us supreme court rules for employee on cat's paw theory

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Drew Capuders EmploymentLaw Blog

US Supreme Court Rules for Employeeon Cats Paw Theory

The United States Su preme Court recently una n imously issued a maj or vic tory for

emp loyees under USERRA, the Uni formed Ser vices

Employ ment and Reem ploy ment Rights Act of 1994 ,38 U. S. C. 4301 et seq ., on the cats paw the oryin employ ment dis crim ina tion claims. The deci sionwas in Staub v. Proc tor Hos pital , U.S. (March1, 2011) ( opin ion at Google Scholar ). Jus tice Scalia wrote the opin ion for the unan imous court. Jus ticeAlito wrote an opin ion con cur ring in the judg ment,which Jus tice Thomas joined. Jus tice Kagan did not

par tic ipate in the decision.What is the Cats Paw Scenario?

So, what the heck is the cats pawthe ory? Does it explain why mycat, pic tured at the left, is star ingso intently at you?

First, to de ne cats paw in a non-legal con text, the Websters Online dictionary de nes a cats paw as:A per son used by another to gainan end. The term arises out of a

fable in which a a shrewd mon key tricks a cat intopulling roast ing chest nuts out of a rethe cat getsits paw burned, and the mon key gets the chest nutsand scam pers away unhurt.

Second, the cats paw trans lated into an employ ment set ting goes some thing like this: the cleverbigot in a workplaceRalph, a white guy, play ingthe part of the shrewd mon key wants to get ridof another employee, Bob, because Bob is AfricanAmer ican. Ralph has no power to re Bob. So Ralph

tricks Bobs boss, Sally (white, play ing the part of the tricked cat), into r ing Bob. Ralph tells Sally thatBob embez zled $300,000. Sally, trust ing Ralph, resBob. Ralph (the shred Mon key), Sally (the tricked

Cat), and Bob, all work for Buy N Large Cor po ra tion(I got that name out of the Pixar movie, Wall E).

So Bob sues Buy N Large for race dis crim ina tion .Lets assume that Buy N Large proves con clu sivelythat Sally was com pletely free of any sort of racialbias, but lets also assume that the evi dence is over whelm ing that Ralph was a am ing racist. And letsalso assume that only Sally had the r ing author-ity over Bob, that she in fact made the ter mi na tiondeci sion, and that Ralph had no decision making

role in Bobs termination.Buy-N-Large then les a motion for sum mary judg ment to dis miss Bobs law suit, alleg ing that theemploy ment dis crim ina tion laws require proof of dis crim ina tory motive on the part of the com pany ,Sally con clu sively had not a dis crim ina tory bone inher body, and there fore Buy N Large can not be heldliable under the employ ment dis crim ina tion laws.

So youre the judge. Remem ber, Sally was free of even a hint of dis crim ina tory intent, she made thedeci sion to re Bob, and she was the only one autho-rized by Buy-N-Large to re Bob. Ralph is sit tingthere in full Klan regalia, had no author ity to reBob, but Ralph tricked Sally into r ing Bob over thefalse alle ga tion of embez zle ment. Again, to com pare the roles to those in the fable: Ralph is theclever mon key who tricked Sally, the cat, into r ingBob (the object of Ralphs trick ery, the chest nuts inthe fable).

Prior to the Supreme Courts deci sion in Staub v. Proc tor Hos pital , the fed eral courts had been deeplydivided on whether Buy N Large (stick ing with my

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Drew Capuders Employment LawBlog

US Supreme Court Rules for Employee on Cats Paw Theory

silly exam ple) could be held liable for employ mentdis crim ina tion. In Staubs case (which dealt withdiscrim ina tion based on mil itary ser vice, as opposedto the race dis crim ina tion in my exam ple), the trial

judge and jury found for the employee Staub, andthen the Third Cir cuit Court of Appeals unan imously(30) ruled for the employer, hold ing that the em ployer could not be held liable under roughly thescenario I use in my exam ple. Then the United States

Supreme Court unan imously (80) ruled for Staub,the employee, hold ing that the employercould beheld liable for dis crim ina tion under the cats pawscenario.

The Issues Under USERRAin Staub

To nally get back to what hap pened in the Staub case, Vin cent Staub was a mem ber of the Army Re serve while work ing as an angiog ra phy tech ni cianfor Proc tor Hos pi tal in Illi nois. Staub con tended that

his imme diate bosses were angry about his Armyreserve ser vice, in that super visors had to sched ulearound Staubs oblig ation to be on mil itary reserveduty one week end per month. USERRA pro hibitsdis crim ina tion against employ ees like Staub, whoare in the mil itary reserve.

