Opinion ID: 1389987
Heading Depth: 3
Heading Rank: 2

Heading: IUPUI's Bases for Terminating Peirick Are Suspect

Text: IUPUI argues that Peirick's performance fell below its legitimate expectations, and that for this reason, she can neither satisfy the second prong of the prima facie case nor show that the proffered basis for her terminationher failure to meet IUPUI's standardsis a pretext for discrimination. Specifically, IUPUI claims that it decided not to reinstate Peirick because she used abusive language when talking with students, left a van of students behind in Tennessee, was an unsafe driver, and told students that the administration was to blame for the unavailability of the Tennis Center during the conference tournament. Our task is to determine whether these were IUPUI's true reasons for discharging Peirick, not whether they were wise bases for doing so. See Stewart v. Henderson, 207 F.3d 374, 378 (7th Cir. 2000). As a result, our analysis begins with IUPUI's performance expectations for coaches. IUPUI's published performance expectations include standards for academics, community service, compliance, budget management, fundraising, athletic competition, and professional conduct and development. IUPUI does not dispute that Peirick outshined her colleagues with respect to the majority of these documented expectations. She was praised for encouraging academic excellence amongst her players, who consistently earned the highest or second highest GPA of all of IUPUI's athletic teams. Peirick was nationally recognized for her community service. Over the course of thirteen years at IUPUI, she never received an NCAA rule violation of any sort. The record provides no basis for believing there to have been deficiencies in her budgeting or fundraising. Also, under her leadership, the women's tennis team earned its best record in school history and became the first women's team at IUPUI to advance to the NCAA post-season tournament. Her success was recognized in 2004, when the Midwest Division of the U.S. Professional Tennis Association awarded her Coach of the Year. None of this matters, says IUPUI, because Peirick fell terribly short on a single measureprofessional conduct and that merited termination. But, on this record, a jury could disbelieve IUPUI. To begin, IUPUI never warned Peirick that her foul language, poor driving, inattentiveness to trailing vehicles, and expression of frustration during a scheduling conflict could lead to dismissal. Even at the time of her termination, Moore simply told her that he was looking to take the Department in a new, different direction. Moore says he chose not to discuss the performance issues with Peirick because [he] did not believe that Peirick would change her behavior. But this does not explain why he failed to share his reasons with Byron Clark, Peirick's direct supervisor, or O'Grady. Moore's explanations were not forthcoming until Peirick filed a complaint with the Equal Employment Opportunity Commission. Further, IUPUI's delay in addressing its alleged concerns undermines its claim that Peirick's behavior was unsafe or severe. Although the parents of Emily Dukeman complained about Peirick on April 6, 2003, Moore did not ask O'Grady to follow-up on that complaint until a month later. Also in early April, O'Grady says students complained that Peirick was an unsafe driver, who once abandoned them on a road trip. O'Grady did not broach these issues with Peirick. Instead, in May, when she accompanied the team to the NCAA tournament, O'Grady sat quietly as Peirick drove the team about L.A. [3] The act meriting termination, IUPUI says, occurred on April 15th. That day, Peirick told her team that the Tennis Center would be unavailable, voiced her frustrations, and directed the students to seek out the administration for answers. The fallout of Peirick's impetuousnessthe gripes of a disappointed fewcame to an end by the close of day. Although IUPUI claims it thought Peirick had lied and been disloyal, it handled this episode as it had every other alleged performance concern, by failing to utter a word to Peirick. The administration would not act for two monthsnot even in the face of purported safety concerns. This pattern of delay leads us to question whether IUPUI was truly concerned about Peirick's language, driving, or handling of a scheduling conflict. We also