EEOC v. Joslin Dry Goods Co. ( 2007 )

F I L E D
United States Court of Appeals
Tenth Circuit
UNITED STATES CO URT O F APPEALS
May 30, 2007
TENTH CIRCUIT Elisabeth A. Shumaker
Clerk of Court
EQ U A L EM PLO Y ME N T
O PPO RTU N ITY CO M M ISSIO N,
Plaintiff-Appellee, No. 06-1143
and (D. Colorado)
M ELISSA R. W OLFF, (D.C. No. 05-CV-177-W DM -M EH )
Plaintiff-Intervenor-
Appellee,
v.
JO SLIN DRY G O O DS C OM PANY,
doing business as Dillard's,
Defendant-Appellant.
OR D ER AND JUDGM ENT *
Before M U RPH Y, HOL LOW AY, and TYM KOVICH, Circuit Judges.
*
This order and judgment is not binding precedent except under the
doctrines of law of the case, res judicata, and collateral estoppel. It may be cited,
however, for its persuasive value consistent with Fed. R. App. P. 32.1 and 10th
Cir. R. 32.1.
I. Introduction
The Equal Employment Opportunity Commission (“EEOC”) filed a public
enforcement action against Dillard’s on behalf of an unnamed former employee of
D illard’s and a class of similarly situated individuals. In its complaint, the EEO C
alleged Dillard’s had subjected the employees to sexual harassment in violation of
Title VII of the Civil Rights Act of 1964 (“Title VII”). M elissa W olff, the former
employee who had filed the complaint with the EEOC, moved to intervene and
permission was granted by the district court. Dillard’s then filed a motion to stay
W olff’s intervention pursuant to 9 U.S.C. § 3, based on an arbitration agreement
W olff had signed upon beginning employment. The district court denied the
motion to stay and Dillard’s appealed. W hile the appeal was pending, Dillard’s
and W olff entered into a settlement agreement and W olff’s claims were
subsequently dismissed with prejudice. Because the dismissal of W olff from the
law suit makes it impossible for this court to provide any effective relief, this
court concludes Dillard’s appeal is moot and dismisses the appeal.
II. Background
W olff applied for a position at Dillard’s and was hired to work as a sales
associate in one of its retail stores. At the time W olff was hired, she received and
signed a document entitled “Agreement to Arbitrate Certain Claims.” The
agreement stated that the employee and the company both agree “to resolve any
and all disputes” in accordance with the incorporated Rules of Arbitration (“the
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Rules”). The Rules provide that “any claim that could be made in a court of law,”
including a claim for “[d]iscrimination or harassment on the basis of . . . sex,”
shall be subject to arbitration. W olff alleged that although she signed the
agreement, she was never provided with a copy of the Rules.
Soon after W olff began her employment, she filed a police report against
her supervisor, Scott M cGinnis, alleging he had subjected her to offensive and
unwanted sexual advances. M cGinnis confessed to the allegations and was
charged with unlawful sexual contact. Dillard’s subsequently terminated
M cGinnis based in part on these allegations. W olff also filed a complaint with
the EEOC in which she asserted she was subjected to sexual harassment in
violation of Title VII. In her complaint, she stated M cGinnis repeatedly talked
about how pretty she was, asked her to meet him in the parking lot after work,
and called her after work to tell her he was looking for her. She also asserted,
among other things, that while she was completing additional employment
paperw ork in M cGinnis’ office, M cGinnis grabbed her, rubbed her hips, and said
he w anted to kiss her.
Based upon these allegations, the EEOC filed a public enforcement action
against Dillard’s. The complaint alleged Dillard’s had engaged in an unlawful
employment practice in violation of Title VII by subjecting W olff and other
similarly situated individuals to sexual harassment and failing to take prompt
remedial action to eliminate the harassment. The EEOC sought injunctive relief,
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back pay, compensatory relief, punitive damages, and other “necessary and
proper” relief on behalf of W olff and the class of similarly situated individuals.
