Tribune Media Company v.
Opinion
Keith Younge is an African-American man who was fired by WPHL, a Philadelphia television station owned by Tribune Media Company ("Tribune"). He claims the station subjected him to a hostile work environment because it scheduled him to train under a white co-worker who accosted him with racial epithets. He further contends he was wrongfully terminated because of his race and/or color.
Although Younge filed a complaint with the Pennsylvania Commission on Human Relations, he chose to litigate his claims in Bankruptcy Court after Tribune filed a Chapter 11 bankruptcy petition. When it disallowed his claims, Younge appealed to the District Court. There he challenged for the first time the Bankruptcy Court's jurisdiction to hear his claims. The District Court held he impliedly consented to the Bankruptcy Court's jurisdiction. It also concluded the Bankruptcy Court correctly disallowed his hostile work environment and wrongful termination claims. Because we agree, we affirm.
I. Background matters
A. Factual background
In April 2008, Younge was hired as a seasonal, part-time technician by WPHL. He was trained by full-time technicians, as he was responsible for covering their vacation schedules between Memorial Day and Labor Day. On May 7, 2008, Younge was scheduled to train with Rick Schultz, an engineering technician. Before Younge's training began, Sandy Kerr, a technician, told him, "If you run into any trouble tonight[,] make sure you tell me tomorrow."
In re Tribune Media Co.
, Case No. 08-13141(KJC),
During his training with Schultz, Younge walked into the room and placed his briefcase on the table. Schultz immediately responded, "Hey Spike, you want to get this off the table?" App. at 127a (internal quotation marks omitted). Assuming Schultz did not know his name, Younge introduced himself. The former answered, "[A]s far as [I] am concern[ed,] you are Spike Lee."
Schultz walked into the adjacent room, and Younge followed him. The argument continued, with both parties yelling and using profanity. At one point, Schultz told Younge to "take that shit back to the ghetto[,] hommie."
The next day, Younge called Elias and Michael Hort, a supervisor. After hearing Younge's account of the altercation, one of them said, "[Y]ou should have never had to deal with that-we have had problems with S[c]hultz before."
Douglas submitted her findings to Vincent Giannini, WPHL's Vice President and General Manager. After reviewing them, he concluded both Younge and Schultz should be discharged for violating WPHL's Code of Conduct and Anti-Harassment Policy. The station sent termination letters to both men on May 15, 2008.
B. Procedural background
Younge filed a complaint with the Pennsylvania Commission on Human Relations in June 2008 alleging he was subjected to a hostile work environment and wrongfully terminated because of his race and/or color. He forwarded a copy of his complaint to the Equal Employment Opportunity Commission, which notified him that it would not act on his complaint until its Pennsylvania counterpart issued final findings
and orders. Younge's claims were based on Title VII of the Civil Rights Act, 42 U.S.C. § 2000e
et seq.
("Title VII"); the Pennsylvania Human Relations Act,
The Pennsylvania Commission on Human Relations began investigating the complaint during the same month. It started by gathering evidence from WPHL and Schultz. The former responded to the agency's questions and provided company records as requested. Schultz also spoke with the Commission. He said that on, May 6, 2008 (
i.e.
, the day before he trained Younge), he asked Leff, "[W]hy are you training a hoop ... who doesn't know anything?" App. at 159a (internal quotation marks omitted). He also admitted he gave Younge a nickname-"Spike Lee"-and acknowledged his own nickname was the "Nazi."
In December 2008, when the Commission's investigation was still ongoing, Tribune and its affiliates (including WPHL) filed for Chapter 11 bankruptcy (for simplicity, we refer to all debtors as "Tribune"). Younge responded by filing a proof of claim in the Bankruptcy Court.
1
Tribune objected to it. Because Younge was not represented by counsel at the time, he filed a
pro se
response to Tribune's objection. When he obtained counsel, the Bankruptcy Court held a hearing on the claim and allowed Younge's counsel to file a supplemental response that included additional evidence. Tribune, in turn, filed a supplemental reply. After the parties completed briefing, the Court notified them that it was reviewing Tribune's objection,
see
The Court sustained the objection. It held Younge could not establish a hostile work environment claim because he could not prove
respondeat superior
liability (
i.e.
