Antonio Passaro, Jr. v. Commonwealth of Virginia
Antonio Passaro, Jr. v. Commonwealth of Virginia
Opinion of the Court
Antonio Passaro Jr. is a former Special Agent with the Virginia State Police. He claims that he faced unlawful discrimination based on his mental disability (post-traumatic stress disorder ) and national origin (Italian-American). He also claims that he was unlawfully fired in retaliation for filing a complaint with the Equal Employment Opportunity Commission ("EEOC"). This conduct, he claims, violated the Americans with Disabilities Act of 1990 ("ADA"),
The district court dismissed Passaro's ADA claim, concluding that it was barred by state sovereign immunity. The court then granted summary judgment for the Commonwealth on the Title VII claims, concluding they were barred by the claim-preclusive effect of a state-court judgment upholding the outcome of an administrative grievance Passaro had filed. We affirm the district court's dismissal of the ADA claim because the Commonwealth has not waived its sovereign immunity from that claim. But we reverse the district court's decision that claim preclusion bars Passaro's Title VII claims.
I.
Passaro worked as a Trooper with the Department of State Police until his promotion to Special Agent. In 2008, he transferred to the department's High Tech Crimes Unit, where he investigated child-pornography *246cases. Starting in 2010, he began receiving disciplinary notices for infractions arising from his alleged failure to follow proper procedures and to manage his caseload. The episode that ultimately led to Passaro's termination was an investigation he conducted in April and May 2012, which the department claims he bungled.
In July 2012, a doctor diagnosed Passaro with post-traumatic stress disorder arising from his frequent exposure to images of child pornography at work. Passaro sought a transfer from High Tech Crimes, which he claims was not granted.
On February 6, 2013, Passaro learned that he was being recommended for demotion from Special Agent back down to Trooper. Two days later, Passaro filed a complaint with the EEOC, asserting that the department had failed to make reasonable accommodations for his post-traumatic stress disorder and had harassed and discriminated against him based on his disability and national origin.
In March 2013, Passaro was fired. He then filed a grievance with Virginia's Office of Employment Dispute Resolution under Virginia Code § 2.2-3003. He claimed that his discipline and termination were unjustified, and also that he had been the victim of discrimination and harassment. The grievance was assigned to a hearing officer, who promptly held a hearing and issued a decision that largely focused on whether Passaro's discipline comported with internal department policies. Despite overturning some of the disciplinary action against Passaro, the hearing officer upheld Passaro's termination.
Passaro sought review of the hearing officer's ruling. He filed administrative appeals, which were denied. Passaro also appealed to a Virginia state court for review of whether the grievance decision was "contradictory to law" under Virginia Code § 2.2-3006(B). The court largely rejected Passaro's arguments but concluded the hearing officer had overlooked certain testimony. On remand, the hearing officer affirmed his earlier decision, and Passaro again filed administrative appeals that were denied. Passaro returned to state court, which this time affirmed. Passaro then appealed to Virginia's intermediate appellate court, which affirmed. Passaro v. Virginia Dep't of State Police ,
In November 2016, while those appeals were ongoing, Passaro brought the instant action in Virginia state court against the Commonwealth. His complaint asserted "unlawful discrimination, harassment and retaliation," as well as improper denials of his "requests for reasonable accommodations." J.A. 13. The Commonwealth timely removed the case to federal district court, asserting federal question jurisdiction based on the Title VII claims.
The Commonwealth then moved to dismiss, and the district court granted the motion in part. It dismissed Passaro's ADA claim, which it concluded was barred by state sovereign immunity.
*247Before the magistrate judge, the Commonwealth sought to stay this action pending final resolution of Passaro's state-court appeals, arguing that the state-court judgment could have preclusive effect on this case. Passaro responded that, while he disagreed that the state-court action would have any preclusive effect, he did not object to a stay. The court granted the stay, which remained in place until May 2018.
