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Saint v. Data Exchange Inc.:
Discrimination Claims Return
to State Court By Mark Edgar Hammons Sr.
On July 11, 2006, the Oklahoma Supreme
Court, in a short and matter-of-fact opinion, held that victims of
age discrimination had a state Burk tort
remedy notwithstanding that such discrimination was also covered
by the federal Age Discrimination in Employment Act (ADEA).1 This
brief holding generated a flurry of amicus briefs seeking
reconsideration and reversal of that decision.2 Why such interest among employment groups? Because the Saint holding
will have a dramatic impact on the field of employment discrimination. Saint reverses
the common understanding of most federal judges and defense counsel
regarding the availability of state law remedies for discriminatory
acts which were also covered by federal law.
In Clinton v. State ex rel. Logan County Election Bd.,3
the Oklahoma Supreme Court held that the presence of an adequate
federal law remedy must be considered in deciding whether an employee
terminated for a reason violating Oklahoma’s public policy
would have an implied state law Burk4 remedy. “[T]he
existence of a federal statutory remedy that is sufficient to protect
Oklahoma’s public policy preludes the creation of an independent
common law claim based on a public policy exception to the employment-at-will
doctrine.”5 Because Clinton arose in a Title VII gender
discrimination context, most defense counsel and federal court judges believed Clinton
precluded state law claims for age, race, gender, national origin or religious
discrimination resulting in job termination.
That was too broad a reading of Clinton. Previously, the
Supreme Court had explained that public policy torts extended beyond
the parameters of age, race, gender and disability discrimination.6
Thus, Clinton was announcing a general rule which by its
own terms had to be tailored to the particular factual and legal
issues presented on a case-by-case basis. In the context of a general
rule, Clintonassumed, but did not decide, that
Title VII remedies were sufficiently adequate to avoid inferring
a state law remedy.7 Clinton cautioned that in applying
its rule the trial court must make an “initial
determination of the adequacy of the statutory remedy.”8
This “initial determination” requires
examining the surrounding statutory
framework as well as judicial precedent. In Tate v. Browning-Ferris Inc.,9
the Supreme Court held that the class of persons covered by Oklahoma’s
Anti-Discrimination Act constituted a unified class which, under Okla. Const.,
Art. 5, § 46, had to be accorded equal remedies. Since victims of handicap
discrimination (one part of that class) were expressly afforded a remedy,10
other members of the class (age, race, gender, national origin and religion)
were entitled
to the same remedy provided handicap
discrimination victims:
[T]o conclude today that the statute’s vindication regime
for racial discrimination is indeed exclusive would render the
Act’s remedies constitutionally infirm.
. . .The Act here in contest [1989 version] does not provide
a private right of action to a person aggrieved by. . . discriminatory
practices if the Commission does not resolve the claim to his satisfaction.
In contrast, it does afford a private right of action for discrimination
based on handicap [as of 1990]. Were we today to construe
the statute as having established the sole remedy for
racially discriminatory practices, we would create a dichotomous
division of discrimination remedies contrary to Art. 5 § 46
of the Oklahoma Constitution. There would be a more generous
remedy for victims of handicap discrimination than those who
suffered from racial discrimination. For remedial purposes, discrimination
victims comprise a single class. Our Constitution absolutely
interdicts the passage of special law that would sanction disparate
remedies for those who complain of employment discrimination.11
A federal remedy that might be “adequate” generally
to vindicate other areas of public policy would not necessarily be
adequate to meet this additional requirement of equal remedies.
At this point some background history is necessary because, as Justice
Opala noted in his concurrence, “[t]here appears to be a lack
of symmetry in this court’s extant Burk juris
prudence.”12
The concept that employment terminations wrongful under Oklahoma’s
Anti-Discrimination Act (OADA) would give rise to a common-law remedy
was recognized in the root case of Burk v. K-Mart Corp.13
Later, in Tate, supra, the Oklahoma Supreme Court expressly
recognized that race discrimination and retaliation for reporting
race discrimination would be the basis for a Burk tort.
This holding was premised not only on the OADA14 but also on the
Okla. Const., Art. 5, § 46, mandate of
equality in treatment of members of the same class.
Three years later the Supreme Court decided Brown v. Ford15
and concluded that the public policy tort would be limited to those
employers having at least 15 employees as only employers of that
size were covered by the OADA.16 Next came Atkinson v. Halliburton
Co.,17 which held that since the OADA required exhaustion of
administrative remedies, persons seeking to pursue a Burk tort
would also be subject to this exhaustion requirement.18 Atkinson departed
from Tate’s holding that exhaustion of administrative
remedies was not required.19 Though viewed by some as a
retrenchment, those decisions were merely refinements of the Tate decision
and served to ensure uniformity between the Burk tort and
the statutory provisions applicable to handicap discrimination victims.
The real departure came with List v. Anchor Paint Mfg. Co.20
where the court was asked to decide whether or not constructive discharge
was actionable under state law. Instead of directly answering that
question, the court took the opportunity to decide whether an age-based discharge
would be actionable. It had seemed clear to most observers that age-discrimination
was just as actionable as race-based discharge in light of Tate’s clear
statement that the OADA established a public policy applicable to
age, race, gender, national origin and religious discrimination victims — the
unified class created by the OADA.21 Nonetheless, List held
that there was no state-law remedy. This decision was premised on
the assertion that “[m]ost courts have refused to allow common
law retaliatory discharge actions based on age or illness, saying
that only a discharge arising from the employee’s acts, rather
than his status, will support a common law retaliatory discharge
cause of action.22
“Because Mr. List’s statutory remedies are adequate
and his common law claim is based solely on his status, his statutory
remedies are exclusive.”23 These statements were directly contrary
to the court’s recognition just months earlier of a status-based
claim for handicap discrimination in Atkinson as existing
concurrently with the state (and federal) statutory remedies. In
drawing a status-based distinction, List ignored both Tate (the
status of race) and Atkinson (the status of disability).
