Court Opinion

ID: 9686804
Source: CourtListenerOpinion
Date Created: 2023-08-24 16:07:03.215911+00
Date Added: 2024-06-11T18:18:22.168776
License: Public Domain

Mallett, J.
(dissenting.) We disagree with the majority and would hold that the doctrine of collateral estoppel does not apply to Civil Service Commission decisions because the Legislature intended the Civil Rights Act to abrogate the common-law rules of preclusion. Thus, we would affirm the decision of the Court of Appeals and allow the plaintiff to relitigate issues of discrimination in *557circuit court following a final determination by the Civil Service Commission.
i
Generally, collateral estoppel applies to an administrative agency’s final decision. Lilienthal v City of Wyandotte, 286 Mich 604; 282 NW 837 (1938), and Storey v Meijer, Inc, 431 Mich 368, 372; 429 NW2d 169 (1988). The decision is "conclusive of the rights of the parties, or their privies, in all other actions or suits in the same or any other tribunal of concurrent jurisdiction on the points and matters in issue in the first proceeding.” Lilienthal, supra at 616. However, each agency must be assessed separately, and no blanket statement regarding collateral estoppel can be made for all administrative agencies.1
In order to determine whether the plaintiff’s action is barred by collateral estoppel, we must examine the Civil Service Commission’s final decision in light of general collateral estoppel requirements2 and the three-part test adopted in Roman Cleanser Co v Murphy, 386 Mich 698, 703-704; 194 NW2d 704 (1972), and more recently applied in *558Storey v Meijer, Inc, supra. The decision will be given preclusive effect if (1) the administrative determination is adjudicatory in naturé, (2) there is a method of appeal, and (3) it is clear that the Legislature intended the agency decision to be final in the absence of an appeal. Id. at 373.
The first prong of the Storey test, assessing whether an administrative agency’s determination is adjudicatory in nature, requires a comparison between the similarity of the agency’s procedure and that of a court. 2 Restatement Judgments, 2d, § 83, comment b, p 268; 2 Davis & Pierce, Administrative Law (3d ed), § 13.3, p 250.
Like the majority, we do not contest that the commission’s determination is adjudicatory in nature. The commission is a quasi-judicial administrative agency created by the constitution, and the specific determination is similar in numerous respects to that of a judicial proceeding. Viculin v Dep’t of Civil Service, 386 Mich 375, 386; 192 NW2d 449 (1971), citing People ex rel Clardy v Balch, 268 Mich 196, 200; 255 NW 762 (1934), and In re Fredericks, 285 Mich 262, 266; 280 NW 464 (1938). The employee has the right to be represented by counsel, and the commission has the authority to subpoena witnesses and require the production of documents. In addition, the employee has the right to examine and cross-examine witnesses, the employee has the right to submit exhibits,, and there is a definite point of finality in the proceedings. Although proceedings before the commission may not be as extensive as those employed by a court, the plaintiff filing a claim with the commission trades the rigidity of a judicial tribunal for the informality, simplicity, and rapidity of an administrative determination. There is no indication that the differences between a *559commission hearing and a judicial proceeding hinder the ability to present a discrimination claim.
The second prong of the Storey test requires that a method of appeal be available, but is not concerned with whether an appeal was taken. While an actual appeal is not necessary in order for an agency decision to be given preclusive effect,3 the plaintiff in this case pursued his appeal. Again, we do not contest that the commission procedures satisfy this aspect of the test. The Michigan Constitution allows final commission decisions to be appealed to the circuit court. Const 1963, art 6, § 28.
The critical issue disputed in this case is whether the commission’s civil rights determination fulfills the third prong of the test; that is, whether the Legislature, in enacting the Civil Rights Act, intended to abrogate the traditional rules of preclusion.4 Because the rules of preclusion are a judicial creation, Howell v Vito’s Truck*560ing & Excavating Co, 386 Mich 37; 191 NW2d 313 (1971), the presumption of preclusion will not apply " 'when a statutory purpose to the contrary is evident.’ ” Astoria Federal S & L Ass’n v Solimino, 501 US 104, 108; 111 S Ct 2166; 115 L Ed 2d 96 (1991), quoting Isbrandtsen Co v Johnson, 343 US 779, 783; 72 S Ct 1011; 96 L Ed 1294 (1952).
According to Storey and 2 Restatement Judgments, 2d, § 83, collateral estoppel is not to be applied to administrative agency decisions if it conflicts with a legislative policy that permits a court to make an independent determination of an issue in a subsequent civil proceeding. Storey at 377. 2 Restatement Judgments, 2d, § 83(4), p 267, provides:
An adjudicative determination of an issue by an administrative tribunal does not preclude relitigation of that issue in another tribunal if according preclusive effect to determination of the issue would be incompatible with a legislative policy that:
(a) The determination of the tribunal adjudicating the issue is not to be accorded conclusive effect in subsequent proceedings; or
(b) The tribunal in which the issue subsequently arises be free to make an independent determination of the issue in question.
We find that Civil Service Commission decisions are subject to this exception to the general rule of preclusion. Collateral estoppel does not apply to final decisions of the Civil Service Commission because the Legislature did not intend these determinations to be conclusive in subsequent civil litigation. Applying preclusive effect to these decisions is incompatible with legislative policy that *561allows a court to make an independent determination of the same issue. Storey at 377; 2 Restatement Judgments, 2d, § 83.
ii
Unlike the majority, we find that the Legislature intended to allow an independent determination in circuit court in the standard of review set forth in the Civil Rights Act. MCL 37.2606; MSA 3.548(606). Although the requirement set forth in the Civil Rights Act applies only to review of Civil Rights Commission determinations, we find no legislative intent to treat Civil Service Commission determinations differently.
The standard of review set forth in the Civil Rights Act indicates that the Legislature intended plaintiffs to have an independent review of their civil rights claims in a judicial forum. Section 606 of the act provides that "[a]n appeal before the circuit court shall be reviewed de novo.” MCL 37.2606; MSA 3.548(606).5 Allowing a judicial proceeding when plaintiffs pursue their administrative remedy in the Civil Rights Commission,6 but *562denying a similar treatment when plaintiffs seek adjudication by the Civil Service Commission violates the goals of the Civil Rights Act.
The Civil Service Commission was created by the people of Michigan and has been in effect since January 1, 1941, through the enactment of art 6, § 22, of the Constitution of 1908, now art 11, § 5, of the current Michigan Constitution. This section provides:
