Discrimination Claims Are Barred When They Were Either Untimely Or Not Raised In The EEOC Charge

JONES v. RES-CARE, INC. (July 16, 2010)

Tamika Jones, an African-American female, has several complaints about the way she was treated during her employment at Res-Care. She claims she was promoted in both 2003 and 2004 and acquired increased job responsibilities without an increase in compensation -- unlike several non-African-American employees. She claims she had to specially request time off and that she was denied tuition reimbursement -- unlike several non-African-American employees. She claims she was passed over for promotions in April and November of 2005 and June of 2006 – in favor of non-African-American employees. She filed an EEOC charge in August of 2006, referring to the November 2005 failure to promote and the tuition reimbursement treatment. In 2007, while under specific orders not to vary her work schedule without permission, she returned from her honeymoon three days early. She was given corrective action for the incident. She brought suit under Title VII in June of 2007. She filed a second EEOC charge in November of that year, claiming that the corrective action from the honeymoon incident was in retaliation for the first EEOC charge. She also amended her complaint accordingly. Testimony was elicited during discovery that the Executive Director, after an internal investigation established that Jones improperly charged her employer for some lunches, called her either a "rat" or a "fink" and referred to her as "untrustworthy" to another employee. Jones added a state law slander claim. Judge Lawrence (S.D. Ind.) granted summary judgment to Res-Care on all claims. Jones appeals.

In their opinion, Circuit Judges Manion and Williams and District Judge Darrah affirmed. One of the principal issues on appeal was the timing of the acts of discrimination and the content and timing of the EEOC charge. The Court concluded that the retaliation claim was the only claim that was both mentioned in an EEOC charge and occurred within the 180 days prior to the date of the charge. Jones struck out on each of her three attempts around the ruling: Strike 1) the Court rejected Jones' arguments of continuing violation (they were all discrete acts), Strike 2) the Court rejected her equitable tolling argument (she failed to meet the "aware of the possibility" standard), and Strike 3) the Court rejected her “closely related” argument ("part of a pattern" is not enough). On the merits of the honeymoon incident retaliation claim, the Court concluded both that the corrective action imposed did not amount to an adverse employment action and that Jones failed to establish a causal link between the corrective action and the EEOC charge. The Court also agreed with the district court on the defamation count. Indiana law grants a qualified privilege to alleged defamatory statements if they relate to the fitness of employee and are contained in intra-company communications. The privilege can be lost in certain circumstances, including if it was motivated primarily by ill will. The record established that the statements at issue met the definition of qualified privilege and Jones offered no evidence of ill will other than the offensiveness of the terms themselves -- which is not enough.

Court Allows Claim That NCAA Ticket Distribution Procedure Is An Illegal Lottery To Proceed

GEORGE v. NATIONAL COLLEGIATE ATHLETIC ASSOCIATION (July 16, 2010)

The National Collegiate Athletic Association (NCAA) sponsors annual championship tournaments in several sports, including men's basketball. The NCAA uses a ticket distribution system for many of those tournaments. For example, in the 2009 men's basketball championship tournament, a person who wanted tickets to the final games of the tournament was required to submit an application, advance the cost of any tickets desired, and include a $6.00 nonrefundable fee. The NCAA selected the "winners" at random. It returned to the others the amount advanced for the tickets. It kept the fees from all entries. Several non-winning applicants brought a class action against the NCAA. They allege that the distribution system is a lottery in violation of Indiana law. The complaint also includes claims for unjust enrichment, civil conspiracy, monies had, and violations of the Indiana Deceptive Consumer Sales Act. Judge Lawrence (S.D. Ind.) dismissed the complaint with prejudice. Plaintiffs appeal.

In their opinion, Circuit Judges Cudahy (dissenting) and Kanne and District Judge Darrah reversed and remanded. The Court looked to Indiana law for the elements of a prohibited lottery. There are three: a prize, an element of chance, and consideration. The Court concluded that plaintiffs had sufficiently alleged each of the three elements. In the process, the Court distinguished Lesher, an Indiana court of appeals case. Lesher held that a professional football season ticket distribution scheme did not constitute an unlawful lottery. Here, the prize element is met by the allegation that the tickets are actually more valuable than their face price, an allegation made but not established on summary judgment in Lesher. The chance element is obvious from the random drawing aspect of the distribution scheme. The Court rejected, at this motion to dismiss stage, the NCAA's argument that there may be times when no chance is involved (for example, if the demand for tickets does not exceed the supply). The consideration element is supplied by the allegation that the NCAA keeps the handling fee for every entry. The Court rejected the NCAA's argument that the "bona fide business transactions" exception to the Indiana gambling statute applied. It concluded both that the ticket distribution scheme was not a "bona fide business transaction" and that, in any event, the exception only applies to gambling, not to lotteries. Finally, the Court addressed the principle of in pari delicto. The Lesher court noted that it would have used the concept to dismiss the lottery count, concluding that the plaintiffs were equally at fault for participating in the scheme. Here, the Court first noted that the Lesher statements were dicta but then concluded that the complaint's allegations were that the plaintiffs participated unwittingly. Since all of the counts of the plaintiffs' complaint incorporated and relied on the lottery count, the Court reversed as to all counts.

Judge Cudahy dissented. He concluded that the case was fundamentally indistinguishable from Lesher. He cited several reasons for affirming the district court: a) that the nonrefundable nature of the fee (the primary Lesher distinction) did not elevate the scheme to a lottery, b) that the in pari delicto logic of Lesher was persuasive and should be applied to the plaintiffs, c) that the fact that scarce tickets might command a resale price higher than face price is irrelevant, and d) that the NCAA's conduct fell within the "bona fide business transaction" exception.