This “conduct versus status” distinction was criticized
as illogical in that it afforded a remedy for a person fired for
protesting prohibited discrimination while giving no remedy to the
actual victim.24
Only months after List, the Oklahoma Supreme Court decided Duncan
v. City of Nichols Hills.25 Duncan specifically reaffirmed Tate’s guidance
on statutory construction26 and reaffirmed that state statutory
remedies could be greater — but not less —than parallel
federal remedies for discrimination.27 In contrast, the court said
nothing about its recent List decision.
Next came Marshall v. OK Rental & Leasing Inc.28 Marshall applied
the List rationale in the context of a sexually hostile
work environment claim. While generally following List, Marshall opined
that “Oklahoma’s anti-discrimination statutes also provide
adequate remedies.”29 This comment suggested the Supreme Court
might recognize an implied statutory remedy under the OADA as an
alternative to a Burk action.
David Russell, a United States District Judge for the Western District,
certified the question of implied statutory remedies in Collier
v. Insignia Financial Group.30 The decision in Collier overturned
in part List and Marshall31 and implied that in
determining the existence of a public policy tort, courts must look
to the adequacy of state — rather than federal — remedies.
That understanding continued until Clinton, which held that
the adequacy of federal remedies must be considered in determining
whether a public policy tort would be recognized for a particular
wrong.32
In attempting to reconcile these prior decisions, Justice Opala
noted the court’s retreat from conduct versus status distinctions
and summarized his understanding of the current status of the “adequate
remedy” exception to recognizing a Burk tort:
The Burk liability for on-the-job sex discrimination, even
when perceived to be status- or gender-based does not differ
from any act-grounded legal accountability. Whether act
or status might be deemed implicated, the Burk claim’s
actionable character is anchored solely in the
employer’s discharge that is in breach of Oklahoma’s public
policy for which (a) there is no statute-crafted remedy or (b) the available
statutory remedy is not
co-extensive with that provided for like or similar work related harms.33
It is the latter portion of this statement which provided the basis
for the certified question in Saint: Are the remedies of
the ADEA (federal age discrimination) “co-extensive with that
provided for” victims of handicap discrimination? Justice Opala’s
point was that in analyzing the adequacy of the remedy, courts must
consider how similar groups are treated. In the case of members of
the same class,
Okla. Const. Art. 5, § 46 requires more than
adequacy — it mandates the same remedies be made available.
It must be remembered that Tate’s interpretation
that Art. 5, § 46 required that the remedies available under
25 O.S. § 1901 be extended to all other persons covered by the
OADA has never been questioned and had been repeatedly cited as good
law.34 Clinton did not overturn this holding nor question
it but rather merely directed courts to consider the adequacy of
federal remedies in addition to those supplied by state law. Thus,
nothing in Clinton suggested that disparate, lesser remedies
were constitutionally tolerable between members of what
has been judicially determined to be a “single, unified class.”
In Saint, the argument was simply that as to discrimination
prohibited by the OADA, everyone under the act was entitled to the same
remedies as those provided for victims of handicap discrimination
under 25 O.S. § 1901. Judge Sven Holmes, federal judge for the
Northern District, certified that question to the Supreme Court asking
that the court explain its holding in express reference to the requirements
of Okla. Const. Art. 5, § 46.35 Because there were two avenues
by which the Supreme Court could reconcile its prior precedent (either
under the Burk doctrine or via an implied statutory remedy36),
the certified question asked the court to address both issues.37
The Supreme Court summarized the dispute as follows:
Ms. Saint asserts that the Oklahoma Statute creates
a unified class of persons who are the victims of handicap, race,
gender or age discrimination therefore requiring equal remedies
for all of those persons under Art. 5 § 46. Ms. Saint asserts
that the remedy provided for victims of age discrimination under
the federal statutes is less generous than the remedy provided
for victims of handicap discrimination under 25 O.S. 1901 and therefore
the ADEA does not provide a Constitutionally adequate remedy. The
Defendant asserts that the ADEA remedy is adequate and therefore,
that no state remedy should be implied.38
In its opinion, while not addressing these specific differences
between the ADEA remedies and those available under state law, the
court settled on using a Burk remedy39 and pointedly stated:
This self-same question has previously been addressed by this Court
in the areas of race discrimination and sexual harassment. In both
of those cases we found that a common-law Burk tort
remedy was available to plaintiff as such violations create dichotomous
division of members of the same class, which offends the § 46
mandated norms of uniformity, symmetry and evenhanded treatment.40
To eliminate any confusion, the court expressly reaffirmed its holdings
in Collier (gender-discrimination) which held that the court
must avoid “the pitfalls of according asymmetrical remedies
to members of a single class of employment-discrimination victims”41
and in Tate (race discrimination) which held that “[o]ur
Constitution absolutely interdicts the passage of special law that
would sanction disparate remedies for those who complain of employment
discrimination.”42 In light of the arguments presented, this
language should leave no room for doubt that there is a state law
remedy for terminations when the
motivation was either age, race, gender, national origin, religious discrimination
or retaliation for opposing discrimination.43
Now the following questions remain: What are the differences between
the state law remedies and their federal counterparts? How far does Saint extend
the state law remedies? The remainder of this article will attempt
to answer those questions.
The Contours of a Burk
Anti-Discrimination Claim
While Saint does not address the specific differences between
state law and federal claims of discrimination, there is substantial
guidance available from its rationale as well as from prior decisions
of the Oklahoma Supreme Court. Thus, I will offer my prediction on
the following issues:
- Differences in coverage
- Individual liability
- Exhaustion requirements
- The statute of limitations
- Application to the state and the
governmental subdivisions
- Attorney’s fees availability
- Burden of proof
- Available damages
- Who determines damages
- Wrongs covered
Differences In Coverage
There are significant differences in the coverage of the OADA versus
the companion federal statutes as well as traditional Burk torts.
