SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-4292-96T3
BERGEN COMMERCIAL BANK,
Plaintiff-Respondent,
v.
MICHAEL SISLER,
Defendant-Appellant.
____________________________________
Argued: December 9, 1997 Decided: January 20, 1998
Before Judges Dreier, Keefe and Wecker.
On appeal from the Superior Court of New
Jersey, Law Division, Bergen County.
Kevin M. Kiernan argued the cause for
appellant (McDonough, Kiernan & Campbell,
attorneys; Mr. Kiernan, on the brief).
Elizabeth A. Daly argued the cause for
respondent (Genova, Burns & Vernoia,
attorneys; James M. Burns, of counsel,
Ms. Daly, on the brief).
The opinion of the court was delivered by
DREIER, P.J.A.D.
Defendant, Michael Sisler, appeals from a summary judgmentSee footnote 1
dismissing his age discrimination claim against plaintiff Bergen
Commercial Bank.
In 1993, plaintiff recruited defendant to work for Bergen
Commercial Bank to operate its merchant and credit card programs.
After several meetings, defendant entered into an agreement with
plaintiff to become the Vice President of Credit Card Operations,
earning a salary of $70,000 per year. Shortly before defendant's
starting date, Anthony M. Bruno, the chairman and co-founder of
Bergen Commercial Bank, asked defendant his age. Defendant
replied that he was twenty-five years old. According to
defendant, Bruno appeared shocked. Bruno then told defendant not
to disclose his age to anybody because it would be embarrassing
if other people at Bergen Commercial Bank learned that defendant
had been hired at such a young age as a vice president and at
such a high salary.
On September 1, 1993, plaintiff commenced his employment at
the bank. Eight days later, Bruno and Mark Campbell, the
president and CEO of Bergen Commercial Bank, expressed
dissatisfaction with defendant's work and indicated that he might
be terminated. At the same time, they suggested that defendant
relinquish his position and become a consultant. Defendant
refused, and thereafter he was demoted. Following a meeting on
January 21, 1994, in which defendant's poor job performance was
discussed, plaintiff fired defendant after less than five months'
employment.
After negotiations concerning defendant's potential age
discrimination claim broke down, defendant informed plaintiff
that he intended to file a lawsuit. Before defendant could
initiate his suit, plaintiff commenced this action on August 11,
1994, against defendant for damages resulting from the conversion
of files, breach of duty of loyalty, intentional interference
with business relations, and trespass.See footnote 2 These claims were later
dismissed without prejudice to allow this appeal.
Defendant filed an answer and counterclaim, asserting
violations based on age discrimination under the New Jersey Law
Against Discrimination (LAD) and breach of the compensation
agreement. Although interrogatories were still outstanding and
defendant had not yet had an opportunity to depose Bruno and
Campbell, plaintiff moved for summary judgment on defendant's
claim of age discrimination on the ground that the LAD's
prohibition of age discrimination did not apply to twenty-five-year-old claimants. The trial judge granted plaintiff's motion
for summary judgment on defendant's claim of age discrimination.
If defendant's claim of age discrimination states a cause of
action, it is obvious that the absence of complete discovery
should preclude the entry of summary judgment under R. 4:46-5(a).
Even when such discovery is completed, it is probable from the
certifications already filed by the parties that there would be
factual issues requiring resolution by a jury. The judge,
however, entered summary judgment based solely upon statutory
construction, not the factual posture of the case, thus
presenting solely a legal issue for our review.
This case is governed by two sections of the LAD. The first
is N.J.S.A. 10:5-4, prohibiting age discrimination:
All persons shall have the opportunity to
obtain employment ... without discrimination
because of race, creed, color, national
origin, ancestry, [or] age ... subject only
to conditions and limitations applicable
alike to all persons.
The LAD also proscribes unlawful employment practices or unlawful
discrimination based on age under N.J.S.A. 10:5-12a:
It shall be an unlawful employment
practice, or, as the case may be, an unlawful
discrimination:
a. For an employer, because of race, creed,
color, national origin, ancestry, age ... to
refuse to hire or employ or to bar or to
discharge or require to retire, unless
justified by lawful considerations other than
age, from employment such individual or to
discriminate against such individual in
compensation or in terms, conditions or
privileges of employment.
Plaintiff urges that we follow a decision of this court,
Burke v. Township of Franklin,
261 N.J. Super. 592 (App. Div.
1993), which held that a thirty-nine-year-old plaintiff was not
eligible to bring an age discrimination claim under the LAD or
the equivalent Federal Age Discrimination in Employment Act
(ADEA),
29 U.S.C.A.
§623(a) and § 631(a). Id. at 602.
