Douglass v. United Svcs Auto ( 1995 )

United States Court of Appeals,
Fifth Circuit.
No. 95-50007.
Paul W. DOUGLASS, Plaintiff-Appellant,
v.
UNITED SERVICES AUTOMOBILE ASSOCIATION, Defendant-Appellee.
Oct. 2, 1995.
Appeal from the United States District Court for the Western
District of Texas.
Before SMITH, BARKSDALE and BENAVIDES, Circuit Judges.
RHESA HAWKINS BARKSDALE, Circuit Judge.
A critical issue in this appeal by Paul W. Douglass from a
summary judgment is our standard of review, in that Douglass did
not file objections to the magistrate judge's report and
recommendation, which the district court adopted. Regretfully, our
court's precedent requires us to review de novo, even though, in
essence, the issues are being raised on appeal for the first time.
Douglass, pro se, challenges the summary judgment dismissing
his age discrimination claims against his former employer, United
Services Automobile Association (USAA). We AFFIRM.
I.
Born in 1927, Douglass began employment with USAA in February
1980 as a programmer, and was placed on probation in December 1991.
Shortly thereafter, in February 1992, he was removed from his
position and placed in a holding unit, where USAA employees who had
been removed from positions for which they were unqualified were
given an opportunity to try to find another position within the
1
company. While in the holding unit, Douglass was offered a
position as an automated data processing technician, which he
accepted that March. As a result of the change in positions,
Douglass suffered a 10.7% decrease in pay.
In July 1993, Douglass filed this action against USAA,
claiming that it discriminated against him on the basis of age when
it removed him from his programmer position and forced him to
accept another position with reduced salary and benefits.1
Douglass alleged that, in 1990, he began receiving poor work
evaluations and was excluded from beneficial work assignments
because of his age.
USAA moved for summary judgment, asserting that Douglass was
removed from his position because of poor work performance, not
age. USAA supported the motion with affidavits from Douglass'
supervisors and personnel records documenting the deficiencies in
his performance and the reasons for his removal from the programmer
position. Douglass' unsworn response, to which was attached a copy
of an affidavit that he had submitted to the Equal Employment
Opportunity Commission, asserted that records necessary to prove
his claim were not available to him, and that he lacked the
financial resources with which to purchase copies of depositions
that would assist the court in its determination. USAA filed a
reply, attaching deposition excerpts and more affidavits in support
1
Douglass' brief states incorrectly that he asserted a claim
under the Consolidated Omnibus Budget Reconciliation Act (COBRA).
His complaint, however, alleged only violations of the ADEA. In
any event, he does not press a COBRA issue.
2
of its assertion that Douglass was removed from his position
because of his performance, not age.
In a September 21, 1994, order and advisory, the magistrate
judge stated that Douglass' response was deficient, but that he
should be given another opportunity to furnish summary judgment
evidence. The order explained, in great detail, summary judgment
procedure and Douglass' burden in responding to USAA's motion.
Douglass was given until October 14 to respond. In addition,
because of Douglass' pro se status and indigence, the magistrate
judge ordered USAA to produce copies of all depositions to the
court for in camera inspection for the purpose of determining if
there was any summary judgment evidence to support Douglass'
claim.2 On September 27, Douglass moved for a continuance, stating
that he had moved to another state, and wanted to retain an
attorney.3 Douglass did not respond further to the summary
judgment motion.
On October 27, the magistrate judge recommended that summary
judgment be granted USAA. The magistrate judge noted that Douglass
had offered only conjecture, conclusions and opinions unsupported
by fact-specific summary judgment evidence, and had, therefore,
failed to raise a material fact issue in response to USAA's
2
The order provided that copies of the depositions would be
returned to USAA after the magistrate judge's inspection, so
copies of the complete depositions are not in the record. As
noted, USAA submitted excerpts of the depositions with its reply
to Douglass' response to the summary judgment motion.
3
The record contains no ruling on Douglass' continuance
request.
3
evidence that he was removed from his programmer position because
of poor performance, not age.
Although the magistrate judge's report warned Douglass that
his failure to object to the recommendation within 10 days would
bar a de novo determination by the district court, and would bar
appellate review of the factual findings adopted by the district
court, except upon grounds of plain error or manifest injustice,
Douglass did not object. The district court, stating that it need
not conduct a de novo review of the magistrate judge's memorandum
and recommendation because no party had objected, adopted the
recommendation and entered judgment for USAA.
II.
