Taye Addisu Mokhtar Al-Saeed Ghassan Abu Hemdeh v. Fred Meyer, Inc., a Delaware Corporation

198 F.3d 1130, 2000 Daily Journal DAR 149, 2000 Cal. Daily Op. Serv. 96, 2000 U.S. App. LEXIS 21, 2000 WL 2591
CourtCourt of Appeals for the Ninth Circuit
DecidedJanuary 4, 2000
Docket98-35854
StatusPublished
Cited by566 cases

This text of 198 F.3d 1130 (Taye Addisu Mokhtar Al-Saeed Ghassan Abu Hemdeh v. Fred Meyer, Inc., a Delaware Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Taye Addisu Mokhtar Al-Saeed Ghassan Abu Hemdeh v. Fred Meyer, Inc., a Delaware Corporation, 198 F.3d 1130, 2000 Daily Journal DAR 149, 2000 Cal. Daily Op. Serv. 96, 2000 U.S. App. LEXIS 21, 2000 WL 2591 (9th Cir. 2000).

Opinion

ALDISERT, Circuit Judge:

This appeal by would-be purchasers of the familiar blue jeans name brand Levi’s, at Fred Meyer, Inc., a prominent nationwide retailer, presents the question of whether a person can sue under 42 U.S.C. § 1981 for the refusal of a retailer to enter into a sales contract, which was solicited through fraudulent misrepresentation by the potential customer and would be voidable at that retailer’s discretion.

Appellants Taye Addisu, Mokhtar Al-Saeed and Ghassan Abu Hemdeh brought a complaint against Fred Meyer alleging that it refused to sell them Levi’s jeans because of their race or color. They contend that they were allowed to purchase any other item in the store, but were precluded from purchasing the jeans. Ad-disu is an American citizen of Ethiopian descent, Al-Saeed is a legal resident alien from Yemen and Hemdeh is an American citizen of Jordanian descent.

Fred Meyer admits that it refused to sell to the Appellants, but argues that the basis for its refusal was not their race or color but a race-neutral policy of the jeans’ manufacturer, Levi Strauss and Co. (“LS & CO.”), that limits sales of its products only to ultimate consumers and prohibits *1133 retailers like Fred Meyer from selling Levi’s to re-sellers or dealers. Fred Meyer argues, and Appellants agree, that they are not ultimate consumers purchasing for personal use.

Appellants concede that they are dealers or agents of dealers who intend to resell the jeans, precisely the category of buyer prohibited under the Levi’s policy implemented by Fred Meyer. Appellants’ attempts to purchase come within what the stated Levi Strauss policy describes as participating in “Retail Accumulation [which] occurs when individuals or groups who are not the ultimate consumers purchase significant quantities of LS & CO. products from LS & CO.’s approved retail customers.” 1 Fred Meyer is an approved Levi Strauss retail customer. Appellants were well aware of the Levi’s policy at the times of all their attempted purchases.

Appellants sued Fred Meyer for discrimination pursuant to 42 U.S.C. § 1981, 2 averring that the conduct of the store “was wanton and intentional, was intended to deprive the plaintiff of his federally protected civil and legal rights, based on his race and/or color.” Fourth Amended Complaint ¶ 7, E.R. Supp. Tab 36, at 3. They also allege a conspiracy to discriminate based on race pursuant to 42 U.S.C. § 1985(3). 3 Appellants sought an injunc *1134 tion as well as compensatory and punitive damages. The district court granted Ap-pellee’s motion for summary judgment on all of Appellants’ claims. The court employed the disparate treatment test according to standards used to analyze disparate treatment claims under Title VII of the Civil Rights Act of 1964. 42 U.S.C. § 2000e; Williams v. Edward Apffels Coffee Co., 792 F.2d 1482, 1484 (9th Cir.1986). It determined that although Appellants established a prima facie case, the store came forward with a nondiscriminatory explanation and that Appellants did not prove that this reason was pretextual. The court also determined that Appellants failed in their § 1985(3) claims because they did not prove discriminatory intent. The court reasoned:

An indispensable element of a claim under 42 U.S.C. § 1985(3) is “some racial, or perhaps otherwise class-based, invidiously discriminatory animus behind the conspirator’s action, Griffin v. Breckenridge, 403 U.S. 88, 102, 91 S.Ct. 1790, 29 L.Ed.2d 338 (1971) ....” There was no such evidence in this case. Fred Meyer has proffered evidence showing that its refusal to sell Levi’s to the plaintiffs was motivated by a reasonable belief that plaintiffs were agents for dealers attempting to purchase the Levi’s for resale.

Dist. Ct. Op. at 11, E.R. Tab 56, at 11.

On appeal Appellants argue that there is a genuine issue of material fact to preclude summary judgment under §§ 1981 and 1985(3). Summary judgment should be granted if “there is no genuine issue as to any material fact and [ ] the moving party is entitled to judgment as a matter of law.” Rule 56(c), Federal Rules of Civil Procedure. If the moving party shows that there are no genuine issues of material fact, the non-moving party must go beyond the pleadings and designate facts showing an issue for trial. Celotex Corp. v. Catrett, 477 U.S. 317, 322-323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). A scintilla of evidence or evidence that is merely colorable or not significantly probative does not present a genuine issue of material fact. United Steelworkers of America v. Phelps Dodge Corp., 865 F.2d 1539, 1542 (9th Cir.1989). The underlying substantive law governing the claims determines whether or not it is material. Price v. Taco Bell Corporation, 934 F.Supp. 1193, 1196 (D.Or.1996). Reasonable doubts as to the existence of material factual issue are resolved against the moving parties and inferences are drawn in the light most favorable to the non-moving party. Id. There must be enough doubt for a “reasonable trier of fact” to find for plaintiffs in order to defeat the summary judgment motion. Wallis v. J.R. Simplot Co., 26 F.3d 885, 889 (9th Cir.1994).

The district court had jurisdiction pursuant to 28 U.S.C. § 1331. We have jurisdiction pursuant to 28 U.S.C. § 1291. The appeals were timely filed under Rule 4, Federal Rules of Appellate Procedure.

I.

Fred Meyer is required to conform to Levi Strauss policy as a condition of selling Levi’s Jeans. As a retailer of Levi’s, it limits the number of Levi Strauss products it sells to individual consumers (generally two pairs to a customer) and refuses to sell to persons who are acquiring, or are suspected to be acquiring, Levi’s for resale.

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198 F.3d 1130, 2000 Daily Journal DAR 149, 2000 Cal. Daily Op. Serv. 96, 2000 U.S. App. LEXIS 21, 2000 WL 2591, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taye-addisu-mokhtar-al-saeed-ghassan-abu-hemdeh-v-fred-meyer-inc-a-ca9-2000.