After the EEOC filed its action, W olff filed a motion to intervene,
identifying herself as the charging party in the EEOC complaint and asserting “a
right to bring an individual claim of sexual harassment” based on the allegations
discussed above. The district court granted W olff’s motion to intervene over the
objection of Dillard’s. Dillard’s then filed a motion to stay W olff’s intervention
in the EEOC proceeding pending arbitration, pursuant to 9 U.S.C. § 3. It argued
W olff was bound by the arbitration agreement and therefore could not participate
in the EEOC litigation. The magistrate judge recommended that the district court
grant Dillard’s motion to stay the proceedings as to W olff.
In response, the EEOC and W olff filed a joint objection to the magistrate
judge’s recommendation. The district court rejected the recommendation and
denied the motion to stay. Relying on language from EEOC v. Waffle House,
Inc., 534 U.S. 279 (2002), it concluded that, as a result of the EEOC enforcement
action, W olff no longer had an independent cause of action that could be subject
to arbitration. Dillard’s then filed this appeal, arguing the district court erred in
denying the motion to stay W olff’s intervention and concluding that W olff had no
independent arbitrable claim.
Following oral argument, W olff and Dillard’s participated in mediation and
eventually entered into a settlement agreement. Dillard’s and the EEOC,
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however, were unable to reach an agreement. Pursuant to the settlement
agreement, W olff and Dillard’s filed a stipulated dismissal with prejudice in the
district court. The district court then dismissed W olff’s complaint as plaintiff-
intervenor. Nevertheless, the EEOC has expressed its intent to proceed with its
public enforcement action against D illard’s on behalf of W olff and similarly
situated individuals. After reaching the settlement with W olff, Dillard’s filed
with this court a statement informing the court of the settlement and indicating its
position that the appeal is not moot. In response, the EEOC argued the settlement
between W olff and Dillard’s rendered the appeal moot.
III. Analysis
Pursuant to Article III of the Constitution, federal court jurisdiction is
limited to the adjudication of live cases and controversies. M oongate Water Co.
v. Dona Ana M ut. Domestic W ater Consumers Ass’n, 420 F.3d 1082, 1088 (10th
Cir. 2005). “The controversy must exist at all stages of appellate or certiorari
review, and not simply at the date the action is initiated.” Id. (quotation omitted).
This court has “no power to give opinions upon moot questions or declare
principles of law which cannot affect the matter in issue in the case before it.”
Disability Law Ctr. v. M illcreek Health Ctr., 428 F.3d 992, 996 (10th Cir. 2005)
(quotation omitted). Because the existence of a live case or controversy is a
constitutional prerequisite to federal jurisdiction, mootness is a threshold issue
that must be addressed before this court may reach the merits of an appeal.
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M cClendon v. City of Albuquerque, 100 F.3d 863, 867 (10th Cir. 1996). An
appeal must be dismissed as moot “if an event occurs while a case is pending on
appeal that makes it impossible for the court to grant any effectual relief whatever
to a prevailing party.” Church of Scientology v. United States, 506 U.S. 9, 12
(1992) (quotation omitted).
The EEOC argues the settlement between Wolff and Dillard’s and the
subsequent dismissal of W olff’s claim in intervention render this appeal moot. It
argues that even if this court were to agree with Dillard’s legal argument and
conclude the district court erred in denying its motion to stay W olff’s intervention
pending arbitration, it would be impossible for this court to provide any effectual
relief. This court agrees w ith the EEOC and concludes the appeal is moot.
The basis for Dillard’s appeal was that the district court erred in concluding
W olff had no arbitrable claim and therefore refusing to grant Dillard’s motion to
stay W olff’s intervention pending arbitration. As a consequence, the sole relief
Dillard’s sought from this court was a reversal of the district court’s denial of the
motion to stay and an order directing the district court to grant the stay. Now that
W olff’s claim has been dismissed from the law suit, however, it no longer matters
whether the district court should have enforced the arbitration agreement and
stayed W olff’s participation in the litigation. In other words, because W olff is no
longer a party to the law suit, there is no claim to be stayed. Further, it is
undisputed that the arbitration agreement which forms the basis of the appeal does
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not bind the EEOC or preclude litigation between the EEOC and Dillard’s, the
only two remaining parties in this case. See W affle House, 534 U.S. at 294.
