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Case Summary: Board of Education of the City of Hartford v. Commission on Human Rights and Opportunities

Factual and Procedural Background

The hearing examiner found that in October 1974 the Hartford Board of Education (the plaintiff) terminated the employment of a black custodian who allegedly had verbally abused co-workers and performed unsatisfactorily. The custodian successfully appealed his termination and was reinstated in May 1975, seven months after dismissal, but was not awarded back pay or benefits for the period he was off the payroll. At approximately the same time a white school teacher who had been terminated for using physical force on a student was reinstated and received all but one week's back pay and benefits because of his otherwise exemplary record. The board had no written policy outside the collective bargaining agreement addressing suspension without pay; practice had been to limit forfeiture of back pay to one or two weeks and never for periods of six or seven months.

The hearing examiner concluded that the complainant (the custodian) had established a prima facie case of race discrimination in violation of General Statutes §31-126(a) based on the disparate treatment in restoration of back pay, and that the board failed to justify that disparity by legitimate nondiscriminatory reasons. The examiner ordered the board to pay the complainant back pay and benefits for the time off the payroll, reduced by two weeks' compensation.

The board appealed the administrative decision to the Court of Common Pleas (Pickett, J.), which set aside the hearing examiner's decision. The Commission on Human Rights and Opportunities appealed to the Supreme Court of Connecticut. The Supreme Court held that the trial court erred in substituting its judgment for that of the hearing examiner and concluded the Court of Common Pleas should have confirmed the examiner's decision.

Legal Issues Presented

  1. Whether the hearing examiner's finding of disparate treatment in restoration of back pay constituted race discrimination under General Statutes §31-126(a).
  2. Whether the Board of Education met its burden to show a legitimate nondiscriminatory reason for the disparate treatment after a prima facie case was established.
  3. What is the proper scope of judicial review by the Court of Common Pleas of a hearing examiner's findings—i.e., whether the trial court may substitute its judgment or must limit review to whether the examiner's findings are supported by substantial and competent evidence and whether the examiner exceeded authority.

Arguments of the Parties

Appellant's (Commission) Arguments

  • The Court of Common Pleas misconceived the issue presented before the hearing examiner (the issue was restoration of back pay upon reinstatement, not the propriety of the original termination) and improperly substituted its judgment for that of the hearing examiner.

Appellee's (Board of Education) Arguments

  • The board asserted that the hearing examiner's decision was arbitrary and erroneous because it lacked a factual basis; the trial court focused on justification for the original termination and reinstatement in concluding the examiner's decision was unsupported.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Reliance Ins. Co. v. Commission on Human Rights Opportunities, 172 Conn. 485, 488-89, 374 A.2d 1104 (1977) Racial discrimination is often intangible and can be established by inference; tribunals are accorded greater latitude to draw inferences in such proceedings. The court relied on this principle to support the hearing examiner's use of inference in finding discrimination from disparate treatment.
Furnco Construction Corporation v. Waters, 438 U.S. 567, 577, 98 S.Ct. 2943, 57 L.Ed.2d 957 (1978) Federal standards for burden-shifting in employment discrimination cases (employer must articulate legitimate nondiscriminatory reason after prima facie showing). Used as part of the framework to conclude that, after a prima facie case was established, the board failed to meet its burden to justify disparate treatment.
McDonnell Douglas Corporation v. Green, 411 U.S. 792, 802, 93 S.Ct. 1817, 36 L.Ed.2d 668 (1973) Framework for establishing prima facie case and burden-shifting in employment discrimination claims. Applied as authoritative guidance for the shifting burden of proof and analysis of the employer's justification.
Peters v. Jefferson Chemical Co., 516 F.2d 447, 450 (5th Cir. 1975) Federal case cited in relation to burden of proof standards in discrimination cases. Cited as part of the body of federal authority informing the burden-shifting analysis.
Pik-Kwik Stores v. Commission on Human Rights Opportunities, 170 Conn. 327, 331, 365 A.2d 1210 (1976) Connecticut statute §31-126 intended to be coextensive with federal anti-discrimination statute; supports use of federal precedents. Supported the court's reliance on federal Title VII standards in interpreting Connecticut's Fair Employment Practices Act.
Corey v. Avco-Lycoming Division, 163 Conn. 309, 322, 307 A.2d 155 (1972), cert. denied, 409 U.S. 1116, 93 S.Ct. 903, 34 L.Ed.2d 699 (1973) Defines "substantial and competent evidence" and limits judicial review of administrative findings to that standard. Used to explain that the trial court's review is confined to whether the hearing examiner's findings were supported by substantial and competent evidence.
International Brotherhood of Electrical Workers v. Commission on Civil Rights, 140 Conn. 537, 543-44, 102 A.2d 366 (1953) Limitations on judicial authority to retry administrative matters de novo and substitute court's judgment for agency factfinding. Applied to underscore that the trial court could not re-adjudicate facts or substitute its discretion for the hearing examiner's.
No­rwich v. Norwich Fire Fighters, 173 Conn. 210, 214, 377 A.2d 290 (1977) Reiterates that a court should not try administrative cases de novo or substitute its judgment for that of the tribunal. Supported the proposition that the trial court exceeded its authority by reexamining the termination decision rather than limiting review to the examiner's findings on back pay disparity.
Evening Sentinel v. National Organization for Women, 168 Conn. 26, 31-33, 357 A.2d 498 (1975) Good faith is not exculpatory under §31-126(a) because the statute targets the effect, not the purpose, of discriminatory actions. Applied to explain that the examiner's finding of good faith did not negate a finding of unlawful disparate effect under the statute.

