Thomas Edward Kinsey v. First Regional Securities, Inc.

557 F.2d 830, 181 U.S. App. D.C. 207, 1977 U.S. App. LEXIS 13806, 13 Empl. Prac. Dec. (CCH) 11,614, 14 Fair Empl. Prac. Cas. (BNA) 1143
CourtCourt of Appeals for the First Circuit
DecidedApril 18, 1977
Docket75-1224
StatusPublished
Cited by64 cases

This text of 557 F.2d 830 (Thomas Edward Kinsey v. First Regional Securities, Inc.) 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
Thomas Edward Kinsey v. First Regional Securities, Inc., 557 F.2d 830, 181 U.S. App. D.C. 207, 1977 U.S. App. LEXIS 13806, 13 Empl. Prac. Dec. (CCH) 11,614, 14 Fair Empl. Prac. Cas. (BNA) 1143 (1st Cir. 1977).

Opinion

JUSTICE, District Judge:

Plaintiff-appellant instituted this action under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., and 42 U.S.C. § 1981, seeking redress of alleged employment discrimination by defendantappellee in its recruitment, testing, and hiring of applicants for the position of securities sales representative. Originally filed as a class action, that aspect of the case was dismissed by the district court, 1 and plaintiff proceeded with his individual claim for damages and injunctive relief. The district judge concluded that plaintiff was not denied employment on the basis of race, and that the aptitude and ability tests utilized by defendant for screening applicants were valid, job-related tests and not a source of employment discrimination. 2 Plaintiff appeals from this decision.

Facts

On December 14, 1968, Thomas Edward Kinsey, a black citizen twenty-six years of age, 3 applied for a retail securities sales position with the regional securities investment firm of Legg, Mason & Company, Inc. 4 Kinsey had graduated first in his high school class and was ranked in the top ninety-nine percentile on the Florida High School Examination. He attended More-house College in Atlanta, Georgia, an institution for blacks, completing in three years the curriculum for a Bachelor of Science degree and graduating in the top five percent of his college class. He was employed for five years by the Department of the Navy, advancing from a position as staff physicist to supervisory physicist. During the same period of time, he completed course work toward the degree of Ph.D. in physics and took a number of graduate courses in business. This advanced education was financed by the Navy and was made available to individuals considered highly qualified for and recommended by their supervisors. At the time he applied to Legg, Mason, Kinsey was associated as a part-time sales trainee with a mutual funds dealer. While in that employment, he took *834 the registration examination for the National Association of Securities Dealers (NASD). On December 13, 1968, he was notified that he had passed the examination, and he was duly registered as a securities salesman with NASD.

On December 14, 1968, Kinsey applied to Legg, Mason for employment as a securities salesman. He was interviewed at the Silver Spring, Maryland, office of Legg, Mason by William Gray, the registered representative in charge of that office. Gray administered to Kinsey the Securities Sales Selection Battery (SSSB), a test purporting to measure both an applicant’s chances of passing the New York Stock Exchange (NYSE) qualifying examination 5 and his probable first year earnings as a registered securities representative. Kinsey scored a letter grade of “C” on Part A of the SSSB, which purportedly indicated he was an average risk for passing the NYSE examination. He received a score of “C + ” on Part B, supposedly indicating he had a forty percent chance of earning $6,000 during his first year as a registered representative on the NYSE. Gray personally assessed Kinsey as intelligent, well-educated, and trainable for the retail sales position. 6

Kinsey reported back to Gray the following week for the purpose of taking the Klein Battery, an examination comprised of seven individual tests, designed to evaluate aptitude for securities sales work, certain personality traits, and social intelligence. This test data was interpreted by the Klein Institute, which issued a “conditional recommendation” that Kinsey be hired. The Klein reservation was based on a question as to Kinsey’s long-term commitment to the non-management position of retail sales representative. 7

Thereafter, Gray reviewed Kinsey’s test results, application form, and resume with H. Grieg Cummings, branch manager of the company’s Washington office. Cummings decided, on the basis of the test results, that Kinsey did not meet Legg, Mason’s qualifications. 8

Kinsey did not take another job until June, 1969, when he was employed by Bache & Co., a large securities firm. On December 7, 1969, Kinsey took the examination for registration with the NYSE, receiving a grade of “C.” He resigned from Bache & Co., on December 31, 1970, to attend the Harvard Graduate School of Business Administration, where he received the Master of Business Administration degree. Kinsey is presently engaged as a financial consultant.

At the time Kinsey applied to Legg, Mason, the company had allegedly curtailed the hiring of additional sales trainees, in order to concentrate on training recently hired sales personnel. In effect during the period of October 29, 1968, to March 25, 1969, the “moratorium” existed only in the Washington, D. C., area. The company continued to recruit and hire in the Baltimore area. During the curtailment period, the company alleged, its policy was to hire only “exceptional” sales applicants. Legg, Mason’s costs incurred in training a securities sales representative for six months and paying a supplemental salary for one year after NYSE registration was from $12,000 to $15,000. Since it took about three years to recover this investment, the company endeavored to hire applicants who demonstrated sales ability, as well as a career desire for securities sales work.

At the trial, testimony was heard from four other black applicants who were denied employment by Legg, Mason. 9 Addi *835 tionally, Kinsey showed that eight white applicants were hired during or following the moratorium.

Of the white individuals who made application and were hired during the period in question, some were not required to take and pass the SSSB as a prerequisite of employment, even though they had not previously taken the National Association of Securities Dealers examination. (The NASD examination was regarded as the equivalent of the SSSB, with respect to predicting success on the NYSE examination.) At trial, Legg, Mason showed that the administrative processing of three of the applications had commenced prior to imposition of the moratorium. Four of the whites applied during the moratorium and were hired after it ceased to be in effect. Legg, Mason testified that the one individual who applied and was hired as a sales trainee during the curtailment period was an “exceptionally well qualified” applicant. This employee was a sales representative with IBM and had sold mutual funds for six months; like Kinsey, he was previously registered with the NASD and was conditionally recommended by the Klein Institute.

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557 F.2d 830, 181 U.S. App. D.C. 207, 1977 U.S. App. LEXIS 13806, 13 Empl. Prac. Dec. (CCH) 11,614, 14 Fair Empl. Prac. Cas. (BNA) 1143, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-edward-kinsey-v-first-regional-securities-inc-ca1-1977.