REEDY
v.
STATE OF FLA., DEPT. OF EDUC.

N.D. Fla. | 1985-03-23
No. TCA 83-7351-WS
Stafford
605 F. Supp. 172 District Court, N.D. Florida (1985) Negative Treatment
Also reported at: 37 Fair Empl. Prac. Cas. (BNA) 754 · 39 Empl. Prac. Dec. (CCH) 35,867 · 1985 U.S. Dist. LEXIS 21457
Cited by 2 cases

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Holding

An unappealed administrative agency decision does not have preclusive effect in a federal Title VII action.


Facts & Procedural History

Plaintiff filed a discrimination charge with the Florida Commission on Human Relations (FCHR), which was dismissed with prejudice. Plaintiff did not a…

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Opinion of the Court

STAFFORD, Chief Judge.

Before the court is defendant’s motion for summary judgment (document 17) and Memorandum in support (document 18). Having reviewed the relevant documents, plaintiff’s memorandum in opposition (document 19) and the case law, the court has determined that defendant’s motion should be denied for the following reasons.

At issue here is. whether an unappealed decision by the Florida Commission on Human Relations (FCHR) in favor of defendant should be accorded preclusive effect in this court under the doctrine of

res judicata

or collateral estoppel. Because this is purely a question of law, there being no genuine issue as to any material fact, summary judgment is appropriate. Rule 56, Federal Rules of Civil Procedure.

Plaintiff filed a charge with the FCHR on April 16, 1979, alleging unlawful acts of discrimination on the part of the State of Florida, Department of Education. Specifically, plaintiff claimed she was not hired as an Educational Data Analyst I because of her age and national origin. Plaintiff filed the same charge with the EEOC on July 26, 1979, under Title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e,

et seq.).

Florida Commission on Human Relations is a deferral agency under Title VII.

See,

Fla.Stat. § 760.06(11) (1983). Florida Commission on Human Relations investigated plaintiff’s charge and referred it to the Division of Administrative Hearings. The formal evidentiary hearing under the Florida Administrative Code, at which plaintiff was represented by counsel, was held on December 8, 1981. On August 31, 1982, the hearing officer rendered a recommended order in favor of defendant. After

*173

oral argument before FCHR, that agency entered an order on February 21, 1983, dismissing the petition with prejudice. Although the order advised plaintiff of her right to appeal, she chose not to avail herself of that opportunity. On June 30, 1983, the EEOC issued a notice of right to sue finding no reasonable cause in reliance on the investigative record of the FEP. Plaintiff filed suit in this court on October 1, 1983.

This case is governed by

Kremer v. Chemical Construction Corp.,

456 U.S. 461, 102 S.Ct. 1883, 72 L.Ed.2d 262 (1982) wherein the Supreme Court held that a federal court in a Title VII case must give preclusive effect to a state court decision when that decision would be

res judicata

in the state’s own courts. Defendant seeks to apply

Kremer

to the instant case even though there has been no state court decision rendered.

Kremer

clearly applies only to state

court

decisions.

Id.

at 469, 102 S.Ct. at 1891 (“While we have interpreted the ‘civil action’ authorized to follow consideration by federal and state administrative agencies to be ‘trial de novo,’ neither the statute nor our decisions indicate that the final judgment of a state

court

is subject to redetermination at such a trial”) (emphasis in original; citation omitted). In footnote 7, the Court states: “Since it is settled that decisions by the EEOC do not preclude a trial

de novo

in federal court, it is clear that unreviewed administrative determinations by state agencies also should not preclude such review even if such a decision were to be afforded preclusive effect in a state’s own courts.”

Id.

The Court was aware of the procedural loophole created by the decision, the loophole plaintiff has taken advantage of in the case at bar. The Court noted that “no provision of Title VII requires claimants to pursue in state court an unfavorable state administrative action.”

Id.

at 469, 102 S.Ct. at 1891. The dissent highlights the problem with the majority opinion by declaring that the lesson of

Kremer

is that “an unsuccessful state discrimination complainant should not seek state judicial review.”

