Opinion ID: 514584
Heading Depth: 1
Heading Rank: 2

Heading: the adea statutory scheme and equitable modification of its time limits

Text: 11 Congress passed the ADEA in 1967 with the hope of ending age discrimination in the work place. See Dartt v. Shell Oil Co., 539 F.2d 1256, 1259-60 (10th Cir.1976), aff'd by an evenly divided Court, 434 U.S. 99, 98 S.Ct. 600, 54 L.Ed.2d 270 (1977). To that end, the statute authorized private suits to vindicate alleged age discrimination. To maintain a private action under the ADEA scheme, an aggrieved party must first file a complaint with the EEOC. This complaint must be filed within 300 days of the alleged act of discrimination or within 180 days in states having no law against age discrimination and no agency that is authorized to investigate such claims. 4 29 U.S.C. Secs. 626(d)(1), 626(d)(2) & 633(b). 5 12 Over the past fifteen years, many courts have considered whether the 300-day filing period is a jurisdictional prerequisite to maintaining a private suit or whether it is more like a statute of limitations, which may be modified in individual cases due to equitable concerns. See, e.g., Naton v. Bank of California, 649 F.2d 691, 695-96 (9th Cir.1981). Although this circuit has come close to deciding this issue a number of times, it has never been forced to definitively resolve it. See Earnhart v. Commonwealth of Puerto Rico, 691 F.2d 69, 72-73 & n. 1 (1st Cir.1982) (discussing whether rule of equitable modification of the ADEA filing period followed in other circuits should be applied to Title VII cases); Ciccone v. Textron, Inc., 616 F.2d 1216, 1218 n. 3, 1220 n. 7 (1st Cir.1980) (declining to decide issue of equitable modification under the ADEA); Daughtry v. King's Department Stores, Inc., 608 F.2d 906, 909 (1st Cir.1979) (putting-off until another day the issue of equitable modification); Hadfield v. Mitre Corp., 562 F.2d 84, 87-88 (1st Cir.1977) (suggesting that equitable tolling may be permissible for the 60-day limitations period set out in Sec. 633(b) of the ADEA). 6 13 Because of the dearth of First Circuit cases on point, we find instructive the decisions of other circuits. Our sister circuits are in virtual unanimity in holding that the ADEA filing period is akin to a statute of limitations and is subject to equitable modification. See Dillman v. Combustion Engineering Corp., 784 F.2d 57, 59 (2d Cir.1986); McClinton v. Alabama By-Products Corp., 743 F.2d 1483, 1485 (11th Cir.1984); Vance v. Whirlpool Corp., 716 F.2d 1010, 1012 (4th Cir.1983), cert. denied, 465 U.S. 1102, 104 S.Ct. 1600, 80 L.Ed.2d 130 (1984); Coke v. General Adjustment Bureau, Inc., 640 F.2d 584, 594-95 (5th Cir.1981) (en banc); Nielsen v. Western Electric Co., Inc., 603 F.2d 741, 743 (8th Cir.1979); Naton v. Bank of California, 649 F.2d 691, 695-96 (9th Cir.1981); Wright v. State of Tennessee, 628 F.2d 949, 952-53 (6th Cir.1980) (en banc); Bonham v. Dresser Industries, Inc., 569 F.2d 187, 193 (3rd Cir.1977), cert. denied, 439 U.S. 821, 99 S.Ct. 87, 58 L.Ed.2d 113 (1978); Kephart v. Institute of Gas Technology, 581 F.2d 1287, 1288-89 (7th Cir.1978); and Dartt, 539 F.2d at 1259-60. 14 These courts have based their holdings in part on the premise that: 15 The ADEA is remedial and humanitarian legislation and should be liberally interpreted to effectuate the congressional purpose of ending age discrimination in employment. Additionally, strict compliance with section 626(d)(1)'s time limitation should not be required of laymen attempting to enforce their statutory rights. 16 Dartt, 539 F.2d at 1260 (citations omitted); see also Skoglund v. Singer Co., 403 F.Supp. 797, 801 (D.N.H.1975) (stating same view of ADEA). Congress has implicitly endorsed this view of the filing period. When the ADEA was amended in 1978, the Joint Explanatory Statement of the Committee of Conference stated: 17 The conferees agree that the charge requirement is not a jurisdictional prerequisite to maintaining an action under the ADEA and that therefore equitable modification for failing to file within the time period will be available to plaintiffs under this act. See, e.g., Dartt v. Shell Oil Co., 539 F.2d 1256 (10th Cir.1976), aff'd by an evenly divided Court, [434 U.S. 99] 98 S.Ct. 600 [54 L.Ed.2d 720] (1977); Bonham v. Dresser Industries, Inc., [569 F.2d 187] (3rd Cir.1977); Charlier v. S.C. Johnson & Son, Inc., 556 F.2d 761 (5th Cir.1977). 