The commission shall classify all positions in the classified service according to their respective duties and responsibilities, fix rates of compensation for all classes of positions, approve or disapprove disbursements for all personal services, determine by competitive examination and performance exclusively on the basis of merit, efficiency and fitness the qualifications of all candidates for positions in the classified service, make rules and regulations covering all personnel transactions, and regulate all conditions of employment in the classified service. [Const 1963, art 11, § 5.]
It is undisputed that the purpose of the amendment was to eliminate the "spoils system” and the politicization of state employment. The goal was to improve- the state of the classified civil service through the efforts of a single agency. See Council No 11, AFSCME v Civil Service Comm, 87 Mich App 420, 424; 274 NW2d 804 (1978), aff’d 408 Mich 385; 292 NW2d 442 (1980); Reed v Civil Service Comm, 301 Mich 137, 154-155; 3 NW2d 41 (1942); Dep’t of Civil Rights ex rel Jones v Civil Service Dep’t, 101 Mich App 295; 301 NW2d 12 (1980).
*563Although the Civil Rights Commission was created to end invidious forms of discrimination through the effort of a single agency, the Civil Rights Commission does not have exclusive jurisdiction over state employees’ discrimination claims. As the Court of'Appeals has correctly observed, the Civil Service Commission,7 the Civil Rights Commission,8 and the circuit court9 have concurrent jurisdiction when a "state employee asserts a civil rights violation.” Walters v Dep’t of Treasury, 148 Mich App 809, 816; 385 NW2d 695 (1986); Marsh v Dep’t of Civil Service, 142 Mich App 557; 370 NW2d 613 (1985).
Concurrent jurisdiction does not undermine the legislative goal of providing an independent determination in a judicial forum. An independent review is guaranteed in two of the three forums in which civil service employees can file a discrimination claim: the circuit court and review de novo of a Civil Rights Commission decision pursuant to MCL 37.2606; MSA 3.548(606).
Review of Civil Service Commission determinations, however, is governed by a more deferential standard. Civil Service Commission determinations are reviewed to determine if there is "competent, material and substantial evidence on the record as a whole”10 to support the commission’s decision. *564Viculin, supra; Crider v Michigan, 110 Mich App 702; 313 NW2d 367 (1981). Thus, if we were to grant preclusive effect to a discrimination decision by the Civil Service Commission, plaintiffs who pursued their discrimination claims before the commission could never secure an independent determination in a judicial forum.
For these reasons, we would find that the Legislature did not intend such result, but rather intended to guarantee "the right of any party to direct an immediate legal or equitable remedies in the courts of this state.” Const 1963, art 5, § 29; MCL 37.2803; MSA 3.548(803).
A
Treating the Civil Rights Commission and the Civil Service Commission differently is unsupported by the language or the intent of the Civil Rights Act. Civil service disputes often involve factors and considerations not present outside the civil service arena. In instances in which civil service employment presents unique constraints and obligations, the Civil Service Commission may be a better informed decisionmaker than either the courts or other administrative agencies that are not familiar with civil service employment.
We do not, however, find discrimination to be such a situation. Discrimination is discrimination, whether in the civil service arena or in the private sector. While the Civil Service Commission is undoubtedly frequently required to determine whether discrimination has occurred in state employment, we are unable to conclude that it has special knowledge or expertise requiring greater deference to its determinations than that of the Civil Rights Commission. To the contrary, it would be anomalous to give greater deference to the *565determinations of the Civil Service Commission with regard to discrimination issues, an agency that only addresses discrimination as one facet of its jurisdiction,11 than to the Civil Rights Commission, the agency expressly created to remedy discriminatory treatment.12
We conclude that because a determination by the primary agency vested with eliminating discrimination does not preclude an independent determination in a judicial forum, neither should the determination of the Civil Service Commission.
Civil rights claims have consistently been treated differently than other employment claims. While the Civil Service Commission possesses "plenary power” to determine the procedures by which "a state civil service employee may review his grievance,”13 including claims arising under the Civil Rights Act,14 denying preclusive effect to the Civil Service Commission discrimination determi*566nation recognizes the unique nature of a discrimination claim and fulfills the intent of the Legislature to provide an independent determination in a judicial forum.
B
Lastly, our conclusion is further justified by the consequences that would follow from barring the plaintiff from receiving an independent determination by the circuit court. Civil service employees are not required to exhaust their administrative remedies before filing a civil rights claim directly in circuit court.15 However, plaintiffs should not be discouraged from pursuing an administrative remedy that offers the advantage of resolving disputes more quickly and with less expense than similar judicial proceedings. We tacitly acknowledged this concern in Storey when we noted that granting preclusive effect to determinations of the Employment Security Commission would entail a
substantial risk that the potential application of collateral estoppel will cause a qualified claimant to forego a claim for unemployment compensation in order to protect the right to pursue a civil claim with its full range of benefits. [Id. at 378.]
Likewise, were we to adopt the defendant’s argument here, civil service employees, in order to avoid the preclusive effect of an adverse Civil Service Commission determination, would be encouraged to forgo proceedings before the commission in order to preserve an independent determination in a judicial forum.
As we also recognized in Storey, "[d]ue to the full range of remedies available in a civil action, the parties have a greater incentive to fully liti*567gate the civil claim than the claim for unemployment benefits.” Id. at 378. The same incentives are present in proceedings before the Civil Service Commission.16 Fearful of an adverse determination, the defendant employer would have a strong incentive to contest discrimination in all Civil Service Commission proceedings because a victorious plaintiff would be able to offensively assert the determination of the commission in circuit court and recover damages that the commission does not have the authority to award. Thus, application of collateral estoppel would encourage exhaustive contests of discrimination claims, undermining the advantages of informality, cost, and speed in the resolution of such disputes in the administrative forum.
in
In enacting the Civil Rights Act, the Legislature sought to ensure an independent determination in a judicial forum. An independent determination cannot be guaranteed if preclusive effect is granted to the previous Civil Service Commission discrimination determination.