After the stay was lifted, the Commonwealth moved for summary judgment, arguing that the state-court proceedings had claim-preclusive effect on Passaro's discrimination and retaliation claims under Title VII. The district court agreed and entered judgment for the Commonwealth.
Passaro timely appeals. He argues that the district court erred in dismissing his ADA claim because the Commonwealth has waived its state sovereign immunity. He also argues that claim preclusion does not bar his Title VII claims, asserting that the Commonwealth also waived this defense and, alternatively, that claim preclusion does not apply.
II.
Title I of the ADA protects workers with disabilities from discrimination and requires employers to make reasonable accommodations for them. On its face, the statute applies to state governments and authorizes a private cause of action by state employees. See
Passaro presents two arguments for waiver. The first is that the Commonwealth waived its sovereign immunity by removing this case from state court to federal court. Our precedent forecloses this argument unless Passaro can also show that the Commonwealth has waived its immunity from the Title I claim in state court. In Stewart v. North Carolina ,
*248We therefore turn to Passaro's second argument: that the Commonwealth has made statements waiving its sovereign immunity from Title I actions. Under both federal and Virginia law, a clear statement is required to waive state sovereign immunity. See Coll. Sav. Bank v. Florida Prepaid Postsecondary Educ. Expense Bd. ,
Passaro mainly rests this argument on various statements the Commonwealth has made to the effect that it intends to abide by its obligations under Title I of the ADA and that its employees may raise violations with the EEOC. For example, an employee handbook states that Virginia is "committed to providing equal employment opportunity" regardless of "disability" and "complies with federal and state equal employment opportunity laws." DEP'T OF HUMAN RES. MGMT., EMPLOYEE HANDBOOK 24 (2017), available at https://www.dhrm.virginia.gov/docs/default-source/hr/manuals/employeehandbook.pdf. And a poster that Virginia puts up in its workplaces explains to employees that "if you feel you have been discriminated against," the EEOC is one of "the resources available to assist you." DEP'T OF HUMAN RES. MGMT., EEO POSTER (2017), available at https://www.dhrm.virginia.gov/docs/default-source/eeo-documents/eeoposter.pdf.
These statements do not show waiver. State sovereign immunity is an immunity from private suit; it does not relieve a state of its obligations and does not bar federal enforcement actions. See Seminole Tribe of Florida v. Florida ,
Equally unavailing is Passaro's reliance on Virginia Code § 2.2-3903(D), which provides that "[c]auses of action based upon the public policies reflected in [the Virginia Human Rights Act] shall be exclusively limited to those actions, procedures, and remedies, if any, afforded by applicable federal or state civil rights statutes or local ordinances." Read in context, this language merely confirms that a different statute-Virginia's Human Rights Act-does not create an implied private right of action. See Va. Code § 2.2-3903(A). It comes nowhere close to a clear waiver of sovereign immunity from claims under Title I of the ADA.
We thus conclude that the Commonwealth has not waived its sovereign immunity from private lawsuits under Title I of the ADA in either state or federal court. And that also means, under Stewart , that the Commonwealth did not waive its sovereign immunity by removing its claims to federal court.
Finally, Passaro suggested at oral argument that the Commonwealth's decision to remove, when combined with the statements he has identified, somehow amounts *249to a waiver. In effect, he argues, we can find a waiver of sovereign immunity based on less-than-clear statements when a case is removed to federal court. This argument is inconsistent with Stewart , which held that removal waives a state's immunity defense only when the state has also waived its immunity in its own courts. In deciding the latter issue, we must of course follow Virginia law, which requires an "explicit and express waiver" with no exception for removal cases (hardly surprising, for such an exception would not make much sense). Ligon ,
III.
We reverse, however, the district court's ruling at summary judgment that claim preclusion bars Passaro's Title VII claims.