Defendant claims that Burke was wrongly decided and that any
discharge based upon age violates the statute. He further
asserts that even if he is not a member of a protected class
under the LAD, his age discrimination claim is valid under a
reverse employment discrimination analysis.
In Burke, the court determined that a police examination
procedure for filling vacant sergeant positions was neither
arbitrary nor capricious, nor did it violate the LAD or ADEA,
because the plaintiff there, being under forty years old, did not
fall within the protected class under either Act. 261 N.J.
Super. at 601-02. The Burke court relied upon Giammario v.
Trenton Bd. of Educ.,
203 N.J. Super. 356, 361 (App. Div.),
certif. denied,
102 N.J. 336 (1985), cert. denied,
475 U.S. 1141
(1986) and its analysis of the ADEA. The court noted that
29 U.S.C.A.
§631(a) provided that "prohibitions in this chapter
shall be limited to individuals who are at least 40 years of
age." Plaintiff in Burke therefore clearly did not fall within
the federal protected class. 261 N.J. Super. at 602.
It is true that the Giammario case had ruled that age
discrimination claims in employment should be "analyzed by
examination of federal cases arising under Title VII and the
ADEA." 203 N.J. Super. at 361. However, the context in which
this statement was made in Giammario was whether a court should
refer to the ADEA or Title VII to interpret the LAD in a limited
area, namely, whether a plaintiff has established a prima facie
case of discrimination. Id. at 361-63. See also Grigoletti v.
Ortho Pharm. Corp.,
118 N.J. 89, 97 (1990) (stating that "[i]n a
variety of contexts involving allegations of unlawful
discrimination, this Court has looked to federal law as a key
source of interpretative authority.") In Giammario, the
reference was proper because the language of the federal and
state statutes was similar. 203 N.J. Super. at 361. See also
Peper v. Princeton Univ. Bd. of Trustees,
77 N.J. 55, 81 (1978)
(interpreting sex discrimination standards in order to achieve
uniformity in the law).
We determine, however, that this analysis is not applicable
here because the standards for age discrimination claims under
the LAD and the ADEA are different. Unlike the ADEA, there is no
minimum age limit established in the LAD. According to Rosemary
Alito, New Jersey Employment Law (1992): "Unlike the Federal Age
Discrimination in Employment Act, which protects employees age 40
and older, the LAD's prohibition of age discrimination begins at
age 18." Id. at § 77 (footnotes omitted). See also Robinson v.
Sizes Unlimited, Inc.,
685 F. Supp. 442, 446 n.8 (D.N.J. 1988)
(noting, in the context of comparing LAD and ADEA to determine
whether a federal court may exercise pendent jurisdiction over
LAD age discrimination class action claims, that the LAD applies
to persons under forty). The Supreme Court was clear in
Grigoletti that where the standards of the LAD are different from
those of the ADEA, we will not hesitate to apply our own
analysis. 118 N.J. at 107-08 (giving examples of altered gender
and handicap discrimination procedures).
We now turn to the trial judge's interpretation of the LAD
itself. We note that although the judge had alluded to Burke,
she did not base her decision solely on its holding, but also on
the alleged legislative history of the LAD. Our review of this
history shows that it is scant at best, and there is no
indication that the two studies cited by the trial judge had been
the basis for enacting the statute. The alleged legislative
history consists of a study, published by the New Jersey Old Age
Study Commission, A Positive Policy Toward Aging (1957); a second
study by the New Jersey Department of State, Division of Aging,
Discrimination in Employment Because of Age (1959); and various
bills submitted to the Legislature between the time of these
studies and the addition of age as an impermissible standard by
L. 1962, c. 37, § 4. The motion judge stated that the cited
reports clearly, unequivocally, without any
doubt focused on a protected class that was
the result of age; that is, persons above 40
years of age, and higher who were being
deprived of employment, deprived of the
benefits of long term employment and had to
be protected in accordance with the
legislature.
While the judge acknowledged that the LAD did not define the
minimum age requirement, she reiterated that the studies
described the protected group as being over forty years old.
Our examination of these studies, however, reveals that
while the studies define the age groups that were the topic of
the research, neither study supports the conclusion that the age
group in need of protection is persons above forty years of age.
The Old Age Study Commission's report is a generalized study
providing an overview of aging as it affects New Jersey and its
citizens, and discusses particular data gathered on workers
sixty-five years old and older. In its conclusion, the report
stresses the need for further investigation into the topic.