The OADA covers all employers having at least 15 employees44 but
it also covers,
without a minimum number, employees of a “contractor or subcontractor.
. . furnishing the material or performing work for the state or governmental
entity or agency of the state,”45 employment agencies46 and labor organizations.47 “Indian
tribes [and] a bona fide membership club not organized for profit” are not covered.48
The difference between state and federal coverage is most obvious in the context
of ADEA coverage where the federal law requires 20 employees while the state
action requires only 15. As to this matter, Judge Ralph Thompson of the Western
District of Oklahoma had previously predicted that there would be a public
policy remedy under state law for employers having at least 15 but less than
20 employees.49
Under the Burk doctrine, wrongful termination actions are
limited to at-will employees. Employees who are not at-will have
been excluded from this protection50 on the basis that they have
adequate alternative remedies. 25 O.S. § 1901, however, applies
to all employees whether at-will or not. Because of the requirement
for symmetry among members of the class, it would appear that this
special, constitutional variant of the Burk doctrine would
apply to all employees.
Individual Liability
Neither the Oklahoma Supreme Court nor the Court of Appeals has
yet determined whether agents of employers who discriminate may be
held liable individually for their discriminatory or retaliatory
acts. Under federal law it is clear that there is no individual liability
of corporate officers and employees for discriminatory actions.51
The federal rule developed at a time when “a successful Title
VII plaintiff was typically limited to reinstatement and back pay
as potential remedies, i.e., to equitable remedies which
are most appropriately provided by employers, defined in the traditional
sense of the word.”52 That rule was continued because when
Congress added compensatory relief in 1991, it did not further amend
Title VII to provide for individual
liability.53
In contrast, Burk torts from their inception have always
provided legal rather than equitable relief.54 Such torts were viewed
as common-law tort actions55 and under the common-law rule an agent
is liable along with his or her employer for wrongful conduct even
if that conduct is carried out at the employer’s behest.56
This has been called a “general, if not universal rule, of
torts.”57
It had been argued, and accepted by some judges, that because one
purpose of the OADA, 25 O.S. §§ 1101, et seq,
is “to provide for execution within the state of the policies
embodied in the federal” acts,58 individual liability would
not be available for state law torts. That, however, is an incomplete
reading of the state statute. As explained in Collier, there
is a marked difference between the classes of wrongs covered by the
OADA and the set of remedies available:
Central to the assessment of the remedial schemes
provided for by the act is the
language of 25 O.S. 1991 § 1001, which
provided in pertinent part:
A. The general purposes of this act are
to provide for execution within the state of the policies embodied
in the federal Civil Rights Act of 1963, the federal Age Discrimination
in Employment Act of 1967, and Section 504 of the federal Rehabilitation
Act of 1973, to make uniform the law of those states which
enact this act, and to provide rights and remedies substantially
equivalent to those granted under the federal Fair Housing Law. [Emphasis
added (by the court)].
Construction of this language leads inescapably to
the conclusion that while the Legislature meant to incorporate
the policies of Title VII (among other federal acts), it intended
that the act’s
primary remedial scheme be that afforded by the Fair Housing Law.
. .59
While it is unclear whether this may be viewed as an intention to
incorporate federal Fair Housing Law remedies into the remedial scheme
for employment discrimination victims, it is worth noting that individual
liability is the rule under the Fair Housing Law.60
It is doubtful, however, that the question of individual liability
should be decided on a mere analogy to federal law. The Supreme Court
has carefully explained that there are significant differences between
these two bodies of law. For instance, tort remedies under the OADA
may be greater than those provided by federal law61 and, in the context
of defenses to Burk claims, the court has rejected “the
wholesale adoption of federal law of employment discrimination” into
Oklahoma’s law of wrongful discharge.62
The proper basis for deciding this issue must be by statutory construction
because “[u]nder Oklahoma law, the legislative intent of a
particular statute must be ascertained from language of the statute.”63
As to handicap discrimination (and generally throughout the OADA),
the term “employer” is specifically defined to “include
an agent” of the employer64 and a “person” is defined
to include not only businesses but “an individual.”65
In using these terms, the Legislature wrote Sec. 1901 in a manner
which clearly provides for individual liability:
If a charge of discrimination in employment is filed. . . and not
resolved to the satisfaction of the charging party. . ., the charging
party may commence an action for redress against any person who
is alleged to have discriminated against the charging party and against any
person named as respondent in the charge. . .66
“[I]n the absence of a contrary definition of the common words
used in a legislative act, we must assume that the lawmaking authority
intended for them to have the same meaning as that attributed to
them in ordinary and usual parlance.”67 Thus, it must be presumed
that the Legislature intended to allow suits against two
categories of individuals: those who had “discriminated against
the charging party” and “any person named as respondent
in the [administrative] charge.” A court “will not apply
a rule of construction [which would] render meaningless express provisions
of the act.”68
Although there has not been agreement in this area, Judge Joe Heaton
of the Western District of Oklahoma has predicted that as a matter
of statutory construction, Oklahoma would allow individual liability
due to the wording of 25 O.S. § 1901:
. . .The statute must be interpreted according to its plain language. Lindsay
v. Thiokol Corp. , 112 F.3d 1068, 1070 (10th Cir.1997) (few
exceptions exist to court’s obligation to let plain language
of statute control). It clearly authorizes a party who has filed
a charge of handicap discrimination with the Oklahoma Human Rights
Commission (‘OHRC’) to seek redress against the named
respondent and any person who allegedly discriminated
against the party. This contrasts § 1901’s federal counterpart,
which permits the person claiming to be aggrieved, after receiving
a right-to-sue notice, to bring a civil action only ‘against
the respondent named in the charge.’ 42 U.S.C. § 2000e-5(f)(1).