, that WPHL was liable for Schultz's discriminatory behavior because it knew of Schultz's racial animus and failed to take prompt remedial action). In reaching this conclusion, the Court considered Schultz's personnel file and employment history. It noted Schultz had been employed at WPHL since 1972 and had been involved in two other altercations with his co-workers. The first altercation involved accusations of racial bias and occurred in 1993. A security guard was angry that Schultz accidentally tripped a door alarm and accused him of making a racist comment. Schultz, however, denied any type of racial animus, and the letter in his personnel file included his take of the incident. While the second altercation did not contain any allegations of racism, it involved profanity and took place in 2002. In view of this evidence, the Court acknowledged it was "troubl[ed]" by the incident from 1993.
In re Tribune Media Co.
,
Turning to the wrongful termination claim, the Bankruptcy Court applied the
McDonnell Douglas
burden-shifting framework.
See
McDonnell Douglas Corp. v. Green
,
Younge appealed to the District Court. He contested the Bankruptcy Court's jurisdiction for the first time and argued its proceedings violated his due process rights and his Seventh Amendment right to a jury trial. He also challenged the Bankruptcy Court's decision as to his hostile work environment and wrongful termination claims. The District Court observed that Younge never raised the issue of jurisdiction during bankruptcy proceedings. Instead, he litigated his claim to a final judgment, filing two responses to Tribune's claim objection, appearing at a hearing, and acknowledging that the Court would "fully evaluate [his] claim."
In re Tribune Media Co.
, C.A. No. 16-226 (GMS),
II. Standard of Review
"Our review of the District Court's order on [the Bankruptcy Court's] jurisdiction is
de novo
."
In re Resorts Int'l, Inc.
,
III. Discussion
A. The Bankruptcy Court had jurisdiction over Younge's claims.
A bankruptcy court must have statutory authority and constitutional authority to enter a final judgment on a claim.
See
Stern v. Marshall
,
1. Younge consented to the Bankruptcy Court's statutory authority to decide his claims.
"A bankruptcy court's statutory authority [to decide a claim] derives from
Relying on these provisions, Younge asserts the Bankruptcy Court lacked statutory authority to decide his claims because they fall under the exception for personal injury tort claims. Tribune responds that the Bankruptcy Court had "the authority to disallow a personal injury tort claim" that "fails as a matter of law." Tribune Br. at 24-25 (emphasis added) (footnote omitted). It further contends the exception in § 157(b)(2)(B) is only implicated when it is necessary to determine the dollar amount of a claim.
"The term 'personal injury tort claim' is not expressly defined in Title 28 or Title 11."
In re Arnold
,
Consistent with these principles, Younge voluntarily submitted to a decision by the Bankruptcy Court, as he filed a proof of claim, filed a response to Tribune's objection, filed a supplemental response, and appeared at a hearing before that Court. Although his proof of claim and initial response were pro se , neither his counseled filing ( e.g. , his supplemental response) nor his counsel's statements to the Court included any type of objection to the Court's statutory authority. Instead, his counsel acknowledged the Bankruptcy Court would "evaluate [his] claim[s]" and pointed to evidence that would assist the Court in ruling in his favor. App. at 212a. In this context, we conclude that Younge consented to the Bankruptcy Court's resolution of his claims and waived any argument to the contrary.
Accordingly, the Bankruptcy Court had statutory authority to decide his claims.
2. The Bankruptcy Court had constitutional authority to enter a final judgment on Younge's claims because he knowingly and voluntarily consented to its jurisdiction.
Younge also challenges the Bankruptcy Court's constitutional authority to decide his claims. He contends the Court was required to obtain his express consent before deciding his claim. See Younge Br. at 24 (arguing Younge never affirmatively consented to litigate his claim in bankruptcy court). Because it failed to do so, he claims it lacked constitutional authority to enter a final judgment on the merits.
We disagree. No court has stated that a litigant must expressly consent to a bankruptcy court's jurisdiction.
See
Wellness Int'l Network, Ltd. v. Sharif
, --- U.S. ----,
In the wake of
Wellness
, several courts have opined on what actions (and omissions) amount to implied consent. Most prominently, the Fifth Circuit has held a party impliedly consents to bankruptcy jurisdiction when he "raise[s] no constitutional objection when joining the case."