Douglass contends that the district court erred by granting
summary judgment for USAA, because he can prove that his age was
one of the reasons for his demotion.4 The parties disagree,
however, as to our standard of review. Douglass maintains that, as
usual, the summary judgment should be reviewed de novo. USAA
counters that, because Douglass failed to object to the magistrate
judge's recommendation, he is precluded from challenging any
factual findings of the magistrate judge that were accepted or
4
The statement of facts and argument sections of Douglass'
brief contain no citations to the record, contrary to
FED.R.APP.P. 28(a)(4), (6). Although we liberally construe
briefs filed by pro se litigants, we still require them to comply
with the Federal Rules of Appellate Procedure. See, e.g., Yohey
v. Collins, 985 F.2d 222, 225 (5th Cir.1993). Douglass is
cautioned that disregard for the rules of appellate procedure may
result in dismissal. See 5th Cir.Loc.R. 42.2; Moore v. FDIC,
993 F.2d 106, 107 (5th Cir.1993) (dismissing appeal for failure
to comply with appellate rules).
4
adopted by the district court, absent plain error. We turn first
to the standard of review question.
A.
Before determining the standard of review for a summary
judgment when the requisite objections to a magistrate judge's
report and recommendation are not filed, we look first to the
appellate waiver rule in general, as fashioned by our court. As
hereinafter discussed, there is a six-five split between the
circuits as to the consequences for a failure to so object; our
court resides in the more lenient (minority) camp.
1.
Federal Rule of Civil Procedure 72 provides that "a party may
serve and file specific, written objections to the proposed
findings and recommendations" of a magistrate judge within 10 days
after being served with a copy of the recommendation, and thereby
secure de novo review by the district court; but, it is silent
with respect to the consequences of a party's failure to object.
The advisory committee's note to Rule 72(b) states that, "[w]hen no
timely objection is filed, the [district] court need only satisfy
itself that there is no clear error on the face of the record in
order to accept the recommendation". FED.R.CIV.P. 72(b) advisory
committee's note (1983). With respect to the consequences for
appellate review, the advisory committee states that "[f]ailure to
make timely objection to the magistrate's report prior to its
adoption by the district judge may constitute a waiver of appellate
review of the district judge's order". Id. (citing United States
5
v. Walters, 638 F.2d 947 (6th Cir.1981)).
The Supreme Court has held that the courts of appeals may, in
the exercise of their supervisory rule-making power, deny appellate
review for failure to object to a magistrate judge's recommendation
(appellate waiver rule). Thomas v. Arn, 474 U.S. 140, 155, 106
S. Ct. 466, 475, 88 L. Ed. 2d 435 (1985). Thomas condones the denial
of appellate review not only of factual findings, but also of legal
conclusions. Id. at 150, 106 S.Ct. at 472. The Court observed
that the Sixth Circuit's decision to require the filing of
objections to preserve the right to appellate review both of
factual findings and of legal conclusions is supported by "sound
considerations of judicial economy". Id. at 148, 106 S.Ct. at 472.
Absent such a rule, any issue before the magistrate would be
a proper subject for appellate review. This would either
force the court of appeals to consider claims that were never
reviewed by the district court, or force the district court to
review every issue in every case, no matter how thorough the
magistrate's analysis and even if both parties were satisfied
with the magistrate's report. Either result would be an
inefficient use of judicial resources. In short, the same
rationale that prevents a party from raising an issue before
a circuit court of appeals that was not raised before the
district court applies here.
Id. (internal quotation marks, brackets, and citation omitted). As
noted, the advisory committee's note to FED.R.CIV.P. 72(b) cites
with approval another Sixth Circuit case, Walters, which, in
applying the appellate waiver rule, did not distinguish between
factual findings and legal conclusions.
The Fourth Circuit, which also applies the appellate waiver
rule both to factual findings and to legal conclusions, observed
that the purpose of the Federal Magistrates Act would be defeated
6
if litigants could ignore their right to file objections with the
district court without imperiling their right to raise those
objections in the court of appeals.
Litigants would have no incentive to make objections at the
trial level; in fact they might even be encouraged to bypass
the district court entirely, even though Congress has lodged
the primary responsibility for supervision of federal
magistrates' functions with that judicial body. Equally as
troubling, ... [the absence of such a rule] would impose a
serious incongruity on the district court's decision making
process—vesting it with the duty to decide issues based on the
magistrate's findings but depriving it of the opportunity to
correct those findings when the litigant has identified a
possible error.
United States v. Schronce, 727 F.2d 91, 93-94 (4th Cir.), cert.
denied, 467 U.S. 1208, 104 S. Ct. 2395, 81 L. Ed. 2d 352 (1984).5
As hereinafter discussed, our court, however, has limited the
appellate waiver rule to factual findings. (This is reflected in
the above described warning given Douglass by the magistrate judge
should Douglass fail to timely file objections to the report and
recommendation.) Our court first considered waiver in this context
in United States v. Lewis, 621 F.2d 1382, 1386 (5th Cir.1980),
cert. denied, 450 U.S. 935, 101 S. Ct. 1400, 67 L. Ed. 2d 370 (1981).