Under Virginia's law of claim preclusion, parties "may not relitigate 'the same cause of action or any part thereof which could have been litigated in the previous action.' " Bennett v. Garner ,
The breadth of claim preclusion has long turned on the plaintiff's ability to seek comprehensive relief in a single action. We see this most clearly in the historical division between law and equity, which often afforded different remedies on the same facts:
So long as law and equity were administered by separate courts, or by different "sides" of the same court, a first proceeding at law or in equity often could be followed by a second proceeding in equity or at law. A party who lost an action at law on a contract, for instance, might undo the law judgment by securing reformation in a subsequent suit in equity. A court of law, on the other hand, might cheerfully grant a damages remedy after denial of an equitable remedy on discretionary grounds. Much similar duplication of litigation occurred.
18 CHARLES ALAN WRIGHT & ARTHUR R. MILLER, FEDERAL PRACTICE & PROCEDURE § 4410 (3d ed. 2008) (footnotes omitted). Even where an equity court could award *250incidental legal relief, such as damages, claim preclusion often did not bar a later action at law because it was thought unfair to force a litigant to seek damages in equity where he had no right to a jury trial. Funny Guy, LLC v. Lecego, LLC ,
These limitations on claim preclusion became outmoded as joinder rules became less restrictive. Today, plaintiffs can usually seek all available relief in a single suit. Reflecting this fact, the modern trend-and the one adopted by the Second Restatement of Judgments-is to expand claim preclusion to cover all claims arising from the same "transaction" underlying the prior action. See generally Keith v. Aldridge ,
Despite Rule 1:6 's sweeping and mostly unqualified language, where joinder remains limited, so does the scope of claim preclusion. Even under Rule 1:6, claim preclusion remains "the stepchild of pleading and joinder rules" and "largely depends on which claims could have been brought" in the earlier action. Funny Guy ,
One well-recognized caveat is that the transactional approach assumes "no formal barriers in the way of a litigant's presenting to a court in one action the entire claim including any theories of recovery or demands for relief that might have been available to him under applicable law." Restatement (Second) of Judgments § 26(1)(c) cmt. c (Am. Law Inst. 1982) (emphasis added). "When such formal barriers in fact existed and were operative against a plaintiff in the first action, it is unfair to preclude him from a second action in which he can present those phases of the claim which he was disabled from presenting in the first."
Here, Passaro could not have presented his entire case in one action. Virginia's grievance procedures offer substantive claims that employees cannot pursue in a typical civil action. In particular, the grievance process appears to be the only mechanism by which a Virginia state employee can have disciplinary action overturned for violating internal policies of the state agency that employed him. See Virginia Dep't of Transp. v. Stevens ,
*251Virginia's administrative grievance procedures forbid damages awards, instead permitting limited monetary remedies such as back pay and, in some cases, attorney's fees. See OFFICE OF EQUAL EMP'T & DISPUTE RESOLUTION, GRIEVANCE PROCEDURE MANUAL § 5.9, at 19 (2017), available at http://www.dhrm.virginia.gov/docs/default-source/edrdocuments/GPM-2017.pdf; Martin-Bangura v. Virginia Dep't of Mental Health ,
Nor can we conclude, at least based on the record before us, that Passaro could have asserted a Title VII claim for money damages as part of the subsequent state-court action appealing the grievance decision. The statutory procedures governing grievance appeals suggest that they cannot feasibly be joined to a Title VII action seeking damages. There is no jury, and the deadlines are too rapid to accommodate a typical civil action: the state court must hold a hearing within 30 days of receiving the grievance record and must then decide the case within 15 days of the hearing. Va. Code § 2.2-3006(B). And the Commonwealth conceded at oral argument that there is no basis to believe that, when an employee appeals an administrative grievance decision to state court, he can join a claim for damages to the agency-review action.
Because Passaro could not have sought money damages in the prior suit, claim preclusion does not bar him from seeking money damages in this federal action. And he has done just that: his prayer for relief includes a request for compensatory damages up to the statutory maximum. J.A. 125; see 42 U.S.C. § 1981a(b)(3) (statutory cap). Thus, the Commonwealth did not meet its burden to establish that claim preclusion barred Passaro's claim in full, and we must reverse the district court's grant of summary judgment to the Commonwealth.