Matter of Delta Produce, L.P.
,
In reaching their respective holdings, courts have heeded the views of the Supreme Court on implied consent, "increasing judicial efficiency[,] and checking gamesmanship."
Wellness
,
In line with this case law, we conclude that Younge impliedly consented to the Bankruptcy Court's jurisdiction. As noted, he filed a proof of claim, a response to Tribune's objection, and a supplemental response. In none of these filings did Younge question the Bankruptcy Court's constitutional authority to decide his
claims. Instead, he indicated he assented to the Court's entry of judgment in his favor.
See, e.g.
, Younge Suppl. Resp. at 2, Case No. 08-13141 (KJC) (Bankr. D. Del. Aug. 21, 2014), ECF No. 13951 ("Mr. Younge respectfully requests that this Court overrule the ... [o]bjection."). He also made clear that he sought a final judgment on the merits, as his counsel presented additional evidence for the Court's consideration and expressly stated that the evidence would allow the Court "to fully evaluate [his] claim," including the issue of "liability." App. at 212a. More than a year before issuing a final judgment, the Court notified him that briefing was complete and that it was "reviewing th[e] case."
Younge opposes this conclusion by portraying Wellness as intervening authority. He claims he could not raise a constitutional objection during bankruptcy proceedings because the Supreme Court decided Wellness "after ... bankruptcy court submissions were made." Younge Br. at 23. Again we disagree. Although the Supreme Court decided Wellness after the parties completed briefing, Younge could have raised an objection with the Bankruptcy Court by filing a notice of supplemental authority. See Bankr. D. Del. Local R. 7007-1(b) (2015) ("No additional briefs, affidavits or other papers in support of or in opposition to the motion shall be filed without prior approval of the Court, except that a party may call to the Court's attention and briefly discuss pertinent cases decided after a party's final brief is filed or after oral argument." (emphases added) ). He also could have asked the Court to reconsider its order disallowing his claim. See Fed. R. Bankr. P. 3008 ("A party in interest may move for reconsideration of an order allowing or disallowing a claim against the estate."). As such, Younge was not precluded from raising a constitutional objection before the Bankruptcy Court, and we are not persuaded that he raised his concerns "at the first opportunity" by waiting until his appeal to the District Court. Younge Br. at 24.
Accordingly, we hold that the Bankruptcy Court had jurisdiction to decide Younge's hostile work environment and wrongful termination claims. As the District Court reached the same conclusion, we affirm this portion of its decision.
B. The proceedings in Bankruptcy Court did not deprive Younge of his right to due process, right to a jury trial, or right to counsel.
Younge contends the Bankruptcy Court's proceedings abridged his right to procedural due process, his right to a jury trial, and his right to counsel. He brings his right-to-counsel argument under the Commerce Clause, claiming the Bankruptcy Court's local-counsel requirement inures to the disadvantage of out-of-state litigants. See Bankr. D. Del. Local R. 9010-1(d) (2015) ("A party not appearing pro se shall obtain representation by a member of the Bar of the District Court or have its counsel associate with a member of the Bar of the District Court. ..."). We address each contention in turn.
To start, "procedural due process requires 'at a minimum ... that deprivation of life, liberty or property by adjudication be preceded by notice and opportunity for hearing appropriate to the nature of the case.' "
United States v. Ausburn
,
Here Younge had notice of the Bankruptcy Court's proceedings and had ample opportunities to be heard. He filed a proof of claim and a
pro se
response. When he obtained counsel, he had a hearing before the Bankruptcy Court, and it invited him to submit additional evidence and a supplemental response. He gives us no indication that these procedures were constitutionally lacking. Nor does he point to any additional procedures that were required to decide his claims. As such, we cannot say that the Bankruptcy Court failed to afford him adequate due process.
Cf.
In re Bartle
,
Moving on to the Seventh Amendment claim, Younge argues he was entitled to a jury trial before the Bankruptcy Court disallowed his claims. However, "there is no Seventh Amendment right to a jury trial for determination of objections to claims."
Katchen v. Landy
,
Finally, Younge's right-to-counsel argument is waived, as it was never raised before the District Court on appeal.
See
DIRECTV Inc. v. Seijas
,
In sum, the Court did not violate Younge's constitutional rights, and its procedures were constitutionally sound. There is no basis to disturb its decision based on the constitutional concerns Younge raises.
