SNIECINSKI v. BLUE CROSS & BLUE SHIELD OF MICHIGAN
Case Details
- Citation
- 469 Mich. 124
- Judge(s)
- Taylor, Young, and Markman, JJ., concurred with Corrigan, C.J.; Cavanagei, J., concurred in the result only.
- Procedural Posture — the stage the case had reached
- appeal
- State
- Michigan
- Circuit
- 6th Circuit
Related Laws
No specific laws identified for this ruling.
Claim Types
Outcome
Michigan Supreme Court reversed the jury verdict for the plaintiff, holding that the employee failed to establish a causal connection between her pregnancy and the employer's failure to hire her, and that the employer was entitled to judgment as a matter of law.
Excerpt
SNIECINSKI v BLUE CROSS & BLUE SHIELD OF MICHIGAN Docket No. 119407. Argued November 19, 2002 (Calendar No. 6). Decided July 22, 2003. Rehearing denied post, 1224. Marcia Sniecinski brought an action in the Wayne Circuit Court against Blue Cross and Blue Shield of Michigan, alleging that bcbsm’s failure to hire her was based on pregnancy discrimination. The circuit court, Marianne O. Battani, J., denied the defendant’s motions for a directed verdict and a judgment notwithstanding the verdict, and entered judgment on a jury verdict and award of damages for the plaintiff. The Court of Appeals, Gribbs, RJ. (Kelly, J., concurring in result, and Sawyer, J., concurring in part and dissenting in part), affirmed in an unpublished opinion per curiam (Docket No. 212788). The defendant appealed. In an opinion by Chief Justice Corrigan, joined by Justices Taylor, Young, and Markman, the Supreme Court held: The trial court erred in failing to find no cause of action because the plaintiff failed to establish a causal connection between her pregnancy and the defendant’s failure to hire her. 1. The plaintiff’s employment was not transferred to bcbsm from Blue Care Network after the merger of their marketing activities because her employment with bcn had been administratively terminated before the transfer date by plaintiff’s collecting long-term disability benefits occasioned by her usage of medical leave on account of problem pregnancies. An offer of employment from BCBSM expired by plaintiff’s failure to begin performing the bcbsm job functions before collecting long-term disability benefits. 2. The plaintiff failed to present evidence that satisfies the direct-evidence test for discriminatory animus. She also failed to present evidence of discriminatory animus under the indirect or circumstantial evidence method set forth in McDonnell Douglas Corp v Green, 411 US 792 (1973), which requires the plaintiff to show a prima facie case of discrimination, requires the defendant to rebut the prima facie showing by articulating a legitimate, nondiscriminatory reason for the adverse employment action, and requires the plaintiff to show that the reason articulated was merely a pretext for discrimination. Bcbsm was therefore entitled to a finding by the circuit court of no cause of action as a matter of law. Justice Cavanagh concurred in the result only. Justice Weaver, concurring in part and dissenting in part, stated that, relating to noneconomic damages, the trial court did err in denying the defendant’s motion for a directed verdict because the plaintiff failed to present any specific and definite evidence of mental anguish, anxiety, or distress as she was required to do. There was, however, a reasonable inference from the evidence that the defendant’s failure to hire the plaintiff was causally connected to her pregnancy. Reversed; remanded to the circuit court. Justice Kelly, dissenting, stated that the jury was entitled to infer its conclusions from evidence submitted. The plaintiff presented abundant proof to create an inference regarding causation consistent with the jury’s decision. The jury was entitled to believe that the facts precipitating the loss of the position were an extension of discriminatory animus. The defendant’s posttermination actions also support the inference of a causal link between the discrimination alleged and the defendant’s employment actions. Civil Rights —- Civil Rights Act — Employment Discrimination — Evidence. A plaintiff claiming employment discrimination may prove the claim by direct evidence of discrimination or indirect or circumstantial evidence of discrimination; direct evidence is that which requires the conclusion that unlawful discrimination was at least a motivating factor in the employer’s actions; in the case of indirect or circumstantial evidence, the plaintiff must present a prima facie case of discrimination; if the defendant rebuts the presumption by articulating a legitimate, nondiscriminatory reason for the adverse employment action, the plaintiff must show that the defendant’s reasons are a mere pretext for discrimination (MCL 37.2101 et seqj. Hurlburt, Tsiros, AUweil & Perez, PC. (by Mandel I. AUweil), for the plaintiff. Bart M. Feinbaum for the defendant. Amici Curiae: Vercruysse Metz & Murray (by Diane M. Soubly) for the Michigan Chamber of Commerce. Clark Hill PLC (by Duane L. Tamacki, F.R. Damm, and Lira A. Johnson) for the Michigan Manufacturers Association. Kienbaum Opperwall Hardy & Pelton, PLC (by Thomas G. Kienbaum, Theodore R. Opperwall, and Noel D. Massie), for the Automobile Club of Michigan and DaimlerChrysler Corporation. Corrigan, C.J. In this pregnancy discrimination case, we have been asked to decide whether the trial court erred by denying defendant Blue Cross and Blue Shield of Michigan’s (bcbsm) motions for directed verdict and judgment notwithstanding the verdict. We hold that because plaintiff failed to adduce evidence of a causal connection between her pregnancy and bcbsm’s failure to hire her, bcbsm was entitled to a finding of no cause of action as a matter of law. The trial court erred by denying defendant’s motions for directed verdict and judgment notwithstanding the verdict. I. UNDERLYING FACTS AND PROCEDURAL HISTORY Blue Care Network of East Michigan (BCN), a wholly owned subsidiary of bcbsm, employed plaintiff as a telemarketing representative. Plaintiff, a high school graduate, began work at BCN’s predecessor, Group Health Services (GHS), in 1983. She held a variety of positions. In 1987, she became a telemarketing representative. In 1989, GHS merged into BCN. BCN honored the seniority that plaintiff had acquired at GHS. Also in 1989, plaintiff became pregnant. She experienced pregnancy complications that required her to take a medical leave for seven months. In October of that year, plaintiff gave birth to her daughter. In November, she returned to work for bcn. Plaintiff became pregnant again in 1992 while she was supervised by Michael Curdy. Plaintiff testified that after she informed Curdy about her pregnancy, he seemed upset. He referred to plaintiff’s chair as the “pregnancy chair.” He stated that he would not let anyone sit in that chair again. He asked plaintiff whether she was going to experience problems with her pregnancy as she had in 1989. Curdy further told plaintiff that he would not permit her to use either sick time or unpaid leave because of her pregnancy. In January 1993, Curdy placed a memo regarding plaintiff’s attendance in her personnel file. When plaintiff learned about the memo, she complained to Patricia Stone, the Regional Human Resources Manager at bcn. Stone informed Curdy that he had not followed the appropriate procedure for discipline. She advised Curdy to follow the correct procedure to determine whether a problem existed regarding plaintiff’s attendance before a disciplinary memo could be placed in plaintiff’s file. Stone then removed the memo from plaintiff’s file. Plaintiff again experienced pregnancy complications that required her to take one week off from work in February 1993. During that time, she suffered a miscarriage. Plaintiff testified that upon her return to work Curdy spoke to her about future pregnancies and stated, “We’ll have to deal with that problem when it comes.” During 1993, the marketing departments of bcn and bcbsm were merged. Because the merger was going to eliminate the telemarketing positions at BCN, BCN telemarketers seeking to continue their employment were required to interview for a position of account representative at bcbsm. In August 1993, plaintiff interviewed for an account representative position with Donald Whitford, bcbsm Regional Sales Director; Donald Roseberry, bcbsm Sales Team Manager; and Curdy. Plaintiff testified that Curdy asked about her time off from work related to her previous pregnancy complications. He also asked whether plaintiff thought her pregnancies would be a future problem. After a second interview with Whitford and Roseberry only, plaintiff was offered an account representative position at bcbsm. Immediately thereafter, plaintiff told Whitford and Roseberry that she was pregnant. Plaintiff testified that they “seemed surprised” and were “taken aback,” but congratulated her. Plaintiff and other BCN employees expecting to transfer to BCBSM continued to work for bcn until the merger. Plaintiff testified that when Curdy heard about her pregnancy, he remarked, “I’ll have to make sure I don’t hire anybody in child bearing years in the future.” In September 1993, soon after receiving the job offer, plaintiff began experiencing pregnancy-related complications. She was again required to take time off from work. She remained on medical leave from September 1993 until May 1994, six weeks after giving birth to her son. Shortly after plaintiff was offered the account representative position, Whitford and Curdy contacted Stone to discuss placing a disciplinary note in plaintiff’s file regarding her attendance problems during previous pregnancies. Stone testified that Whitford wanted Curdy’s January 1993 memo put back in plaintiffs file because plaintiff was continuing to have attendance problems. Stone advised them that placing a memo in plaintiffs file was inappropriate. On November 22, 1993, while plaintiff was on medical leave, the planned merger of the sales departments of bcn and bcbsm occurred, and all bcn employees who had been offered jobs with bcbsm terminated their employment with bcn and began working for bcbsm. Plaintiff did not report for work at bcbsm because she was on medical leave at that time. Instead, bcbsm held open an account representative