If the Oklahoma
legislature had not intended to authorize suits against individuals it could
have used the term ‘employer’ rather than
‘person,’ or tracked the Title VII language and authorized lawsuits
solely against the respondent named in the charge.69
An additional rule of construction favoring individual liability
is the Supreme Court’s admonition that in construing the OADA
common-law remedies should be preserved:
By statutory mandate the common law remains in full force in
this state, unless a statute explicitly provides to the contrary. Oklahoma
law does not permit legislative abrogation of the common law by implication; rather,
its alteration must be clearly and plainly expressed. An intent
to change the common law will not be presumed from an ambiguous,
doubtful or inconclusive text. A presumption favors the preservation
of common-law rights. Where the common law gives a remedy,
and another is provided by statute, the latter is merely
cumulative, unless the statute declares it to be exclusive.70
Had the Legislature intended to abrogate the common-law rule that
employees are
concurrently liable along with the corporation for acts of discrimination,
it would have been required to have expressly set that out in Sec. 1901, inter
alia. Instead, the OADA appears to preserve the common law rule that both
the agent and the employer are jointly liable for their wrongful acts.
The author believes that individual liability is thus available
under these actions.
Exhaustion Requirements
Sec. 1901 of the OADA requires that a handicap discrimination victim
file a charge of discrimination with the Oklahoma Human Rights Commission
(OHRC) before filing suit. The Supreme Court has already held that
this administrative filing is a prerequisite for a Burk tort
remedy for handicap discrimination.71 As a matter of procedural symmetry,
an administrative filing would be required for any of the other covered
areas of discrimination. It can be stated with a high degree of confidence
that any person seeking to assert a state law age or other discrimination
claim must first file a charge of discrimination.
Furthermore, such filings must be made within 180 days rather than
the 300 days available for an EEOC action. Although an employee has “the
advantage of the extended 300-day period to file her federal claims
with the EEOC...her state claim is barred by the
180-day filing period, and is not affected by the extended federal filing period.”72
Does that filing have to be with the OHRC? No. A filing with the
EEOC is sufficient, because the EEOC and OHRC have entered into a
work share agreement under which each agency is deemed the agent
of the other for the purpose of filing and processing covered charges
of discrimination. Because of this agency status, a filing with the
EEOC is deemed a filing with the OHRC. The EEOC always gives notice
to the OHRC of its filings and allows the OHRC the opportunity to
investigate the charge.73 A timely filing with the EEOC will, therefore,
satisfy the
administrative prerequisite for a Burk
antidiscrimination tort.
Is a right to sue letter necessary? In EEOC proceedings, the agency
is allowed 180 days (60 days under the ADEA) to investigate the matter.
Until this 180 day period expires, no suit can be brought unless
a right-to-sue letter is issued prior to the expiration of that period.
The OADA has an equivalent time provision in 25 O.S. § 1901,74
but there is no provision for a right to sue letter or for early
termination. Nonetheless, a right to sue letter or other action ending
the administrative proceedings should allow a suit to be filed even
when the 180 period has not elapsed. This should be true because
under the futility doctrine: “the law does not require one
to do a vain or useless thing or to perform an unnecessary act to
obtain relief.”75
The Statute Of Limitations
The normal statute of limitations for tort actions is two years
from the accrual of the cause of action.76 Under Title VII (gender,
race, national origin and religion), the ADA (disability) and the
ADEA (age), a party must file a charge of discrimination within 300
days of any discriminatory act (except for hostile environment cases),
and then suit must be filed within 90 days of receipt of a right-to-sue
letter.77
The OADA does not quite follow either of these systems. Under the
OADA, a party is allowed to file suit within two years of the filing
of a timely charge of discrimination, subject, as explained above,
to waiting 180 days for the investigation of the charge. Thus, the
normal two year statute of limitations applies and the accrual or
commencement of that period runs from the filing of the charge of
discrimination78 — not from the wrongful act nor from the end
of the 180 investigative/
conciliation period.
Application to the State and Governmental
Subdivisions
This issue was settled in Duncan v. City of Nichols Hills, which
addressed the liability of governmental subdivisions for handicap
discrimination under the act.79 Duncan found an irreconcilable
conflict between the OADA and the Governmental Tort Claims Act (GTCA).80
In response to that conflict, the Supreme Court held that the OADA
was the more specific statute when it came to discrimination and
retaliation and therefore the OADA superceded and controlled claims
brought against the state and its subdivisions as to such matters:
We find it apparent from the language of the two acts that the legislature
intended the Governmental Tort Claims Act to apply to tort actions
brought against the state or a political subdivision, whereas the
Oklahoma Anti-Discrimination statutes were intended to provide redress
for the types of discrimination embodied in the federal Civil Rights
Acts, even where the action is brought against the state or a
political
subdivision.81
In short, the court held “that the notice provisions of the
Governmental Tort Claims Act are preempted with respect to claims
brought under” the OADA.82 Furthermore, the damage limitations
under the GTCA are preempted by the OADA.83
Although Duncan was decided solely with reference to handicap
discrimination, the holdings in Tate, Collier and now Saint,
that Okla.Const. Art. 5, § 46 requires equal remedies to all
persons covered by the OADA would mandate extending Duncan’s
rule to the rest of the persons covered by the OADA.
That does not mean, however, that all individuals who engage in
discrimination will be entitled to indemnification under the GTCA.
The GTCA forbids indemnification of employees who have engaged in
discrimination based on “race, sex or national origin,” but
there is no prohibition against indemnifying employees who engage
in age or religious discrimination.84 Since the OADA does not speak
to indemnification, the GTCA is likely to control that area.