The Division of Aging's report describes the age group
protected and its conclusions, but it does not refer to persons
forty years and over. It discusses the difference between age
discrimination of older workers and that encountered by younger
workers. The report also urges implementation of a minimum lower
limit in future anti-age discrimination legislation, concluding
that forty-five years would be a proper lower limit. The earlier
bills submitted provide no guidance, and the only one produced by
the parties has no explanation regarding the class of persons
protected by the mere addition of the word "age" to the LAD list
of prohibited considerations.
We are mindful of the twin and sometimes conflicting
principles for statutory interpretation. First, we have the duty
"to apply the legislative intent as expressed in the statute's
language, and ... not to presume that the Legislature intended
something other than what it expressed by its plain language."
Essex Crane Rental Corp. v. Director Div. on Civil Rights,
294 N.J. Super. 101, 105 (App. Div. 1996). Another principle is that
the surest way to misread a rule or statute is to read it
literally while ignoring the overall legislative intent.
Prudential Ins. Co. of Am. v. Guttenberg Rent Control Bd.,
220 N.J. Super. 25, 31 (App. Div.), certif. denied,
109 N.J. 505
(1987). Accordingly, we will try to read the statute reasonably
and the word "age" in the context of the Legislature's expressed
intent.
The Legislature in 1962 merely added the word "age" to a
list of prohibited bases for discrimination. L. 1962, c. 37.
There are two issues to be considered in our construction of the
word "age." First, is there any implication that there is a
limitation to any particular age? Second, is there an
implication that the protection is to be afforded only to
discrimination based upon an older as opposed to a younger age?
The Legislature could have conformed the LAD to the federal
model after enactment of the ADEA in 1967, by limiting the
application of the LAD to persons forty and over. It did not
choose to do so except in the area of public employment. See
N.J.S.A. 10:3-1.See footnote 3 Further, in N.J.S.A. 10:5-2.1 the statute
provides: "[N]othing contained in this act ... shall be
construed ... to require the employment of any person under the
age of 18." Considering this language, it is difficult for us to
interpret "age" in this Act as did the court in Burke, as
limiting the protections of LAD to individuals over forty years
old. Of course, the Act might be construed to mean that this
limitation merely means that an ethnic discrimination claim by
one under the age of eighteen will not be heard, and that this
provision is inapplicable to an age discrimination claim. There
is, however, no indication in the LAD or its history that the age
discrimination claim should be singled out for disparate
treatment. We therefore must respectfully decline to follow
Burke. We here determine that a LAD age discrimination claim,
unlike a federal ADEA claim, is not limited to persons over the
age of forty.
We next approach the second and more difficult question,
whether a person discriminated against because he or she is of a
young age falls within the protected class of the LAD. We
recognize that the legislative purpose in passing discrimination
laws in general, and this law in particular, is to correct an
extant problem in our society. In the area of age
discrimination, it is usually to protect the older worker from
discrimination in favor of the younger worker. See 29 U.S.C.A. §
623(a), § 631. While the LAD does not expressly state this
principle as its rationale, neither does it express in its
parallel provisions the well-known problems of racial, ethnic or
other covered discrimination against specific racial, ethnic or
other groups. Yet it has generally been the case that the age
element of this legislation has protected older workers.
Because the legislative intent concerning age discrimination
is expected to be advanced by an application of the statute to
discrimination against an older person, the members of the
presumptive protected class are those who are replaced by younger
workers. Plaintiff in this case, therefore, would not be a
member of the usual class of persons intended to be protected by
the LAD because he was replaced by an older worker, rather than a
younger one.
That being said, our decisional law has recognized that
there are those unusual cases of reverse discrimination in which
the traditionally advantaged worker is discriminated against.
See Erickson v. Marsh & McLennan Co. Inc.,
117 N.J. 539, 551
(1990) (reverse sexual discrimination involving a claim by a male
employee); Rivera v. Trump Plaza Hotel & Casino, ___ N.J. Super.
___ (App. Div. 1997) (reverse discrimination not proven where
male casino workers were not permitted to wear hair styles
acceptable for female employees). We view this matter,
therefore, as a reverse discrimination case, which must be
analyzed in that context. We will reason by analogy from the
other protected classes noted in the Act. We have no doubt that
in each of the other categories mentioned, if a person in the
traditionally advantaged class was discriminated against in
hiring based on his "race, creed, color, national origin,
ancestry ... marital status, affectional or sexual orientation,
familiar status, or sex," a reverse discrimination claim would
lie under the Act. N.J.S.A. 10:5-4. See Erickson, supra, where
the Court stated that the LAD was applicable in a claim of gender
discrimination against a male employee. 117 N.J. at 551-54.