We would hold that the Legislature intended to eliminate the preclusive effects of the Civil Service Commission determination. For this reason, we would affirm the decision of the Court of Appeals and would hold that a final determination by the Civil Service Commission does not preclude the plaintiff from relitigating the same issues in circuit court.
*568Cavañagh, J., concurred with Mallett, J.
Levin, J.
David Nummer was transferred from one unit of the Department of Treasury to another. He filed a grievance with the Civil Service Commission, claiming that the transfer breached an enforceable promise and constituted an affirmative action program that violated civil service rules mandating merit selection and barring sex and race discrimination. The hearing officer and, on review, the Civil Service Commission, found that there was no probative evidence of an enforceable promise, and that the transfer was for "legitimate business considerations.” The circuit court affirmed.
Nummer had by then commenced this action in the circuit court, claiming that his civil rights were violated. The Court of Appeals, reversing the decision of the circuit court, held that this action was not precluded by the decision of the Civil Service Commission.1 The majority reverses, concluding that the doctrine of collateral estoppel precludes this action.
I agree with the majority that ordinarily the decision of an administrative tribunal regarding a factual issue,2 following an adjudicative hearing, bars a party from seeking a contrary finding in a civil action involving another party to the administrative proceeding.3
There are, however, a number of factors — see parts ii through vi — that distinguish this case *569from other cases in which relitigation of a factual issue might be sought. Having in mind that the doctrine of collateral estoppel is not ordained by statute, but is a judicial creation, those distinguishing factors justify, in my opinion, recognizing an exception permitting relitigation of the issues of sex and race discrimination.
i
David Nummer pursued a grievance before the Civil Service Commission, claiming that his transfer from the Tax Fraud Division to the Discovery Division of the Treasury Department violated an enforceable promise made by department officials that he would continue in the Tax Fraud Division in a combined position of investigator and auditor. He also claimed that he was transferred because he is a white male, in violation of the civil service rule requiring that personnel decisions be made on the basis of merit,4 and the constitutional provision5 and civil service rule6 barring transfers in the classified service for racial (and by rule, sexual) considerations._
*570The hearing officer found that there was "no probative evidence to establish that a valid and enforceable promise was made to Nummer that he would continue to work either as a criminal investigator or that he would remain — throughout his government service — in [the Tax Fraud Division].” The hearing officer also found that "[t]he transfer was motivated by legitimate business considerations.”7
The Employment Relations Board of the Civil Service Commission denied leave to appeal.8 The Civil Service Commission reviewed and approved the decision of the Employment Relations Board.9
*571The circuit court, on appeal from the Civil Service Commission, found that there was competent, material, and substantial evidence on the whole record to support the hearing officer’s findings, and affirmed.10 Nummer did not seek leave to appeal the circuit court’s decision to the Court of Appeals.
Nummer commenced this action11 pursuant to §801(1) (art 8) of the Civil Rights Act,12 claiming that in January, 1987, he, and the other seven auditors, all of whom were white males, in the Tax Fraud Division, were summarily transferred to the newly formed Discovery Division, and that they were replaced by twenty "regulation agents,” only four of whom were white males.
Nummer further alleged that the primary objective of the reorganization was "the achievement of certain affirmative action goals which goals could only be accomplished by disenfranchising those employees currently in certain lines of progression, and in particular, your Plaintiff; this has the effect of depriving Plaintiff of his position because he was and is a white male.” Nummer claimed that the transfer violated his constitutional right to be free of discrimination because of race or color,13 his rights under the constitutional provision establishing the Civil Rights Commission,14 and his right to be free of discrimination based on sex and race in the terms and conditions of his employment under the Civil Rights Act.15 The *572complaint also alleged that the transfer breached an enforceable promise.
The circuit judge granted summary disposition because the decision of the Civil Service Commission "requires dismissal due to collateral estoppel. . . The Court of Appeals reversed,16 stating:
It is clear that in enacting the Civil Rights Act, the Legislature chose to set aside the principles of collateral estoppel in civil rights cases and to countenance a multiplicity of litigation. As provided by the statutory scheme, the Legislature intended to permit civil rights litigants to have "two bites of the apple,” even if two separate proceedings reach opposite results or engender repetitious and perhaps needless litigation in violation of the principles of collateral estoppel. As this Court noted in Walters [v Dep’t of Treasury, 148 Mich App 809, 819; 385 NW2d 695 (1986)], quoting Pompey v General Motors Corp, 385 Mich 537, 560; 189 NW2d 243 (1971), a civil action for the redress of a violation of a civil rights statute may be pursued in addition to " 'the remedial [administrative] machinery provided by statute.’ ” Thus, a plaintiff whose civil rights claim is denied by the Civil Service Commission may file an original action in the circuit court, which may conclude otherwise and award injunctive relief or damages, including costs and reasonable attorney fees.
The Court of Appeals affirmed the circuit court’s grant of summary disposition in favor of the department respecting Nummer’s breach of an enforceable promise claim, but reversed regarding his race and sex discrimination claims under the Civil Rights Act, and remanded the case for further proceedings regarding those claims only.
ii
In a circuit court civil, rights action, in contrast *573with a Civil Service Commission proceeding, the parties have a right to a jury (or judge) determination of the factual issues.17
The administrative hearing and decision-making process, while adjudicatory, is informal and expedited, in contrast with the formal and deliberative proceedings in a circuit court trial.
A new determination by a circuit court jury of the issue of sex and race discrimination, decided against Nummer by the Civil Service Commission, would thus, as set forth in the Restatement of Judgments, be "warranted by differences in the quality or extensiveness of the procedures followed in” circuit court as compared to those followed in a Civil Service Commission administrative proceeding.18
iii
This is not a case in which the litigant seeking to relitigate an adverse decision by an administra*574tive tribunal could have obtained an adjudication of all his claims in a circuit court action. A state civil servant in the classified service cannot, in a circuit court action asserting that his civil rights have been violated, join claims seeking redress for violation of his civil service rights.