Attorney’s Fees Availability
“Under the ‘American Rule’ governing the award
of attorney fees to a prevailing party, attorney fees are not ordinarily
recoverable in the absence of a statute or an enforceable contract.”85
Tort actions, which include Burk torts,86 are generally
subject to this rule.87 In this case, however, the remedies are shaped
by the requirements of Okla. Const., Art. 5, § 46 which requires
complete symmetry of the remedies. Under this standard, a right to
recover attorney’s fees should be available for the limited
class of Saint torts brought under the OADA. This was implicitly
addressed in Saint where, in addressing the available remedies
under Sec. 1901, the court set out the entire statute including the
attorney’s fee clause.88
Burden of Proof
The burden of proof is more generous to victims of state law discrimination
than to federal law claimants. Under state law, a party need only
prove that the discriminatory factor was a significant factor
rather than a motivating or determinative factor:
The plaintiff would, of course, have the burden to prove that a significant
reason for his discharge was racial discrimination or retaliation
for the exercise of rights under Title VII. See Thompson v.
Medley Material Handling Inc., Okla. 732 P.2d 461, 463 (1987),
where we required the same standard of proof for retaliatory discharge
in a statutory retaliation claim.89
The meaning of the “significant factor” rule for Oklahoma
cases has been explained in Elzey v. Forrest:
The significant factor test has been explained by
the Sixth Circuit Court of Appeals, as imposing a more lenient
standard than the `but for’ test, but requiring a showing
of more than a mere causal link. While a factor may be a cause
without being significant, only the establishment of [the factor]
as a significant cause is sufficient to support a prima facie case
of [wrongful] discharge.90
Thus, “the ‘determining factor’ test [used for
federal claims] is a more stringent test than the ‘significant
factor’ test” used for Oklahoma public policy claims.91
Available Damages
Under a Burk tort, “[r]ecoverable damages including
punitive damages in such actions are governed by our statutory and
common law principles of tort liability.”92 Actions arising
under the OADA represent a special species of Burk torts
and the damages there must be the equivalent of those statutorily
provided in 25 O.S. §1901(C). That section provides that:
[T]he aggrieved party shall be entitled to nominal or actual damages.
Actual damages shall include, but are not limited to, reinstatement
or hiring, with or without backpay, or any other legal or equitable
relief as the court deems appropriate. Back pay liability shall not
accrue from a date more than two (2) years prior to the filing of
the charge with the Oklahoma Human Rights Commission. Interim earnings
or amounts earnable with reasonable diligence by the person discriminated
against shall operate to reduce the back pay otherwise allowable.
No order of the court shall require the hiring or reinstatement or
promotion of an individual, or the payment to him of any back pay,
if such individual was refused employment or advancement or was suspended
or discharged for legitimate reasons other than discrimination on
account of handicap.
This statutory provision is slightly different that the normal common-law
rule for tort damages which govern other Burk torts. Under
the significant factor rule, the presence of other legitimate factors
is no defense to liability. Under the statute the presence of other
legitimate factors may be raised as a defense to back pay, hiring
or reinstatement but not to other compensatory damages such as emotional
distress or punitive damages. Unlike normal tort actions, available
relief in a Saint tort includes equitable relief. The damage
caps provided by Title VII and by the GTCA do not apply.93
Who Determines Damages
In federal court issues of front pay, and sometimes back pay, are
determined by the court as an equitable issue.94 Under state law
the issue of lost wages and front pay have traditionally been a part
of the legal relief determined by juries.95 The Court of Appeals
in Pettit v. Dolese Brothers Co. held that “front
pay” is a jury question:
. . .There is no authority in Oklahoma to suggest that issues of
prospective relief are solely for the trial court to decide because
they are equitable in nature. Quite to the contrary, it seems that
the question whether an employer is so hostile to a former employee.
. . that the remedy of reinstatement is not appropriate, is more
a matter for the jury to decide upon proper instruction after hearing
the evidence which the discharged employee and the employer are allowed
to place before them.96
The jury’s function in determining lost future earnings in
wrongful termination cases has been codified in OUJI CIV 2d 21.7(B).97
More importantly, the handicap discrimination act expressly provides
that “either party in any such action shall be entitled to
a jury trial of any facts in dispute in the action.”98 Clearly,
questions as to the entitlement to and amount of front pay or back
pay are fact questions. Because of the requirement of symmetry in
the treatment of all members of the class, there should be no dispute
that these issues are for the jury’s determination. Although
the right to a jury trial in federal court is governed by federal
rather than state law, Oklahoma’s characterization of this
action as a tort in which the monetary relief of past and future
damages is legal would appear to require a jury trial on those issues
even in federal court.99
Wrongs Covered
Burk remedies have only been allowed for a wrongful termination
although this includes the doctrine of constructive discharge. As
to constructive discharge:
The test today adopted for ascertaining whether a
constructive discharge has occurred is an objective one which assays
the complained of employer’s
conduct through the eyes of a reasonable person standing in the
employee’s shoe and applies to all constructive discharges
pressed under the Burk tort’s guise. The focus of
today’s test is upon the impact of the employer’s actions,
whether deliberate or not, upon a ‘reasonable’ employee.
The test requires the trial court to inquire (1) whether the employer
either knew or should have known of the ‘intolerable’ work
conditions and (2) if the permitted conditions were so intolerable
that a reasonable person subject to them would resign. This imposes
upon the trial court the obligation to survey the totality of the
circumstances which allegedly prompted the constructive discharge,
including (but not limited to) the ‘frequency of the discriminatory
conduct; its severity; whether it is physically threatening or humiliating;
or a mere offensive utterance; and whether it unreasonably interferes
with an employee’s work performance.’ If the employer’s
behavior is so objectively offensive as to alter the
conditions of the plaintiff’s employment (causing the employee
to resign), a retaliatory constructive discharge can be said
to have occurred and may serve as a predicate for bringing a Burk-type
claim, assuming the tort’s other preconditions have been
satisfied.100
This test is considerably more lenient than that imposed by federal
law. Federal law limits constructive discharge to situations where
the employee had “no choice” but to resign.101
Other actions such as a discriminatory refusal to hire have not
been encompassed in a Burk tort.102 In contrast, 25 O.S. § 1901
expressly covers and provides remedies for discrimination in “hiring.… or
promotion… advancement or… suspen[sion].”103
Although this is a major departure from the traditional Burk doctrine,
the mandate of remedial symmetry would seem to require a Saint remedy
for all acts encompassed in the statutory
remedy. Thus, there should be a Saint action available for discrimination
or retaliation in hiring, discipline (at least if loss of pay is involved)
and promotions.