Here are the man age ment play ers in Staubs case,and I point out their com pa ra ble g ures in the catspaw fable, and I have sum ma rized the rel evantevi dence of any dis crim ina tory motive:

Jan ice Mulally was Staubs imme di atesuper vi sor . Mulally was the clever mon key in the fable, allegedly manip ulat ingthe cats paw, Buck. When Staub got red,Mulally was not a deci sion maker in theter mi na tion. There was sub stan tial evi dence of dis crim ina tory motive on the partof Mulally: (a) Mulally sched uled Staub foraddi tional shifts with out notice so he couldpay back the depart ment for every one elsehav ing to bend over back wards to cover hissched ule for the [mil itary] reserves; (b) Mu lally told a co worker that Staubs mil itary

ser vice had been a strain on the depart ment; Mulally asked the same co workerfor help to get rid of him [Staub].

Michael Korenchuk was Mulallys imme di ate super vi sor . Korenchuk was anotherclever mon key in the fable, allegedlymanip ulat ing the cats paw, Buck. WhenStaub got red, Korenchuk was not a deci-sion maker in the ter mi na tion. There was

sub stan tial evi dence of dis crim ina torymotive on the part of Korenchuk: Korenchuk told work ers that Staubs mil itaryser vice con sisted of a bunch of smok ingand jok ing that was a waste of the tax pay ers money, and there was evi dence thatKorenchuk was aware that Mulally was outto get Staub.

Linda Buck was Vice Pres ident of HumanResources for the hos pi tal, Proc tor Hos pi tal. Buck was the inno cent cats paw in the

fable. When Staub got red, Buck was theonly decision-maker, but Buck red Staublargely because of the alle gations madeby Mulally and Korenchuk. There was noevi dence that Buck had any dis crim ina torymotive against Staub.

We have a sit uation where there was sub stan tialevi dence that Staubs imme diate boss, Mulally, andMulallys imme diate boss, Korenchuk, both had hos til ity toward Staub based on his mil itary reserveser vice (dis crim ina tory ani mus) and that Mulallywas recruit ing help to get rid of Staub (and therewas evi dence that Korenchuk knew of that plan ordesire).

So here is a sequence of events that led to Staubstermination:

Mulally issued Staub a cor rec tive actionthat accused Staub of vio lat ing a com panypol icy that required Stub to stay in his workarea. Staub con tended in his later law suitthat (a) there was no such pol icy, and (b)even if there was such a pol icy, Staub did

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not vio late it. A co worker of Staub com plained about

Staubs fre quent unavail abil ity andabrupt ness to Buck and a dif fer ent VicePres ident of Human Resources, McGowan.McGowan directed Buck and Korenchuk to cre ate a plan of action to solve Staubsavail abil ity problem.

Before that plan of action was for mu lated,

Korenchuk reported to Buck that Staub had left his desk with out inform ing a super visor, in vio la tion of the prior cor rec tiveaction. Staub con tended the alle gation wasfalse, and that Staub had left a voice mailmes sage for Korenchuk that Staub was leav ing his desk.

Buck then relied on Korenchuks alle ga tion (about Staub leav ing his desk with outinform ing a super visor), reviewed Staubsper son nel le, and red Staub. Bucks ter mi-

na tion notice, rely ing on Korenchuks alle gation, stated that Staub had vio lated thecor rec tive action direc tive not to leave hisdesk with out noti fying a supervisor.

So this sequence of events has

1. Mulally (the clever mon key, with dis crim ina tory intent) dis ciplin ing Staub with thecor rec tive action,

2. Korenchuck (the sec ond clever mon key,with evi dence of dis crim ina tory motive)mak ing alle gations that Staub vio lated thecor rec tive action to Buck (the cat, with noevi dence of dis crim ina tory motive);

3. Buck , in reliance on Korenchuks alle ga tion that Staub vio lated Mulallys cor rec tion action, red Staub .

USERRA and a Moti vat ing Fac tor in theEmployers Action

USERRApro hibits an employer from tak ing adverseaction against an employee based on an employeesmem ber ship in mil itary ser vice, such as being amem ber of the Army reserve. 38 U.S.C. 4311(a).

An employer vio lates USERRAif an employees mil

itary ser vice was a moti vat ing fac tor in the em ployers action against the employee, unless theemployer can prove that the adverse action wouldhave been taken in the absence of such mem ber ship. 38 U.S.C. 4311(a).