Nummer’s claims that his transfer from the Tax Fraud Division to the Discovery Division of the Treasury Department violated an enforceable promise, and also violated a rule requiring that personnel decisions be made on the basis of merit, could only be advanced before the Civil Service Commission, and could not have been advanced in circuit court.19 The third strand of his complaint, the civil rights claim, alone can be advanced in circuit court.20
A state civil servant will generally conclude that he is more likely to prevail on a civil rights claim in a circuit court civil rights action than before the Civil Service Commission. Today’s decision— precluding a circuit court civil rights action following a Civil Service Commission hearing on a civil rights grievance — will generally result in state civil servants splitting their claims of civil rights and noncivil rights grievances. The state civil servant henceforth will not file a grievance involving a civil rights, claim before the Civil Service *575Commission, and will file in circuit court,21 resulting in litigation before the Civil Service Commission of noncivil rights grievances and in the circuit court of civil rights claims, thus assuring the multiplicity of litigation that the doctrine of collateral estoppel seeks to discourage.22
IV
In some cases, including this case, the factual predicate of a state civil servant’s noncivil rights grievance may so relate to the factual predicate of his civil rights grievance that a Civil Service Commission hearing officer’s findings on the noncivil rights grievance may decide factual issues central to a circuit court civil rights action. Where that might occur, a well-informed and advised civil servant henceforth must choose whether to forgo, by not grieving his noncivil rights claims — in order to protect his civil rights claim against an adverse finding by a Civil Service Commission hearing officer on an issue central to a circuit court civil rights action — or run the risk of such an adverse finding by filing a grievance regarding his noncivil rights claims.
Even if Nummer had "chosen” to forgo filing a grievance with the Civil Service Commission respecting violation of his civil rights, application of conventional collateral estoppel doctrine would nevertheless bar his circuit court civil rights action. The Civil Service Commission’s finding that he had been transferred for "legitimate business considerations” — thus rejecting his merit selection *576grievance — would ordinarily preclude relitigation of the bona fides of the reasons for the transfer in the circuit court civil rights action.
v
While the majority’s conclusion that the circuit court civil rights action is precluded by the doctrine of collateral estoppel might be read as limited to a case, such as this, in which the claim of discrimination was raised before the Civii Service Commission and there was a finding that the claim of discrimination was not meritorious, it no doubt would be contended in another case that, although no claim of discrimination had been presented before the Civil Service Commission, factual findings in the Civil Service Commission proceeding preclude relitigation of the issue of the reason for the transfer.
Preclusion is a judicially created doctrine that serves to eliminate redundant litigation. It should not be extended to a case in which the litigation is not redundant.
A state civil servant who has both a civil rights grievance and a noncivil rights grievance should be able to seek a Civil Service Commission hearing of his noncivil rights grievance without running the risk that the decision of that claim will preclude a circuit court civil rights claim even if the employee does not file a grievance regarding his civil service discrimination claim.
The majority should limit its holding to the facts of this case where grievances involving both a civil rights and a noncivil rights claim were filed. The majority should, I believe, add that where a grievance does not involve a civil service discrimination claim, a finding regarding another claim will not preclude a civil rights action. To fail to do so may *577mean that a person employed in the state classified service will be constrained from filing legitimate nondiscrimination grievances, lest an adverse determination foreclose a civil rights action.
Neither judicial economy nor the doctrine of collateral estoppel inexorably requires this Court to conclude that the needs of judicial economy outweigh the needs and rights of persons in the state classified service to exercise their civil service grievance hearing rights without potentially sacrificing their rights and remedies under the Civil Rights Act.
VI
Applying the conventional collateral estoppel doctrine in this case charging sex and race discrimination means that a state civil servant who protests, here a transfer, in another case, discipline, on any basis — whether on the basis of violation of civil rights or violation of other rights— runs the risk of a factual finding that may bar his civil rights action. A state civil servant who wishes to preserve his right to a jury determination in a circuit court civil rights action of his claims of sex or race discrimination must forgo filing a grievance before the Civil Service Commission regarding any issue that might result in a finding that the action taken by the department was for bona fide reasons.
It is a feature of civil rights litigation that a person claiming a violation of his civil rights has a multiplicity of remedies.23 That is a constitutional and legislative choice annoying to some, but a choice that this Court should honor by denying preclusion of a circuit court action where there *578were sound reasons for first seeking administrative relief.
Neither the framers of the constitution nor the Legislature intended that an employee in the state civil service would be put to such an election of which right to assert, and constrained to forgo one right to protect another.
The framers of the constitution, in providing for the plenary power of the Civil Service Commission,24 and the Legislature, in providing for a circuit court civil rights action, did not intend to preclude a state civil servant who unsuccessfully pursued a grievance involving a civil rights violation before the Civil Service Commission from obtaining a jury determination of the civil rights claim in a legal action expressly preserved by the constitution to all citizens.25
The policies underlying the judicially created doctrines of collateral estoppel and preclusion do not require that those doctrines be applied so rigidly as to force such an election of which right to assert and which right to abandon to protect the other right. The policies, protective of the civil service rights of state employees and of the civil rights of all citizens, as expressed in the constitution, and protective of civil rights, as expressed in the statutes, oblige us to protect both a state employee’s civil service grievance rights and his circuit court civil rights cause of action.
Because a transfer in violation of a state civil *579servant’s civil rights would also be grievable before the Civil Service Commission, a civil servant claiming that his transfer was discriminatory should be encouraged to advance that claim before a Civil Service Commission hearing officer at the same time he advances his noncivil rights grievances so that the hearing officer has all the claims before him and can review all the evidence, and make a decision on all the claims.