CONCLUSION
Surprising as it may be, Saint’s short opinion should
dramatically change the enforcement options to persons who consider
themselves to be victims of discrimination or retaliation based on
age, gender, race, national origin or religion. Furthermore, Saint is
likely to generate new rounds of litigation to definitively answer
the questions presented in this paper.
1. Saint v. Data Exchange Inc., 2006 OK 59, 145 P.3d 1037,
77 OBJ 2026 (7/15/06). 2. The petitions for rehearing including the arguments of amici were
denied on Sept. 18, 2006, with all justices concurring. 3. 2001 OK 52, 29 P.3d 543. 4. Burk v. K-Mart Corp., 1989 OK 22, 770 P.2d 24. 5. Clinton v. State ex. rel. Logan County Election Bd., 2001
OK 52 ¶ 9, 29 P.3d 543, 546, 72 OBJ 1933. 6. Collier v. Insignia Fin. Group, 1999
OK 49 ¶ 10,
981 P.2d 321, 324 (“Initially, it must be observed that the Burk tort
encompasses a broader range of wrongful discharges than just those
involving one of the proscribed categories of discrimination articulated
in Title VII or the Oklahoma Anti-Discrimination Act.”)
7. “Inherent in the certifying court’s question and
statement of the case are the implications that. . . plaintiff has
an adequate statutory remedy under Title VII of the Civil Rights
Act of 1964, as amended.” Clinton, 29 P.3d at 544. 8. Clinton, ¶ 10,
p. 546. 9. 1992 OK 72, 833 P.2d 1218.
10. 25 O.S. § 1901. 11. Tate, supra, 833 P.2d at 1227, 1229-30 (emphasis by
the court) 12. Clinton, Opala, concurring in judgment, ¶ 6,
p. 548.
13. 1989 OK 22, 770 P.2d 24, 26 n. 4 (citing as one example of Oklahoma’s
public policies limiting at-will terminations, “25 O.S. Supp.
1985 §§ 1302, 1505(c)(1) [defining as a] discriminatory
practice for an employer to discharge an individual because of race,
color, religion, sex, national origin, age or handicap.”)
14. 25 O.S. §§1101, et seq. 15. 1995 OK 101, 905 P.2d 223, 227.
16. 25 O.S. § 1301(1). 17. 1995 OK 104, 905 P.2d 772. 18. 905 P.2d at 775-76.
19. 905 P.2d at 775-76 (recognizing that ‘may’ is usually
permissive but nonetheless distinguishing Tate). 20. 1996 OK 1, 910 P.2d 1011. 21. Tate, 833 P.2d at 1229-30. 22. List, 910 P.2d at 1014. 23. List, at 1015.
24. “Such a distinction would, for example, give a remedy
to a person fired for opposing racial discrimination by his employer
while offering no remedy to the actual victim of the discrimination.” Cassel
v. WEBCO Indus., 942 F.Supp. 1409, 1412 n. 6 (N.D.Okla.1996)
(quoting Mark Hammons, The Evolution of Oklahoma’s Tort of
Wrongful Termination, 67 O.B.J. 2871, 2875 (1996)). 25. 1996 OK 16, 913 P.2d 1303. 26. 913 P.2d, at 1306-07. 27. 913 P.2d, at 1308, 1310. 28. 1997 OK 34, 939 P.2d 1116. 29. 939 P.2d at 1122. 30. 1999 OK 49, 981 P.2d 321. 31. 981 P.2d, 326 n. 20 (overruling in part Marshall). See
also at 327 (Kauger, J., dissenting because “the majority
opinion contravenes this court’s decisions in List v.
Anchor Paint Mfg. Co., 1996 OK 1, 910 P.2d 1011 and Marshall
v. OK Rental & Leasing Inc., 1997 OK 34, ¶ 23, 939
P.2d 1116.”). 32. Clinton,¶ 9, 29 P.3d, at 546 (“we hold the
existence of a federal statutory remedy that is sufficient to protect
Oklahoma public policy precludes the creation of an independent common
law claim based on a public policy exception to the employment-at-will
doctrine.”). 33. Clinton, ¶ 12, 29 P.3d at 550. This was also stated
by the majority: “While both List and Marshall discussed
the status versus conduct distinction, we view the holdings in those
cases as being premised primarily on the fact that in each case plaintiff
had an adequate statutory remedy for the alleged wrongful discharge.” Id., ¶ 7;
29 P.3d at 546. Any lingering doubts that this is a dead issue should
be extinguished by Saint which expressly allowed a claim
for age discrimination which, as List held, is based on
status– not conduct. 34. See Cooper v. State ex rel. Dept. of Public Safety,
1996 OK 49, 917 P.2d 466, 468 and Baptist Medical Center of Oklahoma
Inc. v. Aquirre, 1996 OK 133, 930 P.2d 213, 219 & n. 16,
inter alia (both citing to Tate)
35. 2006 OK 59 ¶ 0, __ P.3d __, 77 OBJ 2026. 36. See Holbert v. Echeverria, 1987 OK 99, 744 P.2d 960
and Walker v. Chouteau Lime Co., 1993 OK 35, 849 P.2d 1085,
1086-1087.
37. 2006 OK 59 ¶ 0, __ P.3d __, 77 OBJ 2026. 38. Saint, ¶ 2. 39. Saint, ¶¶ 0,
6, 77 OBJ 2026-27. 40. Saint, ¶3, 77 OBJ 2026. 41. Saint, ¶ 4
quoting Collier, supra, ¶ 14,
981 P.2d at 326. 42. Saint, ¶5, quoting Tate, supra, ¶ 18,
833 P.2d at 1230.
43. “The definition of ‘discriminatory practice’ includes
an employer’s discharge or discrimination against an individual
as to terms or conditions of employment because of race, [25 O.S.] § 1302,
as well as retaliation against a person who opposes a discriminatory
practice or who files a complaint pursuant to the statutes, id. § 1601.” Tate,
supra, 833 P.2d at 1220. Accordingly, “we give today a
categorically affirmative answer to the question whether a racially
motivated discharge or one in retaliation for filing a racial discrimination
complaint offends a clear mandate of ‘public policy’ that
comes within the protection of Burk.” Id.,
at 1225.
