Opinion ID: 3026779
Heading Depth: 3
Heading Rank: 8

Heading: Housing Inspectors

Text: 4 most favorable to each of them, are recounted below.
In 1996, PHA hired Marra to work as Director of the Inspections Division. In this capacity, he was responsible for arranging and overseeing the inspection of houses that had been rehabilitated by PHA to ensure compliance with all pertinent housing codes, regulations and specifications. At the time, among the several housing inspectors who worked under Marra were DiGravio, Gerald Paladino, and James Wright. In 1997, PHA created a new supervisory position in the Inspections Division entitled Rehabilitation Supervisor. It held a competition among the housing inspectors to fill three available Rehabilitation Supervisor positions. Marra chaired a panel that conducted interviews of the candidates and ultimately recommended the promotion of Paladino, Wright, and DiGravio to fill the new positions. Formal notices of appointment were sent to both Paladino and Wright but later rescinded after George Fields, an African American candidate, filed a grievance charging race discrimination in the selection process. After holding a second competition, PHA opted not to promote Paladino or Wright, instead awarding the three Rehabilitation Supervisor positions to DiGravio, Fields, and a third inspector named Leonard Panarella. In December 1999, Paladino and Wright filed a reverse- 5 race discrimination lawsuit against PHA in federal court, asserting violations of Title VII of the Civil Rights Act of 1964 (“Title VII”) and the PHRA, among other statutes.3 Paladino v. Philadelphia Hous. Auth., Civ. A. No. 99-6424 (E.D. Pa.) (hereinafter, “Paladino”). In the course of discovery, Paladino and Wright subpoenaed Marra to give deposition testimony. On June 2, 2000, shortly after being deposed, Marra received a written notice, signed by Executive Director Greene, among others, advising him that he had been “involuntarily demoted” to the position of Project Manager. Although his salary and job duties were not materially affected by the demotion, Marra did lose a $425 monthly stipend to cover the costs of using his private vehicle for PHA business. Approximately one year later, in June 2001, the Paladino case proceeded to trial. Marra testified on behalf of Paladino and Wright, appearing by subpoena. The jury subsequently returned a verdict in favor of both Paladino and Wright and against PHA, finding that PHA had discriminated against them in violation of Title VII and the PHRA.4 3 Fields and three other PHA employees (no one of whom is of particular relevance to our case) were also named as defendants. 4 On appeal, we overturned the verdicts against PHA, finding them to be inconsistent with the jury’s verdicts in favor of the individual defendants on the same claims, and ordered the District Court to enter judgment as matter of law in favor of 6 After testifying at the Paladino trial, Marra went on vacation. On his return to work in early July 2001, he discovered that the hard drive on his computer had been “totally wiped out,” resulting in an extensive loss of work product that he would be forced to prepare anew. App. at 222. Marra immediately reported the computer damage to PHA’s Information Systems Management, and sent a written memorandum to his supervisors, Panchwagh and Galbreth, alerting them to what he believed to be suspicious activity. A PHA employee from Information Systems Management later informed Marra that his computer had “burned out” without providing any additional details. Marra had never before experienced any problems with his computer. To the best of his knowledge, PHA never conducted an independent investigation into whether the computer crash was the product of foul play. At some point shortly after his return from vacation, Marra attended a meeting at which Greene was present. During the meeting, Greene pointedly asked Marra whether he had testified at the Paladino trial. When Marra answered yes, Greene reacted with a “look of disgust.” App. at 296. PHA. Paladino v. Philadelphia Hous. Auth., 65 Fed. Appx. 385, 2003 WL 1550963 (3d Cir. Mar. 26, 2003) (not precedential). We note that the Paladino appeal was decided long after PHA committed the allegedly retaliatory acts that form the basis of the claims in this lawsuit. 