A circuit court civil rights action is not "repetitive” or unnecessarily duplicative of a civil service hearing. A civil service hearing was required to provide Nummer with an opportunity to present his breach of enforceable promise and merit rule grievances. Permitting plaintiffs like Nummer to raise the civil rights issue before the Civil Service Commission without risking preclusion of a circuit court civil rights claim might, in particular cases, actually conserve judicial resources.
A proceeding before the Civil Service Commission ordinarily moves more speedily than a circuit court civil rights action, and provides an opportunity for mediation and rectification of an employee’s grievance that might avoid unnecessary litigation. Providing such an opportunity is in the public interest, the interest of the Civil Service Commission, the department of state government for which the civil servant works, and the civil servant.
The public interest in preserving the efficacy of Civil Service Commission hearings as a means of protecting civil servants and the administration of state government from untoward action by a state governmental official militates against applying the doctrine of collateral estoppel in a manner that will tend to eliminate Civil Service Commission hearings respecting employee complaints regarding transfers or discipline in any case in *580which the employee may wish to preserve for adjudication by a jury in circuit court claims of sex, race, or other discrimination.
VII
The majority’s assertion that had Nummer complained to the Civil Rights Commission and appealed to the circuit court, a § 801 circuit court civil rights action would be precluded by an adverse decision in the circuit court,26 ignores that the claimant is not ordinarily a party in a Civil Rights Commission proceeding27 and ordinarily is not represented by separate counsel.28
The majority references no decision of the Court of Appeals in which á party sought to retry in a circuit court civil rights action issues decided on the merits by the Civil Rights Commission and affirmed or reversed on appeal in the circuit court. There may be no such case simply because the Civil Rights Commission takes relatively few cases to formal hearing, and, when it does, the complainant may generally prevail or accept an adverse determination following a full hearing on the merits and a determination de novo on appeal to the circuit court.
Such a scenario cannot be compared to adjudica*581tion of a civil rights claim by a civil service hearing officer, one page affirmances by the Employment Board and the Civil Service Commission, and further review by the circuit court under the deferential reviewing standard requiring that the commission’s decision be affirmed if supported by competent, material, and substantial evidence on the whole record.29
In Walker v Wolverine Fabricating & Mfg Co, Inc, 425 Mich 586; 391 NW2d 296 (1986), the complainant appealed from a decision of the Civil Rights Commission dismissing his complaint after finding that there were not sufficient grounds to issue a charge. It is one thing to construe the constitutional provision, "appeals [from the Civil Rights Commission] shall be tried de novo,”30 as not permitting expansion of the record on appeal where the issue is whether the Civil Rights Commission properly declined to bring a charge, and, thus, to decide the merits. It would be quite another to so construe that constitutional provision where the circuit court reviews a decision by the Civil Rights Commission on the merits.
An appeal (under article 6 of the Civil Rights Act) from the Civil Rights Commission truly tried de novo in circuit court on the merits, with a full record made by counsel for the complainant, probably would preclude a circuit court action brought in the claimant’s name under § 801 (article 8 of the Civil Rights Act), especially if it was the claimant who appealed from the Civil Rights Commission to the circuit court.31
VIII
The majority states that "review under a compe*582tent, material, and substantial evidence standard” "is not 'on the merits.’ ”32 Although such appellate review is not de novo, it is nevertheless supposed to be a search of the record and a review to determine whether there is the requisite evidentiary support for the decision "on the merits.”
IX
The majority states that the framers of the Constitution of 1963 desired, as set forth in art 5, § 29, to extend to "private employment”33 the protection provided in the civil service provisions of the constitution against discrimination.34 This is inconsistent with recognition that there is no need for a state civil service employee to exhaust his administrative remedies35 — he can proceed under the Civil Rights Act directly in the circuit court which, thus, provides remedies not limited to "private employment.”
There are a large number of governmental employees who are not in the state classified civil service: state employees who are excepted from the classified state civil service, and county, city, and township employees, all of whom are covered by the Civil Rights Act.
x
The following statement appears on pp 561-562 of the dissenting opinion:
The standard of review set forth in the Civil Rights Act indicates that the Legislature intended *583plaintiffs to have an independent review of their civil rights claims in a judicial forum. Section 606 of the act provides that "[a]n appeal before the circuit court shall be reviewed de novo.” MCL 37.2606; MSA 3.548(606). Allowing a judicial proceeding when plaintiffs pursue their administrative remedy in the Civil Rights Commission, but denying a similar treatment when plaintiffs seek adjudication by the Civil Service Commission violates the goals of the Civil Rights Act.
The discussion of § 606 (article 6) as the source of the right to an "independent determination” overlooks that § 606 concerns only an appeal from the Civil Rights Commission. The source of the right to maintain this separate action in circuit court is not § 606 in article 6, but article 8.
The Civil Rights Act provides, in article 6, for the filing of a complaint with the Civil Rights Commission and for an appeal from its decision to the circuit court, which shall review the decision of the commission de novo.36
The Civil Rights Act further provides, in article 8, that a person alleging a violation of the Civil Rights Act may bring a civil action for damages in the circuit court, and recover, as part of his damages, reasonable attorneys fees.37
This action does not seek appellate review by the circuit court of a decision of the Civil Rights Commission. (Nor does this action seek appellate review by the circuit court of a decision of the Civil Service Commission.) This is a separate, origi*584nal circuit court action commenced pursuant to article 8, and cannot properly be analogized to an article 6 action seeking appellate review by the circuit court of a decision of the Civil Rights Commission.
An article 8 action is triable by a jury. In Marsh, as here, the plaintiff filed an article 8 action in the circuit court claiming that the Department of Civil Service and the Treasury Department unlawfully discriminated on the basis of sex and race.38 The record to be made in an action triable before a jury is not limited, and cannot be limited, by the record made before another tribunal such as the Civil Rights Commission.