C. We cannot transfer this case to the Eastern District of Pennsylvania or remand it to the Pennsylvania Commission on Human Relations.
In the alternative, Younge asks us to transfer this case to the Eastern District of Pennsylvania. He also requests that we remand his claims to the Pennsylvania Commission on Human Relations and abstain in favor of proceedings before it. We cannot transfer or remand this case to another court because the claims have been discharged under § 524 of the Bankruptcy Code.
See
D. The District Court and Bankruptcy Court correctly decided Younge's hostile work environment claim, as Younge did not prove respondeat superior liability.
Younge asserts the District Court incorrectly decided his hostile work environment claim. Before addressing the merits of its decision, he raises two procedural arguments. First, he contends the District Court erred in reviewing the Bankruptcy Court's factual findings for clear error because the latter had no statutory or constitutional authority to hear his claims. As noted, however, Younge did not raise any statutory or constitutional objections during bankruptcy proceedings. He also knowingly and voluntarily consented to the Bankruptcy Court's jurisdiction. Thus the District Court applied the correct standard of review to the Bankruptcy Court's findings of fact.
See
In re Global Indus. Techs., Inc.
,
Next, he argues the Bankruptcy Court and District Court misapplied the summary-judgment standard and failed to give his submissions "proper weight." Younge Br. at 35. But the record demonstrates that both Courts considered Younge's evidence at face value and drew all inferences in his favor. They were not required to do anything more, and Younge does not point us to any evidence that they disregarded or downplayed. As such, we discern no error in the Bankruptcy Court's and District Court's application of the summary judgment standard.
Turning to the merits, Younge argues his hostile work environment claim survives summary judgment because he was subjected to severe or pervasive discrimination.
He further contends WPHL had respondeat superior liability, as it had actual or constructive knowledge of Schultz's racial hostility.
Under Title VII of the Civil Rights Act of 1964 ("Title VII"), it is unlawful for "an employer ... to discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment ... because of such individual's race, color, religion, sex, or national origin. ..."
6
42 U.S.C. § 2000e-2(a)(1). The Supreme Court has observed that Title VII "is not limited to 'economic' or 'tangible' discrimination,"
Meritor Sav. Bank, FSB v. Vinson
,
"[W]hether an environment is 'hostile' or 'abusive' [is] ... determined only by looking at all the circumstances[,] ... includ[ing] 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."
Because the District Court's opinion "hinged on" the final element-"the absence of
respondeat superior
liability"-we focus our analysis on that element of Younge's claim.
In re Tribune Media Co.
,
Burlington Indus., Inc. v. Ellerth
,
However, "[w]hen the hostile work environment is created by ... non-supervisory coworkers," employers are "not automatically liable" in all instances.
Huston v. Procter & Gamble Paper Prods. Corp.
,
Younge relies on both theories of respondeat superior liability for his hostile work environment claim. He contends WPHL is strictly liable for Schultz's actions because it made a tangible employment decision to assign him to train with Schultz. In his view, the station knew of Schultz's racial bias because Schultz asked Leff, "[W]hy are you training a hoop ... who doesn't know anything?" App. at 159a (internal quotation marks omitted). Younge claims that Schultz made this statement before the altercation and that Leff relayed Schultz's comments on to Hort (as noted, a supervisor) before he trained with Schultz.
As a preliminary matter, this contention is waived, as Younge never presented it to the Bankruptcy Court.
See
Buncher Co. v. Official Comm. of Unsecured Creditors of GenFarm Ltd. P'ship IV
,
Turning to this point, Younge argues WPHL knew or should have known of Schultz's alleged racial bias. He points out that Hort and Elias told him, "[W]e have had problems with S[c]hultz before." App. at 74a (internal quotation marks omitted). He also asserts that Kerr and Leff were aware that Schultz "ha[d] a problem" and could cause "trouble."
In re Tribune Media Co.