Court's Reasoning and Analysis

The Supreme Court's analysis focused on (1) correctly identifying the issue that was before the hearing examiner, (2) the proper evidentiary framework for determining discrimination, and (3) the limited scope of judicial review of administrative findings.

First, the court emphasized that the issue before the hearing examiner was not the propriety of the original termination but whether, after reinstatement, the complainant should have lost all back pay and benefits. The trial court erred by reexamining the justification for the original termination, a matter not reopened before the hearing examiner.

Second, the hearing examiner found a prima facie case of race discrimination based on substantially disparate treatment in restoration of back pay (custodian v. teacher). The court applied established burden-shifting principles from federal Title VII cases (McDonnell Douglas, Furnco, and related authority): once a prima facie case is established, the employer must articulate a legitimate nondiscriminatory reason for the disparity. The examiner concluded the board did not meet that burden. The Supreme Court accepted the examiner's application of that framework.

Third, the court reiterated the statutory limits on judicial review: findings of the hearing tribunal, if supported by substantial and competent evidence, are conclusive (citing General Statutes and Corey v. Avco-Lycoming). The trial court is confined to determining whether the examiner's findings were supported by substantial and competent evidence or whether the tribunal exceeded its authority; it may not retry the case, adjudicate facts de novo, or substitute its discretion for that of the tribunal (citing International Brotherhood of Electrical Workers; Norwich). The court found no showing that the hearing examiner abused discretion, lacked substantial and competent evidentiary support, or acted arbitrarily.

Finally, the court addressed the examiner's acknowledgment that there was no evidence of deliberately discriminatory purpose or lack of good faith by the board, and clarified that good faith alone is not dispositive under §31-126(a) because the statute targets discriminatory effects; therefore the examiner's order could stand even if the board acted in good faith.

Holding and Implications

JUDGMENT DIRECTED.

Holding: The Supreme Court held that the Court of Common Pleas erred in setting aside the hearing examiner's decision. In the absence of any showing that the examiner abused his discretion, found facts without substantial and competent evidence, or otherwise acted arbitrarily, the Court of Common Pleas should have confirmed the hearing examiner's decision ordering back pay and benefits (reduced by an amount equal to two weeks' compensation) to the reinstated custodian.

Implications: The direct effect is that the hearing examiner's order directing payment of back pay and benefits (less two weeks' compensation) stands and must be enforced. The opinion confines itself to applying existing evidentiary and review standards; it does not announce a new legal rule beyond reaffirmation of the applicable administrative-review standards and the application of established burden-shifting principles in employment discrimination cases.

BOARD OF EDUCATION OF THE CITY OF HARTFORD v. COMMISSION ON HUMAN RIGHTS AND OPPORTUNITIES

On the appeal by the defendant commission on human rights and opportunities from the judgment of the Court of Common Pleas setting aside the decision of a hearing examiner for the commission that the plaintiff Hartford board of education had unlawfully discriminated against the complainant, a black person, held that, absent any showing that the examiner had abused his discretion, had found facts without substantial and competent evidence, or had otherwise acted arbitrarily, the Court of Common Pleas should have confirmed the examiner's decision.

PETERS, J.

