SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-2665-94T2
WILFREDO HERNANDEZ,
Plaintiff-Appellant,
v.
REGION NINE HOUSING CORP.,
NEW BRUNSWICK UAW ASSOCIATES,
and JOAN WILK,
Defendants-Respondents.
_____________________________________
Argued: November 29, 1995 - Decided: January
26, 1996
Before Judges King, Landau and Kleiner.
On appeal from the Superior Court of New
Jersey, Law Division, Middlesex County.
Jeffrey E. Fogel argued the cause for
appellant (Mr. Fogel, on the brief).
Thomas S. Giblin argued the cause for
respondents Region Nine Housing corp. and New
Brunswick UAW Associates (Giblin & Lynch,
attorneys).
James Tarella argued the cause for respondent
Joan Wilk (Tarella & Liftman, attorneys; Mr.
Tarella, on the brief).
The opinion of the court was delivered by
KING, P.J.A.D.
This case involves election of remedies for discrimination in the workplace. The issue is whether plaintiff's election to initially pursue his federal remedy to an administrative decision
but then forego his right to bring a federal lawsuit precludes this
Superior Court action for damages based on state law.
Plaintiff Wilfredo Hernandez appeals from the grant of a
summary judgment on his claim for damages against his employer for
violation of this State's Law Against Discrimination (LAD),
N.J.S.A. 10:5-1 to -42. Plaintiff claims that he was wrongfully
discharged by defendants from his job as a lead maintenance person
for reasons of national origin in violation of the LAD. The
plaintiff initially was suspended with pay for two days for
speaking Spanish in the lobby of the apartment building where he
worked and he was ordered not to speak Spanish again in public
areas. He was later terminated in October 1991. He claimed he was
suspended and then finally terminated for discriminatory reasons of
national origin. The defendant employer claimed plaintiff was
legitimately disciplined and later fired for poor job performance.
The Law Division judge granted summary judgment on the ground
that plaintiff had irrevocably elected a federal remedy and could
not later pursue an alternative judicial remedy under state law.
On this appeal, plaintiff claims that he should not be barred from
suing under New Jersey's LAD simply because he had initially
pursued his remedy under Title VII of the Civil Rights Act of 1964,
42 U.S.C.A.
§2000e to § 2000e-6, before the Equal Employment
Opportunities Commission (EEOC) to an administrative determination.
Plaintiff originally filed a complaint with the Division on
Civil Rights (DCR) on November 4, 1991. Before the DCR had taken
any action, plaintiff voluntarily withdrew that complaint on June
4, 1992. Several months before this DCR withdrawal, on February
26, 1992, plaintiff had filed a complaint with the EEOC pursuant to
Title VII,
42 U.S.C.A.
§2000e-5(b). After conducting an
investigation, the EEOC issued a two-page written "DETERMINATION"
on May 19, 1993. The determination issued "on behalf of the EEOC"
by Area Director Corrado Gigante concluded that the defendants'
"prohibition of Hispanics from speaking their native language
during working hours operated to deny [plaintiff] a term and
condition of his employment." This policy was found discriminatory
on the basis of national origin because not "required as a matter
of business necessity." The Area Director concluded this part of
his determination by stating that "based on the evidence in the
file, the Commission finds reasonable cause to believe [defendants]
discriminated against [plaintiff] in violation of Title VII."
However, the Area Director reached a contrary conclusion on the
claimed unlawful discharge aspect of the complaint. On this point,
the determination recited:
With respect to Charging Party's allegation of
unlawful discharge, evidence reveals that
Charging Party was discharged on October 28,
1991 after receiving his third Letter of
Warning for performance in accordance with
Respondent's warning system.
The evidence obtained did not support Charging
Party's allegation of unlawful discrimination
with respect to his discharge. Charging Party
has been informed of the evidence upon which
this determination is based. The Charging
Party may pursue this matter by filing a
private suit against the Respondent as set
forth in the enclosed Information Sheet.
The determination concluded with the instruction that: "This
determination does not conclude the processing of this charge.
EEOC will begin conciliation efforts to resolve all matters where
there is a reason to believe that violations occurred." The
determination also noted an "Enclosure .... Information Sheet on
Filing Suit in the Federal District Court" which contained this
information:
This determination becomes effective upon
receipt. Some or all of Charging Party's
allegations of illegal employment
discrimination have been dismissed.
If Charging
Party wishes to pursue this matter(s), Charging Party must file a
private lawsuit against the respondent named in the charge in U.S.
District Court under the applicable statute(s), as set forth below.
The determination letter and this notice will be the only notice of
the Charging Party's right to sue by the Commission.