think a jury could find that IUPUI overstated matters to justify its actions. Compare Plotke v. White, 405 F.3d 1092, 1106 (10th Cir.2005) (On this record, a jury could reasonably infer the Army discriminated against Dr. Plotke by suddenly reassigning her from the Haiti Project to CAC-WIN and then contriving and grossly exaggerating the TDY incident as a means of exercising gender animus towards her.). IUPUI suggests that all the students that attended the April 10th meeting were displeased with Peirick. But the affidavits and depositions of tennis team members tell a different story. Although five students, Michelle Cunningham, Hillary Byard, Mallory Stemle, Emily Dukeman, and Natalie Bednar, attended the April 10th meeting, three of those studentsthe only students to have submitted affidavits or offer testimony in this casehave come to Peirick's defense. In her affidavit, Hillary Byard stated that the team met with O'Grady because some of the students, especially Emily Dukeman and Mallory Stemle, had personality conflicts with Peirick. The other three attendees, however, thought Peirick was a good coach. Some said they did not find her verbally abusive or an unsafe driver; they thought she truly cared about the students both on and off the court; they would call on her to discuss any problem; and they considered her a friend. When they heard about Peirick's termination, Michelle Cunningham, Natalie Bednar, and Hillary Byard were all shocked and surprised. Peirick's colleagues were similarly perplexed. Byron Clark, Peirick's direct supervisor, and Kristin Emerson-Simpson, the women's head basketball coach, were surprised by the termination. Men's soccer coach Steve Franklin was stunned. As he put it: Debbie was coming off an undefeated season. She was named Coach of the Year, I believe. I think she had the Player of the Year and the Newcomer of the Year, and I think it was the first time a tennis [team]in the mid-continent had gone undefeated. . . . [T]o me, that seemed like a successful season. Even Lord, whose sister filled Peirick's position, was surprised that Peirick had been terminated. Although the opinions of nondecisionmakers as to Peirick's performance cannot carry the day, see Johnson v. City of Ft. Wayne, 91 F.3d 922, 936 (7th Cir. 1996), their responses to the termination decision provide some indication of the type of conduct historically considered termination worthy. And we find it striking that these coaches were so baffled by the administration's decision. The termination of a coach with Peirick's qualities appears to have been an unprecedented event in IUPUI's history. See Gordon v. United Airlines, Inc., 246 F.3d 878, 890 (7th Cir. 2001) (taking unprecedented disciplinary action may be evidence of pretext). In sum, we find IUPUI's post hoc explanations, delay, exaggeration, and unusual conduct more than enough to create a question of fact concerning the legitimacy of its explanations for Peirick's termination. [4] The district court should not have granted the defendants' motion for summary judgment on Peirick's gender discrimination claim. [5] C. Summary Judgment Was Proper On Peirick's Age Discrimination Claim, Because the Defendants Are Immune From Suit Peirick also charges IUPUI, the Athletics Department, and the Board of Trustees of Indiana University with violating the ADEA, which makes it unlawful for an employer to discriminate against an employee in the terms and conditions of her employment on the basis of age. 29 U.S.C. § 623(a)(1). Defendants counter that the Eleventh Amendment shields them from suit under the ADEA, and we agree. (They do not claim immunity from suit on Peirick's gender discrimination claim, because Congress validly abrogated the States' Eleventh Amendment immunity with respect to Title VII disparate treatment claims.) Nanda v. Bd. of Trs. of the Univ. of Ill., 303 F.3d 817, 831 (7th Cir.2002). At the outset, we note that the Athletics Department is not a legal entity apart from the University. It is merely a division of the University that is not capable of being sued. See Whiting v. Marathon County Sheriff's Dep't, 382 F.3d 700, 704 (7th Cir.2004) ([T]he Marathon County Sheriff's Department is not a legal entity separable from the county government which it serves and is therefore, not subject to suit.); West By & Through Norris v. Waymire, 114 F.3d 646-47 (7th Cir. 1997) (The naming of the Town's Police Department as a defendant adds nothing; it is almost certainly not a suable entity separate from the Town.). So we consider only whether IUPUI and the Board of Trustees of Indiana University enjoy Eleventh Amendment immunity. The Eleventh Amendment provides: The Judicial power of the United States shall not be construed to extend to any suit in law or equity, commenced or prosecuted against one of the United States by Citizens of another State, or by Citizens or Subjects of any Foreign State. U.S. Const. Amend. XI. Although the Amendment speaks of suits filed by citizens of another state, the Supreme Court has consistently held that an unconsenting State is immune from suits brought in federal courts by her own citizens as well as by citizens of another State. Edelman v. Jordan, 415 U.S. 651, 662-63, 94 S.Ct. 1347, 39 L.Ed.2d 662 (1974) (internal citations omitted). The Amendment usually bars actions in federal court against a state, state agencies, or state officials acting in their official capacities, see Gossmeyer v. McDonald, 128 F.3d 481, 487 (7th Cir. 1997), but three exceptions exist. First, a state may waive immunity by consenting to suit in federal court; second, Congress may abrogate the state's immunity through a valid exercise of its powers; third, under the Ex parte Young doctrine, a plaintiff may file suit[] against state officials seeking prospective equitable relief for ongoing violations of federal law. . . . Marie O. v. Edgar, 131 F.3d 610, 615 (7th Cir.1997); see Ex parte Young, 209 U.S. 123, 159-60, 28 S.Ct. 441, 52 L.Ed. 714 (1908). Peirick does not contend that Indiana consented to suit in federal court. Her ability to resort to the second exception was cut short in Kimel v. Fla. Bd. of Regents, 528 U.S. 62, 91, 120 S.Ct. 631, 145 L.Ed.2d 522 (2000), where the Court held that in the ADEA, Congress did not validly abrogate the States' sovereign immunity to suits by private individuals. So only the Ex parte Young exception remains, and Peirick has not availed herself of that option. Although Peirick requests only prospective injunctive relief, she has not brought suit against a state official. Indeed, Peirick cannot seriously dispute that IUPUI, a partnership between Indiana and Purdue Universities, is an agency of the state of Indiana. See Woods v. Ind. Univ.-Purdue Univ., 996 F.2d 880, 883 (7th Cir.1993) (citing favorably Shannon v. Bepko, 684 F.Supp. 1465 (S.D.Ind.1988), which held Indiana University and IUPUI to be agencies of the state); see also Porco v. Trs. of Ind. Univ., 453 F.3d 390, 394-95 (7th Cir. 2006); Kashani v. Purdue Univ., 813 F.2d 843, 844 (7th Cir.1987). And, as explained below, the Board of Trustees of Indiana University is an agency of the state. Many courts have held that the governing bodies of their state universities enjoy the same immunity from suit as the universities themselves. See Richardson v. Southern Univ., 118 F.3d 450, 455 (5th Cir.1997) (Southern [University] and its Board are considered an agency of the State of Louisiana); Hall v. Hawaii, 791 F.2d 759, 761 (9th Cir.1986) (holding that the University of Hawaii and its board of regents are clearly immune as agencies of the state); Harden v. Adams, 760 F.2d 1158, 1164 (11th Cir.1985) (noting that the Board of Trustees of a state university is entitled to sovereign immunity as an instrumentality of the state); Cannon v. Univ. of Health Sciences/Chi. Med. Sch., 710 F.2d 351, 356 (7th Cir.1983) (Southern Illinois University and the Board of Trustees of the University of Illinois are state agencies with Eleventh Amendment immunity); Wellman v. Tr. of Purdue Univ., 581 F.Supp. 1228, n. 1 (N.D.Ind.1984) ([F]or purposes of Eleventh Amendment immunity, no distinction can, should, or will be drawn between Purdue University and its Board of Trustees.); see also Joseph v. Bd. of Regents of the Univ. of Wis. Sys., 432 F.3d 746, 748 (7th Cir.2005) (The [Wisconsin Board of Regents] is an `arm of the state' for Eleventh Amendment purposes.). So it seems to follow that the Board of Trustees of Indiana University, like the university, is a state agency. And an examination of the factors relevant for determining whether an entity is an agency of the state leads to that exact conclusion. In deciding whether an entity is an agency of the state, the most important factor