On defendants' motion to suppress evidence allegedly seized as the
result of an illegal search, the magistrate judge recommended that
the district court deny the motion. One defendant failed to object
to the recommendation, which the district court adopted. Our court
5
In addition to the Fourth and Sixth Circuits, four other
circuits apply the appellate waiver rule not only to findings of
fact, but also to conclusions of law. See Video Views, Inc. v.
Studio 21, Ltd., 797 F.2d 538, 539 (7th Cir.1986); Niehaus v.
Kansas Bar Ass'n, 793 F.2d 1159, 1164-65 (10th Cir.1986);
McCarthy v. Manson, 714 F.2d 234, 237 (2d Cir.1983); Park Motor
Mart, Inc. v. Ford Motor Co., 616 F.2d 603, 605 (1st Cir.1980).
7
dismissed that defendant's appeal, holding that "[h]is failure to
object is a waiver of his right to appeal the recommendations
contained in the report". Id. at 1386.
In Nettles v. Wainwright, 677 F.2d 404, 408 (5th Cir.1982)
(en banc), involving a habeas petition, our court approved the
waiver rule of Lewis, stating that it refused to "sit idly by and
observe the "sandbagging' of district judges when an appellant
fails to object to a magistrate's report in the district court and
then undertakes to raise his objections for the first time" on
appeal.6 Id. at 410. Nevertheless, our court modified Lewis in
two respects. First, by requiring the magistrate judge's
recommendation to contain language that notifies the parties of the
consequences for failing to submit written objections to the
district court. Id. And second, by holding that a failure to
object to the recommendation bars a party only from "attacking on
appeal factual findings accepted or adopted by the district court
except upon grounds of plain error or manifest injustice". Id.
(emphasis added).
We explained in Hardin v. Wainwright, 678 F.2d 589 (5th
Cir.1982), that Nettles reworked the waiver rule announced in
Lewis: "The failure to object no longer waives the right to appeal
6
Nettles was decided in 1982 by Unit B of the former Fifth
Circuit, which became the Eleventh Circuit as of October 1, 1981.
We nevertheless consider all Unit B cases, even those decided
after that date, to be binding precedent. E.g., United States v.
Rojas-Martinez, 968 F.2d 415, 420 n. 11 (5th Cir.1992), cert.
denied, --- U.S. ----, 113 S. Ct. 828, 121 L. Ed. 2d 698 (1992), and
cert. denied, --- U.S. ----, 113 S. Ct. 995, 122 L. Ed. 2d 146
(1993).
8
but simply limits the scope of appellate review of factual findings
to plain error review; no limitation of the review of legal
conclusions results". Hardin, 678 F.2d at 591. Accordingly, as
stated, our court has limited the appellate waiver rule to factual
findings. See, e.g., United States v. Carrillo-Morales, 27 F.3d
1054, 1061-62 (5th Cir.1994), cert. denied, --- U.S. ----, 115
S. Ct. 1163, 130 L. Ed. 2d 1119 (1995). As stated in Carrillo-
Morales, "[c]ases following Nettles apply the rule only to a
magistrate judge's findings of fact and not to his conclusions of
law". 27 F.3d at 1062.7
As stated, Nettles offered no explanation for limiting the
applicability of the appellate waiver rule announced in Lewis to
factual findings. And, we can perceive no valid reason for
distinguishing between factual findings and legal conclusions when
parties fail to object to a magistrate judge's recommendation. In
both instances, the point that should have been stated in an
objection is later made for the first time on appeal. There is no
basis for excepting unobjected-to legal conclusions by a magistrate
judge from our longstanding practice of refusing to consider issues
raised for the first time on appeal, absent plain error.
The efficacy of the appellate waiver rule applying to legal
issues, as well as to factual findings, is even more so for a
7
In addition to the Fifth and Eleventh Circuits, three other
circuits do not apply the appellate waiver rule to legal
conclusions. See Martinez v. Ylst, 951 F.2d 1153, 1156 & n. 4
(9th Cir.1991); Henderson v. Carlson, 812 F.2d 874, 878-79 (3d
Cir.), cert. denied, 484 U.S. 837, 108 S. Ct. 120, 98 L. Ed. 2d 79
(1987); Lorin Corp. v. Goto & Co., Ltd., 700 F.2d 1202, 1207
(8th Cir.1983).