,
While some of these allegations are troubling, they are still not enough to establish that WPHL knew or should have known of Schultz's racial animus. For example, the statements made by Hort, Elias, Kerr, and Leff plainly indicate that Schultz had a "problem," but none of them specify that he exhibited racial animosity toward his colleagues. Although the incident from 1993 gives us pause, it involved disputed accusations of racial bias and occurred 15 years before Younge's altercation with Schultz. There are no similar incidents in Schultz's personnel file that occurred after the 1993 incident. In view of this evidence, we cannot conclude that the station had actual or constructive knowledge of Schultz's alleged racial animus at the time of the altercation. 7
Younge counters that WPHL must have known of Schultz's racial bias, as the latter told the Pennsylvania Commission on Human Relations that his nickname was "the Nazi." This statement is undoubtedly disturbing. But the law does not tell us to look at Schultz's comments in isolation. Rather, it directs our attention to what WPHL knew or should have known about his conduct while he was employed there.
See
Huston
,
Finally, Younge points to Schultz's interview with WPHL's Human Resources Department after the incident. He asserts this interview gave the station adequate knowledge that Schultz exhibited racial bias, as Schultz admitted he used the terms "Spike Lee" and "hoop" in reference to Younge. App. at 159a-60a. Even if this were true, WPHL discharged Schultz immediately after the interview, taking "prompt and appropriate remedial action" once it learned of his comments.
Huston
,
In sum, nothing in the record allows us to conclude that WPHL had respondeat superior liability for Schultz's conduct. Although we agree that certain portions of the record are troubling, they do not touch on WPHL's knowledge of Schultz's racial animus-a key facet of Younge's hostile work environment claim. Accordingly, we affirm the District Court's holding on this claim.
E. The District Court correctly decided Younge's wrongful termination claim because WPHL offered a legitimate, non-discriminatory reason for his termination and Younge failed to demonstrate pretext.
Younge contends the District Court incorrectly decided his wrongful termination claim. He insists WPHL's reasons for discharging him were pretextual and that the station terminated his employment because of his race and/or color.
Tribune counters that it provided a legitimate, non-discriminatory reason for ending Younge's employment. It asserts Younge cannot demonstrate pretext in this context, as he received the same treatment as Schultz.
Title VII prohibits employers from "discharg[ing] any individual ... because of [his] ... race." 42 U.S.C. § 2000e-2(a)(1). As noted, we analyze wrongful termination claims by using the
McDonnell Douglas
burden-shifting framework,
see
McDonnell Douglas
,
We start with the first step of the framework. To establish a
prima facie
case, Younge must prove "that he (1) was a member of a protected class ..., (2) was qualified for the position at issue, (3) suffered an adverse employment action[,] and (4) was ultimately replaced" under circumstances that support an inference of unlawful discrimination.
Connors
,
For our purposes, we adopt the same position as the District Court and assume, without deciding, that Younge has proven a
prima facie
case of racial discrimination. As such, we move on to the second step of the framework and evaluate whether WPHL has provided a legitimate, non-discriminatory reason for his termination. If it cannot satisfy this burden, Younge is entitled to summary judgment in his favor.
See
Keller v. Orix Credit All., Inc.
,
Here WPHL supplied a legitimate and non-discriminatory reason for Younge's termination because it stated that he was fired for violating the station's Code of Conduct and Anti-Harassment Policy. WPHL's representatives also told the Pennsylvania Commission on Human Relations that Younge "was discharged because he violated the [s]tation's policies against fighting." App. at 139a. This is enough to satisfy the employer's "relatively light burden" under the
McDonnell Douglas
framework.
Fuentes
,
To repeat for convenience, the final step of the
McDonnell Douglas
framework requires the plaintiff to prove that the employer's reasons for his termination were pretextual. He may do so by "point[ing] to some evidence, direct or circumstantial, from which a factfinder could reasonably either (1) disbelieve the employer's articulated legitimate reasons ... or (2) believe that an invidious discriminatory reason was more likely than not a motivating or determinative cause of the employer's action."
Fuentes
,
In this case, Younge has not carried his burden under the first prong. Far from giving us evidence from which we could "disbelieve the [station's] articulated ... reasons" for terminating his employment,
Turning to this part of the analysis, Younge argues that a discriminatory reason was more likely than not a motivating cause for the station's actions because it treated Schultz more favorably after altercations in 1993 and 2002.