18 H.R.Conf.Rep. No. 950, 95th Cong., 2d Sess. 12, reprinted in 1978 U.S.Code Cong. & Admin.News 504, 528, 534. 7 Moreover, while the Supreme Court has not dealt with the tolling issue under the ADEA, it has cited favorably the above Conference Committee language in finding an analogous filing period under Title VII to be subject to equitable modification. Zipes v. Transworld Airlines, Inc., 455 U.S. 385, 395 n. 11, 102 S.Ct. 1127, 1133, 71 L.Ed.2d 234 (1982). 19 We agree with this overwhelming weight of authority and hold that the filing period contained in Sec. 626(d) of the ADEA is subject to equitable modification. The more difficult task, however, is deciding what factors might trigger such modification. 20 Courts have recognized two alternate, though related, doctrines whereby a plaintiff may modify the length of ADEA filing period: equitable estoppel and equitable tolling. Although the doctrines have been broadened, both grew out of the view that a defendant should not be permitted to escape liability by engaging in misconduct that prevents the plaintiff from filing his or her claim on time. English v. Pabst Brewing Co., 828 F.2d 1047, 1049 (4th Cir.1987), cert. denied, --- U.S. ----, 108 S.Ct. 2037, 100 L.Ed.2d 621 (1988). Equitable estoppel occurs where an employee is aware of his ADEA rights but does not make a timely filing due to his reasonable reliance on his employer's misleading or confusing representations or conduct. See Dillman, 784 F.2d at 60-61. Evidence of either the employer's improper purpose or his constructive knowledge of the deceptive nature of his conduct must also be shown. See Price v. Litton Business Systems, Inc., 694 F.2d 963, 965 (4th Cir.1982); Naton, 649 F.2d at 696. 21 Equitable tolling, on the other hand, casts a wider net. Although there may be a number of grounds upon which to ask for equitable tolling, 8 by far the most commonly asserted basis in past ADEA decisions is that of a plaintiff's excusable ignorance of his statutory rights. See, e.g., Vaught, 745 F.2d 412; McClinton, 743 F.2d at 1485-86; Bonham, 569 F.2d at 193. While it is clear that an employee's ignorance of his statutory rights, in itself, will not toll a statute of limitations, see Larson v. American Wheel and Brake, Inc., 610 F.2d 506, 510 (8th Cir.1979); Quina v. Owens-Corning Fiberglass Corp., 575 F.2d 1115, 1118 (5th Cir.1978); Downie v. Electric Boat Division, 504 F.Supp. 1082, 1086 (D.Conn.1980), it is equally plain that where such ignorance is caused either by misconduct of an employer or by failure of that employer to conspicuously post the informational EEOC notices required by the ADEA, there may be a valid claim for equitable tolling--at least until the employee receives actual notice of his statutory rights or retains an attorney. Kephart, 581 F.2d at 1289; Bonham, 569 F.2d at 193; see also Cano v. United States Postal Service, 755 F.2d 221, 222-23 (1st Cir.1985) (noting that failure to post is not dispositive; one must also look to whether the employee had received actual or constructive knowledge through other means). 22 Courts have often cited to five equitable factors that should be weighed when considering whether to allow equitable tolling in a given case. These factors are: (1) lack of actual notice of filing requirement; (2) lack of constructive knowledge of the filing requirement; (3) diligence in pursuing one's rights; (4) absence of prejudice to the defendant; and (5) a plaintiff's reasonableness in remaining ignorant of the notice requirement. Andrews v. Orr, 851 F.2d 146, 151 (6th Cir.1988); see also Wright, 628 F.2d at 953; Bassett v. Sterling Drug, Inc., 578 F.Supp. 1244, 1247 (S.D.Oh.1984), appeal dismissed, 770 F.2d 165 (6th Cir.1985); Hay v. Wells Cargo, Inc., 596 F.Supp. 635, 638 (D.Nev.1984), aff'd, 796 F.2d 478 (9th Cir.1986); Abbott, 439 F.Supp. at 646. In the analogous area of equitable tolling under Title VII, the Supreme Court has modified one aspect of this approach by holding that absence of prejudice is a factor to be considered in determining whether the doctrine of equitable tolling should apply once a factor that might justify tolling is identified, it is not an independent basis for invoking the doctrine.... Baldwin County Welcome Center v. Brown, 466 U.S. 147, 152, 104 S.Ct. 1723, 1726, 80 L.Ed.2d 196 (1984) (per curiam). 