position for her. On March 1, 1994, plaintiff’s short-term disability benefits expired, and she began to collect long-term disability (ltd) benefits. Under bcn’s ltd policy, an employee on medical leave converts from short-term to ltd status on the first day of the employee’s sixth month off work. The ltd policy provides that the employee is separated from the company and issued a final pay check, including accrued vacation and personal time. On October 11, 1993, while plaintiff was on short-term disability, she requested an extension of her medical leave. Plaintiff was concerned that the account representative position at bcbsm would no longer be available when she was ready to return to work. Stone informed plaintiff that the position would be held open until plaintiff went on ltd, if plaintiff’s medical leave extended that long. Stone’s notations in her Franklin planner corroborated this account of her conversation with plaintiff. The notes read as follows: Marcia concerned over job security- Advised her that not issue until ltd If ltd -> Blue Cross job not possible. We will attempt to find position similar qualifications/pay. Because plaintiff did not return to work before March 1, 1994, she began collecting ltd benefits. Bcn issued plaintiff a vacation and incentive payout and separated her from the company. In late May 1994, plaintiff informed bcbsm that she was ready to return to work. Because of the 1993 merger, her telemarketing position at bcn had been eliminated. The bcbsm account representative position previously offered to her was not filled because of a company-wide hiring freeze resulting from a loss of Medicare business. Plaintiff thereafter collected unemployment benefits for six months while making periodic efforts to find another job. In December 1994, bcn offered, and plaintiff accepted, a position as a marketing representative that was unrelated to her previous job. After resuming work, plaintiff learned that bcbsm had recently hired an account representative who was a college graduate. Both before and after the merger, the BCBSM account representative position required a college degree. The degree requirement had been waived only for those BCN employees transferring to BCBSM during the merger. Plaintiff had no college degree. In March 1996, while still employed at BCN, plaintiff sued bcbsm, alleging sex (pregnancy) discrimination in violation of Michigan’s Civil Rights Act (cra), MCL 37.2101 et seq. In August 1996, plaintiff saw a posting for an account representative with bcbsm. The position still required a college degree. Upon her inquiry, the BCBSM human resources department informed her that the degree requirement could not be waived. On September 20, 1996, plaintiff resigned from her position with BCN. She did not seek employment, instead opting to enroll in college to attend classes part-time. Plaintiffs lawsuit proceeded to trial. The jury rendered a verdict for plaintiff, awarding her $125,000 for past economic loss, $136,000 for future economic loss, and $90,000 in noneconomic damages. Defendant moved for judgment notwithstanding the verdict (jnov), a new trial, and remittitur of plaintiffs economic damages. The trial court denied the motions. The Court of Appeals affirmed the verdict. We granted bcbsm’s application for leave to appeal. H. STANDARD OF REVIEW Defendant contends that the trial court erred by denying its motions for directed verdict or JNOV. We review de novo the trial court’s denial of both motions. Forge v Smith, 458 Mich 198, 204; 580 NW2d 876 (1998); Smith v Jones, 246 Mich App 270, 273-274; 632 NW2d 509 (2001). We “review the evidence and all legitimate inferences in the light most favorable to the nonmoving party.” Wilkinson v Lee, 463 Mich 388, 391; 617 NW2d 305 (2000); Forge, supra at 204, quoting Orzel v Scott Drug Co, 449 Mich 550, 557; 537 NW2d 208 (1995). A motion for directed verdict or jnov should be granted only if the evidence viewed in this light fails to establish a claim as a matter of law. Wilkinson, supra at 391; Forge, supra at 204. III. ANALYSIS Section 202 of the cra, MCL 37.2202, provides in part: (1) An employer shall not do any of the following: (A) Fail or refuse to hire or recruit, discharge, or otherwise discriminate against an individual with respect to employment, compensation, or a term, condition, or privilege of employment, because of religion, race, color, national origin, age, sex, height, weight, or marital status. [Emphasis added.] The CRA defines “sex,” within the meaning of the above section, as “ ‘[s]ex’ includes, but is not limited to, pregnancy, childbirth, or a medical condition related to pregnancy or childbirth . . . .” MCL 37.2201(d). Plaintiff claims that defendant discriminated against her in violation of the CRA by refusing to hire her because she was pregnant. Proof of discriminatory treatment in violation of the CRA may be established by direct evidence or by indirect or circumstantial evidence. DeBrow v Century 21 Great Lakes, Inc (After Remand), 463 Mich 534, 539; 620 NW2d 836 (2001); Harrison v Olde Financial Corp, 225 Mich App 601, 606-607; 572 NW2d 679 (1997). In cases involving direct evidence of discrimination, a plaintiff may prove unlawful discrimination in the same manner as a plaintiff would prove any other civil case. Hazle v Ford Motor Co, 464 Mich 456, 462; 628 NW2d 515 (2001). We have previously cited with approval the United States Court of Appeals for the Sixth Circuit’s definition of “ ‘direct evidence’ as ‘evidence which, if believed, requires the conclusion that unlawful discrimination was at least a motivating factor in the employer’s actions.’ ” Hazle, supra at 462, quoting Jacklyn v Schering-Plough Healthcare Products Sales Corp, 176 F3d 921, 926 (CA 6, 1999); Harrison, supra at 610. In a direct evidence case involving mixed motives, i.e., where the adverse employment decision could have been based on both legitimate and legally impermissible reasons, a plaintiff must prove that the defendant’s discriminatory animus was more likely than not a “substantial” or “motivating” factor in the decision. Price Waterhouse v Hopkins, 490 US 228, 244; 109 S Ct 1775; 104 L Ed 2d 268 (1989); Harrison, supra at 612-613. In addition, a plaintiff must establish her qualification or other eligibility for the position sought and present direct proof that the discriminatory animus was causally related to the adverse decision. Harrison, supra at 612-613. Stated another way, a defendant may avoid a finding of liability by proving that it would have made the same decision even if the impermissible consideration had not played a role in the decision. Price Waterhouse, supra at 244-245. In cases involving indirect or circumstantial evidence, a plaintiff must proceed by using the burden-shifting approach set forth in McDonnell Douglas Corp v Green, 411 US 792; 93 S Ct 1817; 36 L Ed 2d 668 (1973). Hazle, supra at 462; DeBrow, supra at 540. This approach allows “a plaintiff to present a rebuttable prima facie case on the basis of proofs from which a factfinder could infer that the plaintiff was the victim of unlawful discrimination.” DeBrow, supra at 538. To establish a rebuttable prima facie case of discrimination, a plaintiff must present evidence that (1) she belongs to a protected class, (2) she suffered an adverse employment action, (3) she was qualified for the position, and (4) her failure to obtain the position occurred under circumstances giving rise to an inference of unlawful discrimination. Hazle, supra at 463; Lytle v Malady (On Rehearing), 458 Mich 153, 172-173; 579 NW2d 906 (1998) (opinion by Weaver, J.); see also McDonnell Douglas, supra at 802. Once a plaintiff has presented a prima facie case of discrimination, the burden then shifts to the defendant to articulate a legitimate, nondiscriminatory reason for the adverse employment action. Hazle, supra at 464; Lytle, supra at 173 (opinion by Weaver, J.). If a defendant produces such evidence, the presumption is rebutted, and the burden shifts back to the plaintiff to show that the defendant’s reasons were not the true reasons, but a mere pretext for discrimination. Hazle, supra at 465-466; Lytle, supra at 174 (opinion by Weaver, J.). Under either the direct evidence test or the McDonnell Douglas test, a plaintiff must establish a causal link between the discriminatory animus and the adverse employment decision. Because a prima facie case under the McDonnell Douglas test creates a presumption of unlawful discrimination, causation is presumed. Texas Dep’t of Community Affairs v Bur dine, 450 US 248, 254; 101 S Ct 1089; 67 L Ed 2d 207 (1981). A defendant may rebut the presumption of causation by articulating a legitimate, nondiscriminatory reason for the employment decision. Under the direct evidence test, a plaintiff must present direct proof that the discriminatory animus was causally related to the adverse employment decision. Price Waterhouse, supra at 244-245; Harrison, supra at 612-613. In support of her claim, plaintiff relied in part upon the following alleged statements regarding her pregnancies: (1) Curdy referred to plaintiff’s chair as the “pregnancy chair” and stated that he was not going to allow anyone else to sit in the chair; (2) Curdy informed plaintiff that she would not be permitted to use sick time or unpaid leave in connection with her second pregnancy; (3) When discussing possible complications with future pregnancies, Curdy stated, “We’ll have to deal with that problem when it comes”; (4) Curdy asked plaintiff whether she was going to have complications with her second pregnancy “like she had in 1989”; (5) Curdy asked plaintiff about her pregnancy complications at the interview for the bcbsm account representative position; and (6) Curdy stated that he would never hire anyone in child-bearing years again. Bcbsm argued that the above statements were merely “stray remarks” and not direct evidence of discrimination. We need not determine whether the cited comments were mere “stray remarks.” Regardless of whether these were “stray remarks” or direct evidence of a discriminatory animus, plaintiff failed as a matter of law to prove that the remarks were causally related to bcbsm’s failure to hire her. Stated another way, plaintiff failed
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