7 A few months later, in the fall of 2001, at the request of Greene and Deputy Executive Director Leithead, Panchwagh and Galbreth undertook an evaluation of the Inspections Division’s ongoing staffing needs as part of a reorganization project designed to streamline operations within several of PHA’s departments and divisions. Over the next several months, with Galbreth’s assistance, Panchwagh prepared a series of memoranda giving his recommendations for reorganization of the Inspections Division, which he forwarded to Leithead for review. In the first memorandum, dated November 14, 2001, Panchwagh recommended the elimination of the Project Manager position, which was held by Marra, as well as four inspector positions, based on a dearth of available work. In particular, Panchwagh opined that the Inspections Division’s “hierarchy consist[ing] of four management layers above the field staff [i.e., Assistant General Manager, Project Manager, Construction Manager, and Rehabilitation Supervisor] . . . is an ineffective use of resources . . . [,] le[aving] very little work for the Project Manager, even at full workload and staffing levels.” App. at 870. Panchwagh also believed that the elimination of four inspector positions would “provide a more effective use of resources.” App. at 871. According to Marra, however, both he and his subordinates in the Inspections Division had more than enough work throughout the second half of 2001, including a major construction project that had been assigned to him directly from Greene and needed to be completed by year’s end, as well as several other projects that continued into 2002. 8 In his second memorandum to Leithead, dated December 4, 2001, Panchwagh reiterated his recommendation that Marra’s position be eliminated, specified by name three of the four inspectors whose positions he recommended eliminating based on date of hire, and noted that the Human Resources Department would select the fourth inspector position to eliminate. Panchwagh submitted various additional materials with the memorandum, including draft lay-off notices for Marra and the selected inspectors. Panchwagh’s third and final memorandum to Leithead, however, recommended a reorganization of the Inspections Division that was considerably smaller in scope. Panchwagh now urged the elimination of Marra’s position alone, his memorandum making no mention of the four inspector positions he had recommended eliminating twice previously. This final memorandum was sent to Leithead on March 19, 2002. Three days later, at a meeting attended by Panchwagh, Galbreth, and a representative from the Human Resources Department, Marra was informed that his position had been eliminated as part of a reorganization of the Inspections Division and that he would be laid off at the close of business that day. Marra was naturally skeptical, this being the first he heard about the reorganization, and decided to seek out Panchwagh after the meeting in the hope of obtaining more information. In response to Marra’s queries, however, Panchwagh claimed to know nothing. At the time of his termination, Marra was sixty-eight 9 years old and had planned on retiring within the next year and a half.
DiGravio also was deposed by Paladino and Wright and testified on their behalf at trial, appearing by subpoena on both occasions. During this period of time, DiGravio continued to work as a Rehabilitation Supervisor, the position to which he had been promoted after his successful participation in the hiring competition under scrutiny in Paladino. As a Rehabilitation Supervisor, DiGravio no longer performed housing inspections himself, but was instead responsible for directly supervising the Rehabilitation Specialists who performed this task. While DiGravio occasionally visited the inspection sites (which primarily consisted of newly constructed or rehabilitated houses) as part of his supervisory duties, he spent the majority of the work week in his office at PHA reviewing reports of housing inspections and completing related paperwork. In the days leading up to the Paladino trial, Nicholas DiPiero, DiGravio’s immediate supervisor, repeatedly told him that any supervisory or management level employee who testified against PHA at trial would face “repercussions.” Paladino himself overheard DiPiero make these remarks to DiGravio on one occasion. In late July 2001, roughly six weeks after the conclusion 10 of the Paladino trial, Panchwagh convened a meeting of the Inspections Division’s supervisory personnel to discuss assisting PHA’s Section 8 Department with a backlog of Section 8 housing inspections.5 Those attending included Galbreth, DiPiero, and DiGravio, but not Marra, who was not informed about the meeting. At the request of Greene, the Inspections Division had previously loaned the services of several of its inspectors, each of whom had been selected by Marra, to assist the Section 8 