 Collateral estoppel is a judicial creation. Howell v Vito’s Trucking & Excavating Co, 20 Mich App 140, 146; 173 NW2d 777 (1969). Its general purpose is to "strike a balance between the need to eliminate repetitious and needless litigation and the interest in affording litigants a full and fair adjudication of the issues involved in their claims.” Storey v Meijer, Inc, supra at 372; Senior Accountants, Analysts & Appraisers Ass’n v Detroit, 399 Mich 449, 457-458; 249 NW2d 121 (1976).

 The general requirements of collateral estoppel are set forth in 1 Restatement Judgments, 2d, § 27, p 250, which states that "[w]hen an issue of fact or law is actually litigated and determined by a valid and final judgment, and the determination is essential to the judgment, the determination is conclusive in a subsequent action between the parties, whether on the same or a different claim.” This Restatement definition was adopted in Senior Accountants v Detroit, supra at 458, but at that time it was defined in § 68 of the Restatement. The definition was moved to § 27 in the Second Restatement.

 2 Restatement Judgments, 2d, § 83, comment a, pp 267-268. Applying collateral estoppel to unappealed agency decisions is not a novel concept. In Senior Accountants, supra at 453, we addressed whether an unappealed Employment Relations Commission decision collaterally estopped a subsequent action in circuit court. We held
that plaintiffs are barred from suing for "damages” under a breach of contract theory by the doctrine of collateral estoppel because the questions of fact necessary for determination of "damages” by the circuit court in this case would be identical to questions of fact already determined by the Michigan Employment Relations Commission in concluding "back pay” was improper in this case.
The requirement is that the plaintiff have the opportunity to appeal the decision, not whether the plaintiff takes advantage of the opportunity.