9
summary judgment, such as the one before us. (Indeed, as discussed
infra in part II.A.2., a summary judgment involves only legal
issues, not findings of fact.) The salutary purposes underlying
summary judgment, and the procedures used in considering it, see
FED.R.CIV.P. 56, are thwarted, if not destroyed, by the restricted
appellate waiver rule utilized by our court. Moreover, in the
larger scheme of things, this flies in the face of FED.R.CIV.P. 1
("to secure the just, speedy, and inexpensive determination of
every action"), as well as growing judicial recognition of the many
benefits of summary judgment. See, e.g., Celotex Corp. v. Catrett,
477 U.S. 317, 327, 106 S. Ct. 2548, 2555, 91 L. Ed. 2d 265 (1986)
("Summary judgment procedure is properly regarded not as a
disfavored procedural shortcut, but rather as an integral part of
the Federal Rules as a whole"); see also Little v. Liquid Air
Corp., 37 F.3d 1069, 1075-76 (5th Cir.1994) (en banc). But, unless
our en banc court chooses to revisit the issue and overrule
Nettles, we are bound by it. We urge our court to do so.
2.
Against the backdrop of the lenient appellate waiver rule in
our circuit, we must narrow our focus to how it is applied to the
case at hand—a summary judgment. Such a judgment requires not only
determining whether there are material fact issues, but also, if
there are none, whether the prevailing party is entitled to
judgment as a matter of law. FED.R.CIV.P. 56(c). Both
considerations are legal issues; neither is a finding of fact.
See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 106 S. Ct. 2505,
10
91 L. Ed. 2d 202 (1986). "As to materiality, the substantive law
will identify which facts are material. Only disputes over facts
that might affect the outcome of the suit under the governing law
will properly preclude the entry of summary judgment. Factual
disputes that are irrelevant or unnecessary will not be counted".
Id. at 248, 106 S.Ct. at 2510. A court having decided which facts
are material, the next "inquiry performed is the threshold inquiry
of determining whether there is the need for a trial—whether, in
other words, there are any genuine factual issues that properly can
be resolved only by a finder of fact because they may reasonably be
resolved in favor of either party". Id. at 250, 106 S.Ct. at 2511.
It is well to remember that summary judgment is simply another form
of judgment as a matter of law, as reflected in the 1991 amendments
to FED.R.CIV.P. 50. As the advisory committee's note to Rule 50
explains,
[t]he expressed standard makes clear that action taken under
the rule is a performance of the court's duty to assure
enforcement of the controlling law and is not an intrusion on
any responsibility for factual determinations conferred on the
jury by the Seventh Amendment or any other provision of
federal law. Because this standard is also used as a
reference point for entry of summary judgment under 56(a), it
serves to link the two related provisions.
FED.R.CIV.P. 50(a), advisory committee's note (1991).
For this reason, as is more than well-known, a summary
judgment is reviewed de novo, applying the same standards as the
district court. E.g., Forsyth v. Barr, 19 F.3d 1527, 1533 (5th
Cir.), cert. denied, --- U.S. ----, 115 S. Ct. 195, 130 L. Ed. 2d 127
(1994). As a result, our circuit's lenient appellate waiver rule
does not (cannot) narrow our review of a summary judgment; our
11
rule only limits review of factual findings, and a summary judgment
is, as discussed, based instead on legal conclusions.8 Therefore,
we must consider now the points Douglass should have made as
objections to the magistrate judge's recommendation, even though
these points are being raised for the first time on appeal.
B.
8
Tolbert v. United States, 916 F.2d 245 (5th Cir.1990), is
not inconsistent. In that case, Tolbert asserted, inter alia,
Title VII claims growing out of alleged harassment in 1981, and
the denial of re-employment in 1986. But, she had filed an EEOC
charge only with respect to the 1986 claim. The magistrate judge
recommended summary judgment for the defendants on the 1981
claim, but recommended that the 1986 claim be allowed to go
forward. The defendants objected to the latter recommendation,
but Tolbert objected to neither. The district court adopted the
magistrate judge's recommendation as to the 1981 claim, but
denied it as to the 1986 claim. Tolbert appealed the grant of
summary judgment as to both claims.
Our court reviewed the summary judgment on the 1981
claim only for plain error, stating that, because Tolbert
did not object to the magistrate judge's recommendation that
the claim be dismissed, she could not attack it on appeal.
Id. at 247. Although the opinion does not state the basis
for the summary judgment, the defendants' motion was based
on the assertion that Tolbert had neither exhausted
administrative remedies nor complied with the filing
deadlines for Title VII claims. A summary judgment on
either of those grounds could, of course, have been based on
undisputed facts. In any event, our court's refusal to
review except for plain error suggests that Tolbert was
attempting to challenge the underlying facts for the first
time on appeal.