Thus, even if this court were to conclude W olff’s claim should have been subject
to arbitration and, correspondingly, that the district court erred in denying the
stay, no live controversy remains on this issue and this court cannot grant
Dillard’s any effectual relief. See United States v. Seminole Nation of Okla., 321
F.3d 939, 943 (10th Cir. 2002) (“Once such controversy ceases to exist, the action
is moot and this court lacks jurisdiction to adjudicate the matter.”).
Dillard’s argues the settlement and dismissal of W olff’s claims do not
render the appeal moot because this court’s resolution of whether W olff had an
independent Title VII claim would affect the character of relief the EEOC could
recover in its ongoing enforcement action. It argues that if the district court
continues to treat W olff as having had no independent Title VII claim, it will
necessarily conclude that W olff has received no compensation for the violation of
her Title VII rights. As a result, Dillard’s argues, the district court will not limit
the relief in the EEOC action and, accordingly, may impermissibly allow “double
recovery.” See W affle House, 534 U.S. at 296-97.
Even if Dillard’s is correct that the district court’s order on appeal will
influence its determination of appropriate relief in the enforcement action, a
conclusion that is far from certain, such an effect is too attenuated to alone form
the basis for a live case or controversy. W hile D illard’s contends this court’s
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resolution of the underlying issue on appeal “will have some effect in the real
world,” see Kennecott Utah Copper Corp. v. Becker, 186 F.3d 1261, 1266 (10th
Cir. 1999) (quotation omitted), it implicitly concedes that any such effect is
entirely contingent on the EEOC succeeding in the enforcement action. If the
EEOC ultimately does not prevail in its enforcement action, the question of
appropriate relief will become irrelevant and a decision by this court in D illard’s
favor w ould have provided Dillard’s no relief whatsoever. Additionally, even if
the EEOC does succeed, there is no indication it will necessarily seek the “double
recovery” on behalf of Wolff that Dillard’s argues is improper. The practical
effect of this court’s decision therefore depends entirely on (1) the EEOC
prevailing in its enforcement action, (2) the EEOC seeking duplicative relief on
behalf of W olff, and (3) the district court resolving the issue of appropriate relief
in the manner Dillard’s presumes it will. Such contingencies are “too conjectural
and speculative to avoid a finding of mootness.” Jones v. Temmer, 57 F.3d 921,
923 (10th Cir. 1995).
By urging this court to decide w hether W olff had an independent Title VII
claim prior to settlement, Dillard’s effectively seeks a ruling from this court on an
abstract legal question that may, at some point in the future, have an effect on the
proceedings in the district court. It is well-settled, however, that “a federal court
has no authority to give opinions upon . . . abstract propositions.” Church of
Scientology, 506 U.S. at 12 (quotation omitted). W hile it is certainly true that in
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dismissing this appeal, this court fails to resolve the legal issues underlying
Dillard’s appeal, this court has previously recognized that “[i]n every case
dismissed as moot, legal questions are necessarily left unresolved.” Park County
Res. Council, Inc. v. United States Dep’t of Agric., 817 F.2d 609, 615 (10th Cir.
1987), overruled on other grounds, Vill. of Los Ranchos de Albuquerque v.
M arsh, 956 F.2d 970, 973 (10th Cir. 1992). Nevertheless, “[w]hen the underlying
facts illuminating the legal issue no longer exist,” this court’s exercise of
jurisdiction would constitute “an advisory opinion as to an abstract question of
law” in violation of Article III. Id. Because W olff no longer has a claim against
Dillard’s, the question of whether such a claim would be subject to arbitration is
purely hypothetical and abstract. Thus, Dillard’s appeal of the district court’s
denial of its motion to stay W olff’s intervention pending arbitration is moot.
IV. Conclusion
For the foregoing reasons, this court dismisses the appeal of the district
court’s denial of D illard’s motion to stay all proceedings with respect to W olff’s
claim pending arbitration.
ENTERED FOR THE COURT
M ichael R. M urphy
Circuit Judge
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