 When determining whether agency determinations preclude relitigation of civil rights claims in a federal judicial forum, the United States Supreme Court consistently examines the intent of Congress in enacting the specific legislation in question. See Alexander v Gardner-Denver Co, 415 US 36; 94 S Ct 1011; 39 L Ed 2d 147 (1974); Kremer v Chemical Construction Corp, 456 US 461; 102 S Ct 1883; 72 L Ed 2d 262 (1982); Univ of Tennessee v Elliott, 478 US 788; 106 S Ct 3220; 92 *560L Ed 2d 635 (1986); Astoria Federal S & L Ass’n v Solimino, 501 US 104; 111 S Ct 2166; 115 L Ed 2d 96 (1991).

 As recently explained by this Court, the term "de novo” means that "a circuit court, in reviewing a decision of the Civil Rights Commission, may substitute its assessment for the findings, conclusion, and decision of the Civil Rights Commission.” Dep’t of Civil Rights ex rel Johnson v Silver Dollar Cafe, 441 Mich 110, 116; 490 NW2d 337 (1992).

 Whether a previous decision of the Civil Rights Commission precludes a subsequent trial in a judicial forum is not before the Court and we do not decide the effect of a Civil Rights Commission determination. We do note, however, that a similar conflict will generally not arise when the Civil Rights Commission is the administrative agency because the commission has enacted an internal rule of procedure that requires plaintiffs to include in their complaint
[a] statement as to any other proceeding, civil or criminal, based upon the same facts, occurrences, or transactions as alleged in the complaint, together with a statement as to the status or disposition of the other action. Where such a proceed*562ing is pending, the commission or department may, in its discretion, delay consideration or action on the complaint filed. [1979 AC, R 37.4(4)(e).]
Presumably, the Civil Rights Commission stays its proceedings and awaits the result in the other forum.

 Const 1963, art 11, § 5.

 MCL 37.2601-37.2605; MSA 3.548(601)-3.548(605).

 MCL 37.2801; MSA 3.548(801).

 Const 1963, art 6, § 28. As illustrated in comments of the constitutional drafters, the substantial evidence standard of review "is simply a review on the record made before the hoard of review or commission below. It is a summary proceeding . . . .” 1 Official Record, Constitutional Convention 1961, p 1466 (comments of Lei-brand). As noted in Employment Relations Comm v Detroit Symphony Orchestra, Inc, 393 Mich 116, 124; 223 NW2d 283 (1974), "such a review does not attain the status of de novo review .... Such review must be undertaken with considerable sensitivity in order that the courts accord due deference to administrative expertise and not invade the province of exclusive administrative fact finding . . . .”

 It is undisputed that the civil service system was established to put an end to the evils of the “spoils system” which had politicized all levels of state government. The goal of the amendment was to improve the classified civil service by the adoption of a merit system. [Council No 11, AFSCME, supra, at 424, citing Reed v Civil Service Comm, supra at 154-155.]

 The Civil Rights Act "is aimed at 'the prejudices and biases’ borne against persons because of their membership in a certain class . . . and seeks to eliminate the effects of offensive or demeaning stereotypes, prejudices, and biases.” Miller v C A Muer Corp, 420 Mich 355, 363; 362 NW2d 650 (1984) (citations omitted),

 Viculin at 393.

 The classified civil service is not exempted from legislation prohibiting discrimination and securing civil rights in employment. Thus the Elliott-Larsen and Handicappers’ Civil Rights Acts apply to employees of the classified civil service, and the Civil Rights Commission and circuit court have jurisdiction over discrimination claims of aggrieved employees. [Marsh, supra at 569.]
We express no opinion regarding the intent of the Legislature in enacting the Handicappers’ Civil Rights Act or the preclusive effect of a Civil Service Commission determination of an issue covered by that act. MCL 37.1101 et seq.; MSA 3.550(101) et seq.

 Marsh, supra at 562; Walters, supra at 816.

 We have traditionally required mutuality of estoppel for collateral estoppel to apply. Lichon v American Universal Ins Co, 435 Mich 408, 428; 459 NW2d 288 (1990); Storey at 373, n 3; Howell v Vito’s Trucking Co, n 1 supra at 43. " 'The estoppel is mutual if the one taking advantage of the earlier adjudication would have been bound by it, had it gone against him.’ ”

 200 Mich App 695; 504 NW2d 724 (1993).

 Or a legal issue.

 When an issue of fact or law is actually litigated and determined by a valid and final judgment, and the determination is essential to the judgment, the determination is conclusive in a subsequent action between the parties, whether on the same or a different claim. [1 Restatement Judgments, 2d, § 27, p 250.]

 All appointments and promotions to positions in the classified service and all measures for the control and regulation of employment in such positions, and separation therefrom, shall be based on merit, efficiency and fitness. [Civil Service Commission Rule 1-1.1.]

 No appointments, promotions, demotions or removals in the classified service shall be made for religious, racial or partisan considerations. [Const 1963, art 11, § 5.]

 Conditions. — No person shall be discriminated against in seeking employment, in being appointed or promoted, or in any condition of employment, in the classified service, or any separation therefrom, because of race, color, religion, national origin, ancestry, handicap, partisan considerations, age or sex. Age or sex may be determined to a bona fide occupational qualification. [Civil Service Commission Rule 1-2.1.]

 On the matter of discrimination, the claim is that auditors are white males and that most of the persons hired as regulation agents are from minority groups — women and persons of color. Grievant relies on this single fact to establish his claim. It is not sufficient to do so! The transfer was motivated by legitimate business considerations. I find that Grievant has not overcome this fact in his proofs. That the auditors were all men and that mostly women and other minorities replaced them is largely irrelevant because of the differing levels of the two classifications. In addition, the eligibility pool from which the regulation agents were selected was made up primarily of minority persons and this, not discrimination, is the reason for the staffing.
decision
The Department of Treasury’s transfer of David A. Nummer from its Tax Fraud to its Discovery Division was based exclusively on business considerations. As such, the transfer did not violate either the Merit Principles, Section 1-1.1 or Section 1-2.1 of the Civil Service Rules. Therefore, the grievance is dismissed.
The grievance decision is dated June 14, 1988, mailed June 17, 1988.

