Zeinali v. Raytheon Co.

636 F.3d 544, 2011 U.S. App. LEXIS 6792, 111 Fair Empl. Prac. Cas. (BNA) 1681, 2011 WL 1226457
Court of Appeals for the Ninth Circuit·Decided April 4, 2011·No. 09-56283·Published·Cited by 40 cases

Opinion

*546 OPINION

M. SMITH, Circuit Judge:

Plaintiff-Appellant Hossein Zeinali, who is of Iranian descent, was employed by Defendant-Appellee Raytheon Company for approximately four years. He alleges, inter alia, that Raytheon violated the California Fair Employment and Housing Act (FEHA), Cal. Gov.Code § 12940 et seq., by terminating him on the basis of his race and national origin after he was denied a security clearance by the Department of Defense. 1 Raytheon contends that (1) per Department of the Navy v. Egan, 484 U.S. 518, 108 S.Ct. 818, 98 L.Ed.2d 918 (1988), federal courts lack jurisdiction to decide discrimination cases involving security clearance decisions, and (2) Zeinali has not introduced any evidence to satisfy his burdens under McDonnell Douglas Corp. v. Green, 411 U.S. 792, 802-04, 93 S.Ct. 1817, 36 L.Ed.2d 668 (1973), and Guz v. Bechtel National, Inc., 24 Cal.4th 317, 100 Cal.Rptr.2d 352, 8 P.3d 1089, 1113-14 (2000).

We hold that we have jurisdiction to adjudicate Zeinali’s discriminatory termination claim, as he does not dispute the merits of the executive branch’s decision to deny his security clearance application. Rather, he disputes the bona fides of Raytheon’s professed security clearance requirement, and he introduces evidence showing that Raytheon retained similarly situated non-Iranian engineers who lacked security clearances. We reverse the district court and hold that Zeinali’s discrimination claim may proceed.

BACKGROUND

Raytheon hired Zeinali in November 2002 in the position of “Senior Multi Disciplined Engineer.” Raytheon informed Zeinali that this position required him to obtain a “Secret”-level security clearance, and informed Zeinali that his continued employment was contingent on obtaining such clearance. Although Zeinali’s initial request for an interim clearance was rejected, Raytheon retained him while a final clearance decision was pending.

In November 2004, Zeinali transferred to a different engineering position, “Senior Systems Engineer,” which, according to Raytheon, also required a “Secret” clearance. Because he still lacked the clearance, Zeinali performed the role of cost account manager, which was “a financial oversight and record-keeping job” that did not require him to use classified information.

Following the November 2004 transfer, Zeinali received positive feedback regarding his job performance. In 2006, one of his supervisors gave him an “individual achievement award[ ],” and another supervisor, Richard Zohn, testified that Zeinali’s performance improved that year. Nevertheless, Zeinali was transferred again in the fall of 2006, both because of his displeasure at not receiving a promotion and because of a dispute in which a program manager failed to inform him about a temporary budget change.

On September 26, 2006, the Department of Defense informed Zeinali’s attorney that Zeinali’s request for a security clearance had been denied by the Defense Office of Hearings and Appeals. The cover letter noted that Zeinali could not re-apply for at least one year. After Raytheon learned of the denial, it conducted internal discussions regarding Zeinali’s future with the company. Ultimately, the engineering department’s manager, David Robinette, recommended that Zeinali be terminated. *547 Raytheon fired Zeinali on November 7, 2006.

Robinette explained in his deposition that there were “multiple factors” motivating the decision to terminate Zeinali. Zeinali’s “inability to obtain [a] security clearance was a prime factor,” and was compounded by “the work forecast,” which showed a lack of “long lived, ... unclassified assignments,” as well as “Zeinali’s work performance and feedback ... on [his] most recent work performance levels.” Ultimately, though, Raytheon decided to terminate Zeinali because he did not obtain a clearance. Robinette stated that if Zeinali had received a clearance, he would not have been fired in spite of the declining work forecast, or his unfavorable job performance.

Zeinali generally agrees with this outline of events, but points to evidence that at least two non-Iranian engineers were retained while Zeinali was fired. Based on this evidence, he contends that he has satisfied his burdens under McDonnell Douglas and Guz.

The district court granted Raytheon’s motion for summary judgment, concluding that it lacked subject matter jurisdiction “because [Zeinali’s] claims are premised on the denial of his security clearance,” and, in the alternative, that Zeinali’s discrimination claim failed on the merits because he was unqualified for his position due to his lack of a security clearance.

JURISDICTION AND STANDARD OF REVIEW

The district court’s order granting Raytheon’s motion for summary judgment is a final appealable order under 28 U.S.C. § 1291. We review the district court’s grant of summary judgment de novo, drawing all reasonable inferences in Zeinali’s favor. Cmty. House, Inc. v. City of Boise, Idaho, 623 F.3d 945, 959 (9th Cir.2010).

DISCUSSION

A. Security Clearances and Judicial Review

As a preliminary matter, Raytheon contends that we lack jurisdiction over Zeinali’s discrimination claim because of our decision in Brazil v. U.S. Department of the Navy, 66 F.3d 193, 196 (9th Cir.1995), which held that federal courts may not “review ... security clearance decisions made by the Executive or his delegee ... in the context of a Title VII discrimination action.” For the reasons that follow, we disagree with Raytheon’s expansive reading of Brazil.

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Zeinali v. Raytheon Co., 636 F.3d 544, 2011 U.S. App. LEXIS 6792, 111 Fair Empl. Prac. Cas. (BNA) 1681, 2011 WL 1226457 (9th Cir. 2011).

636 F.3d 544 (Zeinali v. Raytheon Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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