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James O. QUARLES, Plaintiff-Appellant, v. GENERAL MOTORS CORPORATION (MOTORS HOLDING DIVISION), Defendant-Appellee

United States Court of Appeals for the Second Circuit1985-03-27No. No. 905, Docket 84-7975
758 F.2d 839

Summary

Holding. The appellate court affirmed the district court's grant of summary judgment dismissing Quarles's claims for racial discrimination and bad faith termination, finding that undisputed facts established legitimate, non-discriminatory reasons for the termination.

James Quarles was removed from his position as president and director of a General Motors-affiliated Chevrolet dealership in May 1984. GM cited suspected involvement in a kickback scheme and failure to cooperate with litigation efforts to recover improperly paid funds. Quarles sued in federal court, claiming the termination violated federal civil rights law and the Automobile Dealers' Day in Court Act, alleging discriminatory motivation based on race.

The trial judge granted GM's motion for summary judgment and dismissed both claims before GM even filed a formal answer. On appeal, the court affirmed the dismissal, finding that undisputed factual matters did not raise genuine issues material to the legal claims. The court noted that Quarles had been implicated by other participants in the alleged scheme, had failed to provide promised reports about the allegations, and had missed a scheduled deposition. The court also observed that Quarles's co-owner, who was terminated alongside him, was white, making the race discrimination claim implausible.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether undisputed facts preclude material questions for jury consideration in summary judgment motions
  • Whether state of mind regarding discriminatory intent can be resolved through summary judgment based on objective facts
  • Whether termination of an employee based on suspected fraud and non-cooperation with litigation constitutes unlawful racial discrimination

Procedural posture

Quarles appealed the district court's grant of summary judgment dismissing his federal civil rights and statutory claims regarding his termination from a GM-affiliated dealership.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

PER CURIAM:

Until May 22, 1984, James O. Quarles was President and a Director of Jim-Sandy Chevrolet, Inc., an automobile dealership in upstate New York. On that date, General Motors removed him from his positions, suspecting that he was involved in a scheme to defraud the dealership by receiving kickbacks from its advertising agency, and for his failure to cooperate in the maintenance of a lawsuit to recover funds improperly paid to the agency. Quarles then commenced this action in the district court, alleging that General Motors in fact had terminated him on the basis of his race, in violation of 42 U.S.C. § 1981 (1982), and that the termination was in bad faith, in violation of the Automobile Dealers’ Day in Court Act, 15 U.S.C. § 1222 (1982).

Before it had served an answer, General Motors moved, pursuant to Fed.R.Civ.P. 56, for summary judgment on both counts. Lengthy affidavits and numerous exhibits were submitted by the parties. In a thorough and well-reasoned opinion, Judge Telesca granted defendant-appellee’s motion, and directed that the claims be dismissed. See 597 F.Supp. 1037 (W.D.N.Y. 1984).

Although the record makes clear that many factual issues surrounding Quarles’s termination remain unsettled, we do not believe that any such issues are material within the meaning of Rule 56. See United States v. One Tintoretto Painting, 691 F.2d 603 (2d Cir.1982). And it must be remembered that the mere existence of factual issues — where those issues are not material to the claims before the court — will not suffice to defeat a motion for summary judgment.

Once a moving party has made a showing that no material issues of fact are in dispute, mere conjecture or speculation by the party resisting summary judgment does not provide a basis upon which to deny the motion. See Contemporary Mission, Inc. v. United States Postal Service, 648 F.2d 97 (2d Cir.1981). Though “caution should be exercised in granting summary judgment where state of mind is in issue,” Flaherty v. Coughlin, 713 F.2d 10, 13 (2d Cir.1983), we have recognized that, even in such cases, the existence of undisputed facts can provide an adequate basis for rejecting a claim of improper motivation for a defendant’s action. See Dusanenko v. Maloney, 726 F.2d 82 (2d Cir.1984); Markowitz v. Republic Nat’l Bank, 651 F.2d 825 (2d Cir.1981).

In this case, the undisputed facts showed that Quarles had been implicated in the kickback scheme by the statements of other participants, that he had failed to submit promised reports concerning the allegations and that he had failed to attend a scheduled deposition in a lawsuit to recover the sums alleged to have been improperly paid. Whether or not he was in fact culpable, which GM was not obliged to prove, these objective facts justified GM’s action in terminating Quarles. Finally, it is important to note that Quarles was terminated along with his partner, who is a white man. In this setting, Quarles’s allegations of discriminatory intent border on the frivolous.

Accordingly, for substantially the reasons set forth by the district court, the judgment dismissing Quarles’s claims is affirmed.