is the extent of the entity's financial autonomy from the state. Kashani, 813 F.2d at 845. That inquiry is composed of five subparts: (1) the extent of state funding; (2) the state's oversight and control of the entity's fiscal affairs; (3) the entity's ability to raise funds; (4) whether the entity is subject to state taxation; and (5) whether a judgment against the entity would result in an increase in its appropriations. Id. Beyond these financial considerations, we also consider the general legal status of the entity. Id. at 846-47. Where this factor is concerned, we prioritize substance over form. Id. at 847. The Board has only limited financial autonomy. The Board holds and expends Indiana University's financial assets, see Ind.Code § 21-31-2-4 (2007), and a significant percentage of those assets are derived from the state. During the 2004-2005 academic year, for example, state appropriations accounted for 24% of Indiana University's revenue. See Indiana University Financial Report 2004-2005, available at http://www.indiana.edu/~vpcfo/fy2005. pdf (last visited Dec. 11, 2007). The state exercises substantial control over the Board's fiscal affairs and its ability to raise funds. In certain instances, the Board must gain the approval of the governor and the state's budget agency before issuing bonds, see Ind.Code § 21-35-2-21, or making capital expenditures, see Ind.Code § 21-35-2-20. Although the Board collects funds for the University from sources outside the state, it depends on the state's financial support. See Kashani, 813 F.2d at 846. Since that financial support is carefully allocated, a judgment against the Board would affect the state treasury. Id. This becomes even more apparent given that the Board is authorized to employ officers, faculty, consultants, and counsel, see Ind.Code § 21-38-3-1, and to pay the fees that these persons incur as a result of their employment or performance of duties for the school. See Ind.Code § 21-38-4-1. The Board's general legal status similarly suggests an agency relationship. Specifically, the Indiana Code includes state boards and universities in the definition of state agencies. Ind.Code § 4-12-1-2. Moreover, the governor, the state's chief executive, necessarily has some control over the Board because six of the nine members of the Board are gubernatorial appointees. Ind.Code § 21-20-3-12 to 13; see Kashani, 813 F.2d at 847. We also find it significant that the Board, like Indiana University, serves the entire state. See Kashani, 813 F.2d at 847-48. Taken together, these factors lead us to conclude that the Board of Trustees of Indiana University is but an agency of the state, which operates the school under state oversight. See Russell v. Tr. of Purdue Univ., 201 Ind. 367, 168 N.E. 529, 535 (1929) (citing Tucker v. Pollock, 21 R.I. 317, 43 A. 369 (1899) for the proposition that the Board of Managers of the Rhode Island College of Agriculture and Mechanic Arts is but the agent of the state to carry out the purposes of the General Assembly in connection with the establishment and maintenance of the college.). As such, Peirick may not proceed against the Board even on her claims for prospective injunctive relief. [6] See Puerto Rico Aqueduct & Sewer Auth. v. Metcalf & Eddy, Inc., 506 U.S. 139, 146, 113 S.Ct. 684, 121 L.Ed.2d 605 (1993) ([t]he doctrine of Ex parte Young . . . has no application in suits against the States and their agencies, which are barred regardless of the relief sought); Buchwald v. Univ. of N.M. Sch. of Med., 159 F.3d 487, 496 (10th Cir.1998) ([A]lthough the Ex Parte Young exception does not permit plaintiff to subject [University of New Mexico School of Medicine], [and] its Regents . . . to suit because they are state agencies, plaintiff may maintain an action against the individual defendants in their official capacities. . . .); Wasserman v. Purdue Univ., 431 F.Supp.2d 911, 916 (N.D.Ind.2006) ([T]he Board of Trustees [of Purdue University] is a political arm of the state which is immune to suit. [Plaintiff] did not name the individual members of the Board of Trustees, in their official or individual capacities. Because Purdue has not waived that immunity, the Eleventh Amendment precludes this court from exercising jurisdiction.). Because IUPUI and the Board are immune from suit, the district court's grant of summary judgment was proper.