This is an appeal by the commission on human rights and opportunities from a judgment of the Court of Common Pleas which set aside a hearing examiner's decision that the plaintiff had unlawfully discriminated against the complainant, a black person, by refusing to award him back pay and benefits upon reinstating him after an involuntary termination. The commission claims that the court erred in misconceiving the issue before the hearing examiner and in substituting its judgment for that of the hearing examiner.

The following facts were found by the hearing, examiner and accepted by the trial court: The plaintiff Hartford board of education terminated the employment of the complainant, a black custodian at one of the city's high schools, in October of 1974, on the grounds of his verbal abuse of his co-workers and his unsatisfactory performance of his assigned tasks. The custodian successfully appealed his termination to the board, and returned to work in May of 1975, seven months after his dismissal. He was, however, granted neither back pay nor benefits for the time that he was not permitted to work. At approximately the same time, a white school teacher at another of the city's high schools was terminated by the plaintiff for using physical force on a student. He too successfully appealed his termination and was reinstated to his job; but in his case restoration to work was accompanied by the plaintiff's payment of all except one week's back pay and benefits. Restoration of his benefits was deemed appropriate because of his otherwise exemplary record. The plaintiff has no written policy regarding suspension without pay of its noninstructional employees, except as provided in the collective bargaining agreement with the appropriate union. That agreement provides for suspension without pay and for discharge without prior warnings only in the event of serious misconduct, which the agreement itself does not define. The practice of the plaintiff had been not to suspend any employee without pay for periods longer than one or two weeks except in the rarest instances, and never for periods of six or seven months.

On the basis of these facts, the hearing examiner concluded that the complainant had established a prima facie case of race discrimination in violation of the Connecticut Fair Employment Practices Act, General Statutes 31-126 (a), because of the difference in treatment afforded to the black custodian and the white teacher with regard to restoration of back pay upon reinstatement. He also concluded that the plaintiff had failed to meet its burden of demonstrating that the grossly disparate treatment was motivated not by race but by a legitimate nondiscriminatory consideration, although he conceded that there was no evidence to support either a deliberately discriminatory purpose or a lack of good faith on the part of the plaintiff. He therefore ordered the plaintiff to pay the complainant back pay and benefits for the time that he was not on the plaintiff's payroll, reduced by an amount equal to two weeks' compensation. The plaintiff appealed this administrative decision to the trial court, claiming that the decision of the hearing examiner was arbitrary and erroneous because without basis in fact.

"[General Statutes] Sec. 31-126. UNFAIR EMPLOYMENT PRACTICES. It shall be an unfair employment practice (a) For an employer . . . because of the race . . . of any individual . . . to discharge from employment such individual or to discriminate against him in compensation or in terms, conditions or privileges of employment."

It is important to be precise about what issue was presented by the complaint before the hearing examiner. The issue was not whether the complainant should have been terminated but rather whether, having been reinstated, he should have lost all back pay and benefits. The trial court, nonetheless, concluded that there was no basis for the commission's conclusion of discrimination because the original decision to terminate the complainant was justified, an would have been implemented but for a provision of the collective bargaining agreement requiring a progressive order of disciplinary action prior to termination. That earlier decision had not been reexamine before the hearing examiner and therefore was inappropriately considered on appeal.

The gravamen of the complaint before the hearing examiner was disparity of treatment on account of membership in a class protected by the Fair Employment Practices Act. The hearing examiner recognized that unequal treatment of persons similarly situated warrants legal intervention only when prohibited by statute. He observed also, as this court has observed, that overt evidence of discrimination is likely to be elusive. "Racial discrimination is an intangible and for the most part can be established only through inference. . . . In this type of proceeding, therefore, greater latitude is accorded the tribunal to draw inferences from words and deeds than in cases where overt acts need be established." Reliance Ins. Co. v. Commission on Human Rights Opportunities, 172 Conn. 485, 488-89, 374 A.2d 1104 (1977).

The complainant established a prima facie case of race discrimination, as the hearing examiner found, by the evidence that was adduced to show the substantially disparate treatment of the complainant, as compared with the white teacher, with regard to back pay after reinstatement. Thereafter, the burden shifted to the plaintiff employer to show a legitimate nondiscriminatory reason for the employer's conduct. Furnco Construction Corporation v. Waters, 438 U.S. 567, 577, 98 S.Ct. 2943, 57 L.Ed.2d 957 (1978); McDonnell Douglas Corporation v. Green, 411 U.S. 792, 802, 93 S.Ct. 1817, 36 L.Ed.2d 668 (1973); Peters v. Jefferson Chemical Co., 516 F.2d 447, 450 (5th Cir. 1975). The hearing examiner concluded that the plaintiff board had not met its burden of justification.