44. 25 O.S. § 1301(1). 45. Id.
46. 25 O.S. §1301(2), §1303. There may be an issue about
whether the labor organization is an “employer” thus
requiring fifteen (15) employees, but it should be remembered that
the statutory language defining employers also includes agents of
an employer.
47. 25 O.S. §1301(3), §1304. See also the same
caution in Note 39, above, regarding labor organizations.
48. 25 O.S. § 1301(1). The exemption for private organizations
may be broader than that found in Title VII. That issue, however,
extends beyond the limits of this paper. 49. Debrah L. Espen and Celeste Bagwell v. Soutwest Imaging
Inc., CIV-03-1660-T (Order of July 16, 2004. 50. McCrady
v. Okla. Dep’t of Pub. Safety, 2005 OK
67 ¶ 13, 122 P.3d 473 (“Because McCrady is not an employee-at-will,
he is not within the class of persons who may bring a claim in tort
for wrongful discharge based on the public policy exception to the
employment-at-will rule, a Burk action.”). 51. Haynes v. Williams, 88 F.3d 898 (10th Cir.1996) 52. Hayes, 88 F.3d at 901 (quotation marks and citations
omitted). 53. Hayes, 88 F.3d at 901.
54. “We recognize this new cause of action in tort.” Burk, 770
P.2d, at 28.
55. “[T]he Burk tort is firmly rooted in the common law”. Barker
v. State Ins. Fund, 2001 OK 94, ¶ 24; 40 P.3d 463, 470.
56. “As the Restatement (Second) of Agency § 343 states ‘an
agent who does an act otherwise a tort is not relieved from liability
by the fact that he acted at the command of the principal or on account
of the principal’.” Wathor v Mut. Assur. Adm’rs
Inc., 2004 OK 2 87 P3d 559, 565 n 3.
57. As to “[a] to corporate officers acting in a corporate
capacity, the ‘general, if not universal rule,’ of torts
is that they may be held personally liable for tortious conduct of
the corporation that they directly participated in or specifically
directed others to carry out. 3A Fletcher Cyc. Corp. § 1137,
at 275 (Perm. ed. 1986).” McClelland v. Watling Ladder
Co., 729 F.Supp. 1316, 1319 (W.D.Okl.,1990).
58. 25 O.S. § 1101. 59. Collier, 981 P.2d at 325. 60. Holley v. Crank, 258
F.3d 1127, 1130-34 (9th Cir. 2001) (compiling cases and citing to
24 C.F.R. § 103.20 as establishing
individual liability under the Fair Housing Act). 61. The Oklahoma Supreme Court has held that the state statute must
provide at least as much relief as that offered under federal
law, but there is no bar to the statute providing more relief
than federal law.Duncan, supra, 913 P.2d at 1308 (“in
enacting a remedy for employment discrimination, the Oklahoma legislature
was bound to provide protection equal to or greater than
protection provided by the federal civil rights provisions.” (Emphasis
added)). 62. Mosley v. Truckstop Corp. Of America, 1993
OK 79, 891 P.2d 577, 583 (rejecting “the wholesale adoption of federal
law of employment discrimination” as part of Oklahoma’s
law of wrongful discharge). Accord Buckner v. General Motors
Corp., 1988 OK 73, 760 P.2d 803, 806. 63. Duncan, 913 P.2d at 1306-07.
64. 25 O.S. § 1301(1).
65. 25 O.S. § 1201(5).
66. 25 O.S. § 1901(A) (emphasis supplied). 67. State ex rel. Cartwright v. Georgia-Pacific Corp., 1982
OK 148, 663 P.2d 718, 722. 68. Fine Airport Parking, Inc. v. City of Tulsa, 2003
OK 27, ¶ 20, 71 P.3d 5, 17. 69. Bob Marion v. Johnson Claim Service Inc., CIV-04-0864-HE
(Sept. 17, 2004), quotation from p. 3. Emphasis by the court, footnotes
omitted. 70. Tate, 1992 OK 72, 833 P.2d 1218, 1225 -1226 (emphasis
by the court, footnotes omitted).
71. In enacting the OADA “[t]he legislature intended
not only to combat discrimination, but also to provide the enforcement
mechanisms necessary to do so.” Atkinson, 905 P.2d,
775. “The
language of § 1901. . . supports the conclusion that exhaustion
of the administrative remedies provided in § 1901 is a condition
precedent to filing a civil action for redress.” Id.,
at 776. 72. Forcum v. Via Christi Health Sys. Inc.,
2006 OK CIV APP 77, ¶¶11-12, 137 P.3d 1250.
73. 29 C.F.R. § 1601.13(a)(4)(B).
74. 25 O.S. §1901(A) (If the charge of discrimination “is
not resolved to the satisfaction of the charging party within one
hundred eighty (180) days form the filing of such charge, the charging
party may commence an action” in court for redress.) 75. Apache Corp. v. State, 2004
OK 48, ¶ 9, 98 P.3d
1061, 1064. This issue is not free from doubt. The “futility
doctrine” does not apply if the requirement is statutory. In
the author’s view the one hundred eighty (180) day period is
not mandated in the sense of being a minimum time before
filing suit but rather serves as a deadline for the administrative
agency.