 The matter was considered at a board conference on November 7, 1988, mailed November 9, 1988. The board, said: "Leave to appeal is denied because the Board concludes that no meritorious basis for an appeal of the Grievance Hearing Officer’s Decision has been shown by Appellant.”

 The mailing date was January 20, 1989.

 The opinion of the circuit judge is dated January 5, 1990.

 On December 12, 1989.

 A person alleging a.violation of this act may bring a civil action for appropriate injunctive relief or damages, or both. [MCL 37.2801(1); MSA 3.548(801)(1).]

 Const 1963, art 1, § 2.

 Const 1963, art 5, § 29.

 MCL 37.2201 et seq.; MSA 3.548(201) et seq.

 200 Mich App 700.

 In Marsh v Dep’t of Civil Service, 142 Mich App 557, 569; 370 NW2d 613 (1985), and earlier and later cases, the Court of Appeals held and recognized that there is a right to a jury trial in an action brought pursuant to § 801 of the Civil Rights Act. See n 12 for text of § 801(1).

 Although an issue is actually litigated and determined by a valid and final judgment, and the determination is essential to the judgment, relitigation of the issue in a subsequent action between the parties is not precluded in the following circumstances:
(3) A new determination of the issue is warranted by differences in the quality or extensiveness of the procedures followed in the two courts or by factors relating to the allocation of jurisdiction between them .... [1 Restatement Judgments, 2d, § 28, p 273.]
Cf. Beacon Theatres, Inc v Westover, 359 US 500; 79 S Ct 948; 3 L Ed 2d 988 (1959); Meeker v Ambassador Oil Corp, 375 US 160; 84 S Ct 273; 11 L Ed 2d 261 (1963); People v Demery, 104 Cal App 3d 548, 560-561; 163 Cal Rptr 814 (1980); State Farm Fire & Casualty Co v Emde, 706 SW2d 543, 546 (Mo App, 1986).

 See Norris v Liquor Control Comm, 342 Mich 378, 381; 70 NW2d 761 (1955).
Even if Nummer could have asserted a claim for damages due to breach of enforceable promise and violation of the merit rule in the Court of Claims, he probably would have been required to exhaust his administrative remedies before the Civil Service Commission before commencing an action in the Court of Claims. See Bays v Dep’t of State Police, 89 Mich App 356, 359-360; 280 NW2d 526 (1979).
In all events, Nummer had a right under the civil service rules to file a grievance with the Civil Service Commission respecting his breach of enforceable promise claim, and to a hearing thereon.

 I agree with the majority that, as held in Marsh, n 17 supra, pp 562-563, Michigan law "does not require exhaustion of administrative remedies before filing [a civil rights action] in circuit court.” Ante, p 547.

 Or possibly with the Civil Rights Commission.

 As stated by the majority, according preclusive effect to administrative fact finding serves the parties’ "interest in avoiding costly and repetitive litigation, as well as preserving judicial resources.” (Ante, p 542, citing Univ of Tennessee v Elliott, 478 US 788, 798; 106 S Ct 3220; 92 L Ed 2d 635 [1986].)

 Const 1963, art 5, § 29; MCL 37.2101 et seq.; MSA 3.548(101) et

 Const 1963, art 11, § 5; Viculin v Dep’t of Civil Service, 386 Mich 375; 192 NW2d 449 (1971).

 Const 1963, art 5, § 29, establishing the Civil Rights Commission, provides:
Nothing contained in this section shall be construed to diminish the right of any party to direct and immediate legal or equitable remedies in the courts of this state.

 Ante, p 548.

 But see 1 Restatement Judgments, 2d, § 41(d), p 393 stating that a person who is not a party, but who is represented by a party is bound as though he were a party and that a person is represented by a party who is an official "invested by law with authority to represent the person’s interests,” and comment d, p 397.
Under the circumstance that the claimant may maintain a separate circuit court civil rights action, it is at least unresolved whether the Civil Rights Commission or the attorney general may represent a claimant if the effect might or would be to preclude maintenance of a separate circuit court action.

 See, e.g., n 36, where an action commenced before the Civil Rights Commission was styled Dep’t of Civil Rights ex rel Johnson v Silver Dollar Cafe, 441 Mich 110; 490 NW2d 337 (1992).

 Const 1963, art 6, § 28; Viculin, n 24 supra.

 Const 1963, art 5, § 29.

 MCL 37.2606; MSA 3.548(606).

 Ante, p 544 and n 8.

 Id., p 553.

 Const 1963, art 11, § 5.

 See n 20.

 MCL 37.2605; MSA 3.548(605).
An appeal before the circuit court shall be reviewed de novo. MCL 37.2606; MSA 3.548(606).
In Dep’t of Civil Rights ex rel Johnson v Silver Dollar Cafe, n 28 supra, this Court held that the Court of Appeals reviews' the judgment of the circuit court reviewing a decision of the Civil Rights Commission under the clearly erroneous standard.

 MCL 37.2801; MSA 3.548(801).

 The Court of Appeals also ruled:
Jurisdiction of the Civil Rights Commission and the circuit court over civil rights claims is concurrent, and an aggrieved individual may proceed simultaneously in both forums.
The classified civil service is not exempted from legislation prohibiting discrimination and securing civil rights in employment. Thus the Elliott-Larsen and Handicappers’ Civil Rights Acts apply to employees of the classified civil service, and the Civil Rights Commission and circuit court have jurisdiction over discrimination claims of aggrieved employees. [Marsh, n 17 supra, pp 563-569.]