(g) (6), 42 U.S.C.A. § 2000e-4(f) (6), Government does not enter the litigation. The suit is between private parties. The burden of enforcement rests on the individual through his suit in Federal District Court. But charges must first have been filed with EEOC. Consequently, the filing of charges and the giving of information by employees is essential to the Commission’s administration of Title VII, the carrying out of the congressional policy embodied in the Act and the invocation of the sole sanction of Court compulsion through employee instituted suit. “Whether in name or not, the suit is perforce a sort of class action for fellow employees similarly situated.”
Jenkins, supra,
400 F.2d at 33. “When conciliation has failed— either outright or by reason of the expiration of the statutory timetable— that individual, often obscure, takes on the mantel of the sovereign.”
Jenkins, supra,
400 F.2d at 32.
This is often the only way that such issues can be raised — by an individual drafting his charge as best he can without expert legal advice.
This activity, essential as it is, must be protected. What the Supreme Court said in NLRB v. Burnup and Sims, Inc., 1964, 379 U.S. 21, 23, 85 S.Ct. 171, 173, 13 L.Ed.2d 1, 4, is certainly true here in a situation in which a single poor, ignorant employee with a grievance, not a sling shot in his hand, faces a huge industrial employer in this modern day David and Goliath confrontation :
“A protected activity acquires a precarious status if innocent employees can be discharged while engaging in it, even though the employer acts in good faith.”
Both EEOC and Employer claim to find support for their view in a close examination of § 8(a) (4) of the National Labor Relations Act, 29 U.S.C.A. § 158 (a) (4) and § 15(a) (3) of the Fair Labor Standards Act, 29 U.S.C.A. § 215 (a) (3) as an aid in interpreting § 704 (a) of Title VII.
While we find the
language of Title VII even broader
than that contained in the NLRA or the FLSA and hold that the courts must protect an individual filing charges with EEOC, we should emphasize that reliance on the Labor Acts for interpretive guidance must necessarily be guarded because the differences between those Acts and Title VII may well outnumber the similarities.
Notwithstanding these differences, abundant support can be found under such Acts for the conclusion here that protection must be afforded to those who seek the benefit of statutes designed by Congress to equalize employer and employee in matters of employment.
Congress, in Title VII, as did the Supreme Court in New York Times v. Sullivan, 1964, 376 U.S. 254, 84 S.Ct. 710, 11 L.Ed.2d 686, sought to evaluate and balance the competing interests. On the one hand is the protection of the employer from damage caused by maliciously libelous statements and on the other is protection of the employee from racial and other discrimination. In Title VII Congress sought to protect the employer’s interest by directing that EEOC proceedings be confidential and by imposing severe sanctions against unauthorized disclosure. Sections 706(a), 709(e), 42 U.S.C.A. §§ 2000e-5(a), 2000e-8(e). The balance is therefore struck in favor of the employee in order to afford him the enunciated protection from invidious discrimination, by protecting his right to file charges.
We hold that where, disregarding the malicious material contained in a charge (or petition for reconsideration, or other communication with EEOC sufficient for EEOC purposes, or in a proceeding before EEOC) the charge otherwise satisfies the liberal requirements of a charge,
the charging party is exercising a protected right under the Act. He may not be discharged for such writing.
The employer may not take it on itself to determine the correctness or consequences of it. Nor may the court either sustain any employer disciplinary action or deny relief because of the presence of such malicious material. We do not decide whether a writing purporting to be and to be used as a charge, which does not meet the requisites of a charge such as is required to set the EEOC machinery in operation is protected. We leave that for another day and another court.
This letter (note 5
supra)
for reconsideration was a good charge. In Parts [1], [2], [4], and [5] Wrenn, as Chairman of the Committee For Equal Job Opportunity clearly criticizes the internal operations of EEOC. Part [3] is a categorical allegation that Employer is violating the Act and intends to continue to violate the Act. Wrenn, and especially this Committee, were clearly entitled to make these charges. The District Judge did not say that Wrenn could be discharged for making these charges. With Parts [1], [2], [4], and [5] constituting arguably good charges deserving of EEOC investigation and later employee-instituted suit, the price is too high to permit the presence of Part [6] (later claimed or proved to be false or malicious) to allow the Employer to discharge the employee, and worse, throw out all of the charges with the awesome finality of a common-law demurrer. The Employee is not stripped of his protection because he says too much. If he says enough the Employee can suffer no detriment by virtue of having filed charges with EEOC which also contain false or malicious statements. By utilizing EEOC machinery he is exercising a protected right.
Since the Employee was discharged because he filed the charge and his request for reconsideration with EEOC, his discharge was a violation of § 704(a) and he must be reinstated and afforded other appropriate relief including appropriate back pay and such further pro
tective orders or injunctions as may be needed.
The Trial Court found that Wrenn was not discharged by reason of racial discrimination (findings 6 and 9, note 13
supra).
The Judge expressly found that he was discharged for having made the false, malicious statement in the charge (findings 4 and 9, conclusion 3, note 13
supra).
On the Employer’s own candid story, “when it received knowledge of the making by [Wrenn] of the false and malicious accusations of bribery against it, [Employer] instituted prompt disciplinary action and discharged [Wrenn] for this reason.”
That discharge violated § 704(a) of the Act.
The case is reversed and remanded for further proceedings not inconsistent with this opinion.
Reversed and remanded.