Jus tice Scalia iden ti ed the di cult issues in look-ing at the cats paw scenario:

The cen tral di culty in this case is con-

stru ing the phrase moti vat ing fac tor in the

employers action. When the com pany o cialwho makes the deci sion to take an adverseemploy ment action is per son ally act ing outof hos til ity to the employees mem ber ship inor oblig ation to a uni formed ser vice, a moti vat ing fac tor obvi ously exists. The prob lemwe con front arises when that o cial has nodis crim ina tory ani mus but is in u enced bypre vious com pany action that is the prod uctof a like ani mus in some one else.

Thus, to put it in terms of Staubs case, if Mulally orKorenchuk had red Staub, the Courts would nothave di culty in con clud ing that Staubs mil itaryser vice was a moti vat ing fac tor in the ter mi na tion. But since the deci sion to ter mi nate was madeby Buck, the lia bil ity of the com pany has beenless clear for the pre vious courts.

In exam in ing the issue, Jus tice Scalia observed animpor tant real ity in cor po rate decision making inemploy ment decisions:

An employers author ity to reward, pun

ish, or dis miss is often allo cated among mul

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tiple agents. The one who makes the ulti matedeci sion does so on the basis of per for manceassess ments by other supervisors.

Jus tice Scalia for the Court then set out the key hold ing in Staubs case, that the employer may be heldliable under some situations involv ing the broadercats paw scenario:

We there fore hold that if a super visor

per forms an act moti vated by anti mil itaryani mus that is intended by the super visor tocause an adverse employ ment action,3 and if that act is a prox imate cause of the ulti mateemploy ment action, then the employer is liableunder USERRA.

Another way to put this hold ing is that an employermay be liable for a ter mi na tion where the actualdecision maker lacks any dis crim ina tory motive,

but where:4. The inno cent decision maker relies upon

infor ma tion pro vided (or action taken) byanother super visor (the bad super visor) of the plain tiff; and

5. The bad super visor har bors dis crim ina toryani mus (ill will) against the plain tiff; and

6. The bad supervisors infor ma tion pro videdto the inno cent decision maker is moti vatedby the bad supervisors dis crim ina tory ani mus; and

7. The infor ma tion pro vided or action takenby the bad super visor is intended by the badsuper visor to cause an adverse employ mentdeci sion against the plain tiff; and

8. The infor ma tion pro vided or action takenby the bad super visor is the prox imate(actual, direct) cause of the adverse employ ment action against the plaintiff.

Justice Scalia for the Court made it clear that the factthat the inno cent decision maker applies inde pen dent judg ment in reach ing the deci sion does alwaysnot insu late the employer from liability:

We do not think that the ulti mate deci sion makers exer cise of judg ment auto mat i cally ren ders the link to the supervisors biasremote or purely con tin gent. The deci sion makers exer cise of judg ment is also aprox imate cause of the employ ment deci sion,but it is com mon for injuries to have mul ti ple prox imate causes. . . . Nor can the ulti mate deci sion makers judg ment be deemed

a super sed ing cause of the harm. A cause canbe thought super sed ing only if it is a causeof inde pen dent ori gin that was not foresee able. (cita tions omitted).

What is the Import of Staub v. Proc torHospital?

Even though the deci sion in Staub per tained to aclaim for mil itary service related dis crim ina tionunder USERRA, lan guage from the deci sion strongly

sug gests that the hold ing will also apply to claimsfor employ ment dis crim ina tion under Title VII of the Civil Rights Act of 1964 , because of the sim ilar ity in the cau sa tion lan guage between USERRAandTitle VII:

The statute [ USERRA] is very sim ilar toTitle VII, which pro hibits employ ment dis crim ina tion because of race, color,religion, sex,or national ori gin and states that such dis crim ina tion is estab lished when one of those fac torswas a moti vat ing fac tor for any employ mentpractice,even though other fac tors also moti vated the prac tice. 42 U. S. C. 2000e2(a),(m).

So a pretty clear oper at ing assump tion for employ ers should be that the hold ing in Staub on USERRA should apply to Title VII and any other fed eralemploy ment dis crim ina tion statute that has cau sa tion lan guage sim ilar to USERRA.

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Resources for Fur ther Reading

A tran script of the oral argu ment on Novem ber 2,2010 in the case is avail able at the Supreme Courts web site , and you can also listen to the oral argu ment (with a syn chro nized tran script) at the Oyez site . And for exten sive cov er age of the case, includ ing analy sis, oral argu ment cov er age, briefs, and awhole lot more, you can go to the page devoted to

Staub v. Proc tor Hos pi tal at the always wonderfulSCOTUSBlog.

Writ ten by Drew M. Capuder (con tact infor ma tion );Voice 304333 5261

March 6, 2011

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us supreme court rules for employee on cat's paw theory

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