23 In the context of ADEA cases where a plaintiff is claiming excusable ignorance of the filing deadline, we believe a court should initially determine whether the plaintiff had either actual or constructive knowledge of his rights under the ADEA. Actual knowledge occurs where an employee either learns or is told of his ADEA rights, even if he becomes only generally aware of the fact that there is a statute outlawing age discrimination and providing relief therefor. See DeBrunner v. Midway Equipment Corp., 803 F.2d 950, 951-52 (8th Cir.1986). Once an employee is generally aware of his legal right to obtain redress for that wrong [age discrimination], he possesses sufficient knowledge to enable him to vindicate his rights if he so desires. McClinton, 743 F.2d at 1486. Constructive knowledge, on the other hand, is attributed to an employee in situations where he has retained an attorney, see Edwards v. Kaiser Aluminum & Chemical Sales, Inc., 515 F.2d 1195, 1200 n. 8 (5th Cir.1975), or where an employer has fulfilled his statutory duty by conspicuously posting the official EEOC notices that are designed to inform employees of their ADEA rights. McClinton, 743 F.2d at 1486; Dillman, 784 F.2d at 60; Posey v. Skyline Corp., 702 F.2d 102, 105-06 (7th Cir.), cert. denied, 464 U.S. 960, 104 S.Ct. 392, 78 L.Ed.2d 336 (1983); Hrzenak v. White-Westinghouse Appliance Co., 682 F.2d 714, 718-19 (8th Cir.1982); Bonham, 569 F.2d at 193 n. 7. In either case, the law imputes knowledge of the ADEA to the plaintiff regardless of whether, in fact, he knew of his rights. 24 If the court finds that the plaintiff knew, actually or constructively, of his ADEA rights, ordinarily there could be no equitable tolling based on excusable ignorance. See Vaught v. R.R. Donnelley & Sons Co., 745 F.2d 407, 412 (7th Cir.1984); McClinton, 743 F.2d at 1486; Posey, 702 F.2d at 105-06. If, however, the employee has no knowledge of his rights and his ignorance is due to misleading conduct by the defendant or failure of the defendant to post the required EEOC notices, then an initial case for equitable tolling has been made. Indeed, a number of courts have held that such misconduct or omission will support equitable tolling without going any further. See DeBrunner, 803 F.2d at 952; McClinton, 743 F.2d at 1486; Vance, 716 F.2d at 1013; Kephart, 581 F.2d at 1289; Bonham, 569 F.2d at 193; but see Wilkerson v. Seigfried Insurance Agency, Inc., 683 F.2d 344, 347 (10th Cir.1982) (stating that failure to post EEOC notices will not toll absent improper intent of the defendant). 25 We do not think, however, that the inquiry should end there. The court should also assess any countervailing equities against the plaintiff. For example, did he diligently pursue his claim, see Andrews, 851 F.2d at 151-52; Hay, 596 F.Supp. at 638-40; Abbott, 439 F.Supp. at 646-49, was his ignorance of his rights reasonable under the circumstances, see id., and would allowing equitable tolling still fulfill the basic purposes behind the limited filing period--namely, providing the government an opportunity to conciliate while the complaint is fresh and giving early notice to the employer of possible litigation. 9 See Posey, 702 F.2d at 104-05; Bonham, 569 F.2d at 193; Dartt, 539 F.2d at 1261. Finally, even if the court finds that the above factors call for equitable tolling, it must then take account of the degree to which delay prejudices the defendant. See Baldwin County Welcome Center, 466 U.S. at 152, 104 S.Ct. at 1726; Andrews, 851 F.2d at 151-52. 26 Turning to the case at bar, we need go no further than the first step of our analysis. Combined has presented uncontroverted evidence in the affidavit of Stephen J. Brandstrader that it had conspicuously posted the required EEOC notices at Kale's place of employ. This, it contends, negates any possible claim of ignorance by Kale. To counter this, Kale makes two arguments. First, he alleges that he never saw any EEOC notices posted. Second, even if such notices were posted, that fact alone should not impute constructive knowledge to an employee since the notices do not expressly state that there is a 300/180-day filing deadline. Each of these arguments is easily dispatched. 