Department in this undertaking. These efforts proved to be largely unsuccessful, however, with many of the loaned inspectors refusing to show up for further assignments after only a few days of conducting inspections in Section 8 houses, which were often in deplorable condition and infested with vermin and other pests. At the supervisors’ meeting, Panchwagh conveyed his concerns about the lackluster effort by the inspectors on loan, and sought input on how to improve their performance. In response, DiGravio advised Panchwagh that he would be willing personally to oversee a group of inspectors to ensure that the Section 8 inspections were properly performed. Panchwagh agreed to this idea. 5 Section 8 refers to the federal section 8 rental assistance program that was established under the United States Housing Act of 1937, 42 U.S.C. § 1437 et seq., to “provide[] rent subsidies for low- and moderate-income participants so that they can afford to lease privately owned housing units.” Turner v. Crawford Square Apartments III, L.P., 449 F.3d 542, 544 n.4 (3d Cir. 2006). PHA administers the Section 8 program within the City of Philadelphia. 11 Upon arriving at work a few days later, DiGravio was puzzled to learn that he was to begin immediately reporting to the Section 8 Department for future assignments. He had not volunteered for reassignment, and it was his understanding from the meeting with Panchwagh that he would be doing nothing more than supervising a group of inspectors, who were themselves being loaned to the Section 8 Department to perform inspections, while he personally continued to work in the Inspections Division. DiGravio immediately confronted Panchwagh about his unexpected reassignment. After Panchwagh assured DiGravio that he would only be “organizing” inspections in the Section 8 Department on a “very temporary” basis, he agreed to lend his services, figuring that “it could only be another feather in my cap to go over there and try to do something.” App. at 369-70, 372, 518. Much to his chagrin, however, DiGravio learned upon reporting to the Section 8 Department that he would not continue working in a supervisory capacity, as he expected, but would be performing inspections himself of the Section 8 housing. When DiGravio again confronted Panchwagh to express his resentment over what he perceived to be a demotion, Panchwagh simply told him that the decision had come “from on top,” which DiGravio believed meant either Greene or Leithead, and that he (Panchwagh) had nothing to do with it. DiGravio thereafter memorialized his disapproval of the reassignment in the following letter to Panchwagh, dated August 2, 2001, copies of which he also forwarded to Galbreth, Marra, 12 and DiPiero: As per your directive, I have reported to Section 8 . . . . As you are well aware of [sic], I’ve been assigned to do inspection work for the Eligibility Department. My current status is a supervisor position. I can only consider this a demotion for some unknown reason. However, being a true PHA employee, I will tackle this new assignment with the same dedication as I have approached my other assignments. I would like to be consulted of this change and status as to why and what direction I am going into. App. at 927. By reply memorandum dated August 8, 2001, Panchwagh sought to assure DiGravio that his transfer to the Section 8 Department was not a demotion since his salary and official title would not be affected, and claimed that the transfer “was made . . . [after] consultation with you.” App. at 858. Marra also protested DiGravio’s transfer to the Section 8 Department, insisting to Panchwagh that he needed 13 DiGravio’s assistance on several ongoing projects, including the time-sensitive assignment from Greene. In response, Panchwagh assured Marra, as he had DiGravio, that the latter would return to the Inspections Division within a matter of weeks. Notwithstanding Panchwagh’s assurances to the contrary, DiGravio’s stint in the Section 8 Department was anything but brief. For nearly three years, DiGravio conducted inspections of Section 8 houses, trading in his business casual work attire for boots and dungarees, and had no supervisory responsibilities. DiGravio endured hazardous working conditions and was regularly infested with fleas and lice. He no longer had an office, secretary, telephone, or access to a PHA vehicle for professional business. DiGravio’s supervisory position in the Inspections Division was restored only after Carolyn Carter, Executive General Manager of the Section 8 Department, determined that his services were no longer needed in May 2004.