Filing this notice with the court is not
sufficient. A court complaint must contain a
short statement of the facts of the case which
shows that Charging Party is entitled to
relief. Generally, suits are brought in the
State where the alleged unlawful practice
occurred, but in some cases can be brought
where relevant employment records are kept,
where the employment would have been, or where
the respondent has its main office.
After this determination, plaintiff refused to sign a "conciliation agreement" tendered by the EEOC. We understand from oral argument that this conciliation tender had no monetary significance to the plaintiff but looked to mediation and resolution of the parties' dispute, by then moot because of the discharge. On January 21, 1994 the EEOC issued a somewhat belated
"Notice of Right to Sue" which plaintiff received on about February
1, 1994. The Notice recited in pertinent part:
TO THE PERSON AGGRIEVED: This is your NOTICE
OF RIGHT TO SUE. It is issued because the
Commissioner has dismissed your charge. Your
charge was dismissed for the following reason:
.....
. X .The respondent has made a written settle-
.....ment offer which affords full relief for
the harm you alleged. At least 30 days have
expired since you received actual notice of
this settlement offer.
The issuance of this NOTICE OF RIGHT TO SUE
terminates the Commission's processing of your
charge. If you want to pursue your charge
further, you have the right to sue the
respondent(s) named in your charge in United
States District Court. IF YOU DECIDE TO SUE,
YOU MUST DO SO WITHIN 90 DAYS FROM THE RECEIPT
OF THIS NOTICE OF RIGHT TO SUE: OTHERWISE YOUR
RIGHT TO SUE IS LOST.
The Notice carefully explained plaintiff's right to sue in federal
court within 90 days. The plaintiff decided not to sue for damages
within 90 days in the United States District Court, but instead
brought this action in the Superior Court on May 24, 1994, or 112
days after his receipt of the 90-day notice to sue letter.
Beyond doubt, the Title VII federal statutory scheme, as
devoted to equal employment opportunity, does not presume to
preempt state remedies. Rather, the federal statute expresses
considerable deference to state remedies for employment
discrimination. The federal statute says:
Nothing in this subchapter shall be
deemed to exempt or relieve any person from
any liability, duty, penalty, or punishment
provided by any present or future law of any
State or political subdivision of a State,
other than any such law which purports to
require or permit the doing of any act which
would be an unlawful employment practice under
this subchapter.
[
42 U.S.C.A.
§2000e-7.]
Preservation rather than preemption of state anti-discrimination
remedies was clearly intended. See California Federal Sav. & Loan
Ass'n v. Guerra,
758 F.2d 390 (9th Cir. 1985), aff'd,
479 U.S. 272,
107 S. Ct. 683,
93 L. Ed.2d 613 (1986). We are convinced the
EEOC's finding that appellant failed to demonstrate probable cause
for an administrative determination of discrimination does not as
a matter of federal law necessarily foreclose this state claim for
damages under the LAD. See University of Tennessee v. Elliot,
478 U.S. 788,
106 S. Ct. 3220,
92 L. Ed.2d 635 (1986) (judicially
unreviewed administrative findings not preclusive of action at law
in an alternative forum). Therefore, we are not compelled by any
principle of federal statute or case law to affirm the dismissal of
appellant's LAD claim. We are free to examine appellant's right to
bring this action under the LAD at this procedural juncture purely
as matter of New Jersey state law.
However, we hold that appellant should be precluded under our
State law from bringing his LAD claim in state court after an
adverse administrative determination by the EEOC. Appellant was
free to proceed in federal court with his Title VII claim within 90
days after receipt of his notice to sue letter, despite the adverse
federal administrative determination. He chose not to do so but
switched forums, seeking judicial relief in state court.
Appellant's election to switch forums after an adverse
administrative ruling is most reminiscent of our decision in
Hermann v. Fairleigh Dickinson Unv.,
183 N.J. Super. 500 (App.
Div.), certif. denied,
91 N.J. 573 (1982), where plaintiff brought
an action at law for damages against her former employer for
employment discrimination. We affirmed a dismissal of her
complaint by the Law Division judge, concluding that her action was
barred by a previous adverse ruling on the same grievance by New
Jersey's Division of Civil Rights. N.J.S.A. 10:5-27.
After a fact-finding conference and an administrative
investigation, the DCR field investigator submitted a report
recommending that "this case be closed NO PROBABLE CAUSE."
Hermann, supra, 183 N.J. Super. at 503. Thereafter a formal
"finding of no probable cause" was filed by the Director. Although
a notice of appeal to the Appellate Division was served and filed,
plaintiff elected to abandon her appeal to this court, an appeal
which she could have pursued as a matter of right. R. 2:2-3(a)(2);
N.J.A.C. 13:4-15.3. Instead, she brought suit for damages in the
Law Division, a suit which we held was properly dismissed.