As noted by Judge Mikva in Parker v. Baltimore & Ohio R.R.,
652 F.2d 1012, 1016-18 (D.C. Cir. 1981), a Title VII case, a
background of prior unlawful considerations of race, made racial
consideration a prohibited factor in a reverse discrimination
case. Twelve years later, Judge Mikva expanded on the Parker
theme in Harding v. Gray,
9 F.3d 150 (D.C. Cir. 1993):
[I]f a more qualified white applicant is
denied promotion in favor of a minority
applicant with lesser qualifications, we
think that in itself raises an inference that
the defendant is "that unusual employer who
discriminates against the majority." A
rational employer can be expected to promote
the more qualified applicant over the less
qualified, because it is in the employer's
best interest to do so. And when an employer
acts contrary to his apparent best interest
in promoting a less-qualified minority
applicant, it is more likely than not that
the employer acted out of a discriminatory
motive.
[Id. at 153-54, quoting Parker, 652 F.
2d at
1017.]
In such a case, once there is a prima facie showing of such
reverse discrimination, the burden shifts to the employer to show
a proper basis for dismissal. Grigoletti, supra, 118 N.J. at
107-08. The fact that the vast majority of cases involve the
protection of minorities and older workers does not mean that the
"protected class" will not be altered to permit a member of the
majority "to show that his employer was the `unusual employer who
discriminates against the majority' and that he was intentionally
discriminated against despite his majority status." Ibid.
(quoting Erickson, 117 N.J. at 551, in turn quoting Livingston v.
Roadway Express,
802 F.2d 1250, 1252 (10th Cir. 1986)).
For purposes of a prima facie case, it is important to
distinguish between a discrimination claim by a member of the
usual protected class, and a reverse discrimination claim because
in the latter case, "the rationale supporting the rebuttable
presumption of discrimination embodied in the prima facie
elements does not apply." Erickson, supra, 117 N.J. at 551.
Instead, the first prong of the employee's proofs is modified, as
noted earlier, to require "the plaintiff to show that he has been
victimized by an `unusual employer who discriminates against the
majority.'" Ibid. It is an appropriate burden to place on a
plaintiff in such an "unusual" discrimination case. Ibid.
Applying the Supreme Court's interpretation of other terms
in the LAD's list of impermissible considerations, we can see no
reason why the same reverse discrimination analysis would not be
applied to the factor of age. If, as here, defendant has made a
prima facie showing (which remains viable after discovery) that
his employment was terminated because particular bank officials
determined that he was too young, as opposed to unqualified for
the job, he has alleged a legally sufficient age discrimination
claim under the LAD.
Defendant correctly asserts that even without additional
discovery, he has here raised a genuine issue of fact with regard
to the employer's motive. Romano v. Brown & Williamson Tobacco
Corp.,
284 N.J. Super. 543, 551 (App. Div. 1995). Defendant
claims that the chairman of the bank discovered his age,
expressed shock and immediately wanted to discharge him, even
though he had not actually started work. As proof, defendant
points to the fact that the chairman allegedly told defendant not
to divulge his age because he would be embarrassed if others
discovered that he had hired such a young person for the position
of vice president.See footnote 4 The statement made at the conference before
defendant started to work does not, of course, clearly establish
age discrimination or give rise to any mandatory inference of
such discrimination based upon defendant's age. This is why
there must be further discovery.
The flexibility of the four-part formulation from McDonnell
Douglas Corp. v. Green,
411 U.S. 792,
93 S.Ct. 1817,
36 L.Ed.2d 668 (1973), approved in Erickson, supra, 117 N.J. at 549-50, has
frequently been recognized. Where, as here, plaintiff proffers
direct evidence of a discriminatory intent on the basis of his
youth, he has apparently satisfied the first prong of a prima
facie case under a modified McDonnell Douglas formulation. By
offering evidence that the defendant viewed plaintiff's young age
in a negative light, plaintiff established himself as a member of
a broader protected class: persons discriminated against due to
age. As was noted in both Harding v. Gray, supra, and Parker v.
Baltimore & Ohio R.R., supra, the first McDonnell Douglas
criterion is modified in a reverse discrimination case to proof
of an unusual discriminatory environment, which is the
"functional equivalent" of membership in the usually protected
minority. Harding, 9 F.
3d at 153; Parker, 652 F.
2d at 1018. In
fact, Harding adds a second alternative test to satisfy the first
McDonnell Douglas criterion, namely the presence of "background
circumstances" that indicate that the employer is discriminating
against the majority. In Judge Mikva's words "evidence
indicating that there is something `fishy' about the facts of the
case at hand . . . raises an inference of discrimination." 9
F.