In June 2003, while DiGravio was still working in the Section 8 Department, he and Marra filed this suit against PHA, alleging that they were the victims of unlawful retaliation for testifying at the Paladino trial, in violation of the First Amendment (as enforced by 42 U.S.C. § 1983), Title VII, and the PHRA. The Title VII claims were dismissed for failure to 14 exhaust available administrative remedies, but the remaining claims were tried to a jury. At trial, PHA’s witnesses testified that Marra was terminated as part of a reorganization and that DiGravio was transferred to the Section 8 Department to perform inspections based on the needs of that Department and his offer to volunteer his services, not because of their respective participation in the Paladino trial. Although the decision to terminate Marra’s position was formally approved by Leithead, Panchwagh testified that he was responsible for deciding which positions to eliminate within the Inspections Division. Leithead confirmed that he did not instruct Panchwagh to eliminate any certain position as part of the reorganization, and that he approved Panchwagh’s final recommendation to terminate Marra without conducting any independent investigation because he thought the proposal made legitimate business sense. Leithead also testified that he had approved Panchwagh’s initial reorganization proposal, contained in the latter’s November 2001 memorandum, but instructed Panchwagh to submit it to the Human Resources Department for review. Galbreth testified that it became unnecessary to eliminate three of the four inspector positions because she and Panchwagh discovered that two of the inspectors whose positions were designated for elimination were planning to retire in the near future and a third was being transferred to another department. Yet she offered no explanation for why the fourth inspector 15 position was not eliminated as part of the reorganization. Panchwagh and Galbreth both denied having any knowledge of Marra’s retirement plans at the time of his termination. According to Leithead, approximately twenty-five PHA employees under Panchwagh’s supervision were transferred to other positions as part of the reorganization, including several Project Managers, but Marra was the only employee to lose his job. Panchwagh admitted that, from the time he began working at PHA in July 1999 to his retirement in April 2002, Marra was the only employee laid off within the entire Design and Construction Department. Contrary to DiGravio’s understanding, Panchwagh testified that he alone was responsible for making the decision to reassign DiGravio to the Section 8 Department to perform inspections, and that he did so “upon [DiGravio] offering . . . to go,” App. at 472, believing that “the inspectors . . . w[ould] be . . . more amenable to [the] work” if “a supervisor” were present. App. at 471. Panchwagh admitted that he had the authority to recall DiGravio to the Inspections Division without seeking approval from his superiors, Greene and Leithead, but never did so prior to his (Panchwagh’s) retirement from PHA in April 2002. He insisted that he had “no reason” to recall DiGravio based on the ongoing needs of the Section 8 Department. App. at 579. Panchwagh further testified that Marra was responsible 16 for deciding which inspectors would be transferred with DiGravio to the Section 8 Department because Marra “was in charge of the Inspection[s] Division,” App. at 472, and “I was not running the day-to-day affairs of th[at] d[ivision].” App. at 586. Galbreth testified that, based on her conversations with Panchwagh, she had the impression that DiGravio would only be working in the Section 8 Department for “maybe a month,” App. at 659, and that she “absolutely” knew that the PHA employees in other departments and divisions did not affirmatively desire to work in the Section 8 Department. App. at 683. Both Panchwagh and Galbreth conceded that DiGravio was the only supervisory level employee ever sent to the Section 8 Department to perform inspections. For his part, DiPiero testified that he never made any remarks to DiGravio suggesting that supervisory or management level employees who testified against PHA at the Paladino trial would face “repercussions.”6 The jury returned verdicts in favor of both Marra and DiGravio under § 1983 and the PHRA. The District Court, however, entered judgment in favor of PHA on the § 1983 claims based on the jury’s additional finding that Greene, who the District Court had provisionally determined was the only PHA official whose conduct could be attributed to PHA for purposes of municipal liability under § 1983, did not personally order or acquiesce in any retaliation against Marra or DiGravio. The verdict on the PHRA claims stood. The District Court 6 Executive Director Greene did not testify at trial. 17 entered judgment in favor of Marra for $310,676, representing $208,676 in back pay and $102,000 in compensatory damages, and in favor of DiGravio for $70,000 in compensatory damages (all as had been found by the jury). After the District Court denied PHA’s post-trial motions for judgment as a matter of law or, in the alternative, a new trial, see Marra v. Philadelphia Hous. Auth., 404 F. Supp. 2d 839 (E.D. Pa. 2005), PHA filed this timely appeal.7