27 Plaintiff's allegation that he did not see the posted notices will not support a claim of excusable ignorance. It is not necessary that the employee actually observe the notices. If the employer complied with the relevant posting requirements, an employee's assertion that he never saw any notices should not of itself require the tolling of the 180-days in which to file.... Bonham, 569 F.2d at 193 n. 7; see Byers v. Follmer Trucking Co., 763 F.2d 599, 601 (3rd Cir.1985); Vaught, 745 F.2d at 412; Hrzenak, 682 F.2d at 719; Butz v. Hertz Corp., 554 F.Supp. 1178, 1182 (W.D.Pa.1983). Moreover, in the face of the affidavit of Mr. Brandstrader, which asserts Combined's full compliance with the posting requirement, plaintiff's argument of non-observation does not raise a material dispute as to whether the notices were posted that survives a summary judgment motion. See Vaught, 745 F.2d at 412; Posey, 702 F.2d at 105; Brudne v. Amalgamated Trust & Savings Bank, 627 F.Supp. 458, 464-65 (N.D.Ill.1986); Butz, 554 F.Supp. at 1182; Downie v. Electric Boat Division, 504 F.Supp. 1082, 1086 (D.Conn.1980); but see Posey, 702 F.2d at 106-07 (Cudahy, J., dissenting) (arguing that allegation of non-observation of notices raises an issue as to whether they were, in fact, posted). 28 Kale also argues that even if the notices were posted, we should find them insufficient to apprise the plaintiff of his rights under the ADEA because they do not specifically detail the limited filing period. This argument is misplaced for two reasons. First, equitable tolling is not properly invoked where a plaintiff alleges mere ignorance of a specific provision contained in a statute. Instead, ignorance in the context of equitable tolling under the ADEA, means ignorance of the unlawfulness of the defendant's conduct that is proscribed by the statute. Equity only requires that a plaintiff be aware that a statute has been passed that protects workers against age discrimination. It does not require that he know of all the filing periods and technicalities contained in the law. See DeBrunner, 803 F.2d at 952; McClinton, 743 F.2d at 1486; Vance, 716 F.2d at 1013; Bonham, 569 F.2d at 193. Thus, a plaintiff who is aware of his ADEA rights but unaware of the filing deadlines cannot, without more, invoke the doctrine of equitable tolling. 29 Second, Congress expressly entrusted the design and content of the notices to the discretion of the EEOC. The ADEA states: 30 Every employer ... shall post and keep posted in conspicuous places upon its premises a notice to be prepared or approved by the Equal Employment Opportunity Commission setting forth information as the Commission deems appropriate to effectuate the purposes of this chapter. 31 29 U.S.C. Sec. 627. Whether this court might think it helpful to prospective plaintiffs to have the filing deadline mentioned in the notices is immaterial. Congress has delegated the responsibility for the make-up of the notices to the EEOC and it has exercised its discretion. Absent a notice that is so inadequate as to not allow employees a meaningful opportunity to become aware of their rights under the ADEA, the EEOC's judgment of what is a proper notice will not be disturbed. See Posey, 702 F.2d at 106 n. 2; Pirone v. Home Insurance Co., 507 F.Supp. 1281, 1287-88 (S.D.N.Y.1981), aff'd, 742 F.2d 1430 (2d Cir.1983). Moreover, the notices in this case, while not specifically noting the 300/180-day filing period, did inform employees of the illegality of age discrimination and instruct them to contact the EEOC immediately if they felt they may be victims of discrimination. Such a notice is not so inadequate that we would second-guess the EEOC's judgment. See Posey, 702 F.2d at 106 n. 2. 32 Plaintiff argues for a blanket rule requiring all employers to inform employees of their ADEA rights and filing periods upon their dismissal. While, as plaintiff contends, such a requirement might be simpler to enforce, the fact remains that congress has not decreed such a condition through the language of the ADEA and no court has interpreted congress' intent as calling for such a result. See Butz, 554 F.Supp. at 1181. We also decline to impose such a burden absent congressional instruction. 