The Second Circuit, applying New York law in Davidson v. Capuano ,
The Commonwealth, like the district court, relies on language in Rule 1:6 stating that claim preclusion applies "regardless of ... the particular remedies sought" in the prior proceeding. Va. R. Sup. Ct. 1:6(a). This argument misapprehends the meaning of the quoted text. Rule 1:6 provides that a litigant cannot limit the scope of claim preclusion by choosing to seek only particular remedies in the first action. Yet there is a critical distinction between the remedies sought and the remedies available . A litigant has no right to split his claim by voluntarily choosing to seek only some of the remedies available to him, *252but that is not really a choice when it is thrust upon him by procedural rules. Thus, under traditional claim-preclusion principles, a litigant who had to split his claim to preserve his rights may return to court to seek remedies that were unavailable to him in the first proceeding. Virginia's Supreme Court has made clear that Rule 1:6 preserves this and other well-recognized limitations on the scope of claim preclusion. Funny Guy ,
Ultimately, this result is consistent with basic fairness. If claim preclusion applied in full, then a litigant in Passaro's shoes would face a difficult choice. He would either have to assert all his claims through the grievance proceeding, forgoing his ability to obtain compensatory damages (as well as his right to a jury trial), or rely solely on a traditional civil action, giving up his right to appeal the police department's grievance decision. The common law does not sanction this result, which lets procedural rules deprive a litigant of his substantive rights. Virginia law, we conclude, follows the common law in this regard.
That does not necessarily mean giving litigants like Passaro a second bite at the apple. If Passaro raised issues about discrimination and retaliation during the grievance process, and those issues were actually decided, then issue preclusion may bar relitigating them. See generally D'Ambrosio ,
Finally, with great respect for our dissenting colleague, we decline to certify this issue to the Virginia Supreme Court. Neither party has requested certification. To the contrary: the Commonwealth removed this case from Virginia state court, choosing to put the issue before the federal courts. Cf. Nat'l Bank of Washington v. Pearson ,
*253Roe v. Doe ,
IV.
For these reasons, we affirm the district court's dismissal of Passaro's ADA claim, reverse the grant of summary judgment dismissing Passaro's Title VII claims, and remand for further proceedings consistent with this opinion.
AFFIRMED IN PART, REVERSED IN PART, AND REMANDED
The district court also dismissed any disability-related claim under the Virginia Human Rights Act, Va. Code § 2.2-3900 et seq. Passaro has not challenged that dismissal on appeal.
Passaro argues that Stewart conflicts with a more recent Fourth Circuit decision, which noted "a bright-line rule" that "any voluntary removal waives immunity." Sansotta v. Town of Nags Head ,
The Commonwealth has not asserted sovereign immunity from these claims.
The Commonwealth cites district court decisions that, relying in part on the "remedies sought" language, applied claim-preclusion in cases very similar to this one. See Johnson v. Virginia , No. 4:11-cv-26,
We also do not address, because it is unnecessary for our decision, Passaro's argument that the state waived the rule against claim-splitting and thus its claim-preclusion defense. See generally Bill Greever Corp. v. Tazewell Nat'l Bank ,
Concurring in Part
I concur in Sections I and II of the majority opinion. As to how Virginia courts would resolve the claim preclusion issue in Section III, I would certify this question to the Supreme Court of Virginia. This is not a criticism of the majority opinion. The legal route it outlines is novel, even if correct. In my view, the impact of this case will be far reaching, as there is a great deal of litigation in this area of the law. There is no Virginia case law that directly addresses the precise issue before us, and I am not entirely certain that we have reached the conclusion anticipated by the Virginia court when it promulgated Rule 1:6. If new ground is to be plowed, I believe it should be done by the Supreme Court of Virginia.
Reference
- Full Case Name
- Antonio PASSARO, Jr., Plaintiff - Appellant, v. Commonwealth of VIRGINIA; Virginia Department of State Police, Defendants - Appellees
- Cited By
- 75 cases
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- Published