Schmidt v. Safeway Inc.

864 F. Supp. 991, 3 Am. Disabilities Cas. (BNA) 1141, 1994 U.S. Dist. LEXIS 13610, 1994 WL 521175
CourtDistrict Court, D. Oregon
DecidedJune 9, 1994
DocketCV 93-1322-PA
StatusPublished
Cited by79 cases

This text of 864 F. Supp. 991 (Schmidt v. Safeway Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schmidt v. Safeway Inc., 864 F. Supp. 991, 3 Am. Disabilities Cas. (BNA) 1141, 1994 U.S. Dist. LEXIS 13610, 1994 WL 521175 (D. Or. 1994).

Opinion

OPINION

PANNER, District Judge.

Plaintiff Stanley Schmidt brings this action against defendant Safeway, Inc., alleging he was terminated from employment and denied reasonable accommodation in violation of the Americans with Disabilities Act (“ADA”), 42 U.S.C. § 12101 et seq., and its Oregon counterpart, ORS 659.425. Though the parties have briefed numerous legal and factual disputes, most are either not relevant to this case, or do not present a factual dispute for the jury. This opinion is intended to summarize and explain some of the pre-trial rulings I previously announced.

1. After-Discovered Evidence of Misstatement on Application:

Defendant contends it is entitled to summary judgment because it has learned, through discovery, that when plaintiff applied for his job in 1970, he may have failed to disclose information about a 1956 conviction for contributing to the delinquency of a minor. Some circuits have held that after-discovered evidence of misconduct that would have justified termination had the employer known of the conduct earlier is a complete defense because the employee has suffered no legal injury. See, e.g., Summers v. State Farm, Mut. Auto. Ins. Co., 864 F.2d 700 (10th Cir.1988); McKennon v. Nashville Banner Pub. Co., 9 F.3d 539 (6th Cir.1993), cert. granted, — U.S.-, 114 S.Ct. 2099, 128 L.Ed.2d 661 (1994).

The Summers rule permits the employer to justify an employment decision with facts that admittedly played no role in that decision. Summers is also inconsistent with section 107 of the Civil Rights Act of 1991, 105 Stat. 1075, which provides that the employee is a prevailing party for attorney’s fees purposes so long as discrimination was a motivating factor in his termination, even if the employer would have taken the same action anyway for other reasons. The Summers rule is bad policy because it encourages an employer charged with discrimination to comb the background of the plaintiff to find any infirmities. That spawns a wave of collateral disputes which greatly complicate the litigation. Such investigations may also have a chilling effect upon an employee considering whether to file a discrimination claim.

The Ninth Circuit has never addressed this issue squarely, but I think it would reject the Summers rule. In a slightly different context in Norris v. City and County of San Francisco, 900 F.2d 1326, 1331 (9th Cir.1990), the Ninth Circuit held that information about the applicant that was unknown to the employer at the time the decision was made not to hire him could not have entered into the calculus of the decision and would be *995 entirely irrelevant. Id. at 1331. Such after-acquired data cannot explain the employer’s decision not to hire this applicant. Id. The issue to be resolved is whether the decision, when it occurred, was then actually motivated by illegal discrimination, not whether the employer could thereafter articulate some hypothetical nondiscriminatory reason for its decision. Id.

There may be circumstances where after-discovered evidence can be used to limit the employee’s remedy. See, e.g., Wallace v. Dunn Const. Co., Inc., 968 F.2d 1174 (11th Cir.1992). For instance, if an employer discharged a doctor on account of his race, but later learns that the “doctor” never attended medical school, the employee would obviously not be entitled to reinstatement to his former position. In the present case, plaintiff was 18-years old when he was charged with contributing to the delinquency of a minor for having intercourse with a 17-year old girl in 1956. Plaintiff avers that when he interviewed with Safeway in 1970, he disclosed the conviction to the interviewer, who told him not to worry about it and not to bother mentioning it on his employment application.

I have no intention of conducting a mini-trial to determine what plaintiff told the interviewer in 1970, or whether failure to disclose this 1956 conviction on a job application in 1970 would result in the automatic termination of that employee in 1994. This 40-year old conviction has no bearing upon plaintiffs fitness to drive a truck. Defendant argues that omissions on a job application are always relevant because they reflect upon the applicant’s honesty. Plaintiff was employed by Safeway for 22 years, during which time defendant had ample opportunity to observe defendant. If defendant had doubts about his honesty, it would have terminated plaintiff long ago. Accordingly, I grant partial summary judgment in favor of plaintiff on this affirmative defense. I also grant plaintiffs motion in limine precluding use of this evidence for impeachment.

2. Failure to Arbitrate:

Defendant argues plaintiffs claims are barred because he failed to assert his ADA claim at the grievance hearing held pursuant to the collective bargaining agreement. I disagree. Statutory claims may be the subject of an arbitration agreement, enforceable pursuant to the Federal Arbitration Act. Gilmer v. Interstate/Johnson Lane Corp., 500 U.S. 20, 111 S.Ct. 1647, 114 L.Ed.2d 26 (1991) (securities broker bound by agreement to arbitrate any claims arising out of his employment or termination). However, Gilmer expressly distinguished a situation where the employee agrees to arbitrate disputes arising out of a collective bargaining agreement:

In submitting his grievance to arbitration, an employee seeks to vindicate his contractual right under a collective-bargaining agreement. By contrast, in filing a lawsuit under Title VII, an employee asserts independent statutory rights accorded by Congress. The distinctly separate nature of these contractual and statutory rights is not vitiated merely because both were violated as a result of the same factual occurrence.

Id. at 34, 111 S.Ct. at 1656 (quoting Alexander v. Gardner-Denver Co., 415 U.S. 36, 94 S.Ct. 1011, 39 L.Ed.2d 147 (1974)). The Court also noted a labor arbitrator has authority only to resolve questions of contractual rights, and cannot' grant relief for violations of civil rights laws. Id. I grant summary judgment for plaintiff on this affirmative defense.

3. Post-Termination Settlement Offers:

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Bluebook (online)
864 F. Supp. 991, 3 Am. Disabilities Cas. (BNA) 1141, 1994 U.S. Dist. LEXIS 13610, 1994 WL 521175, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schmidt-v-safeway-inc-ord-1994.