76. 12 O.S. § 95(3). 77. Forcum v. Via Christi Health Sys. Inc., 2006 OK CIV
APP 77, 137 P.3d 1250. 78. Duncan, 913 P.2d, at 1305
-1306 (“Section 1901
of the anti-discrimination statutes creates a private cause of action
for handicap employment discrimination and specifically requires
any action brought in district court pursuant to Section 1901(A)
be brought within two (2) years of the filing of a charge with the
OHRC.”) 79. 1996 OK 16, 913 P.2d 1303. 80. 913 P.2d at 1305-06. 81. 913 P.2d, at 1308 (emphasis supplied). 82. 913 P.2d, at 1309.
83. 913 P.2d at 1309 (“We conclude that the same remedial
objectives underlying Oklahoma’s antidiscrimination statutes
which require preemption of the Act’s notice provisions would
also require preemption of the limits on damages as provided in [the
GTCA at] 51 O.S. 1991, § 154.”).
84. 51 O.S. § 162(B)(4)(e). 85. Barnes v. Okla. Farm Bureau Mut. Ins. Co., 2004 OK
25, 1 94 P.3d 25, 26 n. 1.
86. “We recognize this new cause of action in tort.” Burk, 770
P.2d, at 28. 87. Olansen v. Texaco Inc., 1978 OK 139, P47, 587 P.2d
976, 988 (prevailing party attorney fees are not generally available
in tort actions). 88. Saint, ¶ 2, n. 2 setting out in full 25 O.S. §1901
including subpart (D) providing for attorney’s fees. 89. Tate, supra, 833 P.2d at 1230 n. 69 (emphasis by the
court). 90. 1987 OK 58, 739 P.2d 999, 1001-02. Accord Wallace v. Halliburton
Co., 1993 OK 24, 850 P.2d 1056, 1059 (“an employee does
not have to meet a `but for’ standard [however] the evidence
must do more than show that the filing of the claims was only one
of many possible factors resulting in his discharge”). 91. Bentley
v. Cleveland County Board of County Comm’rs,
41 F.3d 600, 606 (10th Cir.1994) (noting the difference in the proof
required for a federal claim versus a state law claim). 92. Burk, 770
P.2d, at 28 n. 10. The general right to recover damages for a tort
is set out in 23 O.S. § 61 and “is
the amount which will compensate for all detriment proximately caused
[by the wrongful action], whether it could have been anticipated
or not.” OUJI Civ 2d No. 21.7 sets out the instruction for
damages in a wrongful termination. 93. Duncan, 913
P.2d at 1309 (“We conclude that the
same remedial objectives underlying Oklahoma’s antidiscrimination
statutes which require preemption of the Act’s notice provisions
would also require preemption of the limits on damages as provided
in [the GTCA at] 51 O.S. 1991, § 154.”). 94. See Denison v. Swaco Geolograph Co., 941 F.2d 1416,
1421-22 (10th Cir.1991) (age discrimination); Bartee v. Michelin
N. Am. Inc., 374 F.3d 906, 910 (10th Cir. 2004) (“A district
court’s decision to award back or front pay under the ADA is
an equitable one.”) and McCue v. Kansas, 165 F.3d
784, 791-92 (10th Cir. 1999) (construing back and front pay as equitable
remedies). But compare Great-West Life & Annuity Ins. Co.
v. Knudson, 534 U.S. 204, 218 (2002) which suggests that back
pay is traditionally a legal remedy and is only considered equitable
in Title VII jurisprudence because of the statutory language defining
remedies. 95. See Complete Auto Transit Inc. v. Reese, 425
P.2d 465, 469 (Okla.1967) (“an unemployed plaintiff is entitled to recover
for loss of earning capacity, despite inability to show specific
loss of earnings”) and King v. City of Guymon, 523
P.2d 1154 (Okla.App.1974) (“loss of earning capacity is compensable
even though one is unable to show a specific loss of earnings”). Accord
Muskogee Electric Traction Co. v. Eaton, 49 Okl. 344, 152 P.
1109 (1915).
96. 1997 OK CIV APP 46 ¶ 18, 943 P.2d 161, 166.
97. The jury “must determine...: The loss of earnings in the
future that [plaintiff] would be reasonably likely to suffer as a
direct result of the discharge, if [he/she] used reasonable diligence
in finding employment of comparable quality as the employment with
[defendant];. . .”
98. 25 O.S. § 1901(B). 99. Int’l Fin. Servs.
Corp. v. Chromas Techs. Can. Inc.,
356 F.3d 731, 735 (7th Cir. 2004) (explaining the standards to be
used in deciding when there is a right to a jury trial in federal
court). 100. Collier, ¶ 10, 981 P.2d at 324.
101. “Constructive discharge occurs when an employer deliberately
makes or allows the employee’s working conditions to become
so intolerable that the employee has no other choice but to quit.” MacKenzie
v. Denver, 414 F.3d 1266, 1281 (10th Cir. 2005). 102. See Williams v. Dub Ross Co., 1995 OK CIV APP 9, 895
P.2d 1344 and Sarsycki v. United Parcel Serv., 862 F. Supp.
336 (W.D. Okla. 1994) (both refusing to extend the Burk doctrine
to cover wrongful refusals to hire). Davis v. Bd. of Regents,
2001 OK CIV APP 65, ¶ 8 25 P.3d 308, 310 (Okla. Ct. App. 2001)
(limiting Burk tort to discharge claims and holding that transfers
and demotions were not actionable).
103. 25 O.S. § 1901( C), describing available remedies.
About the Author
Mark E. Hammons Sr. has been the principal in his law firm of Hammons,
Gowens & Associates since 1976 with a practice primarily in federal
court in the areas of civil rights, employment discrimination and
administrative law. He regularly appears before the 10th Circuit
and presents appeals to the Oklahoma Supreme Court. He earned his
B.B.A. degree from OU and his J.D. degree from OCU. He is past chair
of the Oklahoma Trial Lawyers Employment
Litigation Section.
Saint v. Data Exchange Inc.:
Discrimination Claims Return to State Court
Published 78 OBJ 140 (Jan. 13, 2007) |