The LAD provides "alternative avenues for redress against or
relief from unlawful discrimination." Hermann, 183 N.J. Super. at
503. An aggrieved party may sue in the Superior Court or seek
relief in the Division. N.J.S.A. 10:5-13. We concluded in Herman
that once the path of relief was elected, administrative rather
than judicial, it could not be changed after an administrative
determination. We said:
Here, plaintiff elected the
administrative route. When her grievance was
dismissed for lack of probable cause, she was
not deprived of judicial review of the
propriety of that determination. She withdrew
her appeal in which she could have pressed her
argument that lack of a hearing violated her
right to due process. "The proper procedure
was to raise these claims before the Appellate
Division upon appeal ...." Christian Bros.
Inst. v. North N.J. Interschol. League,
86 N.J. 409, 415-416 (1981). By voluntary
abandonment of the appellate process, she may
not circumvent the statutory exclusion.
[Hermann, 183 N.J. Super. at 504.]
See also Giammario v. Trenton Board of Education,
203 N.J. Super. 356, 364 (App. Div. 1985); N.J.S.A. 10:5-27 (procedure under LAD
exclusive while pending and a final determination excludes any
other action); Bouker v. Cigna Corporation,
847 F. Supp 337
(E.D.Pa. 1994) (under New York law an attorney's filing of an
administrative claim operates as an election of an administrative
forum). In Pittman v. LaFontaine,
756 F. Supp. 834 (D.N.J. 1991),
the federal district court in New Jersey barred plaintiff's Title
VII claim where she first had unsuccessfully pursued a claim in the
DCR which found "no probable cause" for discrimination and which
administrative finding was affirmed by this court. Id. at 839.
Pittman was, of course, the clearest kind of election of remedies
situation because it involved a prior judicial affirmance of an
administrative denial of relief.
We contrast the case before us and also before the court in
Hermann, supra, with that in Aldrich v. Manpower Temp. Services,
277 N.J. Super. 500 (App. Div. 1994), where plaintiff had filed an
LAD complaint in the DCR which languished in the Division for
almost two years without any administrative determination.
Plaintiff withdrew her administrative complaint and sued for
damages in the Law Division. Plaintiff had withdrawn the DCR
complaint a week before her scheduled OAL pre-hearing conference.
This was her right under N.J.A.C. 1:1-19.2. We concluded in
Aldrich that the focus in terms of preclusive effect is not upon
the exercise of a choice of forum alone but is critically upon a
final determination in that forum. Aldrich, supra, 277 N.J. Super.
at 504. We observed in Aldrich that "[p]laintiff withdrew her
administrative complaint before OAL hearings were even scheduled,
much less commenced." Id. at 506. In contrast, appellant in the
case before us pursued his EEOC claim to an administrative
determination after an agency investigation. The EEOC charge and
probable cause determination was a precondition of filing suit in
federal court under Title VII.
42 U.S.C.A.
§2000e-5(f); Cheek v.
Western and Southern Life Ins. Co.,
31 F.3d 497 (7th Cir. 1994).
Although the EEOC's ruling was unfavorable, this did not preclude
his pursuit of a federal suit for damages within 90 days of
February 1, 1994. See
42 U.S.C.A.
§2000e-5(f). Instead,
appellant changed course, abandoned his federal claim, and sued in
our state court for damages under the LAD on May 24, 1994 or 112
days later.
Appellant here proceeded to an administrative decision, as did
the claimant in Hermann, but not in Aldrich. We conclude he is
barred by that election. He may not change his tack thereafter, in
midstream so to speak, and seek judicial relief in the alternative
forum after finding the federal waters initially unfavorable. The
resources and energies of the parties have been devoted to a
federal claim. This matter should have been pursued in the federal
forum, not restarted here. We do not encourage claim-switching and
forum-hopping.
Our view on the preclusive effect of appellant's election of
EEOC and federal remedies is reinforced by our Supreme Court's
recent strong commitment to the entire-controversy doctrine, R.
4:4-30A; DiTrolio v. Antiles,
142 N.J. 253 (1995); Circle Chevrolet
v. Giordano, Halleran & Ciesla,
142 N.J. 280 (1995); Mystic Isle
Development Corp. v. Perskie & Nehmad,
142 N.J. 310 (1995);
Mortgagelinq Corp. v. Commonwealth Land Title Ins. Co.,
142 N.J. 336 (1995). The entire-controversy doctrine discourages
fragmented, piecemeal litigation. It encourages prompt, efficient
disposition of claims in one proceeding and in one forum. Our
decision today reflects that spirit.
Affirmed.