Id.

at 504, 102 S.Ct. at 1908. The dissent suggests that bypassing judicial review is the prudent course.

Id.

The majority responds in footnote 19, by saying that plaintiffs are unlikely to avoid a state court decision, but the majority does not say that such forebearance would preclude federal review.

Two federal district courts have recently addressed this precise issue. In

Buckhalter v. Pepsi-Cola General Bottlers,

590 F.Supp. 1146 (N.D.Ill.1984), the court approved the position advanced by defendant and gave preclusive effect to an unreviewed agency decision. The court relied on

United States v. Utah Construction & Mining Co.,

384 U.S. 394, 86 S.Ct. 1545, 16 L.Ed.2d 642 (1966) to reach the conclusion that when an administrative agency acts in a judicial capacity, its judgment is

res judicata

under

Kremer. Buckhalter

at 1148. The Court read footnote 7 in

Kremer

to apply “only to those administrative decisions which are investigatory or otherwise purely administrative in nature and not to determinations in which the administrative agency was empowered to and indeed acted in a judicial capacity.”

Id.

at 1149. Because Illinois’ Human Rights Commission afforded plaintiff the full panoply of judicial process, the court concluded that its findings were

res judicata.

In

Jones v. Progress Lighting Corp.,

595 F.Supp. 1031 (E.D.Pa.1984), the court reached the opposite conclusion and expressly declined to adopt the analysis in

Buckhalter. The court felt that the result in

Buckhalter

“directly contravenes the Supreme Court’s clear admonition” that unreviewed agency determinations do not preclude

de novo

review in federal court.

Id.

at 1034.

This court too declines to follow

Buck-halter. The

Buckhalter

court’s interpretation of Kremer—that it applies to unreviewed administrative agency’s decisions rendered in a judicial capacity—is unconvincing in light of the debate between the majority and the dissent on the prudence of foregoing state court review. The

Buck-

*174

halter

court’s reading of footnote 7 is unconvincing because the New York agency under review in

Kremer

also had judicial powers, and yet the majority still conceded the possibility that litigants could end-run

Kremer

by foregoing state review. Furthermore, the reasoning in

Jones,

that the dicta in

Utah Construction

has no application to the Title VII statutory scheme, is persuasive because Congress clearly contemplated that employment discrimination claims could be litigated in several forums. 42 U.S.C. § 2000e

et seq.

This court expresses no view as to the merits of plaintiff’s claim but merely holds that plaintiff’s suit in this court is not barred by

res judicata

under

Kremer. Accordingly, it is ORDERED:

1. Defendant’s motion for summary judgment (document 17) is DENIED.

2. The Clerk is directed to schedule this case for pre-trial conference.


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Citator

Cited By

  • Buckhalter v. Pepsi-Cola Gen. Bottlers, Inc., 768 F.2d 842 (7th Cir. 1985)
    …has conducted an adjudicatory hearing on the merits of the employment discrimination claim. Buckhalter finds support for this overly broad interpretation of footnote 7 in three recent district court opinions, Reedy v. State of Fla., Dept. of Educ., 605 F.Supp. 172 (N.D.Fla.1985), Parker v. Danville Metal Stamping Co., 603 F.Supp. 182 (C.D.Ill.1985), and Jones v. Progress Lighting Corp., 595 F.Supp. 1031 (E.D.Pa.1984). We believe that these cases misinterpret footnote 7 and fail to acknowledge the language in…
  • Healy v. Town of Pembroke Park, 643 F. Supp. 1208 (S.D. Fla. 1986)
    …contrary to the Kremer holding. Jones v. Progess Lighting Corporation, 595 F.Supp. 1031 (E.D.Pa.1984) (criticizing the District Court opinion which was affirmed by the Seventh Circuit). In Reedy v. State of Fla. Dept. of Education, 605 F.Supp. 172 (N.D.Fla.1985) our friend, Judge Stafford, wrote, “This court too declines to follow Buckhalter. The Buckhalter court’s interpretation of Kremer — that it applies to unreviewed administrative agency’s decisions rendered in a judicial…

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