Whatever the basis for our court applying only plain
error review, one thing is absolutely certain. As discussed
above, and pursuant to Nettles, the lenient appellate waiver
rule in our circuit limits review only of findings of fact,
not of legal issues. Moreover, it is well-established in
our circuit that one panel cannot overrule the decision of a
prior panel in the absence of en banc reconsideration or a
superseding decision of the Supreme Court. E.g., Batts v.
Tow-Motor Forklift Co., 978 F.2d 1386, 1393 & n. 15 (5th
Cir.1992).
12
Summary judgment "shall be rendered forthwith if the
pleadings, depositions, answers to interrogatories, and admissions
on file, together with the affidavits, if any, show that there is
no genuine issue as to any material fact and that the moving party
is entitled to a judgment as a matter of law". FED.R.CIV.P. 56(c).
If the movant satisfies its initial burden of demonstrating the
absence of a material fact issue, "the non-movant must identify
specific evidence in the summary judgment record demonstrating that
there is a material fact issue concerning the essential elements of
its case for which it will bear the burden of proof at trial".
Forsyth, 19 F.3d at 1533 (citations omitted).
As noted earlier, there is no material fact issue unless "the
evidence is such that a reasonable jury could return a verdict for
the nonmoving party". Anderson, 477 U.S. at 248, 106 S. Ct. at
2510. In short, conclusory allegations, speculation, and
unsubstantiated assertions are inadequate to satisfy the
nonmovant's burden. Forsyth, 19 F.3d at 1533.
Based on our review of the summary judgment record, USAA more
than satisfied its initial summary judgment burden of pointing out
the absence of material fact issues regarding the reason for
Douglass' removal from his programmer position. USAA produced
affidavits and personnel records documenting Douglass' poor work
performance and his need for improvement.
In response, Douglass offered nothing to rebut the poor work
performance evidence, and offered only his personal perceptions and
speculation that USAA's decision to remove him from the programmer
13
position was based on his age. It is more than well-settled that
an employee's subjective belief that he suffered an adverse
employment action as a result of discrimination, without more, is
not enough to survive a summary judgment motion, in the face of
proof showing an adequate non-discriminatory reason. See, e.g.,
Ray v. Tandem Computers, Inc., --- F.3d ----, ----, 1995 WL 502780,
Slip Op. 5634, 5640 (5th Cir. Sept. 11, 1995) ("bald assertions of
age discrimination are inadequate to permit a finding that
proscribed discrimination motivated [defendant's] actions against
[plaintiff]"); Grizzle v. Travelers Health Network, Inc., 14 F.3d
261, 268 (5th Cir.1994) (employee's "self-serving generalized
testimony stating her subjective belief that discrimination
occurred ... is simply insufficient to support a jury verdict in
plaintiff's favor"); Little v. Republic Refining Co., Ltd., 924
F.2d 93, 96 (5th Cir.1991) ("[a]n age discrimination plaintiff's
own good faith belief that his age motivated his employer's action
is of little value"); Hornsby v. Conoco, Inc., 777 F.2d 243, 246
(5th Cir.1985) ("[w]e cannot allow subjective belief to be the
basis for judicial relief when an adequate nondiscriminatory reason
for the discharge has been presented"); Elliott v. Group Medical
& Surgical Serv., 714 F.2d 556, 566 (5th Cir.1983) ("generalized
testimony by an employee regarding his subjective belief that his
discharge was the result of age discrimination is insufficient to
make an issue for the jury in the face of proof showing an
adequate, nondiscriminatory reason for his discharge"), cert.
denied, 467 U.S. 1215, 104 S. Ct. 2658, 81 L. Ed. 2d 364 (1984).
14
III.
For the foregoing reasons, the summary judgment is
AFFIRMED.
BENAVIDES, Circuit Judge, concurring:
Because I believe the court's opinion correctly determines de
novo that the appellant did not offer any competent evidence to
rebut the appellee's proof of an adequate nondiscriminatory basis
for removing appellant from his former position as a programmer, I
join part IIB of the court's opinion and the judgment affirming the
district court decision in this case. And while a review of our
important decision in Nettles v. Wainwright, 677 F.2d 404, 408 (5th
Cir.1982) (en banc) may indeed be in order, I am not prepared to
urge at this time either the retention or abandonment of the de
novo review required by Nettles in the instant case to the en banc
court. I would also point out that under either the de novo
standard or the plain error standard the outcome of appellant's pro
se appeal would remain the same.
15