See
Although Younge correctly notes that Schultz was disciplined more leniently for his previous altercations, that is not enough to show that WPHL's reasons for Younge's termination were pretextual. Instead, he must show that Schultz was "similarly[ ]situated in all respects"-in other words, he "dealt with the same supervisor, ... [was] subject to the same standards[,] and ... engaged in the same conduct" during his earlier altercations.
Mitchell v. Toledo Hosp.
,
Younge also contends that the station treated Schultz more favorably after this altercation because the latter received a severance while Younge "was tossed out on[ ]to the street." Younge Br. at 33. But again, Younge and Schultz were not similarly situated in this context.
See
Patterson v. Avery Dennison Corp.
,
It follows that Younge cannot demonstrate that WPHL terminated his employment out of discriminatory hostility. There is no comparator that suggests WPHL's decision was guided by racial bias or some other "illegitimate factor."
Fuentes
,
Hence Younge cannot show that WPHL's reason for firing him was pretextual. As the Bankruptcy Court and District Court reached the same conclusion, we concur with their decision on this claim.
IV. Conclusion
Younge challenges the Bankruptcy Court's statutory and constitutional authority to decide his employment discrimination claims and asks if he can recover for an incident of racial harassment by Schultz, a co-worker at WPHL. We lack any basis to question the Court's authority at this stage, as Younge never objected to it during bankruptcy proceedings and instead knowingly and voluntarily submitted to the Court's jurisdiction.
When we turn to the merits, we also see no reason to disturb the District Court's decision affirming that of the Bankruptcy Court. Although Schultz exhibited racial animosity toward Younge, we cannot impute liability to WPHL for a hostile work environment claim because we have no evidence that it had knowledge of Schultz's racial bias at the time of the incident. Similarly, we cannot say that Younge was wrongfully terminated because WPHL provided a legitimate, non-discriminatory reason for his discharge. More importantly, its rationale was not pretextual because Younge and Schultz were both fired for engaging in the same conduct. Younge gives us no examples of similarly situated individuals who were disciplined more leniently for the same type of conduct. Without this type of evidence, we cannot rule in his favor. Thus we affirm.
Because Younge opted to litigate in Bankruptcy Court, his proceedings before the Pennsylvania Commission on Human Relations were automatically stayed. He did not file a motion for relief from the automatic stay to allow the investigation to continue.
See
Bankruptcy courts also disagree on whether they may disallow personal injury tort claims under § 157(b)(2).
See
In re Dow Corning Corp.
,
Article III, § 1, of the Constitution states that "[t]he judicial Power of the United States ... shall be vested in one supreme Court ... and in such inferior Courts as the Congress may from time to time ordain and establish." U.S. Const. art III, § 1. "Congress has ... established 94 District Courts and 13 Courts of Appeals, composed of judges who enjoy the protections of Article III: life tenure and pay that cannot be diminished."
Wellness
,
While the Supreme Court made this observation in the context of a bankruptcy court's statutory authority to decide a claim, at least one district court has imported it into its analysis of the bankruptcy court's constitutional authority to enter a final judgment on a claim.
See, e.g.
,
Wu
,
Though our discussion here somewhat mirrors our analysis of the Bankruptcy Court's statutory authority, the touchstone of both inquiries is different. A bankruptcy court has statutory authority to decide a personal injury tort claim if the party fails to raise an objection under
Younge also brings his hostile work environment claim under the Pennsylvania Human Relations Act. In pertinent part, it provides:
It shall be an unlawful discriminatory practice ... [f]or any employer because of the race, color, religious creed, ancestry, age, sex, national origin or non-job related handicap or disability or the use of a guide or support animal because of the blindness, deafness or physical handicap of any individual or independent contractor, to refuse to hire or employ or contract with, or to bar or to discharge from employment such individual or independent contractor, or to otherwise discriminate against such individual or independent contractor with respect to compensation, hire, tenure, terms, conditions or privileges of employment or contract, if the individual or independent contractor is the best able and most competent to perform the services required.
Recall that an employer may also be liable for a co-worker's discriminatory acts "if ... [it] failed to provide a reasonable avenue for complaint."
Huston
,
Reference
- Full Case Name
- In RE: TRIBUNE MEDIA COMPANY, Et Al., Reorganized Debtors, F/K/A Tribune Company, Keith Younge, Appellant
- Cited By
- 160 cases
- Status
- Published