3d at 153. The judge further elaborated:
Apparently, we have never had occasion to
state clearly that the second type of
"background circumstance" may create a prima
facie case by itself. Accordingly, we will
take this opportunity to hold precisely that.
"Background circumstances" need not mean
"some circumstance in the employer's
background." On the contrary, other evidence
about the "background" of the case at hand -
including an allegation of superior
qualifications -- can be equally valuable.
[Ibid.]
We agree. See also, Murphy v. Milwaukee Area Technical College,
976 F. Supp. 1212, 1217 (E.D. Wis. 1997) (collecting authority in
accord).See footnote 5
The modified prima facie case of discrimination therefore
requires (1) proof that defendant belongs to a member of a
protected class (as that class may be expanded if the Erickson
test is met); (2) he was performing a job at the level that met
the employer's legitimate expectations; (3) he was nevertheless
fired; and (4) the employer hired someone else to perform the
same work after he was discharged. See Erickson, supra, 117 N.J.
at 549-50; Clowes v. Terminix Int'l, Inc.,
109 N.J. 575, 597
(1988).
As an at-will employee, defendant could of course be
discharged for any reason other than one which violates public
policy. Woolley v. Hoffmann-LaRoche, Inc.,
99 N.J. 284, 291-92
(1985). But defendant has articulated a factual basis which, if
proven, could substantiate a claim of unlawful reverse
discrimination. Thus his complaint should not have been
dismissed. On the other hand, after discovery the facts may
appear differently, and a new motion for summary judgment might
be considered, applying the standards of Brill v. Guardian Life
Ins. Co. of Am.,
142 N.J. 520 (1995). Plaintiff retains the
burden of proving intentional discrimination. That burden is to
prove that age was a motivating determinative factor in the
decision to terminate his employment. Miller v. Cigna Corp.,
47 F.3d 586, 597 (3d Cir. 1995). Cf. Rendine v. Pantzer,
276 N.J.
Super. 398, 432 (App. Div. 1994), modified on other grounds,
141 N.J. 292 (1995) (sex discrimination claim). As we noted at the
outset, the summary judgment entered here was in effect a
dismissal for failure to state a claim upon which relief could be
granted. As such, the complaint was mistakenly dismissed.
The summary judgment is reversed, and the matter is remanded
to the Law Division for further proceedings.
Footnote: 1Although this motion was made pursuant to R. 4:46-2 and was
ostensibly a summary judgment motion, it was entered prior to the
completion of discovery and was, in effect, a motion to dismiss
for failure to state a claim upon which relief can be granted.
R. 4:6-2e.
Footnote: 2According to plaintiff, after defendant was discharged, he
entered his office and removed several computer files and
downloaded data concerning Bergen Commercial Bank's operations.
On February 2, 1994, defendant returned to plaintiff two computer
disks and several files, but there was uncertainty about whether
the files were complete. Later, it was allegedly discovered that
defendant had deleted certain computer files.
Footnote: 3Significantly, the Law Against Discrimination was amended
in 1985 to conform to similar federal standards and provide that
"nothing herein contained shall be construed to bar an employer
from refusing to accept for employment or to promote any person
over 70 years of age...." N.J.S.A. 10:5-12, as amended by L.
1985, c. 73, §3a. Termination of persons over age seventy due to
age remains an unlawful employment practice. We note that the
Legislature did not take this opportunity also to set a minimum
age that would trigger the protection of the Act.
Footnote: 4Further, eight days after defendant commenced employment he
was called to a meeting to discuss his performance. After this
very brief period of time, the chairman and president stated that
they did not think that the employment was "going to work." They
indicated a desire to make some changes and were considering
discharging defendant. The possibility of working something out,
such as a consultant's position, was also discussed. His
termination less than five months later, allegedly without any
further indication of specific deficiencies in his work, could
raise at least an inference that the discharge was based upon
defendant's young age.
Footnote: 5There are, however, other cases that do not even place such
a limited additional burden on a plaintiff claiming reverse
discrimination. See Hill v. Burrell Communications Group, Inc.,
67 F.3d 665, 668 n.2 (7th Cir. 1995); Wilson v. Bailey,
934 F.2d 301, 304 (11th Cir. 1991); Young v. City of Houston,
906 F.2d 177, 180 (5th Cir. 1990). Because Erickson places New Jersey
with the majority in applying the "unusual employer" test, we
need not discuss these cases in any detail.