10 33 Plaintiff presented two other arguments on appeal. He suggests first that a 300-day limitations period in cases such as this is so short as to transgress fundamental principles of due process. While we question whether the ADEA grants private employees any property interest in non-discriminatory employment, see Cleveland Bd. of Educ. v. Loudermill, 470 U.S. 532, 542-43, 105 S.Ct. 1487, 1493-94, 84 L.Ed.2d 494 (1984), we decline to express any opinion thereon since plaintiff did not proffer this argument to the district court. It has long been the rule of this circuit that arguments not made initially to the district court cannot be raised on appeal. See Johnson v. Allyn & Bacon, Inc., 731 F.2d 64, 73 (1st Cir.), cert. denied, 469 U.S. 1018, 105 S.Ct. 433, 83 L.Ed.2d 359 (1984); Marcial Ucin, S.A. v. S.S. Galicia, Her Engines, Tackle, etc., 723 F.2d 994, 1002 (1st Cir.1983); Johnston v. Holiday Inns, Inc., 595 F.2d 890, 894 (1st Cir.1979). We transgress this rule only in egregious circumstances where  'a gross miscarriage of justice would occur,'  and where the untimely argument is  'so compelling as virtually to insure appellant's success.'  Johnston, 595 F.2d at 894 (quoting Newark Morning Ledger Co. v. U.S., 539 F.2d 929, 932 (3rd Cir.1976) and Dobb v. Baker, 505 F.2d 1041, 1044 (1st Cir.1974)); see also Johnson, 731 F.2d at 73 (noting same). Kale's due process argument cannot clear this high hurdle. 34 Plaintiff's other argument is that defendant's refusal to attend conciliation with the MCAD estops it from raising a time-bar defense. Plaintiff contends that since the conciliation procedures were created to benefit employers, if an employer does not avail himself of them he should not be able to assert a defense of untimely filing. This argument also suffers from the same procedural defect as Kale's due process argument: it was not raised before the district court. Even though plaintiff's memorandum in opposition to defendant's motion for summary judgment did mention the word estoppel, his argument appears to have been based solely on equitable tolling grounds. Indeed, the district court, after disposing of Kale's tolling argument, stated that Kale has not suggested any other reason for his delay in filing his charge of discrimination with MCAD, such as any conduct by defendant which might have misled him into thinking that he had no claim. Even assuming, arguendo, that the invocation of the word estoppel properly raised the issue before the district court, Kale's contention is meritless. An essential element of equitable estoppel is reliance by the plaintiff on the words or acts of the defendant. See Mull v. Arco Durethene Plastics, Inc., 784 F.2d 284, 292 (7th Cir.1986); Dillman, 784 F.2d at 57; Naton, 649 F.2d at 696. In this case, plaintiff did not file with the MCAD until 57 days after the 300-day filing deadline. Combined's refusal to conciliate came later still. Certainly, plaintiff cannot now contend that his reliance on Combined's actions--which occurred after the filing deadline had passed--was the cause of his untimely filing. Thus, [i]n the absence of reliance there is no basis for equitable estoppel. Ewald v. Great Atlantic & Pacific Tea Co., Inc., 620 F.2d 1183, 1188, (6th Cir.) (court refused plaintiff's argument that he relied on a government letter stating that he had complied with the statutory prerequisites to maintaining suit where that letter was received after the filing deadline had passed), vacated on other grounds, 449 U.S. 914, 101 S.Ct. 311, 66 L.Ed.2d 143 (1980). 35 To summarize, we find the plaintiff's claim for equitable tolling of the 300-day filing period unavailing. Defendant's posting of the EEOC notices afforded the plaintiff constructive knowledge of his ADEA rights, and therefore, equity will not excuse his untimely filing. Since Kale has presented no disputed issue of material fact as to the time-bar issue, we affirm the district court's grant of summary judgment in favor of defendant. 36