The federal cases set out the standards for burden of proof under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq. Section 703(a)(1) of the Civil Rights Act of 1964, 42 U.S.C. § 2000e-2 (a)(1), prohibits unfair employment practices in language virtually identical to General Statutes 31-126 (a). We have held that "[a]lthough the language of the federal statute and that of the Connecticut statute differ slightly, it is clear that the intent of the legislature in adopting [an amendment to 31-126] was to make the Connecticut statute coextensive with the federal. 12 S. Proc., Pt. 3, 1967 Sess., p. 1091. We are in accord with the federal courts which have held that the object of 42 U.S.C. § 2000e-2 (a) (and General Statutes 31-126 [a]) is the prohibition of discrimination based on . . . race, color, national origin, or sex." Pik-Kwik Stores v. Commission on Human Rights Opportunities, 170 Conn. 327, 331, 365 A.2d 1210 (1976).

In reaching the contrary conclusion that underlying differences in the grounds of termination justified the plaintiff's disparate treatment of the black complainant and the white teacher, the trial court misconstrued the scope of its authority in reviewing an order of a hearing examiner. On appeal to the Court of Common Pleas, "[t]he findings of the hearing tribunal . . . if supported by substantial and competent evidence, shall be conclusive." General Statutes 31-128 (b) "Substantial and competent evidence is that which carries conviction. It is such evidence as a reasonable mind might accept as adequate to support a conclusion. It means something more than a mere scintilla and must do more than create a suspicion of the existence of the fact to be established." Corey v. Avco-Lycoming Division, 163 Conn. 309, 322, 307 A.2d 155 (1972), cert. denied, 409 U.S. 1116, 93 S.Ct. 903, 34 L.Ed.2d 699 (1973); see International Brotherhood of Electrical Workers v. Commission on Civil Rights, 140 Conn. 537, 543-44, 102 A.2d 366 (1953). The court is thus limited to determining whether the tribunal's findings were supported by "substantial and competent evidence," and whether the tribunal exceeded its authority. General Statutes 4183(g) The court cannot try the case de novo, adjudicate the facts, or substitute its own discretion for that of the tribunal. Norwich v. Norwich Fire Fighters, 173 Conn. 210, 214, 377 A.2d 290 (1977); International Brotherhood of Electrical Workers v. Commission on Civil Rights, supra, 544-45.

"[General Statutes] Sec. 4-183. JUDICIAL REVIEW. WAIVER OF COSTS. . . . (g) The court shall not substitute its judgment for that of the agency as to the weight of the evidence on questions of fact. The court may affirm the decision of the agency or remand the case for further proceedings. The court may reverse or modify the decision if substantial rights of the appellant have been prejudiced because the administrative findings, inferences, conclusions, or decisions are: (1) In violation of constitutional or statutory provisions; (2) in excess of the statutory authority of the agency; (3) made upon unlawful procedure; (4) affected by other error of law; (5) clearly erroneous in view of the reliable, probative, and substantial evidence on the whole record; or (6) arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion."

The trial court recognized that the "substantial and competent evidence" test defined and limited the scope of its review. Nowhere did the court find fault with the nature of the evidence pertaining to the sole issue before it, namely, whether there had been discrimination in back pay between the custodian and the teacher following reinstatement. Instead, it focused on two concerns which individually and jointly are insufficient to overturn the conclusions of the hearing examiner. First, it pursued the reasons for the original decisions of termination and reinstatement, none of which was at issue before the hearing examiner. The hearing examiner might reasonably have concluded that, in light of the established pattern of limiting forfeiture of back pay to two weeks or less, this evidence was an insufficient justification for the seven month penalty imposed upon the complainant. Second, it emphasized the hearing examiner's own finding that the plaintiff had acted without discriminatory purpose and in good faith. As the hearing examiner held, good faith is not exculpatory under 31-126 (a), since the target of fair employment legislation is the effect, and not the purpose, of discrimination. Evening Sentinel v. National Organization for Women, 168 Conn. 26, 31-33, 357 A.2d 498 (1975). In the absence of any showing that the hearing tribunal abused its discretion, found facts without substantial and competent evidence, or otherwise acted arbitrarily, its decision and order must stand.

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BOARD OF EDUCATION v. COMMISSION ON HUMAN RIGHTS
(Jan 30, 1979)